Document:

<PAGE>

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

                        ASSET BACKED FUNDING CORPORATION,
                                    Depositor

                        WELLS FARGO HOME MORTGAGE, INC.,
                                    Servicer

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                            Securities Administrator

                                       and

                           FIRST UNION NATIONAL BANK,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT
                            Dated as of March 1, 2002

                               ABFC 2002-WF1 Trust

          ABFC Mortgage Loan Asset-Backed Certificates, Series 2002-WF1

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page

<S>               <C>                                                                                         <C>
                                                     ARTICLE I

                                                    DEFINITIONS

Section 1.01      Defined Terms...................................................................................3
Section 1.02      Accounting.....................................................................................30

                                                     ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.01      Conveyance of Mortgage Loans...................................................................30
Section 2.02      Acceptance by Trustee..........................................................................32
Section 2.03      Repurchase or Substitution of Mortgage Loans...................................................33
Section 2.04      Representations, Warranties and Covenants of the Securities Administrator......................35
Section 2.05      Representations, Warranties and Covenants of the Servicer......................................36
Section 2.06      Representations and Warranties of the Depositor................................................37
Section 2.07      Issuance of Certificates and the Uncertificated Regular Interests..............................38

                                                    ARTICLE III

                                   ADMINISTRATION AND SERVICING OF THE TRUST FUND

Section 3.01      Servicer to Act as Servicer....................................................................39
Section 3.02      Collection of Mortgage Loan Payments...........................................................40
Section 3.03      Realization Upon Defaulted Mortgage Loans......................................................40
Section 3.04      Collection Account and Distribution Account....................................................41
Section 3.05      Permitted Withdrawals From the Collection Account..............................................42
Section 3.06      Establishment of Escrow Accounts; Deposits in Escrow Accounts..................................43
Section 3.07      Permitted Withdrawals From Escrow Account......................................................43
Section 3.08      Payment of Taxes, Insurance and Other Charges; Collections Thereunder..........................44
Section 3.09      Transfer of Accounts...........................................................................44
Section 3.10      Maintenance of Hazard Insurance................................................................44
Section 3.11      Maintenance of Mortgage Impairment Insurance Policy............................................45
Section 3.12      Fidelity Bond, Errors and Omissions Insurance..................................................45
Section 3.13      Title, Management and Disposition of REO Property..............................................45
Section 3.14      Due-on-Sale Clauses; Assumption and Substitution Agreements....................................47
Section 3.15      Duties of the Credit Risk Manager..............................................................47
Section 3.16      Optional Purchases of 60+ Day Delinquent Loans by Servicer.....................................48
Section 3.17      Trustee to Cooperate; Release of Files.........................................................48
Section 3.18      Servicing Compensation.........................................................................49
Section 3.19      Annual Statement as to Compliance..............................................................49
Section 3.20      Annual Independent Certified Public Accountants' Reports.......................................49
Section 3.21      Access to Certain Documentation and Information Regarding the Mortgage Loans...................50
Section 3.22      Reports Filed with Securities and Exchange Commission..........................................50
Section 3.23      Obligations of the Servicer in Respect of Compensating Interest................................50
Section 3.24      Repurchase of Foreclosure Restricted Loans.....................................................51
Section 3.25      Investment of Funds in the Collection Account and the Distribution Account.....................51
Section 3.26      Liability of Servicer; Indemnification.........................................................52
Section 3.27      Reports of Foreclosure and Abandonment of Mortgaged Properties.................................52
Section 3.28      No Personal Solicitation.......................................................................52
Section 3.29      Limitation of Liability of the Credit Risk Manager.............................................53
</TABLE>

                                      -i-
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<TABLE>
<S>               <C>                                                                                         <C>
                                                    ARTICLE IV

                                                   FLOW OF FUNDS

Section 4.01      Interest Distributions.........................................................................53
Section 4.02      Distributions of Principal and Monthly Excess Cashflow Amounts.................................54
Section 4.03      Allocation of Losses...........................................................................56
Section 4.04      Method of Distribution.........................................................................56
Section 4.05      Distributions on Book-Entry Certificates.......................................................57
Section 4.06      Statements.....................................................................................57
Section 4.07      Remittance Reports; Advances...................................................................59
Section 4.08      [Reserved].....................................................................................60
Section 4.09      REMIC Distributions............................................................................60

                                                     ARTICLE V

                                                  THE CERTIFICATES

Section 5.01      The Certificates...............................................................................62
Section 5.02      Registration of Transfer and Exchange of Certificates..........................................62
Section 5.03      Mutilated, Destroyed, Lost or Stolen Certificates..............................................66
Section 5.04      Persons Deemed Owners..........................................................................66
Section 5.05      Appointment of Paying Agent....................................................................66

                                                     ARTICLE VI

                                           THE SERVICER AND THE DEPOSITOR

Section 6.01      Liability of the Servicer and the Depositor....................................................67
Section 6.02      Merger or Consolidation of, or Assumption of the Obligations of, the Servicer or the Depositor.67
Section 6.03      Limitation on Liability of the Servicer and Others.............................................67
Section 6.04      Servicer Not to Resign.........................................................................67
Section 6.05      Delegation of Duties...........................................................................68

                                                    ARTICLE VII

                                                      DEFAULT

Section 7.01      Servicer Events of Termination.................................................................68
Section 7.02      Securities Administrator to Act; Appointment of Successor......................................69
Section 7.03      Waiver of Defaults.............................................................................70
Section 7.04      Notification to Certificateholders.............................................................70
Section 7.05      Survivability of Servicer Liabilities..........................................................70

                                                    ARTICLE VIII

                                    THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

Section 8.01      Duties of Trustee and Securities Administrator.................................................71
Section 8.02      Certain Matters Affecting the Trustee and the Securities Administrator.........................72
Section 8.03      Trustee and Securities Administrator Not Liable for Certificates or Mortgage Loans.............73
Section 8.04      Trustee and Securities Administrator May Own Certificates......................................74
Section 8.05      Trustee and Securities Administrator Fees and Expenses.........................................74
Section 8.06      Eligibility Requirements for Trustee and Securities Administrator..............................74
Section 8.07      Resignation or Removal of Trustee and Securities Administrator.................................75
Section 8.08      Successor Trustee and Successor Securities Administrator.......................................75
Section 8.09      Merger or Consolidation of Trustee or Securities Administrator.................................76
Section 8.10      Appointment of Co-Trustee or Separate Trustee..................................................76
Section 8.11      Limitation of Liability........................................................................77
Section 8.12      Trustee May Enforce Claims Without Possession of Certificates..................................77
Section 8.13      Suits for Enforcement..........................................................................77
Section 8.14      Waiver of Bond Requirement.....................................................................77
Section 8.15      Waiver of Inventory, Accounting and Appraisal Requirement......................................78
Section 8.16      Appointment of Custodian.......................................................................78
</TABLE>

                                      -ii-
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<TABLE>
<S>               <C>                                                                                         <C>
                                                     ARTICLE IX

                                       REMIC AND GRANTOR TRUST ADMINISTRATION

Section 9.01      REMIC Administration...........................................................................78
Section 9.02      Prohibited Transactions and Activities.........................................................79
Section 9.03      Indemnification with Respect to Certain Taxes and Loss of REMIC Status.........................80
Section 9.04      REO Property...................................................................................80
Section 9.05      Grantor Trust Administration...................................................................80

                                                     ARTICLE X

                                                    TERMINATION

Section 10.01     Termination....................................................................................81
Section 10.02     Additional Termination Requirements............................................................82

                                                     ARTICLE XI

                                              MISCELLANEOUS PROVISIONS

Section 11.01     Amendment......................................................................................82
Section 11.02     Recordation of Agreement; Counterparts.........................................................83
Section 11.03     Limitation on Rights of Certificateholders.....................................................84
Section 11.04     Governing Law; Jurisdiction....................................................................84
Section 11.05     Notices........................................................................................84
Section 11.06     Severability of Provisions.....................................................................85
Section 11.07     Article and Section References.................................................................85
Section 11.08     Notice to the Rating Agencies..................................................................85
Section 11.09     Further Assurances.............................................................................86
Section 11.10     Benefits of Agreement..........................................................................86
Section 11.11     Acts of Certificateholders.....................................................................86
</TABLE>

                                     -iii-
<PAGE>

                                    EXHIBITS:

Exhibit A-1         Form of Class A Certificates
Exhibit A-2         Form of Class AIO Certificates
Exhibit B           Form of Class B Certificates
Exhibit C-1         Form of Class R Certificates
Exhibit C-2         Form of Class M-1 Certificates
Exhibit C-3         Form of Class M-2 Certificates
Exhibit C-4         Form of Class M-3 Certificates
Exhibit C-5         Form of Class CE Certificates
Exhibit C-6         Form of Class P Certificates
Exhibit D           Mortgage Loan Schedule
Exhibit E           Form of Request for Release
Exhibit F-1         Form of Trustee's Initial Certification
Exhibit F-2         Form of Trustee's Interim Certification
Exhibit F-3         Form of Trustee's Final Certification
Exhibit G           Mortgage Loan Purchase Agreement
Exhibit H           Form of Lost Note Affidavit
Exhibit I           Form of ERISA Representation
Exhibit J-1         Form of Investment Letter (Non-Rule 144A)
Exhibit J-2         Form of Investment Letter (Rule 144A)
Exhibit K           Form of Residual Certificate Transfer Affidavit
Exhibit L           Form of Transferor Certificate
Exhibit M           Depository Agreement
Exhibit N           Monthly Information Provided by Servicer
Exhibit O           Initial 60+ Day Delinquent Loans to Be Repurchased

Schedule I          Wells Fargo Prepayment Charge Matrix

                                      -iv-
<PAGE>

                  This Pooling and Servicing Agreement is dated as of March 1,
2002 (the "Agreement"), among ASSET BACKED FUNDING CORPORATION, as depositor
(the "Depositor"), WELLS FARGO HOME MORTGAGE, INC., as servicer (the
"Servicer"), WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, as securities
administrator (the "Securities Administrator") and FIRST UNION NATIONAL BANK, as
trustee (the "Trustee").

                              PRELIMINARY STATEMENT

                  The Depositor intends to sell pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple Classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Trust Fund created hereunder. The Certificates will consist of nine Classes
of Certificates, designated as (i) the Class A and Class AIO Certificates, (ii)
the Class M-1, Class M-2 and Class M-3 Certificates, (iii) the Class B
Certificates, (iv) the Class CE Certificates, (v) the Class P Certificates and
(vi) the Class R Certificates.

                  As provided herein, the Trustee shall elect that the Trust
Fund, exclusive of the rights of the Class A, Class M-1, Class M-2, Class M-3
and Class B Certificates to receive payments in respect of the Net WAC Rate
Carryover Amount, be treated for federal income tax purposes as five separate
real estate mortgage investment conduits (each a "REMIC" or, in the alternative,
"REMIC 1," "REMIC 2," "REMIC 3," "REMIC 4" and "REMIC 5" respectively). The
Class T5-AFIO, Class T5-M1IO, Class T5-M2IO, Class T5-M3IO, Class T5-BIO, Class
T5-4, Class T5-11, Class T5-12 and Class T5-13 Interests (such interests, the
"REMIC 5 Components") and the Class A, Class AIO, Class M-1, Class M-2, Class
M-3 and Class B Certificates represent all of the "regular interests" in REMIC
5. The Class CE Certificates represent the REMIC 5 Components collectively. Each
of the Class R-1, Class R-2, Class R-3, Class R-4 and Class R-5 Interests
represents the sole Class of "residual interest" in REMIC 1, REMIC 2, REMIC 3,
REMIC 4 and REMIC 5, respectively, for purposes of the REMIC Provisions. There
are two Classes of uncertificated REMIC 1 Regular Interests (the Class T1-1 and
Class T1-2 Interests), seven classes of uncertificated REMIC 2 Regular Interests
(the Class T2-1, Class T2-2, Class T2-3, Class T2-4, Class T2-1AIO, Class
T2-2AIO, Class T2-3AIO), eight Classes of uncertificated REMIC 3 Regular
Interests (the Class T3-1, Class T3-2, Class T3-3, Class T3-4, Class T3-11,
Class T3-12, Class T3-13 Interests and Class T3-AIO), and ten Classes of
uncertificated REMIC 4 Regular Interests (the Class T4-AF, Class T4-AIO, Class
T4-M1, Class T4-M2, Class T4-M3, Class T4-B, Class T4-4, Class T4-11, Class
T4-12 and Class T4-13 Interests). Each Class of REMIC 1 Regular Interests, REMIC
2 Regular Interests, REMIC 3 Regular Interests, REMIC 4 Regular Interests and
REMIC 5 Regular Interests is a "REMIC Regular Interest." The REMIC 1 Regular
Interests will be held as assets of REMIC 2, the REMIC 2 Regular Interests will
be held as assets of REMIC 3, the REMIC 3 Regular Interests will be held as
assets of REMIC 4 and the REMIC 4 Regular Interests will be held as assets of
REMIC 5. The Class P Certificates represent an interest in a grantor trust
created hereunder and are entitled to receive any Prepayment Premiums with
respect to the Mortgage Loans. In addition, any Net WAC Rate Carryover Amounts
that are paid with respect to the Class A, Class M or Class B Certificates will
be treated as first having been distributed with respect to the Class CE
Certificates and then having been paid outside of the REMICs to the Class A,
Class M or Class B Certificateholders. The "latest possible maturity date" for
federal income tax purposes of all interests created hereby will be the
Distribution Date occurring in April, 2033.

<PAGE>

                  The following table sets forth (or describes) the Class
designation, Pass-Through Rate and approximate Original Class Certificate
Principal Balance for each Class of Certificates comprising the interests in the
Trust Fund created hereunder:

<TABLE>
<CAPTION>
============================  ============================  ============================  ============================
                                     Original Class
                                Certificate Principal or
                                        Notional                    Pass-Through                 Assumed Final
          Class                          Amount                         Rate                    Maturity Dates
----------------------------  ----------------------------  ----------------------------  ----------------------------
<S>                           <C>                           <C>                           <C>
A                                  $     283,830,000                    (1)
----------------------------  ----------------------------  ----------------------------  ----------------------------
AIO                                      (2)                            %(3)
----------------------------  ----------------------------  ----------------------------  ----------------------------
M-1                                $      20,518,000                    (4)
----------------------------  ----------------------------  ----------------------------  ----------------------------
M-2                                $      17,953,000                    (5)
----------------------------  ----------------------------  ----------------------------  ----------------------------
M-3                                $      14,533,000                    (6)
----------------------------  ----------------------------  ----------------------------  ----------------------------
B                                  $       3,420,000                    (7)
----------------------------  ----------------------------  ----------------------------  ----------------------------
P                                        N/A                            N/A                           N/A
----------------------------  ----------------------------  ----------------------------  ----------------------------
CE                                       (8)                            N/A
----------------------------  ----------------------------  ----------------------------  ----------------------------
R                                        N/A                            N/A                           N/A
----------------------------  ----------------------------  ----------------------------  ----------------------------
Total                              $
============================  ============================  ============================  ============================
</TABLE>

(1)   For the first Interest Accrual Period, 2.19875% per annum. For any
      subsequent Interest Accrual Period, a per annum rate equal to the lesser
      of: (i) the lesser of (a) LIBOR plus 0.29% per annum (or LIBOR plus 0.58%
      per annum, after the Optional Termination Date) and (b) the Maximum Cap
      Rate for the related Distribution Date, and (ii) the Net Adjusted WAC Rate
      for the related Distribution Date.

(2)   The Class AIO Certificates will receive distributions of interest only,
      based on a Notional Amount. The Notional Amount for any Distribution Date
      through September 2004 will equal the lesser of (i) $34,196,000 and (ii)
      the Pool Balance of the beginning of the related Due Period, and will
      equal $0.00 for Distribution Dates in October 2004 and thereafter.

(3)   (A) For the Distribution Dates in April 2002 through January 2003, 4.50%
      per annum, (B) for the Distribution Dates in February 2003 through
      November 2003, 3.50% per annum, (C) for the Distribution Dates in December
      2003 through September 2004, 2.50% per annum, and (D) for the Distribution
      Date in October 2004 and thereafter, 0.00% per annum.

(4)   For the first Interest Accrual Period, 2.65875% per annum. For any
      subsequent Interest Accrual Period, a per annum rate equal to the lesser
      of: (i) the lesser of (a) LIBOR plus 0.75% per annum (or LIBOR plus 1.125%
      per annum, after the Optional Termination Date) and (b) the Maximum Cap
      Rate for the related Distribution Date, and (ii) the Net Adjusted WAC Rate
      for the related Distribution Date.

(5)   For the first Interest Accrual Period, 3.20875% per annum. For any
      subsequent Interest Accrual Period, a per annum rate equal to the lesser
      of: (i) the lesser of (a) LIBOR plus 1.30% per annum (or LIBOR plus 1.95%
      per annum, after the Optional Termination Date) and (b) the Maximum Cap
      Rate for the related Distribution Date, and (ii) the Net Adjusted WAC Rate
      for the related Distribution Date.

(6)   For the first Interest Accrual Period, 3.80875% per annum. For any
      subsequent Interest Accrual Period, a per annum rate equal to the lesser
      of: (i) the lesser of (a) LIBOR plus 1.90% per annum (or LIBOR plus 2.85%
      per annum, after the Optional Termination Date) and (b) the Maximum Cap
      Rate for the related Distribution Date, and (ii) the Net Adjusted WAC Rate
      for the related Distribution Date.

(7)   For the first Interest Accrual Period, 6.65875% per annum. For any
      subsequent Interest Accrual Period, a per annum rate equal to the lesser
      of: (i) the lesser of (a) LIBOR plus 4.75% per annum and (b) the Maximum
      Cap Rate for the related Distribution Date, and (ii) the Net Adjusted WAC
      Rate for the related Distribution Date.

(8)   The Class CE Certificates, collectively, represent the beneficial
      ownership of the Class CE Interest, which represents the Class T5-AFIO,
      Class T5-M1IO, Class T5-M2IO, Class T5-M3IO, Class T5-BIO, Class T5-4,
      Class T5-11, Class T5-12, and Class T5 Interests.

                                      -2-
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

                  Section 1.01      Defined Terms.

                  Whenever used in this Agreement or in the Preliminary
Statement, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article. Unless otherwise
specified, interest on the Class A, Class M-1, Class M-2, Class M-3 and Class B
Certificates and on the REMIC 5 Components for any Distribution Date will be
calculated on the basis of the actual number of days in the related Interest
Accrual Period over a 360-day year, and interest on the Class AIO Certificates
will be calculated on the basis of a 360-day year consisting of twelve 30-day
months.

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

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

                  "Account": Any of the Collection Account, and Distribution
Account.

                  "Accrued Certificate Interest": With respect to each
Distribution Date and Class of Certificates (other than the Class P, Class CE
and Class R Certificates), an amount equal to the interest accrued at the
applicable rate set forth or described opposite such Class in the table in the
Preliminary Statement during the related Interest Accrual Period on the
Certificate Principal Balance of such Class of Certificates (or Notional Amount,
in the case of the Class AIO Certificates), reduced by such Class's Interest
Percentage of Relief Act Interest Shortfalls for such Distribution Date. The
Class P, Class CE and Class R Certificates will not be entitled to distributions
in respect of interest.

                  "Adjustable Rate Mortgage Loan": A Mortgage Loan the documents
for which provide for the adjustment of the Mortgage Interest Rate payable in
respect thereof at any period during the life of such loan.

                  "Adjusted Net Maximum Mortgage Rate": With respect to any
Mortgage Loan for any Distribution Date, a per annum rate equal to the
applicable Maximum Mortgage Interest Rate for such Mortgage Loan (if it is an
Adjustable Rate Mortgage Loan) or the fixed Mortgage Interest Rate for such
Mortgage Loan, if it is a fixed-rate Mortgage Loan, as of the beginning of the
related Due Period, minus the sum of (i) the Servicing Fee Rate, (ii) the
Securities Administration Fee Rate, and (iii) the Credit Risk Manager Fee Rate.

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

                  "Advance": As to any Mortgage Loan, any advance made by the
Servicer in respect of any Distribution Date pursuant to Section 4.07.

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

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

                                      -3-
<PAGE>

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

                  "Applicable Regulations": As to any Mortgage Loan, all
federal, state and local laws, statutes, rules and regulations applicable
thereto.

                  "Applied Realized Loss Amount": With respect to each
Distribution Date, the excess, if any, of (a) the aggregate of the Certificate
Principal Balances of the Certificates (after giving effect to all distributions
on such Distribution Date) over (b) the Pool Balance as of the end of the
related Due Period.

                  "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form (excepting therefrom the name of the
assignee and mortgage recordation information which has not yet been returned by
the applicable recorder's office), reflecting the sale of the Mortgage.

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

                  "Available Funds": As to any Distribution Date, an amount
equal to the excess of (i) the sum of (a) the aggregate of the Monthly Payments
due during the related Due Period and remitted by the Servicer to the Trustee
one Business Day prior to the related Distribution Date, (b) Liquidation
Proceeds, Insurance Proceeds, Principal Prepayments, Substitution Adjustment
Amounts, the Purchase Price for any repurchased Mortgage Loan, the Termination
Price with respect to the termination of the Trust pursuant to Section 10.01
hereof and other unscheduled recoveries of principal and interest (excluding
Prepayment Charges and Servicer Prepayment Charge Amounts) in respect of the
Mortgage Loans during the related Prepayment Period, (c) the aggregate of any
amounts received in respect of an REO Property deposited in the Collection
Account for such Distribution Date, (d) any Compensating Interest for such
Distribution Date, and (e) the aggregate of any Advances made by the Servicer
for such Distribution Date over (ii) the sum of (a) amounts reimbursable or
payable to the Servicer pursuant to Section 3.05, (b) Stayed Funds, (c) the
Servicing Fee, (d) the Securities Administration Fee, (e) the Credit Risk
Manager Fee, and (f) amounts deposited in the Collection Account or the
Distribution Account, as the case may be, in error.

                  "Bankruptcy Code": Title 11 of the United States Code, as
amended.

                  "Book-Entry Certificates": Any of the Certificates that shall
be registered in the name of the Depository or its nominee, the ownership of
which is reflected on the books of the Depository or on the books of a Person
maintaining an account with the Depository (directly, as a "Depository
Participant", or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.02 hereof). On the Closing
Date, the Class A-1, Class AIO, Class M-1, Class M-2, Class M-3 and Class B
Certificates shall be Book-Entry Certificates.

                  "Business Day": Any day other than a Saturday, a Sunday or a
day on which banking institutions in the city in which the Corporate Trust
Office of the Trustee is located or in the jurisdiction in which the Securities
Administrator is located (initially the State of Maryland and the State of
Minnesota) are authorized or obligated by law or executive order to be closed.

                  "Certificate": Any Regular Certificate or Class R Certificate.

                  "Certificate Custodian": Initially, First Union National Bank;
thereafter any other Certificate Custodian acceptable to the Depository and
selected by the Trustee.

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

                  "Certificate Principal Balance": With respect to any Class of
Certificates (other than the Class AIO, Class P, Class CE and Class R
Certificates) and any Distribution Date, will be equal to the Original Class
Certificate Principal Balance reduced by the sum of (i) all amounts actually
distributed in respect of principal of such Class on all prior Distribution
Dates and (ii) Applied Realized Loss Amounts allocated thereto. The Class AIO,
Class P, Class CE and Class R Certificates do not have a Certificate Principal
Balance.

                                      -4-
<PAGE>

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

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or non-U.S. Person shall not be a Holder of a Class R
Certificate for any purpose hereof.

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

                  "Class A Certificate": Any one of the Certificates
substantially in the form annexed hereto as Exhibit A-1, executed by the Trustee
on behalf of the Trust and authenticated and delivered by the Trustee,
representing the right to distributions as set forth herein and therein.

                  "Class A Certificateholders": Collectively, the Holders of the
Class A Certificates.

                  "Class A Pass-Through Rate": For the first Interest Accrual
Period, 2.19875% per annum. For any subsequent Interest Accrual Period, the
lesser of (i) (a) on or prior to the Optional Termination Date, the lesser of
(1) LIBOR plus 0.29% per annum and (2) the Maximum Cap Rate, and (b) following
the Optional Termination Date, the lesser of (1) LIBOR plus 0.58% per annum and
(2) the Maximum Cap Rate, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                  "Class A Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the Certificate Principal Balance of the
Class A Certificates immediately prior to such Distribution Date over (y) the
lesser of (A) the product of (i) 66.00% and (ii) the Pool Balance as of the last
day of the related Due Period and (B) the Pool Balance as of the last day of the
related Due Period minus the product of (i) 0.50% and (ii) the Pool Balance on
the Cut-off Date.

                  "Class AIO Certificate": Any one of the Certificates
substantially in the form annexed hereto as Exhibit A-2, executed by the Trustee
on behalf of the Trust and authenticated and delivered by the Trustee,
representing the right to distributions as set forth herein and therein.

                  "Class AIO Certificateholders": Collectively, the Holders of
the Class AIO Certificates.

                  "Class AIO Pass-Through Rate": (A) For the Distribution Dates
in April 2002 through January 2003, 4.50% per annum, (B) for the Distribution
Dates in February 2003 through November 2003, 3.50% per annum, (C) for the
Distribution Dates in December 2003 through September 2004, 2.50% per annum, and
(D) for any Distribution Date in October 2004 and thereafter, 0.00% per annum.

                  "Class B Certificate": Any one of the Certificates with a "B"
designated on the face thereof substantially in the form annexed hereto as
Exhibit B, executed by the Trustee on behalf of the Trust and authenticated and
delivered by the Trustee, representing the right to distributions as set forth
herein and therein.

                  "Class B Certificateholder": Any Holder of a Class B
Certificate.

                  "Class B Pass-Through Rate": For the first Interest Accrual
Period, 6.65875% per annum. For any subsequent Interest Accrual Period, the
lesser of (i) the lesser of (1) LIBOR plus 4.75% per annum and (2) the Maximum
Cap Rate and (ii) the Net Adjusted WAC Rate for the related Distribution Date.

                                      -5-
<PAGE>

                  "Class B Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the Certificate Principal
Balance of the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution Date), (ii) the
Certificate Principal Balance of the Class M-1 Certificates (after taking into
account the payment of the Class M-1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of the Class M-2
Certificates (after taking into account the payment of the Class M-2 Principal
Distribution Amount on such Distribution Date), (iv) the Certificate Principal
Balance of the Class M-3 Certificates (after taking into account the payment of
the Class M-3 Principal Distribution Amount on such Distribution Date) and (v)
the Certificate Principal Balance of the Class B Certificates immediately prior
to such Distribution Date over (y) the lesser of (A) the product of (i) 99.00%
and (ii) the Pool Balance as of the last day of the related Due Period and (B)
the Pool Balance as of the last day of the related Due Period minus the product
of 0.50% and the Pool Balance on the Cut-off Date.

                  "Class CE Certificates": Any one of the Class CE Certificates
as designated on the face thereof substantially in the form annexed hereto as
Exhibit C-5, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Trustee, representing the right to distributions as set
forth herein and therein, representing the REMIC 5 Components in the aggregate,
and which is entitled to all distributions in respect of the REMIC 5 Components.

                  "Class CE Distributable Amount": With respect to any
Distribution Date, the aggregate cumulative amount distributable with respect to
the REMIC 5 Components less the sum of (i) amounts previously distributed
pursuant to Section 4.02(b)(xv) and (ii) Net WAC Rate Carryforward Amounts
distributed on the current or prior Distribution Dates to other classes of
Certificates.

                  "Class M Certificate": Any one of the Certificates with an "M"
designated on the face thereof substantially in the form annexed hereto as
Exhibit C-2, C-3 or C-4 executed by the Trustee on behalf of the Trust and
authenticated and delivered by the Trustee, representing the right to
distributions as set forth herein and therein.

                  "Class M Certificateholder": Any Holder of a Class M-1, Class
M-2 or Class M-3 Certificate.

                  "Class M-1 Pass-Through Rate": For the first Interest Accrual
Period, 2.65875% per annum. For any subsequent Interest Accrual Period, the
lesser of (i) (a) on or prior to the Optional Termination Date, the lesser of
(1) LIBOR plus 0.75% per annum and (2) the Maximum Cap Rate, and (b) following
the Optional Termination Date, the lesser of (1) LIBOR plus 1.125% per annum and
(2) the Maximum Cap Rate, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                  "Class M-1 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the Certificate Principal
Balance of the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution Date) and (ii)
the Certificate Principal Balance of the Class M-1 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
78.00% and (ii) the Pool Balance as of the last day of the related Due Period
and (B) the Pool Balance as of the last day of the related Due Period minus the
product of 0.50% and the Pool Balance on the Cut-off Date.

                  "Class M-2 Pass-Through Rate": For the first Interest Accrual
Period, 3.20875% per annum. For any subsequent Interest Accrual Period, the
lesser of (i) (a) on or prior to the Optional Termination Date, the lesser of
(1) LIBOR plus 1.30% per annum and (2) the Maximum Cap Rate, and (b) following
the Optional Termination Date, the lesser of (1) LIBOR plus 1.95% per annum and
(2) the Maximum Cap Rate, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                  "Class M-2 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the Certificate Principal
Balance of the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution Date), (ii) the
Certificate Principal Balance of the Class M-1 Certificates (after taking into
account the payment of the Class M-1 Principal Distribution Amount on such
Distribution Date) and (iii) the Certificate Principal Balance of the Class M-2
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 88.50% and (ii) the Pool Balance as of the last day of
the related Due Period and (B) the Pool Balance as of the last day of the
related Due Period minus the product of 0.50% and the Pool Balance on the
Cut-off Date.

                                      -6-
<PAGE>

                  "Class M-3 Pass-Through Rate": For the first Interest Accrual
Period, 3.80875% per annum. For any subsequent Interest Accrual Period, the
lesser of (i) (a) on or prior to the Optional Termination Date, the lesser of
(1) LIBOR plus 1.90% per annum and (2) the Maximum Cap Rate, and (b) following
the Optional Termination Date, the lesser of (1) LIBOR plus 2.85% per annum and
(2) the Maximum Cap Rate, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                  "Class M-3 Principal Distribution Amount": As of any
Distribution Date on or after the Stepdown Date and as long as a Trigger Event
is not in effect, the excess of (x) the sum of (i) the Certificate Principal
Balance of the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution Date), (ii) the
Certificate Principal Balance of the Class M-1 Certificates (after taking into
account the payment of the Class M-1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of the Class M-2
Certificates (after taking into account the payment of the Class M-2 Principal
Distribution Amount on such Distribution Date), and (iv) the Certificate
Principal Balance of the Class M-3 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 97.00% and (ii)
the Pool Balance as of the last day of the related Due Period and (B) the Pool
Balance as of the last day of the related Due Period minus the product of (i)
0.50% and (ii) the Pool Balance on the Cut-off Date.

                  "Class P Certificate": Any one of the Certificates with a "P"
designated on the face thereof substantially in the form annexed hereto as
Exhibit C-6, executed by the Trustee on behalf of the Trust and authenticated
and delivered by the Trustee, representing the right to distributions as set
forth herein and therein.

                  "Class R Certificate": The Class R Certificate executed by the
Trustee on behalf of the Trust, and authenticated and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit C-1 and evidencing the
ownership of the Residual Interest. The Class R Certificate represents the
ownership of the Class R-1 Interest, Class R-2 Interest, Class R-3 Interest,
Class R-4 Interest and the Class R-5 Interest.

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

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

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

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

                  "Class R-5 Interest": The uncertificated residual interest in
REMIC 5.

                  "Class T1-1 Interest": A regular interest in REMIC 1 that is
held as an asset of REMIC 2 and has a principal balance equal to the Class T1-1
Principal Balance and bears interest at the Net WAC Rate.

                  "Class T1-1 Principal Amount": The lesser of (i) $34,196,000
and (ii) the Pool Balance.

                  "Class T1-2 Interest": A regular interest in REMIC 1 that is
held as an asset of REMIC 2 and has a principal balance equal to the Class T1-2
Principal Balance and bears interest at the Net WAC Rate.

                  "Class T1-2 Principal Balance": The excess, if any, of the (a)
the Pool Balance over (b) $34,196,000.

                  "Class T2-1 Interest": A regular interest in REMIC 2 that is
held as an asset of REMIC 3 and has a principal balance equal to the Class T2-1
Principal Amount and bears interest at the Net Adjusted WAC Rate.

                                      -7-
<PAGE>

                  "Class T2-1 Principal Amount": As of any Distribution Date,
after the application of principal payments and Applied Realized Loss Amounts,
an amount equal to 98% of the excess of (a) the Pool Balance over (b) the
Remaining Initial Overcollateralization Amount.

                  "Class T2-2 Interest": A regular interest in REMIC 2 that is
held as an asset of REMIC 3 and has a principal balance equal to the Class T2-2
Principal Amount and bears interest at the Net Adjusted WAC Rate.

                  "Class T2-2 Principal Amount": As of any Distribution Date,
after the application of principal payments and Applied Realized Loss Amounts,
an amount equal to 1% of the excess of (a) the excess of (i) the Pool Balance
over (ii) the Remaining Initial Overcollateralization Amount over (b) the
Subsequent Overcollateralization Amount.

                  "Class T2-3 Interest": A regular interest in REMIC 2 that is
held as an asset of REMIC 3 and has a principal balance equal to the Class T2-3
Principal Amount and bears interest at the Net Adjusted WAC Rate.

                  "Class T2-3 Principal Amount": As of any Distribution Date,
after the application of principal payments and Applied Realized Loss Amounts,
an amount equal to 1% of the sum of (a) the excess of (i) the Pool Balance over
(ii) the Remaining Initial Overcollateralization Amount and (b) the Subsequent
Overcollateralization Amount.

                  "Class T2-4 Interest": A regular interest in REMIC 2 that is
held as an asset of REMIC 3 and has a principal balance equal to the Class T2-4
Principal Amount and bears interest at the Net Adjusted WAC Rate.

                  "Class T2-4 Principal Amount": As of any Distribution Date, an
amount equal to (a) the Initial Overcollateralization Amount minus (b) any
principal payments and Realized Losses and accreted interest allocated to the
Class T2-4 Interest as set forth in Section 4.09(d).

                  "Class T2-1AIO Interest": A regular interest in REMIC 2 that
is held as an asset of REMIC 3 and has a notional balance equal to the Class
T1-1 Principal Amount and bears interest at 2.5% for the Distribution Dates in
April 2002 through September 2004 and any Distribution Date thereafter 0.00%.

                  "Class T2-2AIO Interest": A regular interest in REMIC 2 that
is held as an asset of REMIC 3 and has a notional balance equal to the Class
T1-1 Principal Amount and bears interest at 1.00% for the Distribution Dates in
February 2003 through November 2003 and any Distribution Date thereafter 0.00%.

                  "Class T2-3AIO Interest": A regular interest in REMIC 2 that
is held as an asset of REMIC 3 and has a notional balance equal to the Class
T1-1 Principal Amount and bears interest at 1.00% for the Distribution Dates in
April 2002 through January 2003 and any Distribution Date thereafter 0.00%.

                  "Class T3-1 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a principal balance equal to the Class T2-1
Principal Amount and bears interest at the REMIC 3 Pass-Through Rate.

                  "Class T3-2 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a principal balance equal to the Class T2-2
Principal Amount and bears interest at the REMIC 3 Pass-Through Rate.

                  "Class T3-3 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a principal balance equal to the Class T2-3
Principal Amount and bears interest at the REMIC 3 Pass-Through Rate.

                  "Class T3-4 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a principal balance equal to the Class T2-4
Principal Amount and bears interest at the Net Adjusted WAC Rate.

                  "Class T3-11 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a notional balance equal to the Class T2-1
Principal Amount and bears interest at (a) the Net Adjusted WAC Rate minus (b)
the REMIC 3 Pass-Through Rate.

                                      -8-
<PAGE>

                  "Class T3-12 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a notional balance equal to the Class T2-2
Principal Amount and bears interest at (a) the Net Adjusted WAC Rate minus (b)
the REMIC 3 Pass-Through Rate.

                  "Class T3-13 Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a notional balance equal to the Class T2-3
Principal Amount and bears interest at (a) the Net Adjusted WAC Rate minus (b)
the REMIC 3 Pass-Through Rate.

                  "Class T3-AIO Interest": A regular interest in REMIC 3 that is
held as an asset of REMIC 4 and has a notional balance equal to the Class T1-1
Principal Amount and is entitled to all interest distributions, if any, in
respect of the Class T2-1AIO Interest, the Class T2-2AIO Interest and the Class
T2-3AIO Interest.

                  "Class T4-AF Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a principal balance equal to the Certificate
Principal Balance of the Class A Certificates and bears interest at the Net
Adjusted WAC Rate.

                  "Class T4-B Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a principal balance equal to the Certificate
Principal Balance of the Class B Certificates and bears interest at the Net
Adjusted WAC Rate.

                  "Class T4-M1 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a principal balance equal to the Certificate
Principal Balance of the Class M-1 Certificates and bears interest at the Net
Adjusted WAC Rate.

                  "Class T4-M2 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a principal balance equal to the Certificate
Principal Balance of the Class M-2 Certificates and bears interest at the Net
Adjusted WAC Rate.

                  "Class T4-M3 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a principal balance equal to the Certificate
Principal Balance of the Class M-3 Certificates and bears interest at the Net
Adjusted WAC Rate.

                  "Class T4-4 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a principal balance equal to the Class T2-4
Principal Amount and bears interest at the Net Adjusted WAC Rate.

                  "Class T4-11 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a notional balance equal to the Class T2-1
Principal Amount and is entitled to all interest distributions on the Class
T3-11 Interest.

                  "Class T4-12 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a notional balance equal to the Class T2-2
Principal Amount and is entitled to all interest distributions on the Class
T3-12 Interest.

                  "Class T4-13 Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a notional balance equal to the Class T2-3
Principal Amount and is entitled to all interest distributions on the Class
T3-13 Interest.

                  "Class T4-AIO Interest": A regular interest in REMIC 4 that is
held as an asset of REMIC 5 and has a notional balance equal to the Class T1-1
Principal Amount and is entitled to all interest distributions in respect of the
Class T3-AIO Interest.

                  "Class T5-AFIO Interest": A regular interest in REMIC 5,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Certificate Principal Balance of the Class A
Certificates and bears interest at a rate equal to the excess, if any, of (i)
the Net Adjusted WAC Rate over (ii) the Class A Pass-Through Rate.

                                      -9-
<PAGE>

                  "Class T5-M1IO Interest": A regular interest in REMIC 4,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Certificate Principal Balance of the Class
M-1 Certificates and bears interest at a rate equal to the excess, if any, of
(i) the Net Adjusted WAC Rate over (ii) the Class M-1 Pass-Through Rate.

                  "Class T5-M2IO Interest": A regular interest in REMIC 4,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Certificate Principal Balance of the Class
M-2 Certificates and bears interest at a rate equal to the excess, if any, of
(i) the Net Adjusted WAC Rate over (ii) the Class M-2 Pass-Through Rate.

                  "Class T5-M3IO Interest": A regular interest in REMIC 4,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Certificate Principal Balance of the Class
M-3 Certificates and bears interest at a rate equal to the excess, if any, of
(i) the Net Adjusted WAC Rate over (ii) the Class M-3 Pass-Through Rate.

                  "Class T5-BIO Interest": A regular interest in REMIC 5,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Certificate Principal Balance of the Class B
Certificates and bears interest at a rate equal to the excess, if any, of (i)
the Net Adjusted WAC Rate over (ii) the Class B Pass-Through Rate.

                  "Class T5-4 Interest": A regular interest in REMIC 5,
beneficial ownership of which is represented by the Class CE Certificates, that
has a principal balance equal to the Class T2-4 Principal Amount and bears
interest at the Net Adjusted WAC Rate.

                  "Class T5-11 Interest": A regular interest in REMIC 5,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Class T2-1 Principal Amount and is entitled
to all interest distributions on the Class T4-11 Interest.

                  "Class T5-12 Interest": A regular interest in REMIC 5,
beneficial ownership of which is represented by the Class CE Certificates, that
has a notional balance equal to the Class T2-2 Principal Amount and is entitled
to all interest distributions on the Class T4-12 Interest.

                  "Class T5-13 Interest": A regular interest in REMIC 5, which
is represented by the Class CE Certificates, that has a notional balance equal
to the Class T2-3 Principal Amount and is entitled to all interest distributions
on the Class T4-13 Interest.

                  "Class T5 P&I Certificate": Any of the Class A, Class M-1,
Class M-2, Class M-3 and Class B Certificates.

                  "Closing Date": March 28, 2002.

                  "Code": The Internal Revenue Code of 1986, as it may be
amended from time to time.

                  "Collection Account": The account or accounts created and
maintained by the Servicer pursuant to Section 3.04, which shall be entitled
"Wells Fargo Home Mortgage, Inc., as Servicer for First Union National Bank, as
Trustee, in trust for registered Holders of 2002-WF1 Trust, ABFC Mortgage Loan
Asset-Backed Certificates, Series 2002-WF1", and which must be an Eligible
Account.

                  "Collection Period": With respect to any Distribution Date,
the period from the first day of the calendar month preceding the month in which
such Distribution Date occurs through the last day of the calendar month
preceding the month in which such Distribution Date occurs.

                  "Compensating Interest": As defined in Section 3.23 hereof.

                                      -10-
<PAGE>

                  "Condemnation Proceeds": All awards or settlements in respect
of a taking of a Mortgaged Property by exercise of the power of eminent domain
or condemnation.

                  "Corporate Trust Office": The principal corporate trust office
of the Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at 401 South Tryon Street, 12th
Floor, NC 1179, Charlotte, North Carolina 28288-1179, Attention: Structured
Finance Trust Services - ABFC 2002-WF1, or at such other address as the Trustee
may designate from time to time by notice to the Certificateholders, the
Depositor, the Securities Administrator and the Servicer.

                  "Corresponding Classes": With respect to REMIC 4 and REMIC 5,
the following Classes shall be Corresponding Classes:

<TABLE>
<CAPTION>
--------------------------------------------- ------------------------------------------------------------------------
        Corresponding REMIC 4 Class                       Corresponding REMIC 5 Classes
--------------------------------------------- ------------------------------------------------------------------------
<S>                                           <C>
                    T4-A                       Class A Certificates
--------------------------------------------- ------------------------------------------------------------------------
                  T4-AIO                       Class AIO Certificates
--------------------------------------------- ------------------------------------------------------------------------
                   T4-M1                       Class M-1 Certificates
--------------------------------------------- ------------------------------------------------------------------------
                   T4-M2                       Class M-2 Certificates
--------------------------------------------- ------------------------------------------------------------------------
                   T4-M3                       Class M-3 Certificates
--------------------------------------------- ------------------------------------------------------------------------
                    T4-B                       Class B Certificates
--------------------------------------------- ------------------------------------------------------------------------
</TABLE>

                  "Credit Risk Manager": The Murrayhill Company, a Colorado
corporation, and any successor.

                  "Credit Risk Manager Fee": The fee payable to the Credit Risk
Manager on each Distribution Date for its services as Credit Risk Manager, in an
amount equal to the product of (i) one-twelfth of the Credit Risk Manager Fee
Rate and (ii) the Pool Balance as of the opening of business on the first day of
the related Due Period.

                  "Credit Risk Manager Fee Rate": 0.02% per annum.

                  "Credit Risk Management Agreement": The Credit Risk Management
Agreement between the Servicer and the Credit Risk Manager dated as of March 1,
2002.

                  "Custodian": Initially, the Trustee, and thereafter the
Custodian, if any, hereafter appointed by the Trustee pursuant to Section 8.17.
The Custodian may (but need not) be the Trustee or any Person directly or
indirectly controlling or controlled by or under common control of either of
them. Neither the Servicer nor the Depositor, nor any Person directly or
indirectly controlling or controlled by or under common control with any such
Person may be appointed Custodian.

                  "Cut-off Date": March 1, 2002.

                  "Cut-off Date Aggregate Principal Balance": The aggregate of
the Cut-off Date Principal Balances of the Mortgage Loans.

                  "Cut-off Date Principal Balance": With respect to any Mortgage
Loan, the unpaid principal balance thereof as of the Cut-off Date after
application of funds received or advanced on or before such date (or as of the
applicable date of substitution with respect to an Eligible Substitute Mortgage
Loan).

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

                                      -11-
<PAGE>

                  "Defective Mortgage Loan": A Mortgage Loan replaced or to be
replaced by one or more Eligible Substitute Mortgage Loans.

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

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

                  "Delinquent": A Monthly Payment due on a Due Date on a
Mortgage Loan is "Delinquent" if it is not paid by the close of business on the
next scheduled Due Date for such Mortgage Loan. The Monthly Payment will be 60
days "Delinquent" if it is not paid by the close of business on the second Due
Date following the Due Date on which such Monthly Payment was due.

                  "Depositor": Asset Backed Funding Corporation, a Delaware
corporation, or any successor in interest.

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

                  "Depository Agreement": With respect to any Book-Entry
Certificates, the agreement among the Depositor, the Trustee and the initial
Depository, to be dated on or about the Closing Date.

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

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

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

                  "Disqualified Organization": A "disqualified organization"
under Section 860E of the Code, which as of the Closing Date is any of: (i) the
United States, any state or political subdivision thereof, any possession of the
United States, any foreign government, any international organization, or any
agency or instrumentality of any of the foregoing, (ii) any organization (other
than a cooperative described in Section 521 of the Code) which is exempt from
the tax imposed by Chapter 1 of the Code unless such organization is subject to
the tax imposed by Section 511 of the Code, (iii) any organization described in
Section 1381(a)(2)(C) of the Code, or (iv) any other Person so designated by the
Trustee based upon an Opinion of Counsel provided by nationally recognized
counsel to the Trustee that the holding of an ownership interest in a Class R
Certificate by such Person may cause the Trust Fund or any Person having an
ownership interest in any Class of Certificates (other than such Person) to
incur liability for any federal tax imposed under the Code that would not
otherwise be imposed but for the transfer of an ownership interest in the Class
R Certificate to such Person. A corporation will not be treated as an
instrumentality of the United States or of any state or political subdivision
thereof if all of its activities are subject to tax and a majority of its board
of directors is not selected by a governmental unit. The term "United States,"
"state" and "international organization" shall have the meanings set forth in
Section 7701 of the Code.

                                      -12-
<PAGE>

                  "Distribution Account": The trust account or accounts created
and maintained by the Trustee pursuant to Section 3.04(b) which shall be
entitled "Distribution Account, First Union National Bank, as Trustee, in trust
for the registered Holders of 2002-WF1 Trust, ABFC Mortgage Loan Asset-Backed
Certificates, Series 2002-WF1" and which must be an Eligible Account.

                  "Distribution Date": The 25th day of any calendar month, or if
such 25th day is not a Business Day, the Business Day immediately following such
25th day, commencing in April 2002.

                  "Due Date": With respect to each Mortgage Loan and any
Distribution Date, the day of the calendar month in the related Due Period on
which the Monthly Payment for such Mortgage Loan was due, exclusive of any grace
period.

                  "Due Period": With respect to each Distribution Date, the
period commencing on the second day of the month preceding the month of the
Distribution Date and ending on the first day of the month of the Distribution
Date.

                  "Eligible Account": Any of (i) an account or accounts
maintained with a federal or state chartered depository institution or trust
company the short-term unsecured debt obligations of which (or, in the case of a
depository institution or trust company that is the principal subsidiary of a
holding company, the short-term unsecured debt obligations of such holding
company) are rated "A-1" (or the equivalent) by each of the Rating Agencies at
the time any amounts are held on deposit therein, (ii) an account or accounts
the deposits in which are fully insured by the FDIC (to the limits established
by such corporation), the uninsured deposits in which account are otherwise
secured such that, as evidenced by an Opinion of Counsel delivered to the
Trustee and to each Rating Agency, the Certificateholders will have a claim with
respect to the funds in such account or a perfected first priority security
interest against such collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution with which such account is
maintained, (iii) a trust account or accounts maintained with the trust
department of a federal or state chartered depository institution, national
banking association or trust company (including the Trustee) acting in its
fiduciary capacity or (iv) an account otherwise acceptable to each Rating Agency
without reduction or withdrawal of their then current ratings of the
Certificates as evidenced by a letter from each Rating Agency to the Trustee.
Eligible Accounts may bear interest.

                  "Eligible Substitute Mortgage Loan": A mortgage loan
substituted for a Defective Mortgage Loan pursuant to the terms of this
Agreement which must, on the date of such substitution, (i) have an outstanding
principal balance, after application of all scheduled payments of principal and
interest due during or prior to the month of substitution, not in excess of, and
not more than 5% less than, the outstanding principal balance of the Defective
Mortgage Loan as of the Due Date in the calendar month during which the
substitution occurs, (ii) have a Mortgage Interest Rate not less than the
Mortgage Interest Rate of the Defective Mortgage Loan and not more than 1% in
excess of the Mortgage Interest Rate of such Defective Mortgage Loan, (iii) if
an Adjustable Rate Mortgage Loan, have a Maximum Mortgage Interest Rate not less
than the Maximum Mortgage Interest Rate on the Deleted Mortgage Loan, (iv) if an
Adjustable Rate Mortgage Loan, have a Minimum Mortgage Interest Rate not less
than the Minimum Mortgage Interest Rate of the Deleted Mortgage Loan, (v) if an
Adjustable Rate Mortgage Loan, have a Gross Margin equal to or greater than the
Gross Margin of the Deleted Mortgage Loan, (vi) if an Adjustable Rate Mortgage
Loan, have a next Adjustment Date not more than two months later than the next
Adjustment Date on the Deleted Mortgage Loan, have the same Index as the Deleted
Mortgage Loan and have the same Adjustment Date frequency after the first
Adjustment Date as the Deleted Mortgage Loan, (vii) have the same monthly Due
Date as that of the Defective Mortgage Loan and have a remaining term to
maturity not greater than (and not more than one year less than) that of the
Defective Mortgage Loan, (viii) be current as of the date of substitution, (ix)
have a Loan-to-Value Ratio as of the date of substitution equal to or lower than
the Loan-to-Value Ratio of the Defective Mortgage Loan as of such date, (x) have
a risk grading determined by the Seller at least equal to the risk grading
assigned on the Defective Mortgage Loan, (xi) have been reunderwritten in
accordance with the same underwriting criteria and guidelines as the Defective
Mortgage Loan and (xii) conform to each representation and warranty set forth in
Section 3.01 of the Mortgage Loan Purchase Agreement applicable to the Defective
Mortgage Loan. In the event that one or more mortgage loans are substituted for
one or more Defective Mortgage Loans, the amounts described in clause (i) hereof
shall be determined on the basis of aggregate principal balances, the Mortgage
Interest Rates and related items described in clauses (ii), (iii), (iv) and (v)
hereof shall be determined on the basis of weighted average Mortgage Interest
Rates and related items, the risk gradings described in clause (x) hereof shall
be satisfied as to each such mortgage loan, the terms described in clause (xi)
hereof shall be determined on the basis of weighted average remaining term to
maturity, the Loan-to-Value Ratios described in clause (ix) hereof shall be
satisfied as to each such mortgage loan and, except to the extent otherwise
provided in this sentence, the representations and warranties described in
clause (vii) hereof must be satisfied as to each Eligible Substitute Mortgage
Loan or in the aggregate, as the case may be.

                                      -13-
<PAGE>

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

                  "ERISA-Restricted Certificates": Any of the Class P, Class CE
and Class R Certificates.

                  "Escrow Account": The account or accounts created and
maintained pursuant to Section 3.06.

                  "Escrow Agreement": A voluntary agreement between a Mortgagor
and the Servicer relating to amounts constituting taxes and/or fire and hazard
insurance premiums required to be escrowed.

                  "Escrow Payments": The amounts constituting taxes and/or fire
and hazard insurance premiums required to be escrowed pursuant to a voluntary
escrow agreement between the Mortgagor and the Servicer.

                  "Estate in Real Property": A fee simple estate in a parcel of
real property.

                  "Expense Fee Rate": The sum of (i) the Securities
Administration Fee Rate, (ii) the Credit Risk Manager Fee Rate and (iii) the
Servicing Fee Rate.

                  "Extended Period": As defined in Section 9.04(b).

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

                  "Fannie Mae" or "FNMA": Fannie Mae, f/k/a Federal National
Mortgage Association, or any successor thereto.

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

                  "Fidelity Bond": Shall have the meaning assigned thereto in
Section 3.12.

                  "Final Certification" means the certificate in the form of
Exhibit F-3 attached hereto, delivered by the Trustee (or a Custodian on its
behalf) pursuant to Section 2.02.

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

                  "Fitch": "Fitch Ratings and its successors, and if such
company shall for any reason no longer perform the functions of a securities
rating agency, "Fitch" shall be deemed to refer to any other "nationally
recognized statistical rating organization" as set forth on the most current
list of such organizations released by the Securities and Exchange Commission.

                                      -14-
<PAGE>

                  "Freddie Mac" or "FHLMC": Freddie Mac, f/k/a Federal Home Loan
Mortgage Corporation, or any successor thereto.

                  "Grantor Trust": That portion of the Trust exclusive of REMIC
1, REMIC 2, REMIC 3, REMIC 4, and REMIC 5 which holds any Prepayment Charges
received in respect of the Mortgage Loans, any Servicer Prepayment Charge
Payment Amounts and the right of the Class P Certificateholders to receive such
Prepayment Charges and Servicer Prepayment Charge Payment Amounts.

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

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

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

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

                  "Initial Certificate Principal Balance": With respect to any
Certificate of a Class other than a Class AIO, Class P, Class CE or Class R
Certificate, the amount designated "Initial Certificate Principal Balance" on
the face thereof.

                  "Initial Certification" means the certificate in the form of
Exhibit F-1 attached hereto, delivered by the Trustee (or a Custodian on its
behalf) pursuant to Section 2.02.

                  "Initial Overcollateralization Amount": $1,710,309.

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

                                      -15-
<PAGE>

                  "Interest Accrual Period": With respect to any Distribution
Date and any Class of Certificates and any Class of REMIC Regular Interests
(other than the Class AIO Certificates and the Class T2-1AIO, T2-2AIO, T2-3AIO,
T3-AIO and T4-AIO Interests), the period from and including the preceding
Distribution Date (or the Closing Date in the case of the initial Interest
Accrual Period), to and including the day prior to the current Distribution Date
and, with respect to any Distribution Date and the Class AIO Certificates and
the Class T2-1AIO, T2-2AIO, T2-3AIO, T3-AIO and T4-AIO Interests, the calendar
month immediately preceding the month in which such Distribution Date occurs.
Interest will accrue during any Interest Accrual Period on the Certificates and
each Class of REMIC Regular Interests (other than the Class AIO Certificates and
the Class T2-1AIO, T2-2AIO, T2-3AIO, T3-AIO and T4-AIO Interests) on the basis
of the actual number of days in the Interest Accrual Period over a 360-day year.
Interest will accrue on the Class AIO Certificates and the Class T2-1AIO,
T2-2AIO, T2-3AIO, T3-AIO and T4-AIO Interests on the basis of a 360-day year
comprised of twelve 30-day months during any Interest Accrual Period.

                  "Interest Carry Forward Amount": For any Class of Certificates
(other than the Class P, Class CE and Class R Certificates) and any Distribution
Date, the sum of (a) the excess, if any, of the Accrued Certificate Interest
plus any Interest Carry Forward Amount for the prior Distribution Date, over the
amount in respect of interest actually distributed on such Class on such prior
Distribution Date and (b) interest on such excess at the applicable Pass-Through
Rate (computed without regard to any Net WAC Rate), on the basis of the actual
number of days in the related Interest Accrual Period over a 360-day year (or on
the basis of a 360-day year comprised of twelve 30-day months, in the case of
the Class AIO Certificates).

                  "Interest Determination Date": With respect to any Class of
Certificates and for each Interest Accrual Period after the first Interest
Accrual Period, the second LIBOR Business Day preceding the commencement of such
Interest Accrual Period.

                  "Interest Percentage": With respect to any Class of
Certificates (other than the Class P, Class CE and Class R Certificates) and any
Distribution Date, the ratio (expressed as a decimal carried to six places) of
the Accrued Certificate Interest for such Class to the sum of the Accrued
Certificate Interest for all Classes, in each case with respect to such
Distribution Date.

                  "Interest Remittance Amount": As of any Determination Date,
the sum, without duplication, of (i) all interest due and collected or advanced
with respect to the related Due Period on the Mortgage Loans (less the Servicing
Fee, the Securities Administration Fee, the Credit Risk Manager Fee, amounts
available for reimbursement of Advances and Servicing Advances pursuant to
Section 3.05 and expenses reimbursable pursuant to Section 6.03), (ii) all
Compensating Interest paid by the Servicer on such Determination Date with
respect to the Mortgage Loans and (iii) the portion of any payment in connection
with any substitution, Purchase Price, Termination Price or Net Liquidation
Proceeds relating to interest with respect to the Mortgage Loans received during
the related Prepayment Period.

                  "Interim Certification" means the certificate in the form of
Exhibit F-2 attached hereto, delivered by the Trustee (or a Custodian on its
behalf) pursuant to Section 2.02.

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

                                      -16-
<PAGE>

                  "LIBOR": With respect to the first Interest Accrual Period,
1.90875% per annum. With respect to each Interest Accrual Period after the first
Interest Accrual Period, the rate determined by the Securities Administrator on
the related Interest Determination Date on the basis of the "Interest Settlement
Rate" for U.S. dollar deposits of one-month maturity set by the British Bankers'
Association (the "BBA") as such rate appears on Telerate Page 3750 as of 11:00
a.m. (London time) on such Interest Determination Date. With respect to any
Interest Determination Date, if the BBA's Interest Settlement Rate does not
appear on Telerate Page 3750 as of 11:00 a.m. (London time) on such date, or if
Telerate Page 3750 is not available on such date, the Securities Administrator
will request the principal London office of each of the Reference Banks to
provide a quotation of the rate at which it is offering deposits in United
States dollars at approximately 11:00 a.m. London Time on that day to prime
banks in the London interbank market for a period equal to the related Interest
Accrual Period commencing on the first day of the related Interest Accrual
Period. If at least two such quotations are provided, LIBOR will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, LIBOR will be the arithmetic mean of the rates quoted at
approximately 11:00 AM New York City time on that day by major banks in New York
City, selected by the Securities Administrator, for loans in United States
dollars to leading European banks for a period equal to the related Interest
Accrual Period immediately commencing on the first day of such Interest Accrual
Period.

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

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

                  "Liquidation Event": With respect to any Mortgage Loan, any of
the following events: (i) such Mortgage Loan is paid in full; (ii) a Final
Recovery Determination is made as to such Mortgage Loan; or (iii) such Mortgage
Loan is removed from the Trust Fund by reason of its being purchased, sold or
replaced pursuant to or as contemplated by Section 2.03 or Section 10.01. With
respect to any REO Property, either of the following events: (i) a Final
Recovery Determination is made as to such REO Property; or (ii) such REO
Property is removed from the Trust Fund by reason of its being sold or purchased
pursuant to Section 3.13 or Section 10.01.

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

                  "Liquidation Report": The report prepared by the Servicer with
respect to a Liquidated Mortgage Loan in such form and containing such
information as is agreed to by the Servicer, the Trustee and the Securities
Administrator.

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

                  "Losses": As defined in Section 9.03.

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

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

                  "Majority Class R Certificateholders": The Holders of Class R
Certificates evidencing at least a 51% Percentage Interest in the Class R
Certificates.

                  "Majority Class CE Certificateholders": The Holders of Class
CE Certificates evidencing at least a 51% Percentage Interest in the Class CE
Certificates.

                                      -17-
<PAGE>

                  "Maximum Cap Rate": With respect to any Distribution Date and
the related Interest Accrual Period, a per annum rate (not less than zero and
subject to adjustment based on the actual number of days elapsed in such
Interest Accrual Period) equal to (a) the weighted average of the Adjusted Net
Maximum Mortgage Rates of the Mortgage Loans less (b) for the first 30
Distribution Dates, the Pass-Through Rate for the Class AIO Certificates for
such Distribution Date multiplied by a fraction, the numerator of which is the
Notional Amount of the Class AIO Certificates immediately prior to such
Distribution Date and the denominator of which is the aggregate outstanding
principal balance of the Mortgage Loans as of the beginning of the related Due
Period.

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

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

                  "Monthly Excess Cashflow Amount": The sum of the Monthly
Excess Interest Amount, the Overcollateralization Release Amount and (without
duplication) any portion of the Principal Distribution Amount remaining after
principal distributions on the Offered Certificates.

                  "Monthly Excess Interest Amount": With respect to each
Distribution Date, the amount, if any, by which the Interest Remittance Amount
for such Distribution Date exceeds the aggregate amount distributed on such
Distribution Date pursuant to paragraphs (i) through (viii) under Section 4.01.

                  "Monthly Payment": With respect to any Mortgage Loan, the
scheduled monthly payment of principal and interest on such Mortgage Loan which
is payable by the related Mortgagor from time to time under the related Mortgage
Note, determined: (a) after giving effect to (i) any Deficient Valuation and/or
Debt Service Reduction with respect to such Mortgage Loan and (ii) any reduction
in the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Servicer pursuant to Section 3.01; and (c) on the assumption that all other
amounts, if any, due under such Mortgage Loan are paid when due.

                  "Moody's": Moody's Investors Service, Inc. and its successors,
and if such company shall for any reason no longer perform the functions of a
securities rating agency, "Moody's" shall be deemed to refer to any other
"nationally recognized statistical rating organization" as set forth on the most
current list of such organizations released by the Securities and Exchange
Commission. "Mortgage": The related mortgage, deed of trust or other instrument
identified on the Mortgage Loan Schedule as securing a Mortgage Note.

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

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

                                      -18-
<PAGE>

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

                  "Mortgage Loan Purchase Agreement": The agreement between the
Seller and the Depositor, dated March 28, 2002, regarding the transfer of the
Mortgage Loans by the Seller to or at the direction of the Depositor.

                  "Mortgage Loan Schedule": As of any date with respect to the
Mortgage Loans, the list of such Mortgage Loans included in the Trust Fund on
such date, attached hereto as Exhibit D. The Mortgage Loan Schedule shall set
forth the following information with respect to each Mortgage Loan:

         (1) the Mortgage Loan identifying number;

         (2) the city, state, and zip code of the Mortgaged Property;

         (3) the type of Residential Dwelling constituting the Mortgaged
Property or a designation that the Mortgaged Property is a multi-family
property;

         (4) the occupancy status of the Mortgaged Property at origination;

         (5) the original months to maturity;

         (6) the date of origination;

         (7) the first payment date;

         (8) the stated maturity date;

         (9) the stated remaining months to maturity;

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

         (11) the Principal Balance of each Mortgage Loan as of the Cut-off
Date;

         (12) the Mortgage Interest Rate of the Mortgage Loan as of the date of
origination;

         (13) the current principal and interest payment of the Mortgage Loan as
of the Cut-off Date;

         (14) the next payment due date of the Mortgage Loan;

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

         (16) a code indicating the loan performance status of the Mortgage Loan
as of the Cut-off Date;

         (17) a code indicating whether the Mortgage Loan has a Prepayment
Charge;

         (18) a code indicating the Index that is associated with such Mortgage
Loan (if such Mortgage Loan is an Adjustable Rate Mortgage Loan);

         (19) the Gross Margin (if such Mortgage Loan is an Adjustable Rate
Mortgage Loan);

         (20) the Periodic Rate Cap for the initial Adjustment Date (if such
Mortgage Loan is an Adjustable Rate Mortgage Loan);

                                      -19-
<PAGE>

         (21) the Minimum Mortgage Interest Rate (if such Mortgage Loan is an
Adjustable Rate Mortgage Loan);

         (22) the Maximum Mortgage Interest Rate (if such Mortgage Loan is an
Adjustable Rate Mortgage Loan);

         (23) the Periodic Rate Cap for each Adjustment Date after the initial
Adjustment Date (if such Mortgage Loan is an Adjustable Rate Mortgage Loan);

         (24) the first Adjustment Date immediately following the Cut-off Date
(if such Mortgage Loan is an Adjustable Rate Mortgage Loan); and

         (25) the rate adjustment frequency (if such Mortgage Loan is an
Adjustable Rate Mortgage Loan).

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

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

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

                  "Mortgaged Property": The related real property identified on
the Mortgage Loan Schedule as securing the related Mortgage Loan.

                  "Mortgagor": The obligor on a Mortgage Note.

                  "Net Adjusted WAC Rate": The Net WAC Rate minus, for each of
the first 30 Distribution Dates, the applicable Pass-Through Rate for the Class
AIO Certificates multiplied by a fraction, the numerator of which is the
Notional Principal Balance of the Class AIO Certificates immediately before the
Distribution Date, and the denominator of which is the Pool Balance as of the
beginning of the related Due Period, expressed as an annual rate and calculated
on the basis of twelve months consisting of 30 days each and a 360-day year.

                  "Net Liquidation Proceeds": With respect to any Liquidated
Mortgage Loan or any other disposition of related Mortgaged Property (including
REO Property) the related Liquidation Proceeds net of Advances, Servicing
Advances, Servicing Fees, Securities Administration Fees, Credit Risk Manager
Fees and any other accrued and unpaid servicing fees (including REO Disposition
Fees) received and retained in connection with the liquidation of such Mortgage
Loan or Mortgaged Property.

                  "Net Mortgage Interest Rate": With respect to any Mortgage
Loan, the Mortgage Interest Rate borne by such Mortgage Loan minus the Expense
Fee Rate.

                  "Net WAC Rate": The weighted average (based on Principal
Balance as of the first day of the related Due Period or, in the case of the
first Distribution Date, the Cut-Off Date) of the Net Mortgage Interest Rates of
the Mortgage Loans.

                                      -20-
<PAGE>

                  "Net WAC Rate Carryover Amount": With respect to any
Distribution Date, for the Class A, Class M-1, Class M-2, Class M-3 and Class B
Certificates, the sum of (a) the amount, if any, by which (i) the amount of
Accrued Certificate Interest that would have been distributable on that Class
for that Distribution Date had its Pass-Through Rate been equal to the related
Formula Rate, exceeds (ii) the actual amount of the Accrued Certificate Interest
for that Class and Distribution Date, because the related Pass-Through Rate was
limited to the Net Adjusted WAC Rate, plus (b) any such amount from a previous
Distribution Date that remains unpaid, with interest thereon at the applicable
Formula Rate since that Distribution Date, to the extent such interest remains
unpaid.

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

                  "Nonrecoverable Advance": Any Advance or Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan that, in
the good faith business judgment of the Servicer, will not or, in the case of a
proposed Advance or Servicing Advance, would not be ultimately recoverable from
Late Collections on such Mortgage Loan as provided herein.

                  "Notional Amount": With respect to the Class AIO Certificates
and (i) any Distribution Date occurring in September 2004 or earlier, the lesser
of (A) $34,196,000 and (B) the Pool Balance as of the beginning of the related
Due Period, and (ii) any Distribution Date occurring in October 2004 or
thereafter, $0.00.

                  "Offered Certificates": The Class A, Class AIO, Class M-1,
Class M-2, Class M-3 and Class B Certificates.

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

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

                  "Optional Termination Date": The first Distribution Date on
which the Majority Class CE Holders or the Servicer may opt to terminate the
Mortgage Pool pursuant to Section 10.01.

                  "Original Class Certificate Principal Balance": With respect
to each Class of Certificates, the Certificate Principal Balance thereof on the
Closing Date, as set forth opposite such Class in the Preliminary Statement,
except with respect to the Class AIO Certificates, which have no principal
balance, and the Class P, Class CE and Class R Certificates, which have an
Original Class Certificate Principal Balance of zero.

                  "Overcollateralization Amount": As of any Distribution Date,
the excess, if any, of (x) the Pool Balance as of the last day of the
immediately preceding Due Period over (y) the aggregate Certificate Principal
Balances of all Classes of Offered Certificates (after taking into account all
distributions of principal on such Distribution Date).

                  "Overcollateralization Deficiency": As of any Distribution
Date, the excess, if any, of (x) the Targeted Overcollateralization Amount for
such Distribution Date over (y) the Overcollateralization Amount for such
Distribution Date, calculated for this purpose after taking into account the
reduction on such Distribution Date of the Certificate Principal Balances of all
Classes of Certificates resulting from the distribution of the Principal
Distribution Amount (but not the Extra Principal Distribution Amount) on such
Distribution Date, but prior to taking into account any Applied Realized Loss
Amounts on such Distribution Date.

                  "Overcollateralization Release Amount": With respect to any
Distribution Date on or after the Stepdown Date on which a Trigger Event is not
in effect, the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the excess, if any, of (i) the Overcollateralization
Amount for such Distribution Date, assuming that 100% of the Principal
Remittance Amount is applied as a principal payment on the Certificates on such
Distribution Date, over (ii) the Targeted Overcollateralization Amount for such
Distribution Date.

                                      -21-
<PAGE>

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

                  "Pass-Through Rate": Any of the Class A Pass-Through Rate, the
Class AIO Pass-Through Rate, the Class M-1 Pass-Through Rate, the Class M-2
Pass-Through Rate, the Class M-3 Pass-Through Rate and the Class B Pass-Through
Rate.

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

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

                  "Periodic Rate Cap": With respect to each Adjustable Rate
Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth
in the related Mortgage Note, which is the maximum amount by which the Mortgage
Interest Rate for such Mortgage Loan may increase or decrease on such Adjustment
Date from the Mortgage Interest Rate in effect immediately prior to such
Adjustment Date.

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

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

                  (ii) (A) demand and time deposits in, certificates of deposit
         of, bankers' acceptances issued by or federal funds sold by any
         depository institution or trust company (including the Trustee. the
         Securities Administrator or their respective agents acting in their
         respective commercial banking capacities) incorporated under the laws
         of the United States of America or any state thereof and subject to
         supervision and examination by federal and/or state authorities, so
         long as, at the time of such investment or contractual commitment
         providing for such investment, such depository institution or trust
         company or its ultimate parent has a short-term uninsured debt rating
         in the highest applicable rating category of each Rating Agency and
         provided that each such investment has an original maturity of no more
         than 365 days and (B) any other demand or time deposit or deposit which
         is fully insured by the FDIC with a depository institution or trust
         company that has, or the ultimate parent company of which has, a
         short-term unsecured debt rating in the highest applicable rating
         category of each Rating Agency;

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security described in clause (i) above and entered
         into with a depository institution or trust company (acting as
         principal) rated A2 or higher by Moody's or A or higher by each of S&P
         and Fitch, provided, however, that collateral transferred pursuant to
         such repurchase obligation must be of the type described in clause (i)
         above and must (A) be valued daily at current market prices plus
         accrued interest or (B) pursuant to such valuation, be equal, at all
         times, to 105% of the cash transferred by the Trustee in exchange for
         such collateral and (C) be delivered to the Trustee or, if the Trustee
         is supplying the collateral, an agent for the Trustee, in such a manner
         as to accomplish perfection of a security interest in the collateral by
         possession of certificated securities;

                                      -22-
<PAGE>

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

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

                  (vi) units of money market funds registered under the
         Investment Company Act of 1940 including funds managed or advised by
         the Trustee or the Securities Administrator or an affiliate thereof,
         having the highest rating category by the applicable Rating Agency; and

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

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

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

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

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

                  "Prepayment Charge": With respect to any Prepayment Period,
any prepayment premium, penalty or charge collected by the Servicer from a
Mortgagor in connection with any voluntary Principal Prepayment in full pursuant
to the terms of the related Mortgage Note as from time to time held as a part of
the Trust Fund, the Prepayment Charges so held being determined in accordance
with the guidelines for Prepayment Charge provisions set forth in the Wells
Fargo Prepayment Charge Matrix. The defined term "Prepayment Charge" shall not
include any Servicer Prepayment Charge Payment Amount.

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was during the related Prepayment
Period the subject of a Principal Prepayment in full or in part that was applied
by the Servicer to reduce the outstanding principal balance of such loan on a
date preceding the related Due Date, an amount equal to interest at the
applicable Mortgage Interest Rate (net of the Servicing Fee Rate) on the amount
of such Principal Prepayment for the number of days commencing on the date on
which the prepayment is applied and ending on the last day of the related
Prepayment Period.

                  "Prepayment Period": With respect to any Distribution Date,
the calendar month preceding the month in which such Distribution Date occurs.

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

                                      -23-
<PAGE>

                  "Principal Distribution Amount": As to any Distribution Date,
the sum of (i) the Principal Remittance Amount minus, for Distribution Dates
occurring on and after the Stepdown Date and for which a Trigger Event is not in
effect, the Overcollateralization Release Amount, if any, and (ii) the Extra
Principal Distribution Amount, if any.

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

                  "Principal Remittance Amount": With respect to any
Distribution Date, to the extent of funds available therefor, the sum (less
amounts available for reimbursement of Advances and Servicing Advances pursuant
to Section 3.05 and expenses reimbursable pursuant to Section 6.03) of: (i) each
payment of principal on a Mortgage Loan due during the related Due Period and
received by the Servicer on or prior to the related Determination Date, and any
Advances with respect thereto, (ii) all full and partial Principal Prepayments
received by the Servicer during the related Prepayment Period, (iii) the Net
Liquidation Proceeds allocable to principal actually collected by the Servicer
during the related Prepayment Period, (iv) with respect to Defective Mortgage
Loans repurchased with respect to such Prepayment Period, the portion of the
Purchase Price allocable to principal, (v) any Substitution Adjustment Amounts
received on or prior to the previous Determination Date and not yet distributed
and (vi) on the Distribution Date on which the Trust is to be terminated in
accordance with Section 10.01 hereof, that portion of the Termination Price in
respect of principal.

                  "Private Certificates": Any of the Class P, Class CE and Class
R Certificates.

                  "Property Insurance Proceeds": Proceeds of any title policy,
hazard policy or other insurance policy covering a Mortgage Loan, to the extent
such proceeds are received by the Servicer and are not to be applied to the
restoration of the related Mortgaged Property or released to the Mortgagor in
accordance with the Servicer's servicing procedures, subject to the terms and
conditions of the related Mortgage Note and Mortgage.

                  "Prospectus Supplement": That certain Prospectus Supplement
dated March 15, 2002 relating to the public offering of the Offered
Certificates.

                  "Purchase Price": With respect to any Mortgage Loan or REO
Property to be purchased pursuant to or as contemplated by Section 2.03 or
10.01, and as confirmed by an Officers' Certificate from the Servicer to the
Trustee, an amount equal to the sum of (i) 100% of (x) in the case of a Mortgage
Loan, the Principal Balance thereof as of the date of purchase (or such other
price as provided in Section 10.01) or (y) in the case of an REO Property, its
fair market value, as determined in good faith by the Servicer, (ii) in the case
of (x) a Mortgage Loan, accrued interest on such Principal Balance at the
applicable Mortgage Interest Rate in effect from time to time from the Due Date
as to which interest was last covered by a payment by the Mortgagor or an
Advance by the Servicer, which payment or Advance had as of the date of purchase
been distributed pursuant to Section 4.01, through the end of the calendar month
in which the purchase is to be effected, and (y) an REO Property, accrued
interest at the applicable Mortgage Interest Rate on its fair market value,
determined in good faith by the Servicer, (iii) any unreimbursed Servicing
Advances and Advances and any unpaid Servicing Fees allocable to such Mortgage
Loan or REO Property, (iv) any amounts previously withdrawn from the Collection
Account in respect of such Mortgage Loan or REO Property pursuant to Section
3.13, and (v) in the case of a Mortgage Loan required to be purchased pursuant
to Section 2.03, expenses reasonably incurred or to be incurred by the Servicer
or the Trustee in respect of the breach or defect giving rise to the purchase
obligation.

                  "Qualified REMIC Assets": Any "qualified mortgages" or
"permitted investments" within the meaning of Section 860G of the Code and any
related REMIC provisions.

                                      -24-
<PAGE>

                  "Rating Agency or Rating Agencies": Fitch, Moody's and S & P,
or their respective successors. If such agencies or their successors are no
longer in existence, "Rating Agencies" shall be such nationally recognized
statistical rating organizations as set forth on the most current list of such
organizations released by the Securities and Exchange Commission and designated
by the Depositor, notice of which designation shall be given to the Trustee and
the Servicer.

                  "Realized Loss": (a) With respect to a Liquidated Mortgage
Loan, the amount by which the remaining unpaid principal balance of the Mortgage
Loan exceeds the amount of Net Liquidation Proceeds applied to the principal
balance of the related Mortgage Loan; (b) with respect to any Mortgage Loan, a
Deficient Valuation with respect thereto; and (c) with respect to any Mortgage
Loan, a reduction in the Principal Balance thereof resulting from a modification
of such Mortgage Loan by the Servicer permitted pursuant to this Agreement.

                  "Record Date": With respect to all of the Certificates, the
last Business Day of the month immediately preceding the month in which the
related Distribution Date occurs (or the Closing Date, in the case of the first
Distribution Date).

                  "Reference Banks": Four major banks in the London interbank
market selected by the Securities Administrator.

                  "Regular Certificate": Any of the Offered Certificates and the
Class CE Certificates.

                  "Related Documents": With respect to any Mortgage Loan, the
related Mortgage Notes and related Mortgages.

                  "Relief Act": The Soldiers' and Sailors Civil Relief Act of
1940, as amended.

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

                  "Remaining Initial Overcollateralization Amount": As of any
Distribution Date, an amount equal to (a) the Initial Overcollateralization
Amount minus (b) the sum of (i) any Overcollateralization Release Amounts
distributed and (ii) Realized Losses allocated to the Class T2-4 Interests.

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

                  "REMIC 1 Regular Interests": The Class T1-1 Interest and Class
T1-2 Interest.

                  "REMIC 2 Regular Interests": The Class T2-1 Interest, Class
T2-2 Interest, Class T2-3 Interest, Class T2-4 Interest, Class T2-1AIO Interest,
Class T2-2AIO Interest and Class T2-3AIO Interest.

                  "REMIC 3 Pass-Through Rate": With respect to any Distribution
Date, a rate obtained by dividing (A) the product of (i) 2 times (ii) the Net
Adjusted WAC Rate times (iii) the Class T2-2 Principal Amount by (B) the sum of
(x) the Class T2-2 Principal Amount and (y) the Class T2-3 Principal Amount,
such principal balances being determined before any reductions of principal
balance or allocation of Realized Losses made on such Distribution Date.

                  "REMIC 3 Regular Interests": The Class T3-1 Interest, Class
T3-2 Interest, Class T3-3 Interest, Class T3-4 Interest, Class T3-11 Interest,
Class T3-12 Interest, Class T3-13 Interest and Class T3-AIO Interest.

                                      -25-
<PAGE>

                  "REMIC 4 Regular Interests": The Class T4-AF Interest, Class
T4-M1 Interest, Class T4-M2 Interest, Class T4-M3 Interest, Class T4-B Interest,
Class T4-4 Interest, Class T4-11 Interest, Class T4-12 Interest, Class T4-13
Interest and Class T4-AIO Interest.

                  "REMIC 5 Components": The Class T5-4, Class T5-11, Class
T5-12, Class T5-13, Class T5- AFIO, Class T5-M1IO, Class T5-M2IO, Class T5-M3IO
and Class T5-BIO Interests. Each of the REMIC 5 Components represents a regular
interest in REMIC 5.

                  "REMIC 5 Regular Interests": The Class A Certificates, Class
AIO Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3
Certificates, Class B Certificates, Class T5-4 Interest, Class T5-11 Interest,
Class T5-12 Interest, Class T5-13 Interest, Class T5-AFIO Interest, Class
T5-M1IO Interest, Class T5-M2IO Interest, Class T5-M3IO Interest and Class
T4-BIO Interest.

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

                  "REMIC Regular Interest": As defined in the Preliminary
Statement.

                  "Remittance Report": A report prepared by the Servicer and
delivered to the Securities Administrator pursuant to Section 4.07, containing
the information attached hereto as Exhibit N.

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

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

                  "REO Disposition Fee": A fee payable to the Servicer as
servicing compensation in addition to the Servicing Fee upon the liquidation of
any REO Property, in an amount equal to the lesser of (a) the greater of (i)
1.00% of the price for which the REO Property was sold and (ii) $1,500.00, and
(b) the Net Liquidation Proceeds of the REO Property (without reduction for the
REO Disposition Fee).

                  "REO Principal Amortization": With respect to any REO
Property, for any calendar month, the aggregate of all amounts received in
respect of such REO Property during such calendar month, whether in the form of
rental income, sale proceeds (including, without limitation, that portion of the
Termination Price paid in connection with a purchase of all of the Mortgage
Loans and REO Properties pursuant to Section 10.01 that is allocable to such REO
Property) or otherwise, net of any portion of such amounts (i) payable pursuant
to Section 3.13 in respect of the proper operation, management and maintenance
of such REO Property or (ii) payable or reimbursable to the Servicer pursuant to
Section 3.13 for unpaid Servicing Fees in respect of the related Mortgage Loan
and unreimbursed Servicing Advances and Advances in respect of such REO Property
or the related Mortgage Loan.

                  "REO Property": A Mortgaged Property acquired by the Servicer
on behalf of the Trust Fund through foreclosure or deed-in-lieu of foreclosure,
as described in Section 3.13.

                  "Request for Release": A release signed by a Servicing
Officer, in the form of Exhibit E-1 attached hereto.

                  "Residential Dwelling": Any one of the following: (i) a
detached one-family dwelling, (ii) a two- to four-family dwelling, (iii) a
one-family dwelling unit in a FNMA eligible condominium project, (iv) a
one-family dwelling in a planned unit development, which is not a co-operative,
or (v) a mobile or manufactured home (as defined in section 603(6) of the
National Manufactured Housing Construction and Safety Standards Act of 1974).

                                      -26-
<PAGE>

                  "Residual Certificate": The Class R Certificates.

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

                  "Responsible Officer": When used with respect to the Trustee
or the Securities Administrator, any officer assigned to the Corporate Trust
Division (or any successor thereto), including any Vice President, Assistant
Vice President, Trust Officer, any Assistant Secretary, any trust officer or any
other officer of the Trustee or the Securities Administrator customarily
performing functions similar to those performed by any of the above designated
officers and in each case having direct responsibility for the administration of
this Agreement.

                  "S&P": Standard & Poor's Ratings Services, or any successor
thereto, and if such company shall for any reason no longer perform the
functions of a securities rating agency, "S&P" shall be deemed to refer to any
other "nationally recognized statistical rating organization" as set forth on
the most current list of such organizations released by the Securities and
Exchange Commission.

                  "Securities Administration Fee": With respect to any
Distribution Date, the product of (x) one-twelfth of the Securities
Administration Fee Rate and (y) the Pool Balance as of the opening of business
on the first day of the related Due Period.

                  "Securities Administration Fee Rate": With respect to any
Distribution Date, 0.01% per annum.

                  "Securities Administrator": Wells Fargo Bank Minnesota,
National Association, or its successor in interest, or any successor securities
administrator appointed as herein provided.

                  "Seller": Banc of America Mortgage Capital Corporation, or its
successor in interest, in its capacity as seller under the Mortgage Loan
Purchase Agreement.

                  "Senior Certificates": The Class A and Class AIO Certificates.

                  "Senior Enhancement Percentage": For any Distribution Date,
the percentage obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balances of the Subordinated Certificates and (ii) the
Overcollateralization Amount, in each case after taking into account the
distribution of the Principal Distribution Amount on such Distribution Date by
(y) the Pool Balance as of the last day of the related Due Period.

                  "Servicer": Wells Fargo Home Mortgage, Inc., a California
corporation, or any successor servicer appointed as herein provided, in its
capacity as Servicer hereunder.

                  "Servicer Affiliate": A Person (i) controlling, controlled by
or under common control with the Servicer or which is 50% or more owned by the
Servicer and (ii) which is qualified to service residential mortgage loans.

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

                  "Servicer Prepayment Charge Payment Amount": The amount
payable by the Servicer in respect of any waived Prepayment Charges pursuant to
Section 3.01, which amount shall be equal to the difference between the amount
of Prepayment Charge due by a Mortgagor before any waiver and the actual amount
of the Prepayment Charge that was paid by the Mortgagor.

                  "Servicer Purchase Price": As defined in Section 3.16.

                  "Servicer Remittance Date": With respect to any Distribution
Date, one Business Day prior to such Distribution Date.

                                      -27-
<PAGE>

                  "Servicing Advances": All customary, reasonable and necessary
"out of pocket" costs and expenses incurred by the Servicer in the performance
of its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of the Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of the REO Property and (iv) compliance with the
obligations under Section 3.08.

                  "Servicing Fee": With respect to each Mortgage Loan (including
each REO Property) and Distribution Date and for any calendar month, an amount
equal to the equivalent of one month's interest (or in the event of any payment
of interest which accompanies a Principal Prepayment in full made by the
Mortgagor during such calendar month, interest for the number of days covered by
such payment of interest) at the Servicing Fee Rate on the same principal amount
on which interest on such Mortgage Loan accrues for such calendar month.

                  "Servicing Fee Rate": With respect to each Mortgage Loan,
0.50% per annum.

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

                  "Servicing Standard": The standards set forth in Section 3.01.

                  "Similar Law": As defined in Section 5.02(d) hereof.

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

                  "Stayed Funds": Any payment required to be made under the
terms of the Certificates and this Agreement but which is not remitted by the
Servicer because the Servicer is the subject of a proceeding under the
Bankruptcy Code and the making of such remittance is prohibited by Section 362
of the Bankruptcy Code.

                  "Stepdown Date": The earlier to occur of (x) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class A
Certificates is reduced to zero, and (y) the later to occur of (A) the
Distribution Date in April 2005 and (B) the Distribution Date on which the
aggregate Certificate Principal Balance of the Class A Certificates (after
taking into account the distribution of the Class A Principal Distribution
Amount on such Distribution Date) is less than or equal to 66.00% of the Pool
Balance as of the last day of the related Due Period.

                  "Subordinated Certificates": The Class M-1, Class M-2, Class
M-3, Class B, Class CE and Class R Certificates.

                  "Subsequent Overcollateralization Amount": As of any
Distribution Date, after the application of principal payments and Applied
Realized Loss Amounts, an amount equal to the excess, if any of (a) the Pool
Balance over (b) the sum of (i) the Certificate Principal Balance of each Class
of Offered Certificates and (ii) the Remaining Initial Overcollateralization
Amount.

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

                  "Targeted Overcollateralization Amount": As of any
Distribution Date, (x) prior to the Stepdown Date, 0.50% of the Pool Balance as
of the Cut-off Date, (y) on and after the Stepdown Date and if a Trigger Event
is not in effect, the lesser of (i) the Targeted Overcollateralization Amount
for the immediately preceding Distribution Date and (ii) greater of (A) 1.00% of
the Pool Balance as of the last day of the related Due Period and (B) 0.50% of
the Pool Balance as of the Cut-off Date and (z) on or after the Stepdown Date
and if a Trigger Event is in effect, the Targeted Overcollateralization Amount
for the immediately preceding Distribution Date.

                                      -28-
<PAGE>

                  "Tax Administrator" and "Tax Matters Person": The Securities
Administrator or any successor thereto or assignee thereof shall serve as tax
administrator hereunder and as agent for the Tax Matters Person. The "Tax
Matters Person" shall be the tax matters person appointed pursuant to Section
9.01(e) hereof.

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

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

                  "Trigger Event": With respect to any Distribution Date on or
after the Stepdown Date, if the six-month rolling average of 60+ Day Delinquent
Loans (expressed as a percentage of the Pool Balance) equals or exceeds 50% of
the Senior Enhancement Percentage.

                  "Trust": ABFC 2002-WF1 Trust, the trust created hereunder.

                  "Trust Fund": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to a portion of which five REMIC elections are to be made, such
entire Trust Fund consisting of: (i) such Mortgage Loans as from time to time
are subject to this Agreement, together with the Mortgage Files relating
thereto, and together with all collections thereon and proceeds thereof, (ii)
any REO Property, together with all collections thereon and proceeds thereof,
(iii) the Trustee's rights with respect to the Mortgage Loans under all
insurance policies required to be maintained pursuant to this Agreement and any
proceeds thereof, (iv) the Depositor's rights under the Mortgage Loan Purchase
Agreement (including any security interest created thereby) and (v) the
Collection Account, the Distribution Account and such assets that are deposited
therein from time to time and any investments thereof, together with any and all
income, proceeds and payments with respect thereto.

                  "Trustee": First Union National Bank, a national banking
association, or any successor Trustee appointed as herein provided.

                  "Underwriters": Banc of America Securities LLC, Countrywide
Securities Corporation and Wells Fargo Brokerage Services, LLC, as underwriters
with respect to the Offered Certificates.

                  "United States Person" or "U.S. Person": (i) A citizen or
resident of the United States, (ii) 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 any entity treated as a
corporation or partnership, provided that, in the case of a partnership, none of
the interests in such partnership are held directly or indirectly through one or
more intermediate entities by a person that is not a U.S. Person for federal
income tax purposes, (iii) an estate that is subject to United States federal
income tax 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 such U.S. Persons have the authority to control all
substantial decisions of the trust, or, to the extent provided in applicable
Treasury regulations, some trusts in existence on August 20, 1996 which have a
valid election in place to be treated as U.S. Persons.

                  "Value": With respect to any Mortgaged Property, the value
thereof as determined by an independent appraisal made at the time of the
origination of the related Mortgage Loan or the sale price, if the appraisal is
not available; except that, with respect to any Mortgage Loan that is a purchase
money mortgage loan, the lesser of (i) the value thereof as determined by an
independent appraisal made at the time of the origination of such Mortgage Loan,
if any, and (ii) the sales price of the related Mortgaged Property.

                                      -29-
<PAGE>

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. The Voting Rights
allocated among Holders of the Offered Certificates (other than the Class AIO
Certificates) shall be 98% of the aggregate voting rights of the Certificates,
and shall be allocated among each such Class according to the fraction,
expressed as a percentage, the numerator of which is the aggregate Certificate
Principal Balance of all the Certificates of such Class then outstanding and the
denominator of which is the aggregate Certificate Principal Balance of all the
Offered Certificates then outstanding. The Voting Rights allocated to the
Holders of the Class AIO Certificates shall be 1% of the aggregate voting rights
of the Certificates. The Voting Rights allocated to each such Class of
Certificates shall be allocated among all holders of each such Class in
proportion to the outstanding Certificate Principal Balances (or Notional
Amounts, in the case of the Class AIO Certificates) of such Certificates;
provided, however, that any Certificate registered in the name of the Servicer,
the Securities Administrator, the Depositor or the Trustee or any of their
respective affiliates shall not be included in the calculation of Voting Rights.
The percentage of all the Voting Rights allocated among the Holders of the Class
CE Certificate shall be 1%. The Class P and Class R Certificates shall have no
Voting Rights.

                  "Wells Fargo Prepayment Charge Matrix": The matrix, attached
hereto as Schedule 1, setting forth the state-by-state guidelines for prepayment
charge provisions to be included in mortgage loan documents with respect to
mortgage loans originated and acquired by Wells Fargo Home Mortgage, Inc.

                  "Written Order to Authenticate": A written order by which the
Depositor directs the Trustee to issue the Certificates.

                  Section 1.02      Accounting.

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

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  Section 2.01      Conveyance of Mortgage Loans.

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

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

         (i)      the original Mortgage Note, endorsed either (A) in blank or
                  (B) in the following form: "Pay to the order of First Union
                  National Bank., as Trustee under the Pooling and Servicing
                  Agreement, dated as of March 1, 2002, without recourse", or
                  with respect to any lost Mortgage Note, an original Lost Note
                  Affidavit, together with a copy of the related Mortgage Note;

                                      -30-
<PAGE>

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

         (iii)    an original Assignment of Mortgage, in form and substance
                  acceptable for recording. The Mortgage shall be assigned
                  either (A) in blank or (B) to "First Union National Bank, as
                  Trustee under the Pooling and Servicing Agreement, dated as of
                  March 1, 2002, without recourse";

         (iv)     an original copy of any intervening assignment of Mortgage
                  showing a complete chain of assignments from the originator of
                  the Mortgage Loan to Wells Fargo Home Mortgage, Inc. with
                  evidence of recording thereon;

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

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

                  The Servicer shall promptly (and in no event later than thirty
days following the Closing Date) submit or cause to be submitted for recording,
at the Depositor's expense and at no expense to the Trust Fund or the Trustee,
in the appropriate public office for real property records, each Assignment
referred to in Section 2.01(iii) above required to be recorded as provided
below. In the event that any such Assignment is lost or returned unrecorded
because of a defect therein, the Depositor shall cause the Seller or the
Servicer to promptly prepare or cause to be prepared a substitute Assignment or
cure or cause to be cured such defect, as the case may be, and thereafter cause
each such Assignment to be duly recorded.

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

                  Upon discovery or receipt of notice that any document in a
Mortgage File is inconsistent with the information set forth on the related
Mortgage Loan Schedule or that a document is missing from, a Mortgage File, or
is materially mutilated, damaged or torn, the Seller shall have 120 days to cure
such defect (or 90 days after the earlier of the Depositor's discovery or
receipt of notification if such defect would cause the related Mortgage Loan not
to be a "qualified mortgage" for REMIC purposes) or 365 days following the
Closing Date, in the case of missing Mortgages or Assignments or deliver such
missing document to the Trustee or the Custodian. If the Seller does not cure
such defect or deliver such missing document within such time period, the Seller
shall either repurchase or substitute for such Mortgage Loan in accordance with
Section 2.03.

                  No Assignments of Mortgage referred to in Section 2.01(iii)
hereof shall be recorded unless subsequently required in connection with
servicing a Mortgage Loan pursuant to this Agreement.

                                      -31-
<PAGE>

                  The Depositor herewith delivers to the Trustee an executed
copy of the Mortgage Loan Purchase Agreement.

                  Section 2.02      Acceptance by Trustee.

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

                  The Trustee shall execute and deliver (or cause the Custodian
to execute and deliver) to the Servicer, the Securities Administrator and the
Depositor on or prior to the Closing Date an Initial Certification in the form
attached hereto as Exhibit F-1 hereto, certifying that it has received all
documents required to be delivered to it pursuant to Section 2.01 of this
Agreement, for each Mortgage Loan listed in the Mortgage Loan Schedule (other
than any Mortgage Loan that has been paid in full, liquidated or otherwise
released as of the date of such certification, and subject to any exceptions
specifically identified in the exception report annexed to such certification).

                  The Trustee, for the benefit of the Certificateholders, shall
review (or cause the Custodian to review) each Mortgage File within 60 days
after the Closing Date (or, with respect to any document delivered after the
Startup Day, within 60 days of receipt and with respect to any Qualified
Substitute Mortgage, within 60 days after the assignment thereof) and shall
deliver (or cause the Custodial to deliver) to the Servicer, the Securities
Administrator and the Depositor an Interim Certification in the form attached
hereto as Exhibit F-2 certifying that, as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan that has been paid in full,
liquidated or otherwise released as of the date of such certification, and
subject to any exceptions specifically identified in the exception report
annexed to such certification), (i) all documents required to be delivered to it
pursuant Section 2.01 of this Agreement (other than any document listed in
Section 2.01(vi) not reflected on the Mortgage Loan Schedule) are in its
possession, (ii) such documents have been reviewed by it and have not been
mutilated, damaged or torn and relate to such Mortgage Loan and (iii) based on
its examination and only as to the foregoing, the information set forth in the
Mortgage Loan Schedule that corresponds to items (1), (2), (5), (7), (10), (12),
(18), (19), (20), (21), (22) and (25) of the Mortgage Loan Schedule accurately
reflects information set forth in the Mortgage File. It is herein acknowledged
that, in conducting such review, the Trustee (or the Custodian, as applicable)
is under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that they are genuine,
enforceable, or appropriate for the represented purpose or that they have
actually been recorded or that they are other than what they purport to be on
their face.

                  Prior to the first anniversary date of this Agreement the
Trustee shall deliver (or cause the Custodian to deliver) to the Depositor, the
Securities Administrator and the Servicer a Final Certification in the form
attached hereto as Exhibit F-3 evidencing the completeness of the Mortgage
Files, with any applicable exceptions noted thereon.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Trustee (or the Custodian, as applicable) finds any document or documents
constituting a part of a Mortgage File to be missing, materially mutilated,
damaged or torn or containing information inconsistent with the information set
forth in the Mortgage Loan Schedule, at the conclusion of its review the Trustee
shall so notify the Seller, the Securities Administrator, the Depositor and the
Servicer. In addition, upon the discovery by the Depositor, the Servicer, the
Securities Administrator or the Trustee of a breach of any of the
representations and warranties made by the Seller in the Mortgage Loan Purchase
Agreement in respect of any Mortgage Loan which materially adversely affects
such Mortgage Loan or the interests of the related Certificateholders in such
Mortgage Loan, the party discovering such breach shall give prompt written
notice to the other parties.

                                      -32-
<PAGE>

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

                  Section 2.03      Repurchase or Substitution of Mortgage
                                    Loans.

                  (a) Upon discovery or receipt of written notice that any
document in a Mortgage File is materially inconsistent with the related Mortgage
Loan Schedule, or that a document is missing from a Mortgage File or it is
materially mutilated, damaged or torn, or of the breach by the Seller of any
representation, warranty or covenant under the Mortgage Loan Purchase Agreement
in respect of any Mortgage Loan which materially adversely affects the value of
such Mortgage Loan, Prepayment Charge or the interest therein of the
Certificateholders, the Trustee (or the Custodian, as applicable) shall promptly
notify the Seller and the Servicer of such defect, missing document or breach
and request that the Seller deliver such missing document or cure such defect or
breach within 120 days from the date the Seller was notified of such missing
document, defect or breach, and if the Seller does not deliver such missing
document or cure such defect or breach in all material respects during such
period, the Trustee shall enforce the Seller's obligation under the Mortgage
Loan Purchase Agreement and cause the Seller to repurchase such Mortgage Loan
from the Trust Fund at the Purchase Price on or prior to the Determination Date
following the expiration of such 120 day period (subject to Section 2.03(d));
provided that, in connection with any such breach that could not reasonably have
been cured within such 120 day period, if the Seller shall have commenced to
cure such breach within such 120 day period, the Seller shall be permitted to
proceed thereafter diligently and expeditiously to cure the same within the
additional period provided under the Mortgage Loan Purchase Agreement. The
Purchase Price for the repurchased Mortgage Loan shall be deposited in the
Collection Account, and the Trustee, upon receipt of written certification from
the Servicer of such deposit, shall release to the Seller the related Mortgage
File and shall execute and deliver such instruments of transfer or assignment,
in each case without recourse, as the Seller shall furnish to it and as shall be
necessary to vest in the Seller any Mortgage Loan released pursuant hereto and
the Trustee shall have no further responsibility with regard to such Mortgage
File. In lieu of repurchasing any such Mortgage Loan as provided above, the
Seller may cause such Mortgage Loan to be removed from the Trust Fund (in which
case it shall become a Defective Mortgage Loan) and substitute one or more
Eligible Substitute Mortgage Loans in the manner and subject to the limitations
set forth in Sections 2.03(c) and 2.03(d). It is understood and agreed that the
obligation of the Seller to cure or to repurchase (or to substitute for) any
Mortgage Loan as to which a document is missing, a material defect in a
constituent document exists or as to which such a breach has occurred and is
continuing shall constitute the sole remedy against the Seller respecting such
omission, defect or breach available to the Trustee on behalf of the
Certificateholders.

                  With respect to the representations and warranties set forth
in the Mortgage Loan Purchase Agreement that are made to the best of the
Seller's knowledge or as to which the Seller has no knowledge, if it is
discovered by the Depositor, the Servicer or the Trustee that the substance of
such representation and warranty is inaccurate and such inaccuracy materially
and adversely affects the value of the related Mortgage Loan, Prepayment Charge
or the interest therein of the Certificateholders then, notwithstanding the
Seller's lack of knowledge with respect to the substance of such representation
and warranty being inaccurate at the time the representation or warranty was
made, such inaccuracy shall be deemed a breach of the applicable representation
or warranty.

                  It is understood and agreed that the representations and
warranties set forth in the Mortgage Loan Purchase Agreement shall survive
delivery of the Mortgage Files to the Trustee and shall inure to the benefit of
the Certificateholders notwithstanding any restrictive or qualified endorsement
or assignment. It is understood and agreed that the obligations of the Seller
set forth in this Section 2.03(a) to cure, substitute for or repurchase a
Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement constitute the
sole remedies available to the Certificateholders and to the Trustee on their
behalf respecting a breach of the representations and warranties contained in
the Mortgage Loan Purchase Agreement.

                                      -33-
<PAGE>

                  (b) Within 90 days of the earlier of discovery by the Servicer
or receipt of notice by the Servicer of the breach of any representation,
warranty or covenant of the Servicer set forth in Section 2.05 which materially
and adversely affects the value of any Mortgage Loan compared to what such value
would have been had the representation, warranty or covenant not been breached,
the Servicer shall cure such breach in all material respects.

                  (c) Any substitution of Eligible Substitute Mortgage Loans for
Defective Mortgage Loans made pursuant to Section 2.03(a) must be effected prior
to the last Business Day that is within two years after the Closing Date. As to
any Defective Mortgage Loan for which the Seller substitutes a Eligible
Substitute Mortgage Loan or Loans, such substitution shall be effected by the
Seller delivering to the Trustee, for such Eligible Substitute Mortgage Loan or
Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such
other documents and agreements, with all necessary endorsements thereon, as are
required by Section 2.01, together with an Officers' Certificate providing that
each such Eligible Substitute Mortgage Loan satisfies the definition thereof and
specifying the Substitution Adjustment Amount (as described below), if any, in
connection with such substitution. The Trustee shall acknowledge receipt for
such Eligible Substitute Mortgage Loan or Loans and, within ten Business Days
thereafter, shall review such documents as specified in Section 2.02 and deliver
to the Servicer, with respect to such Eligible Substitute Mortgage Loan or
Loans, a certification, with any applicable exceptions noted thereon. Within one
year of the date of substitution, the Trustee shall deliver to the Servicer a
certification with respect to such Eligible Substitute Mortgage Loan or Loans,
with any applicable exceptions noted thereon. Monthly Payments due with respect
to Eligible Substitute Mortgage Loans in the month of substitution are not part
of the Trust Fund and will be retained by the Seller. For the month of
substitution, distributions to Certificateholders will reflect the collections
and recoveries in respect of such Defective Mortgage Loan in the Due Period
preceding the month of substitution and the Depositor or the Seller, as the case
may be, shall thereafter be entitled to retain all amounts subsequently received
in respect of such Defective Mortgage Loan. The Depositor shall give or cause to
be given written notice to the Certificateholders that such substitution has
taken place, shall amend the Mortgage Loan Schedule to reflect the removal of
such Defective Mortgage Loan from the terms of this Agreement and the
substitution of the Eligible Substitute Mortgage Loan or Loans and shall deliver
a copy of such amended Mortgage Loan Schedule to the Trustee. Upon such
substitution, such Eligible Substitute Mortgage Loan or Loans shall constitute
part of the Mortgage Pool and shall be subject in all respects to the terms of
this Agreement and, in the case of a substitution effected by the Seller, the
Mortgage Loan Purchase Agreement, including, in the case of a substitution
effected by the Seller, all applicable representations and warranties made by
the Seller in the Mortgage Loan Purchase Agreement, in each case as of the date
of substitution.

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

                  In addition, the Seller shall obtain at its own expense and
deliver to the Trustee an Opinion of Counsel, upon which the Trustee may
conclusively rely, to the effect that such substitution will not cause (a) any
federal tax to be imposed on the Trust Fund, including without limitation, any
federal tax imposed on "prohibited transactions" under Section 860F(a)(l) of the
Code or on "contributions after the startup date" under Section 860G(d)(l) of
the Code, or (b) any REMIC to fail to qualify as a REMIC at any time that any
Certificate is outstanding. If such Opinion of Counsel can not be delivered,
then such substitution may only be effected at such time as the required Opinion
of Counsel can be given.

                                      -34-
<PAGE>

                  (d) Upon discovery by the Seller, the Servicer or the Trustee
that any Mortgage Loan does not constitute a "qualified mortgage" within the
meaning of Section 860G(a)(3) of the Code, the party discovering such fact shall
within two Business Days give written notice thereof to the other parties. In
connection therewith, the Seller shall repurchase or, subject to the limitations
set forth in Section 2.03(c), substitute one or more Eligible Substitute
Mortgage Loans for the affected Mortgage Loan within 90 days of the earlier of
discovery or receipt of such notice with respect to such affected Mortgage Loan.
In addition, upon discovery that a Mortgage Loan is defective in a manner that
would cause it to be a "defective obligation" within the meaning of Treasury
regulations relating to REMICs, the Seller shall cure the defect or make the
required purchase or substitution no later than 90 days after the discovery of
the defect. Any such repurchase or substitution shall be made in the same manner
as set forth in Section 2.03(a), if made by the Seller. The Trustee shall
reconvey to the Seller the Mortgage Loan to be released pursuant hereto in the
same manner, and on the same terms and conditions, as it would a Mortgage Loan
repurchased for breach of a representation or warranty.

                  Section 2.04      Representations, Warranties and Covenants of
                                    the Securities Administrator.

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

                  (i) The Securities Administrator is duly organized, validly
         existing, and in good standing under the laws of the jurisdiction of
         its formation and has all licenses necessary to carry on its business
         as now being conducted, except for such licenses, certificates and
         permits the absence of which, individually or in the aggregate, would
         not have a material adverse effect on the ability of the Securities
         Administrator to conduct its business as it is presently conducted; the
         Securities Administrator has the power and authority to execute and
         deliver this Agreement and to perform in accordance herewith; the
         execution, delivery and performance of this Agreement (including all
         instruments of transfer to be delivered pursuant to this Agreement) by
         the Securities Administrator and the consummation of the transactions
         contemplated hereby have been duly and validly authorized; this
         Agreement evidences the valid, binding and enforceable obligation of
         the Securities Administrator, subject to applicable bankruptcy,
         insolvency, reorganization, moratorium or other similar laws affecting
         the enforcement of creditors' rights generally; and all requisite
         corporate action has been taken by the Securities Administrator to make
         this Agreement valid and binding upon the Securities Administrator in
         accordance with its terms;

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

                  (iii) This Agreement, and all documents and instruments
         contemplated hereby which are executed and delivered by the Securities
         Administrator, constitute and will constitute valid, legal and binding
         obligations of the Securities Administrator, enforceable in accordance
         with their respective terms, except as the enforcement thereof may be
         limited by applicable bankruptcy laws and general principles of equity;

                  (iv) The Securities Administrator does not believe, nor does
         it have any reason or cause to believe, that it cannot perform each and
         every covenant made by it in this Agreement;

                  (v) There is no action, suit, proceeding or investigation
         pending or, to its knowledge, threatened against the Securities
         Administrator that, either individually or in the aggregate, may result
         in any material adverse change in the business, operations, financial
         condition, properties or assets of the Securities Administrator, or in
         any material impairment of the right or ability of the Securities
         Administrator to carry on its business substantially as now conducted,
         or in any material liability on the part of the Securities
         Administrator, or that would draw into question the validity or
         enforceability of this Agreement or of any action taken or to be taken
         in connection with the obligations of the Securities Administrator
         contemplated herein, or that would be likely to impair materially the
         ability of the Securities Administrator to perform under the terms of
         this Agreement;

                                      -35-
<PAGE>

                  (vi) No consent, approval or order of any court or
         governmental agency or body is required for the execution, delivery and
         performance by the Securities Administrator of or compliance by the
         Securities Administrator with this Agreement or the consummation of the
         transactions contemplated by this Agreement, except for such consents,
         approvals, authorizations and orders, if any, that have been obtained;
         and

                  (vii) Neither the statements of the Securities Administrator
         in this Agreement nor any information, certificate of an officer,
         statement furnished in writing or report delivered to the Trustee by
         the Securities Administrator in connection with the transactions
         contemplated hereby contains or will contain any untrue statement of a
         material fact or omits or will omit to state a material fact necessary
         in order to make the statements contained therein, in light of the
         circumstances under which they were made, not misleading.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.04 shall survive delivery
of the Mortgage Files to the Trustee and shall inure to the benefit of the
Trustee, the Depositor, the Servicer and the Certificateholders. Upon discovery
by any of the Depositor, the Servicer, the Securities Administrator or the
Trustee of a breach of any of the foregoing representations, warranties and
covenants, the party discovering such breach shall give prompt written notice
(but in no event later than two Business Days following such discovery) to the
other parties hereto.

                  Section 2.05      Representations, Warranties and Covenants of
                                    the Servicer.

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

                  (i) The Servicer is duly organized, validly existing, and in
         good standing under the laws of the jurisdiction of its formation and
         has all licenses necessary to carry on its business as now being
         conducted, except for such licenses, certificates and permits the
         absence of which, individually or in the aggregate, would not have a
         material adverse effect on the ability of the Servicer to conduct its
         business as it is presently conducted, and is licensed, qualified and
         in good standing in the states where each Mortgaged Property is located
         if the laws of such state require licensing or qualification in order
         to conduct business of the type conducted by the Servicer or to ensure
         the enforceability or validity of each Mortgage Loan; the Servicer has
         the power and authority to execute and deliver this Agreement and to
         perform in accordance herewith; the execution, delivery and performance
         of this Agreement (including all instruments of transfer to be
         delivered pursuant to this Agreement) by the Servicer and the
         consummation of the transactions contemplated hereby have been duly and
         validly authorized; this Agreement evidences the valid, binding and
         enforceable obligation of the Servicer, subject to applicable
         bankruptcy, insolvency, reorganization, moratorium or other similar
         laws affecting the enforcement of creditors' rights generally; and all
         requisite corporate action has been taken by the Servicer to make this
         Agreement valid and binding upon the Servicer in accordance with its
         terms;

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

                  (iii) This Agreement, and all documents and instruments
         contemplated hereby which are executed and delivered by the Servicer,
         constitute and will constitute valid, legal and binding obligations of
         the Servicer, enforceable in accordance with their respective terms,
         except as the enforcement thereof may be limited by applicable
         bankruptcy laws and general principles of equity;

                                      -36-
<PAGE>

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

                  (v) There is no action, suit, proceeding or investigation
         pending or, to its knowledge, threatened against the Servicer that,
         either individually or in the aggregate, may result in any material
         adverse change in the business, operations, financial condition,
         properties or assets of the Servicer, or in any material impairment of
         the right or ability of the Servicer to carry on its business
         substantially as now conducted, or in any material liability on the
         part of the Servicer, or that would draw into question the validity or
         enforceability of this Agreement or of any action taken or to be taken
         in connection with the obligations of the Servicer contemplated herein,
         or that would be likely to impair materially the ability of the
         Servicer to perform under the terms of this Agreement;

                  (vi) No consent, approval or order of any court or
         governmental agency or body is required for the execution, delivery and
         performance by the Servicer of or compliance by the Servicer with this
         Agreement or the consummation of the transactions contemplated by this
         Agreement, except for such consents, approvals, authorizations and
         orders, if any, that have been obtained; and

                  (vii) Neither this Agreement nor any information, certificate
         of an officer, statement furnished in writing or report delivered to
         the Trustee by the Servicer in connection with the transactions
         contemplated hereby contains or will contain any untrue statement of a
         material fact or omits or will omit to state a material fact necessary
         in order to make the statements contained therein, in light of the
         circumstances under which they were made, not misleading.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Trustee and shall inure to the benefit of the
Trustee, the Depositor, the Securities Administrator and the Certificateholders.
Upon discovery by any of the Depositor, the Servicer, the Securities
Administrator or the Trustee of a breach of any of the foregoing
representations, warranties and covenants which materially and adversely affects
the value of any Mortgage Loan, Prepayment Charge or the interests therein of
the Certificateholders, the party discovering such breach shall give prompt
written notice (but in no event later than two Business Days following such
discovery) to the other parties hereto.

                  Section 2.06      Representations and Warranties of the
                                    Depositor.

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

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

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

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

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

                                      -37-
<PAGE>

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

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

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

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

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

                  Section 2.07      Issuance of Certificates and the
                                    Uncertificated Regular Interests.

                  The Trustee acknowledges the assignment to it of the Mortgage
Loans and the receipt by it (or the Custodian, as bailee and Custodian of the
Trustee) of the Mortgage Files, subject to the provisions of Sections 2.01 and
2.02, together with the assignment to it of all other assets included in the
Trust Fund. Concurrently with such assignment and delivery and in exchange
therefor, the Trustee, pursuant to the Written Order to Authenticate executed by
an officer of the Depositor, has executed, authenticated and delivered to or
upon the order of the Depositor, the Certificates (other than the Class P, Class
CE and Class R Certificates) in minimum dollar denominations or $25,000 and
integral dollar multiples of $1 in excess. The Class P, Class CE and Class R
Certificates are issuable only in minimum Percentage Interests of 25%. The
Trustee acknowledges the issuance of the uncertificated REMIC 1 Regular
Interests, the uncertificated REMIC 2 Regular Interests, the uncertificated
REMIC 3 Regular Interests and the uncertificated REMIC 4 Regular Interests, and
declares that it hold such regular interests as assets of REMIC 2, REMIC 3,
REMIC 4, and REMIC 5, respectively. The Trustee acknowledges the issuance of the
uncertificated REMIC 5 Components, and declares that it holds the same on behalf
of the Holders of the Class CE Certificates. The interests evidenced by the
Certificates constitute the entire beneficial ownership interest in the Trust
Fund.

                                      -38-
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                                  ARTICLE III

                 ADMINISTRATION AND SERVICING OF THE TRUST FUND

                  Section 3.01      Servicer to Act as Servicer.

                  The Servicer, as independent contract servicer, shall service
and administer the Mortgage Loans in accordance with this Agreement and the
normal and usual standards of practice of sub-prime mortgage servicers servicing
similar mortgage loans in the same jurisdiction as the Mortgaged Property, and
shall have full power and authority, acting alone, to do or cause to be done any
and all things in connection with such servicing and administration which the
Servicer may deem necessary or desirable and consistent with the terms of this
Agreement (the "Servicing Standards").

                  Consistent with the terms of this Agreement, the Servicer may
waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if in the Servicer's reasonable determination such
waiver, modification, postponement or indulgence is not materially adverse to
the Certificateholders; provided, however, that the Servicer shall not make
future advances and (unless the Mortgagor is in default with respect to the
Mortgage Loan or such default is, in the judgment of the Servicer, imminent) the
Servicer shall not permit any modification with respect to any Mortgage Loan
that would (i) change the Mortgage Interest Rate, defer or forgive the payment
thereof of any principal or interest payments, reduce the outstanding principal
amount (except for actual payments of principal) or extend the final maturity
date with respect to such Mortgage Loan, (ii) affect adversely the status of any
REMIC as a REMIC or (iii) cause any REMIC to be subject to a tax on "prohibited
transactions" or "contributions" pursuant to the REMIC Provisions.
Notwithstanding the foregoing, the Servicer shall not permit any modification
with respect to any Mortgage Loan that would both (x) effect an exchange or
reissuance of such Mortgage Loan under Section 1.860G-2(b) of the Treasury
Regulations and (y) cause any REMIC constituting part of the Trust Fund to fail
to qualify as a REMIC under the Code or the imposition of any tax on "prohibited
transactions" or "contributions" after the Startup Day under the REMIC
Provisions. Without limiting the generality of the foregoing, the Servicer shall
continue, and is hereby authorized and empowered to execute and deliver on
behalf of itself, and the Trustee, all instruments of satisfaction or
cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Mortgage Loans and with respect to the
Mortgaged Properties. The Servicer shall make all required Servicing Advances
and shall service and administer the Mortgage Loans in accordance with
Applicable Regulations, and shall provide to the Mortgagor any reports required
to be provided to them thereby. By the execution of this Agreement, the Trustee
hereby grants to the Servicer, a power of attorney to enable the Servicer to
carry out its servicing and administrative duties hereunder.

                  In servicing and administering the Mortgage Loans, the
Servicer shall employ procedures including collection procedures and exercise
the same care that it customarily employs and exercises in servicing and
administering mortgage loans for its own account giving due consideration to
accepted mortgage servicing practices of prudent lending institutions and the
Certificateholders' reliance on the Servicer.

                  The Servicer shall give prompt notice to the Trustee of any
action, of which the Servicer has actual knowledge, to (i) assert a claim
against the Trust Fund or (ii) assert jurisdiction over the Trust Fund.

                  Notwithstanding anything in this Agreement to the contrary, in
the event of a voluntary Principal Prepayment in full of a Mortgage Loan, the
Servicer may not waive any Prepayment Charge or portion thereof required by the
terms of the related Mortgage Note unless (i) such waiver is standard and
customary in servicing similar mortgage loans, (ii) such waiver relates to a
default or a reasonably forseeable default and would, in the reasonable judgment
of the Servicer, maximize recovery of total proceeds taking into account the
value of such Prepayment Charge and the related Mortgage Loan and (iii) such
waiver is required under state or federal law. If the Servicer has waived or
does not collect all or a portion of the amount of a Prepayment Charge
determined in accordance with the Wells Fargo Prepayment Charge Matrix relating
to a voluntary Principal Prepayment in full due to any action or omission of the
Servicer, other than as provided above, the Servicer shall, within 30 days of
the date on which the Principal Prepayment in full is remitted to the Trustee,
deliver to the Trustee the amount of such Prepayment Charge (or such portion
thereof as had been waived) calculated in accordance with the Wells Fargo
Prepayment Charge Matrix. This obligation shall be satisfied if the Servicer
remits the Servicer Prepayment Charge Payment Amount to the Trustee on the
Servicer Remittance Date relating to the Prepayment Period in which such 30th
day occurs, for deposit into the Distribution Account for distribution in
accordance with the terms of this Agreement.

                                      -39-
<PAGE>

                  Section 3.02      Collection of Mortgage Loan Payments.

                  Continuously from the date hereof until the principal and
interest on all Mortgage Loans are paid in full, the Servicer will diligently
collect all payments due under each Mortgage Loan when the same shall become due
and payable and shall, to the extent such procedures shall be consistent with
the Servicing Standards set forth in this Agreement and Applicable Regulations,
follow such collection procedures as it follows with respect to mortgage loans
comparable to the Mortgage Loans and held for its own account. Further, where
applicable, the Servicer will take special care in ascertaining and estimating
annual Escrow Payments that, as provided in the Escrow Agreement, will become
due and payable to that end that the installments payable by the Mortgagors will
be sufficient to pay such charges as and when they become due and payable.

                  Section 3.03      Realization Upon Defaulted Mortgage Loans.

                  In the event that any payment due under any Mortgage Loan is
not paid when the same becomes due and payable, or in the event the Mortgagor
fails to perform any other covenant or obligation under the Mortgage Loan and
such failure continues beyond any applicable grace period, the Servicer shall
take such action as it shall deem to be in the best interest of the
Certificateholders.

                  In connection with a foreclosure or other conversion, the
Servicer shall exercise such rights and powers vested in it hereunder and use
the same degree of care and skill in its exercise as it would exercise or use
under the circumstances in the conduct of its own affairs and consistent with
Applicable Regulations and the Servicing Standards, including, without
limitation, advancing funds for the payment of taxes and insurance premiums with
respect to first lien Mortgage Loans.

                  Notwithstanding the foregoing provisions of this Section 3.03,
with respect to any Mortgage Loan as to which the Servicer has received actual
notice of, or has actual knowledge of, the presence of any toxic or hazardous
substance on the related Mortgaged Property, the Servicer shall not either (i)
obtain title to such Mortgaged Property as a result of or in lieu of foreclosure
or otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property if, as a result of any such action, the
Trust would be considered to hold title to, to be a mortgagee-in-possession of,
or to be an owner or operator of such Mortgaged Property within the meaning of
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended from time to time, or any comparable law, unless the Servicer
has also previously determined, based on its reasonable judgment and a report
prepared by a Person who regularly conducts environmental audits using customary
industry standards, stating that:

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

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

                                      -40-
<PAGE>

                  The cost of the environmental audit report contemplated by
this Section 3.03 shall be advanced by the Servicer, subject to the Servicer's
right to be reimbursed therefor from the Collection Account as provided in
Section 3.05(ii).

                  If the Servicer determines, as described above, that it is in
the best economic interest of the Certificateholders to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes, or petroleum-based materials affecting any such Mortgaged Property, then
the Servicer shall take such action as it deems to be in the best economic
interest of the Certificateholders. The cost of any such compliance,
containment, cleanup or remediation shall be advanced by the Servicer, subject
to the Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.05(ii).

                  Section 3.04      Collection Account and Distribution Account.

                  (a) The Servicer shall segregate and hold all funds collected
and received pursuant to each Mortgage Loan separate and apart from any of its
own funds and general assets and shall establish and maintain one or more
Collection Accounts. Each Collection Account shall be an Eligible Account.

                  The Servicer shall deposit in the Collection Account on a
daily basis within three Business Days of receipt, and retain therein, the
following payments and collections received or made by it 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;

                           (ii) all payments on account of interest on the
         Mortgage Loans adjusted to the Mortgage Interest Rate less the
         Servicing Fee Rate;

                           (iii) all proceeds from a Cash Liquidation;

                           (iv) all Insurance Proceeds including amounts
         required to be deposited pursuant to Section 3.10, other than proceeds
         to be held in the Escrow Account and applied to the restoration or
         repair of the Mortgaged Property or released to the Mortgagor in
         accordance with the Servicer's normal servicing procedures, the loan
         documents or applicable law;

                           (v) all Condemnation Proceeds affecting any Mortgaged
         Property which are not released to the Mortgagor in accordance with the
         Servicer's normal servicing procedures, the loan documents or
         applicable law;

                           (vi) any amounts required to be deposited by the
         Servicer in connection with any REO Property pursuant to Section 3.13;
         and

                           (vii) all Prepayment Charges collected by the
         Servicer in connection with the voluntary Principal Prepayment in full
         of any of the Mortgage Loans.

                  Any interest paid on funds deposited in the Collection
Account, subject to Section 3.25, shall accrue to the benefit of the Servicer
and the Servicer shall be entitled to retain and withdraw such interest from the
Collection Account pursuant to Section 3.05(v). The foregoing requirements for
deposit from the Collection Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the
nature of late payment charges, prepayment penalties that are not Prepayment
Charges, and assumption fees need not be deposited by the Servicer in the
Collection Account.

                                      -41-
<PAGE>

                  (b) On behalf of the Trust Fund, the Trustee shall establish
and maintain one or more accounts (such account or accounts, the "Distribution
Account"), held in trust for the benefit of the Certificateholders. On behalf of
the Trust Fund, the Servicer shall deliver to the Trustee in immediately
available funds for deposit in the Distribution Account by the close of business
New York time on the Servicer Remittance Date, (i) that portion of the Available
Funds (calculated without regard to the references in the definition thereof to
amounts that may be deposited to the Distribution Account from a different
source as provided herein) then on deposit in the Collection Account, (ii) the
amount of all Prepayment Charges collected by the Servicer in connection with
the voluntary Principal Prepayment in full of any of the Mortgage Loans then on
deposit in the Collection Account (other than any such Prepayment Charges
received after the related Prepayment Period) and (iii) any Servicer Prepayment
Charge Payment Amount that became due during the related Prepayment Period.
These amounts may be sent via a single combined wire transfer. Except as
otherwise provided in Section 3.04(f), amounts in the Distribution Account shall
be deemed to be held on behalf of the related REMICs in accordance with the
REMIC distributions set forth in Section 4.09.

                  (c) Funds in the Collection Account and the Distribution
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.25. The Servicer shall give notice to the
Trustee and the Securities Administrator of the location of the Collection
Account maintained by it when established and prior to any change thereof. The
Trustee shall give notice to the Servicer, the Securities Administrator and the
Depositor of the location of the Distribution Account when established and prior
to any change thereof.

                  (d) In the event the Servicer shall deliver to the Trustee for
deposit in the Distribution Account any amount not required to be deposited
therein, it may at any time request that the Trustee withdraw such amount from
the Distribution Account and remit to the Servicer any such amount, any
provision herein to the contrary notwithstanding. In addition, the Servicer
shall deliver to the Trustee from time to time for deposit, and the Trustee
shall so deposit, in the Distribution Account in respect of REMIC 1:

                           (i) any Advances, as required pursuant to Section
         4.07;

                           (ii) any Stayed Funds, as soon as permitted by the
         federal bankruptcy court having jurisdiction in such matters;

                           (iii) any Prepayment Charges or amounts in connection
         with the waiver of such Prepayment Charges, in each case required to be
         deposited pursuant to Section 3.01;

                           (iv) any amounts required to be deposited in the
         Distribution Account pursuant to Sections 2.03, 3.04, 3.16, 3.23 or
         4.07; and

                           (v) any amounts required to be deposited by the
         Servicer pursuant to Section 3.11 in connection with the deductible
         clause in any blanket hazard insurance policy, such deposit being made
         from the Servicer's own funds, without reimbursement therefor.

                  (e) Promptly upon receipt of any Stayed Funds, whether from
the Servicer, a trustee in bankruptcy, or federal bankruptcy court or other
source, the Trustee shall, unless such funds have been received from the
Servicer, notify the Servicer of such receipt and deposit such funds in the
Distribution Account, subject to withdrawal thereof as permitted hereunder. In
addition, the Securities Administrator shall deposit in the Distribution Account
any amounts required to be deposited pursuant to Section 3.25(b) in connection
with losses realized on Permitted Investments with respect to funds held in the
Distribution Account.

                  (f) Any Prepayment Charges and Servicer Prepayment Charge
Payment Amounts deposited pursuant to Section 3.04(a)(vii) shall not be assets
of any REMIC created hereunder, but shall be considered assets of the Grantor
Trust held by the Trustee for the benefit of the Class P Certificateholders. In
addition, any Net WAC Rate Carryover Amounts that are paid with respect to the
Class A, Class M, or Class B Certificates will be treated as first having been
distributed with respect to the Class CE Certificates and then having been paid
outside of the REMICs to the Class A, Class M, or Class B Certificateholders.

                                      -42-
<PAGE>

                  Section 3.05      Permitted Withdrawals From the Collection
                                    Account.

                  The Servicer may, from time to time, withdraw from the
Collection Account for the following purposes:

                  (i) to remit to the Trustee for deposit in the Distribution
         Account the amounts required to be so remitted pursuant to Section
         3.04(b) or permitted to be so remitted pursuant to the first sentence
         of Section 3.04(d);

                  (ii) to reimburse itself for Advances and Servicing Advances;
         the Servicer's right to reimburse itself pursuant to this subclause
         (ii) being limited to amounts received on the related Mortgage Loan
         which represent payments of (a) principal and/or interest respecting
         which any such Advance was made or (b) Condemnation Proceeds, Insurance
         Proceeds or Liquidation Proceeds respecting which any such Servicing
         Advance was made;

                  (iii) to reimburse itself for unreimbursed Servicing Advances,
         any unpaid Servicing Fees and for unreimbursed Advances to the extent
         that such amounts are deemed to be Nonrecoverable Advances, and to
         reimburse itself for such amounts to the extent that such amounts are
         nonrecoverable from the disposition of REO Property pursuant to Section
         3.03 or Section 3.13 hereof;

                  (iv) to reimburse itself for any amounts paid pursuant to
         Section 3.03 (and not otherwise previously reimbursed);

                  (v) to pay to itself as servicing compensation (a) any
         interest earned on funds in the Collection Account (all such interest
         to be withdrawn monthly not later than each Servicer Remittance Date)
         and (b) the Servicing Fee from that portion of any payment or recovery
         as to interest to a particular Mortgage Loan to the extent not retained
         pursuant to Section 3.04(ii);

                  (vi) to reimburse itself for any amounts paid pursuant to
         Section 6.03 (and not otherwise previously reimbursed); and

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

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

                  Section 3.06      Establishment of Escrow Accounts; Deposits
                                    in Escrow Accounts.

                  The Servicer shall segregate and hold all funds collected and
received pursuant to each Mortgage Loan which constitute Escrow Payments
separate and apart from any of its own funds and general assets and shall
establish and maintain one or more Escrow Accounts, in the form of time deposit
or demand accounts. A copy of such letter agreement shall be furnished to the
Trustee upon request. The Escrow Account shall be an Eligible Account.

                  The Servicer shall deposit in the Escrow Account or Accounts
on a daily basis within three Business Days of receipt, and retain therein, (i)
all Escrow Payments collected on account of the Mortgage Loans, for the purpose
of effecting timely payment of any such items as required under the terms of
this Agreement, and (ii) all Insurance Proceeds which are to be applied to the
restoration or repair of any Mortgaged Property. The Servicer shall make
withdrawals therefrom only to effect such payments as are required under this
Agreement, and for such other purposes as shall be set forth in, or in
accordance with, Section 3.07. The Servicer shall be entitled to retain any
interest paid on funds deposited in the Escrow Account by the depository
institution other than interest on escrowed funds required by law to be paid to
the Mortgagor and, to the extent required by the related Mortgage Loan or
Applicable Regulations, the Servicer shall pay interest on escrowed funds to the
Mortgagor notwithstanding that the Escrow Account is non-interest bearing or
that interest paid thereon is insufficient for such purposes.

                                      -43-
<PAGE>

                  Section 3.07      Permitted Withdrawals From Escrow Account.

                  Withdrawals from the Escrow Account may be made by the
Servicer (i) to effect timely payments of Escrow Payments, (ii) to reimburse the
Servicer for any Servicing Advance made by the Servicer with respect to a
related Mortgage Loan but only from amounts received on the related Mortgage
Loan which represent late payments or Late Collections of Escrow Payments
thereunder, (iii) to refund to the Mortgagor any funds as may be determined to
be overages, (iv) for transfer to the Collection Account in accordance with the
terms of this Agreement, (v) for application to restoration or repair of the
Mortgaged Property, (vi) to pay to the Servicer, or to the Mortgagor to the
extent required by the related Mortgage Loan or Applicable Regulations, any
interest paid on the funds deposited in the Escrow Account, (vii) to clear and
terminate the Escrow Account on the termination of this Agreement, or (viii) to
transfer to the Collection Account any insurance proceeds. As part of its
servicing duties, the Servicer shall pay to the Mortgagor interest on funds in
the Escrow Account, to the extent required by the related Mortgage Loan or
Applicable Regulations, and to the extent that interest earned on funds in the
Escrow Account is insufficient, shall pay such interest from its own funds,
without any reimbursement therefor.

                  In the event the Servicer shall deposit in the Escrow Account
any amount not required to be deposited therein, it may at any time withdraw
such amount from the Escrow Account, any provision herein to the contrary
notwithstanding.

                  Section 3.08      Payment of Taxes, Insurance and Other
                                    Charges; Collections Thereunder.

                  With respect to each Mortgage Loan subject to an Escrow
Agreement, the Servicer shall maintain accurate records reflecting the status of
taxes, which are or may become a lien upon the Mortgaged Property and the status
of fire, flood (if applicable) and hazard insurance coverage and shall obtain,
from time to time, all bills for the payment of such charges (including renewal
premiums) and shall effect payment thereof prior to the applicable penalty or
termination date and at a time appropriate for securing maximum discounts
allowable, employing for such purpose deposits of the Mortgagor in the Escrow
Account which shall have been estimated and accumulated by the Servicer in
amounts sufficient for such purposes, as allowed under the terms of the Escrow
Agreement or Applicable Regulations. To the extent that a Mortgage Loan is not
subject to an Escrow Agreement, the Servicer shall determine that any such
payments are made by the Mortgagor. The Servicer assumes full responsibility for
the payment of all such bills and shall effect payments of all such bills
irrespective of the Mortgagor's faithful performance in the payment of same or
the making of the Escrow Payments and shall make Servicing Advances from its own
funds to effect such payments. Notwithstanding anything to the contrary herein,
the Servicer shall be responsible for the payment of all primary mortgage
insurance premiums out of the Servicer's own funds, without any right to
reimbursement therefor. The Servicer shall maintain coverage under a primary
mortgage insurance policy for all Mortgage Loans with Loan-to-Value Ratios at
origination of 80% or greater, until the Loan-to-Value Ratio on any such
Mortgage Loan is reduced to 78% or lower as a result of principal payments on
such Mortgage Loan or based upon an appraisal of the related Mortgaged Property
after the Closing Date.

                  Section 3.09      Transfer of Accounts.

                  The Servicer may transfer the Collection Account or the Escrow
Account to a different depository institution from time to time. Upon such
transfer, the Servicer shall deliver to the Trustee, the Securities
Administrator and the Depositor, a certification or letter agreement, as the
case may be, as required pursuant to Sections 3.04 and 3.06.

                                      -44-
<PAGE>

                  Section 3.10      Maintenance of Hazard Insurance.

                  The Servicer shall cause to be maintained for each Mortgage
Loan fire and hazard insurance with extended coverage as is customary in the
area where the Mortgaged Property is located in an amount which is at least
equal to the lesser of (i) the amount necessary to fully compensate for any
damage or loss to the improvements which are a part of such property on a
replacement cost basis or (ii) the Principal Balance of the Mortgage Loan, in
each case in an amount not less than such amount as is necessary to prevent the
Mortgagor and/or the Mortgagee from becoming a co-insurer. If the Mortgaged
Property is in an area identified in the Federal Register by the Flood Emergency
Management Agency as having special flood hazards and flood insurance has been
made available, the Servicer will cause to be maintained a flood insurance
policy meeting the requirements of the current guidelines of the Federal
Insurance Administration with a generally acceptable insurance carrier, in an
amount representing coverage not less than the least of (i) the Principal
Balance of the Mortgage Loan, (ii) the maximum insurable value of the
improvements securing such Mortgage Loan or (iii) the maximum amount of
insurance which is available under the Flood Disaster Protection Act of 1973, as
amended. The Servicer shall also maintain on the REO Property for the benefit of
the Certificateholders, (x) fire and hazard insurance with extended coverage in
an amount which is at least equal to the replacement cost of the improvements
which are a part of such property, (y) public liability insurance and, (z) to
the extent required and available under the Flood Disaster Protection Act of
1973, as amended, flood insurance in an amount as provided above. Any amounts
collected by the Servicer under any such policies other than amounts to be
deposited in the Escrow Account and applied to the restoration or repair of the
Mortgaged Property or REO Property, or released to the Mortgagor in accordance
with the Servicer's normal servicing procedures, shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 3.05. It is
understood and agreed that no earthquake or other additional insurance is
required to be maintained by the Servicer or the Mortgagor or maintained on
property acquired in respect of the Mortgage Loan, other than pursuant to such
Applicable Regulations as shall at any time be in force and as shall require
such additional insurance. All such policies shall be endorsed with standard
mortgagee clauses with loss payable to the Servicer and shall provide for at
least thirty days prior written notice of any cancellation, reduction in the
amount of or material change in coverage to the Servicer. The Servicer shall not
interfere with the Mortgagor's freedom of choice in selecting either his
insurance carrier or agent, provided, however, that the Servicer shall not
accept any such insurance policies from insurance companies unless such
companies currently reflect a general policy rating of B:VI or better in Best's
Key Rating Guide and are licensed to do business in the state wherein the
property subject to the policy is located.

                  Section 3.11      Maintenance of Mortgage Impairment Insurance
                                    Policy.

                  In the event that the Servicer shall obtain and maintain a
blanket policy issued by an insurer that has a general policy rating of B:VI or
better in Best's Key Rating Guide insuring against hazard losses on all of the
Mortgage Loans, then, to the extent such policy provides coverage in an amount
equal to the amount required pursuant to Section 3.10 and otherwise complies
with all other requirements of Section 3.10, it shall conclusively be deemed to
have satisfied its obligations as set forth in Section 3.10, it being understood
and agreed that such policy may contain a deductible clause, in which case the
Servicer shall, in the event that there shall not have been maintained on the
related Mortgaged Property or REO Property a policy complying with Section 3.10,
and there shall have been a loss which would have been covered by such policy,
deliver to the Trustee for deposit in the Distribution Account the amount not
otherwise payable under the blanket policy because of such deductible clause,
which amount shall not be reimbursable to the Servicer from the Trust Fund. In
connection with its activities as servicer of the Mortgage Loans, the Servicer
agrees to prepare and present, on behalf of the Trustee, claims under any such
blanket policy in a timely fashion in accordance with the terms of such policy.
Upon request of the Trustee, the Servicer shall cause to be delivered to the
Trustee a certified true copy of such policy and a statement from the insurer
thereunder that such policy shall in no event be terminated or materially
modified without thirty days prior written notice to the Trustee.

                  Section 3.12      Fidelity Bond, Errors and Omissions
                                    Insurance.

                  The Servicer shall maintain, at its own expense, a blanket
fidelity bond (the "Fidelity Bond") and an errors and omissions insurance
policy, with broad coverage with financially responsible companies on all
officers, employees or other persons acting in any capacity with regard to the
Mortgage Loans to handle funds, money, documents and papers relating to the
Mortgage Loans. The Fidelity Bond and errors and omissions insurance shall be in
the form of the Mortgage Banker's Blanket Bond and shall protect and insure the
Servicer against losses, including forgery, theft, embezzlement, fraud, errors
and omissions and negligent acts of such persons. Such Fidelity Bond shall also
protect and insure the Servicer against losses in connection with the failure to
maintain any insurance policies required pursuant to this Agreement and the
release or satisfaction of a Mortgage Loan without having obtained payment in
full of the indebtedness secured thereby. No provision of this Section 3.12
requiring the Fidelity Bond and errors and omissions insurance shall diminish or
relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such bond and insurance policy shall
be at least equal to the corresponding amounts required by FNMA in the FNMA
Selling and Servicing Guide or by FHLMC in the FHLMC Servicer's Guide. Upon
request of the Trustee, the Servicer shall cause to be delivered to the Trustee
a certified true copy of the Fidelity Bond and errors and omissions insurance
policy and a statement from the surety and the insurer that such Fidelity Bond
and errors and omissions insurance policy shall in no event be terminated or
materially modified without thirty days' prior written notice to the Trustee.

                                      -45-
<PAGE>

                  Section 3.13      Title, Management and Disposition of REO
                                    Property.

                  (a) In the event that title to a Mortgaged Property is
acquired in foreclosure or by deed in lieu of foreclosure, the deed or
certificate of sale shall be taken in the name of the Trustee, on behalf of the
Certificateholders, or in the event the Trustee is not authorized or permitted
to hold title to real property in the state where the REO Property is located,
or would be adversely affected under the "doing business" or tax laws of such
state by so holding title, the deed or certificate of sale shall be taken in the
name of such Person or Persons as shall be consistent with an Opinion of Counsel
obtained by the Servicer from an attorney duly licensed to practice law in the
state where the REO Property is located. Any Person or Persons holding such
title other than the Trustee shall acknowledge in writing that such title is
being held as nominee for the benefit of the Trustee. Pursuant to the power of
attorney granted in Section 3.01, the Servicer is hereby authorized to acquire,
transfer and dispose of any REO Property taken in the name of the Trustee
pursuant to this Section 3.23 without further documentation of its authority as
attorney in fact for the Trustee on behalf of the Trust.

                  (b) In the event that the Trust Fund acquires any REO Property
as aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such REO Property before the end of
the third calendar year beginning after the year of its acquisition by the Trust
Fund for purposes of Section 860G(a)(8) of the Code or, at the expense of the
Trust Fund, request from the Internal Revenue Service, more than 60 days before
the day on which the above-mentioned grace period would otherwise expire, an
extension of the above-mentioned grace period, unless the Servicer obtains an
Opinion of Counsel, addressed to the Servicer and the Trustee, to the effect
that the holding by the Trust Fund of such REO Property subsequent to such
period will not: (i) result in the imposition of any tax on "prohibited
transactions" as defined in Section 860F of the Code; or (ii) cause any REMIC
constituting any part of the Trust Fund 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 REO Property (subject to any conditions contained in such
Opinion of Counsel). The Servicer shall be entitled to be reimbursed from the
Collection Account for any costs incurred in obtaining such Opinion of Counsel,
as provided in Section 3.05.

                  Subject to compliance with applicable laws and regulations as
shall at any time be in force, and notwithstanding any other provisions of this
Agreement, no REO Property acquired by the Trust Fund shall be rented (or
allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund in such a manner or pursuant to any terms that would: (i) cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code; or (ii) subject any REMIC constituting part of
the Trust Fund to the imposition of any federal income taxes on the income
earned from such REO Property, including any taxes imposed by reason of Sections
860F or 860G(c) of the Code, unless the Servicer has agreed to indemnify and
hold harmless the Trust Fund with respect to the imposition of any such taxes.

                  The Servicer shall manage, conserve, protect and operate each
REO Property for the Certificateholders and the Trust Fund solely for the
purpose of its prompt disposition and sale in a manner which does not cause such
REO Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by the related REMIC of
any "income from non-permitted assets" within the meaning of Section
860F(a)(2)(B) of the Code, or any "net income from foreclosure property" which
is subject to taxation under the REMIC Provisions. The Servicer shall cause each
REO Property to be inspected promptly upon the acquisition of title thereto and
possession thereof and shall cause each REO Property to be inspected at least
annually thereafter. The Servicer shall make or cause to be made a written
report of each such inspection. Such reports shall be retained in the Mortgage
File and copies thereof shall be forwarded by the Servicer to the Trustee upon
request. The Servicer shall attempt to sell the same (and may temporarily rent
the same) on such terms and conditions as the Servicer deems to be in the best
interest of the Certificateholders and the Trust Fund.

                  With respect to each REO Property, the Servicer shall
segregate and hold all funds collected and received in connection with the
operation of the REO Property separate and apart from its own funds or general
assets and shall deposit or cause to be deposited, on a daily basis, within
three Business Days of receipt, into the Collection Account, all revenues
received with respect to the related REO Property and shall withdraw therefrom
funds necessary for the proper operation, management and maintenance of the REO
Property, including the cost of maintaining any hazard insurance pursuant to
Section 3.10 hereof and the fees of any managing agent acting on behalf of the
Servicer.

                                      -46-
<PAGE>

                  The Servicer shall furnish to the Securities Administrator and
the Trustee, on each Servicer Remittance Date, an operating statement for each
REO Property covering the operation of each REO Property for the previous month,
if applicable. Such operation statement shall be accompanied by such other
information as the Trustee shall reasonably request.

                  The Servicer shall use its best efforts to dispose of the REO
Property as promptly as is practically consistent with protecting the
Certificateholders' interests.

                  Each REO Disposition shall be carried out by the Servicer at
such price and upon such terms and conditions as the Servicer deems to be in the
best interest of the Certificateholders. If as of the date title to any REO
Property was acquired by the Servicer there were outstanding unreimbursed
Servicing Advances with respect to the REO Property, the Servicer, upon an REO
Disposition of such REO Property, shall be entitled to reimbursement for any
related unreimbursed Servicing Advances from proceeds received in connection
with such REO Disposition. The Servicer shall be entitled to an REO Disposition
Fee upon each REO Disposition, and may withhold and retain the REO Disposition
Fee from Liquidation Proceeds. The proceeds from the REO Disposition, net of any
payments to the Servicer as provided above, shall be deposited in the Collection
Account and shall be distributed to the Trust in the month following receipt
thereof in accordance with Section 4.01.

                  Any REO Disposition shall be for cash only (unless changes in
the REMIC Provisions made subsequent to the Startup Day allow a sale for other
consideration and an Opinion of Counsel is obtained by the Servicer to the
effect that such sale shall not cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC).

                  Section 3.14      Due-on-Sale Clauses; Assumption and
                                    Substitution Agreements.

                  When a Mortgaged Property has been or is about to be conveyed
by the Mortgagor, the Servicer shall, 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. An Opinion of
Counsel at the expense of the Servicer (which expense shall constitute a
Servicing Advance) delivered to the Trustee and the Depositor to the foregoing
effect shall conclusively establish the reasonableness of such belief. 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 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. 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 (or the
Custodian, as the case may be) 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 (or the Custodian, as the case may be) 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. Except as otherwise provided in
Section 3.01, 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.

                                      -47-
<PAGE>

                  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 3.15      Duties of the Credit Risk Manager.

                  For and on behalf of the Depositor, the Credit Risk Manager
shall provide reports and recommendations as to loss mitigation activities
concerning Mortgage Loans that are past due, as to which there has been
commencement of foreclosure, as to which there has been forbearance in exercise
of remedies which are in default, as to which any obligor is the subject of
bankruptcy, receivership, or an arrangement of creditors, or which have become
REO Properties. Such reports and recommendations will be based upon information
provided pursuant to the Credit Risk Management Agreement. The Credit Risk
Manager shall look solely to the Servicer for all information and data
(including loss and delinquency information and data) and loan level information
and data relating to the servicing of the Mortgage Loans.

                  The Credit Risk Manager may be removed at any time by a vote
of Certificateholders holding Certificates evidencing at least 66 2/3% of the
aggregate Voting Rights of the Certificates. After any such termination, the
Credit Risk Manager shall have no further obligations hereunder, and shall no
longer be entitled to the Credit Risk Manager Fee.

                  Section 3.16      Optional Purchases of 60+ Day Delinquent
                                    Loans by Servicer.

                  The Servicer may, at its option, with the consent of the
Depositor, repurchase any 60+ Day Delinquent Loan or any Mortgage Loan or REO
Property for which the Servicer has accepted a deed in lieu of foreclosure.
Prior to repurchase pursuant to this Section 3.16, the Servicer shall be
required to continue to make monthly advances pursuant to Section 4.07. The
Servicer shall not use any procedure in selecting Mortgage Loans to be
repurchased which is materially adverse to the interests of the
Certificateholders. The Servicer shall purchase any such 60+ Day Delinquent Loan
or REO Property that it elects to repurchase at a price equal to the Principal
Balance of the Mortgage Loan (or of the related Mortgage Loan, in the case of
REO Property) plus accrued interest thereon at the related Mortgage Interest
Rate from the date to which interest has last been paid to the Trust Fund to the
last day of the month in which the date of purchase occurs, plus any
unreimbursed Servicing Advances and Advances (but only to the extent made by a
different entity as Servicer) (the "Servicer Purchase Price"). The purchase
price for the repurchased Mortgage Loan or REO Property shall be deposited in
the Collection Account, and the Trustee, upon receipt of written certification
from the Servicer of such deposit, shall release to, or at the direction of, the
Servicer, the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as the
Servicer shall furnish to it and as shall be necessary to vest in the Servicer
any Mortgage Loan or REO Property released pursuant hereto and the Trustee shall
have no further responsibility with regard to such Mortgage File.

                  No later than the end of the Collection Period for the second
Distribution Date, the Servicer shall repurchase the Mortgage Loans identified
on Exhibit O attached hereto, which are 60+ Day Delinquent Loans as of the
Closing Date. The purchase price for each of these Mortgage Loans shall equal
the applicable Servicer Purchase Price plus, in the case of any such Mortgage
Loan identified in the Mortgage Loan Schedule as being subject to a Prepayment
Charge, the amount of the Prepayment Charge applicable to such Mortgage Loan
calculated in accordance with the Wells Fargo Prepayment Charge Matrix. The
Servicer shall not permit any of the Mortgage Loans listed on Exhibit O to be
converted into REO Property prior to the date they are purchased by the Servicer
from the Trust Fund pursuant to this paragraph.

                  Section 3.17      Trustee to Cooperate; Release of Files.

                  (a) Upon the payment in full of any Mortgage Loan (including
any liquidation of such Mortgage Loan through foreclosure or otherwise, 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 shall deliver to the
Trustee (or the Custodian as the case may be) an executed copy of a completed
"Request for Release" in the form of Exhibit E. Upon receipt of such Request for
Release of Documents, the Trustee (or the Custodian as the case may be) shall
promptly release the related Mortgage File, in trust to (i) the Servicer, or
(ii) such other party identified in the related Request for Release. No expense
incurred in connection with such instrument of satisfaction or assignment, as
the case may be, shall be chargeable to the Collection Account or the
Distribution Account, excepting therefrom recording fees that are not recovered
from the related Mortgagor.

                                      -48-
<PAGE>

                  (b) From time to time and as appropriate in the servicing of
any Mortgage Loan, including, without limitation, foreclosure or other
comparable conversion of a Mortgage Loan or collection under any insurance
policy relating to a Mortgage Loan, the Trustee shall (except in the case of the
payment or liquidation pursuant to which the related Mortgage File is released
to an escrow agent or an employee, agent or attorney of the Trustee), upon
written request of the Servicer and delivery to the Trustee (or the Custodian,
as the case may be) of an executed copy of a "Request for Release" in the form
of Exhibit E signed by a Servicing Officer, release the related Mortgage File to
the Servicer and shall execute such documents as shall be necessary to the
prosecution of any such proceedings, including, without limitation, an
assignment without recourse of the related Mortgage to the Servicer. Such
receipt shall obligate the Servicer to return the Mortgage File to the Trustee
(or the Custodian, as the case may be) when the need therefor by the Servicer no
longer exists unless the Mortgage Loan shall be liquidated, in which case, upon
receipt of a Request for Release evidencing such liquidation, the receipt shall
be released by the Trustee (or the Custodian, as the case may be) to the
Servicer.

                  (c) Subject to Section 3.01, the Servicer shall have the right
to accept applications of Mortgagors for consent to (i) partial releases of
Mortgages, (ii) alterations, and (iii) removal, demolition or division of
properties subject to Mortgages. No application for approval shall be considered
by the Servicer unless: (w) either (A) it has received an Opinion of Counsel,
addressed to the Trustee (which opinion shall not be an expense of the Trustee
or the Trust Fund) that such sale, disposition, substitution, acquisition or
contribution will not affect adversely the status of any REMIC constituting part
of the Trust Fund as a REMIC or cause any REMIC constituting part of the Trust
Fund to be subject to a tax on "prohibited transactions" or "contributions"
pursuant to the REMIC Provisions or (B) other evidence satisfactory to the
Servicer; (x) the provisions of the related Mortgage Note and Mortgage have been
complied with; (y) the Loan-to-Value Ratio and debt-to-income ratio after any
release does not exceed the maximum Loan-to-Value Ratio and debt-to-income ratio
established in accordance with the underwriting standards of the Mortgage Loans;
and (z) the lien priority of the related Mortgage is not affected. Upon receipt
by the Trustee of a Servicing Officer's certificate setting forth the action
proposed to be taken in respect of a particular Mortgage Loan and certifying
that the criteria set forth in the immediately preceding sentence have been
satisfied, the Trustee shall execute and deliver to the Servicer the consent or
partial release so requested by the Servicer. A proposed form of consent or
partial release, as the case may be, shall accompany any Servicing Officer's
certificate delivered by the Servicer pursuant to this paragraph.

                  Section 3.18      Servicing Compensation.

                  As compensation for its activities hereunder, the Servicer
shall be entitled to retain the amount of the Servicing Fee with respect to each
Mortgage Loan (including REO Properties). The Servicer shall be entitled to
retain additional servicing compensation in the form of release fees, bad check
charges, assumption fees, modification or extension fees, late payment charges,
or any other service-related fees, Insurance Proceeds and Liquidation Proceeds
not required to be deposited in the Collection Account and similar items, to the
extent collected from Mortgagors.

                  Section 3.19      Annual Statement as to Compliance.

                  (a) The Servicer, at its own expense, will deliver to the
Trustee and the Securities Administrator, not later than April 30 following the
end of the fiscal year of the Servicer which as of the Startup Day ends on the
last day of December, commencing in 2002, a Servicing Officer's certificate
stating, as to each signer thereof, that (i) a review of the activities of the
Servicer during such preceding fiscal year (or such shorter period in the case
of the first such report) and of performance under this Agreement or similar
agreements has been made under such officers' 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 for such year, or, if there has been a
default in the fulfillment of all such obligations, specifying each such default
known to such officers and the nature and status thereof including the steps
being taken by the Servicer to remedy such default. The Securities Administrator
shall forward such certificate to the Depositor immediately upon receipt.

                                      -49-
<PAGE>

                  (b) Delivery of such reports, information and documents to the
Securities Administrator is for informational purposes only and the Trustee's,
Securities Administrator's and Depositor's receipt of such shall not constitute
constructive notice of any information contained therein or determinable, from
information contained therein, including the Servicer's compliance with any of
its covenants hereunder (as to which the Trustee, the Securities Administrator
and the Depositor are entitled to rely exclusively on Officers' Certificates).

                  Section 3.20      Annual Independent Certified Public
                                    Accountants' Reports.

                  (a) Not later than April 30 following the end of each fiscal
year of the Servicer commencing in 2002, the Servicer, at its expense, shall
cause a nationally recognized firm of independent certified public accountants
to furnish to the Trustee, the Securities Administrator and the Depositor a
report stating that (i) it has obtained a letter of representation regarding
certain matters from the management of the Servicer which includes an assertion
that the Servicer has complied with certain minimum residential mortgage loan
servicing standards, identified in either the Uniform Single Attestation Program
for Mortgage Bankers established by the Mortgage Bankers Association of America
or the Audit Program for Mortgages serviced by FHLMC, with respect to the
servicing of residential mortgage loans during the most recently completed
fiscal year and (ii) on the basis of an examination conducted by such firm in
accordance with standards established by the American Institute of Certified
Public Accountants, such representation is fairly stated in all material
respects, subject to such exceptions and other qualifications that may be
appropriate. The Servicer shall furnish a copy of such report to the Trustee,
the Securities Administrator, the Depositor and each Rating Agency. Copies of
such statement shall be provided by the Trustee to any Certificateholder upon
request, provided that such statement has been delivered by the Servicer to the
Trustee.

                  (b) Delivery of such reports, information and documents to the
Trustee and the Securities Administrator is for informational purposes only and
the Trustee's and Securities Administrator's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable, from information contained therein, including the Servicer's
compliance with any of its covenants hereunder (as to which the Trustee and the
Securities Administrator are entitled to rely exclusively on Officers'
Certificates).

                  Section 3.21      Access to Certain Documentation and
                                    Information Regarding the Mortgage Loans.

                  The Servicer shall provide to the Trustee, the Securities
Administrator, Certificateholders that are federally insured savings and loan
associations, the Office of Thrift Supervision, the FDIC and the supervisory
agents and examiners of each of the foregoing (which, in the case of supervisory
agents and examiners, may be required by applicable state and federal
regulations) access to the documentation regarding the Mortgage Loans, such
access being afforded without charge but only upon reasonable request and during
normal business hours at the offices of the Servicer designated by it.

                  Section 3.22      Reports Filed with Securities and Exchange
                                    Commission.

                  Within 15 days after each Distribution Date, the Securities
Administrator shall, in accordance with industry standards, file with the
Commission via the Electronic Data Gathering and Retrieval System ("EDGAR"), a
Form 8-K with a copy of the statement to the Trustee who shall furnish a copy of
the statement to the Certificateholders for such Distribution Date as an exhibit
thereto. Prior to January 30, 2003 (or as soon thereafter as the Trust shall be
eligible to file a Form 15, if the Trust is not eligible to file it on or before
January 30, 2003), the Securities Administrator shall, in accordance with
industry standards, file a Form 15 Suspension Notice with respect to the Trust
Fund, if applicable. Prior to March 31, 2003, the Securities Administrator shall
file a Form 10-K, in substance conforming to industry standards, with respect to
the Trust Fund. The Depositor hereby grants to the Securities Administrator 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 Securities Administrator 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 Securities Administrator,
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 Securities Administrator reasonably deems appropriate to prepare and file
all necessary reports with the Commission. The Securities Administrator shall
have no responsibility to file any items other than those specified in this
Section 3.22; provided, however, the Securities Administrator will cooperate
with the Depositor in connection with any additional filings with respect to the
Trust Fund as the Depositor deems necessary under the Securities Exchange Act of
1934, as amended (the "Exchange Act"); provided that such additional filings
shall be in EDGAR format and at the expense of the Depositor. Upon request,
copies of all reports filed by the Securities Administrator under the Exchange
Act shall be sent to the Depositor. Fees and expenses incurred by the Securities
Administrator in connection with this Section 3.22 shall not be reimbursable
from the Trust Fund.

                                      -50-
<PAGE>

                  Section 3.23      Obligations of the Servicer in Respect of
                                    Compensating Interest.

                  Not later than the close of business on each Servicer
Remittance Date, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account an amount ("Compensating Interest") equal to the lesser of
(A) the aggregate of the Prepayment Interest Shortfalls on the Mortgage Loans
for the related Distribution Date resulting from Principal Prepayments on the
Mortgage Loans during the related Prepayment Period and (B) its aggregate
Servicing Fee received in the related Due Period. The Servicer shall apply
Compensating Interest to offset any Prepayment Interest Shortfalls on the
Mortgage Loans. The Servicer shall not have the right to reimbursement for any
amounts remitted to the Trustee in respect of Compensating Interest. Such
amounts so remitted shall be included in the Available Funds and distributed
therewith on the next Distribution Date.

                  Section 3.24      [Reserved]

                  Section 3.25      Investment of Funds in the Collection
                                    Account and the Distribution Account.

                  (a) The Servicer may direct in writing any depository
institution maintaining the Collection Account and the Securities Administrator
may direct in writing any depository institution maintaining the Distribution
Account (for purposes of this Section 3.25, each an "Investment Account"), to
invest the funds in such Investment Account in one or more Permitted Investments
bearing interest or sold at a discount, and maturing, unless payable on demand,
(i) no later than the Business Day immediately preceding the date on which such
funds are required to be withdrawn from such account pursuant to this Agreement,
if a Person other than the Trustee is the obligor thereon, and (ii) no later
than the date on which such funds are required to be withdrawn from such account
pursuant to this Agreement, if the Trustee is the obligor thereon. All such
Permitted Investments shall be held to maturity, unless payable on demand. Any
investment of funds in an Investment Account shall be made in the name of the
Securities Administrator or the Servicer, as applicable (in its capacity as
such) or in the name of a nominee of the same. The Servicer or the Securities
Administrator shall be entitled to sole possession (except with respect to
investment direction of funds held in the Collection Account) over each such
investment and the income thereon, and any certificate or other instrument
evidencing any such investment shall be delivered directly to the Securities
Administrator or its agent, together with any document of transfer necessary to
transfer title to such investment to the Securities Administrator or its
nominee. In the event amounts on deposit in an Investment Account are at any
time invested in a Permitted Investment payable on demand, the Trustee shall at
the direction of the Servicer or the Securities Administrator:

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

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

                  (b) All income and gain realized from the investment of funds
in the Collection Account shall be for the benefit of the Servicer. The Servicer
shall deposit in the Collection Account the amount of any loss incurred in
respect of any such Permitted Investment made with funds in such account
immediately upon realization of such loss. All income and gain realized from the
investment of funds in the Distribution Account shall be for the benefit of the
Securities Administrator. The Securities Administrator shall remit to the
Trustee for deposit in the Distribution Account the amount of any loss incurred
on Permitted Investments in the Distribution Account.

                                      -51-
<PAGE>

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

                  Section 3.26      Liability of Servicer; Indemnification.

                  (a) Subject to clause (b) below and Section 6.03, the Servicer
(except the Securities Administrator if it is required to succeed the Servicer
hereunder) indemnifies and holds the Trustee, the Securities Administrator, the
Depositor and each Certificateholder harmless against any and all claims,
losses, penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the Trustee, the
Securities Administrator, the Depositor and any Certificateholder 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 Servicing Standards. The Servicer
shall immediately notify the Trustee, the Securities Administrator, the
Depositor and each Certificateholder if a claim is made that may result in such
claims, losses, penalties, fines, forfeitures, legal fees or related costs,
judgments, or any other costs, fees and expenses, and the Servicer shall assume
(with the consent of the Securities Administrator) the defense of any such claim
and pay all expenses in connection therewith, including reasonable counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered against the Servicer, the Trustee, the Securities Administrator, the
Depositor and/or Certificateholder in respect of such claim. The provisions of
this Section 3.26 shall survive the termination of this Agreement and the
payment of the outstanding Certificates.

                  (b) None of the Depositor, the Servicer, or 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 or the Servicer or any such
Person against any breach of warranties or representations made herein, or
against any specific liability imposed on the Servicer for a breach of the
Servicing Standard, or against any liability which would otherwise be imposed by
reason of its respective willful misfeasance, bad faith, fraud or negligence in
the performance of its duties or by reasons of negligent disregard of its
respective obligations or duties hereunder.

                  The Depositor, 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 which, prima facie, is properly executed and submitted
by any appropriate Person with respect to any matters arising hereunder. The
Depositor, the Servicer and any director, officer, employee or agent of the
Depositor or the Servicer shall be indemnified and held harmless by the Trust
Fund 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 incurred in connection with any legal action incurred
by reason of its respective misfeasance, bad faith, fraud or negligence, a
breach of a representation or warranty hereunder or (in the case of the
Servicer) a breach of the Servicing Standard in the performance of its
respective duties or by reason of negligent disregard of its respective
obligations or duties hereunder. Neither the Depositor nor the Servicer shall be
under any obligation to appear in, prosecute or defend any legal action unless
such action is related to its respective duties under this Agreement and in its
opinion does not expose it to any expense or liability; provided, however, that
the Depositor or the Servicer may in its discretion undertake any action related
to its obligations hereunder which it may deem necessary or desirable with
respect to this Agreement and the rights and duties of the parties hereto and
the interests of the Certificateholders hereunder.

                  Section 3.27      Reports of Foreclosure and Abandonment of
                                    Mortgaged Properties.

                  On or before April 30 of each year beginning in 2002, the
Servicer shall file the reports of foreclosure and abandonment of any Mortgaged
Property required by Section 6050J of the Code with the Internal Revenue Service
and provide an Officer's Certificate certifying its compliance with this Section
3.27 to the Trustee. The reports from the Servicer shall be in form and
substance sufficient to meet the reporting requirements imposed by such Section
6050J.

                                      -52-
<PAGE>

                  Section 3.28      No Personal Solicitation.

                  From and after the Closing Date, each of the Servicer and the
Securities Administrator hereby agrees that it will not directly solicit the
borrower or obligor under any Mortgage Loan to refinance such Mortgage Loan, in
whole or in part. Notwithstanding the foregoing, it is understood and agreed
that offers to refinance a Mortgage Loan made within 30 days following receipt
by the Servicer of a pay-off request or verification of mortgage and promotions
undertaken by the Servicer or an Affiliate of the Servicer which are directed to
the general public or segments thereof (including without limitation, bulk
mailings, newspaper, radio, internet and television advertisements) shall not
constitute solicitation under this Section 3.28.

                  Section 3.29      Limitation of Liability of the Credit Risk
                                    Manager.

                  Neither the Credit Risk Manager, nor any of the directors,
officers, employees or agents of the Credit Risk Manager, shall be under any
liability to the Trustee, the Securities Administrator, the Certificateholders
or the Depositor for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement, in reliance upon information
provided by the Servicer under the Credit Risk Management Agreement or for
errors in judgment; provided, however, that this provision shall not protect the
Credit Risk Manager or any such person against liability that would otherwise be
imposed by reason of willful malfeasance, bad faith or gross negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement or the applicable Credit Risk Management
Agreement. The Credit Risk Manager and any director, officer, employee or agent
of the Credit Risk Manager may rely in good faith on any document of any kind
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder, and may rely in good faith upon the accuracy of information
furnished by the Servicer pursuant to the applicable Credit Risk Management
Agreement in the performance of its duties thereunder and hereunder.

                                   ARTICLE IV

                                  FLOW OF FUNDS

                  Section 4.01      Interest Distributions.

                  No later than 11:00 AM Eastern Time on each Distribution Date,
the Securities Administrator shall furnish instructions to the Trustee reporting
the amount of the related Interest Remittance Amount, and instructing the
Trustee as to how to apply such Interest Remittance Amount in accordance with
clauses (i) through (x) below. On each Distribution Date, the Trustee shall
withdraw from the Distribution Account the Interest Remittance Amount, to the
extent available in the Distribution Account, and apply it in the following
order of priority (based upon the information provided to it by the Securities
Administrator pursuant to the preceding sentence, upon which the Trustee may
conclusively rely), and the calculations required to be made by the Trustee, to
the extent available:

                           (i) to the Securities Administrator, the Securities
         Administration Fee for such Distribution Date and to the Credit Risk
         Manager, the Credit Risk Manager Fee for such Distribution Date;

                           (ii) to pay the Trustee and the Securities
         Administrator for any reasonable fees and expenses and indemnification
         in accordance with Section 8.05;

                           (iii) concurrently, to the Class A and Class AIO
         Certificates, pro rata, the applicable Accrued Certificate Interest for
         such Distribution Date;

                           (iv) concurrently, to the Class A and Class AIO
         Certificates, pro rata, the applicable Interest Carry Forward Amount
         for the Class A and Class AIO Certificates, respectively;

                           (v) to the Class M-1 Certificates, the Accrued
         Certificate Interest thereon for such Distribution Date;

                                      -53-
<PAGE>

                           (vi) to the Class M-2 Certificates, the Accrued
         Certificate Interest thereon for such Distribution Date;

                           (vii) to the Class M-3 Certificates, the Accrued
         Certificate Interest thereon for such Distribution Date;

                           (viii) to the Class B Certificates, the Accrued
         Certificate Interest thereon for such Distribution Date; and

                           (ix) the amount, if any, of the Interest Remittance
         Amount remaining after application with respect to the priorities set
         forth above will be applied as described under Section 4.02(b) hereof.

         Section 4.02      Distributions of Principal and Monthly Excess
                           Cashflow Amounts.

                  (a) No later than 11:00 AM Eastern Time on each Distribution
Date, the Securities Administrator shall furnish instructions to the Trustee
reporting the amount of the related Principal Distribution Amount, and
instructing the Trustee as to how to apply such Principal Distribution Amount in
accordance with clauses (i) and (ii) below. On each Distribution Date, the
Trustee shall make the following distributions in the following order of
priority (based upon the information provided to it by the Securities
Administrator pursuant to the preceding sentence, and the calculations required
to be made by the Securities Administrator), in reduction of the Certificate
Principal Balances of the Classes to which such amounts are paid, to the extent
of the Principal Distribution Amount:

                           (i) for any Distribution Date before the Stepdown
         Date or with respect to which a Trigger Event is in effect:

                                    (A) to the Holders of the Class A
                  Certificates, 100% of the Principal Distribution Amount until
                  the Certificate Principal Balance of the Class A Certificates
                  has been reduced to zero;

                                    (B) to the Holders of the Class M-1
                  Certificates, 100% of the remaining Principal Distribution
                  Amount for such Distribution Date, until the Certificate
                  Principal Balance of the Class M-1 Certificates has been
                  reduced to zero;

                                    (C) to the Holders of the Class M-2
                  Certificates, 100% of the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance of the Class
                  M-2 Certificates has been reduced to zero;

                                    (D) to the Holders of the Class M-3
                  Certificates, 100% of the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance of the Class
                  M-3 Certificates has been reduced to zero;

                                    (E) to the Holders of the Class B
                  Certificates, 100% of the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance of the Class B
                  Certificates has been reduced to zero; and

                                    (F) any amount of the Principal Distribution
                  Amount remaining after making all of the distributions in
                  clauses (A) (B), (C), (D) and (E) shall be applied as set
                  forth in Section 4.02(b).

                                      -54-
<PAGE>

                           (ii) on or after the Stepdown Date and as long as a
         Trigger Event is not in effect:

                                    (A) to the Holders of the Class A
                  Certificates, the lesser of (x) the Principal Distribution
                  Amount and (y) the Class A Principal Distribution Amount,
                  until the Certificate Principal Balance of the Class A
                  Certificates has been reduced to zero;

                                    (B) to the Holders of the Class M-1
                  Certificates, the lesser of (x) the excess of (i) the
                  Principal Distribution Amount over (ii) the amount distributed
                  on the Class A Certificates pursuant to clause (A) above and
                  (y) the Class M-1 Principal Distribution Amount, until the
                  Certificate Principal Balance of the Class M-1 Certificates
                  has been reduced to zero;

                                    (C) to the Holders of the Class M-2
                  Certificates, the lesser of (x) the excess of (i) the
                  Principal Distribution Amount over (ii) the sum of the amount
                  distributed on the Class A Certificates pursuant to clause (A)
                  above and the amount distributed on the Class M-1 Certificates
                  pursuant to clause (B) above and (y) the Class M-2 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  of the Class M-2 Certificates has been reduced to zero;

                                    (D) to the Holders of the Class M-3
                  Certificates, the lesser of (x) the excess of (i) the
                  Principal Distribution Amount over (ii) the sum of the amount
                  distributed on the Class A Certificates pursuant to clause (A)
                  above, the amount distributed on the Class M-1 Certificates
                  pursuant to clause (B) above and the amount distributed on the
                  Class M-2 Certificates pursuant to clause (C) above and (y)
                  the Class M-3 Principal Distribution Amount, until the
                  Certificate Principal Balance of the Class M-3 Certificates
                  has been reduced to zero;

                                    (E) to the Holders of the Class B
                  Certificates, the lesser of (x) the excess of (i) the
                  Principal Distribution Amount over (ii) the sum of the amount
                  distributed on the Class A Certificates pursuant to clause (A)
                  above, the amount distributed on the Class M-1 Certificates
                  pursuant to clause (B) above, the amount distributed on the
                  Class M-2 Certificates pursuant to clause (C) above and the
                  amount distributed on the Class M-3 Certificates pursuant to
                  clause (D) above and (y) the Class B Principal Distribution
                  Amount, until the Certificate Principal Balance of the Class B
                  Certificates has been reduced to zero; and

                                    (F) any amount of the Principal Distribution
                  Amount remaining after making all of the distributions in
                  clauses (A), (B), (C), (D) and (E) above shall be applied as
                  set forth in Section 4.02(b).

                  (b) On each Distribution Date, any Monthly Excess Cashflow
Amount shall be distributed, to the extent available, in the following order of
priority on such Distribution Date:

                           (i) to pay the Extra Principal Distribution Amount
         for such Distribution Date in accordance with Section 4.02(a);

                           (ii) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date for the Class M-1 Certificates;

                           (iii) to pay the applicable Interest Carry Forward
         Amount on the Class M-1 Certificates, if any;

                           (iv) to reimburse the Holders of the Class M-1
         Certificates for any Realized Losses that have been allocated to the
         Class M-1 Certificates and not previously reimbursed;

                           (v) to pay any remaining unpaid Accrued Certificate
         Interest for such Distribution Date for the Class M-2 Certificates;

                           (vi) to pay the applicable Interest Carry Forward
         Amount on the Class M-2 Certificates, if any;

                                      -55-
<PAGE>

                           (vii) to reimburse the Holders of the Class M-2
         Certificates for any Realized Losses that have been allocated to the
         Class M-2 Certificates and not previously reimbursed;

                           (viii) to pay any remaining unpaid Accrued
         Certificate Interest for such Distribution Date for the Class M-3
         Certificates;

                           (ix) to pay the applicable Interest Carry Forward
         Amount on the Class M-3 Certificates, if any;

                           (x) to reimburse the Holders of the Class M-3
         Certificates for Realized Losses that have been allocated to the Class
         M-3 Certificates and not previously reimbursed;

                           (xi) to pay any remaining Accrued Certificate
         Interest for such Distribution Date for the Class B Certificates;

                           (xii) to pay the applicable Interest Carry Forward
         Amount on the Class B Certificates, if any;

                           (xiii) to reimburse the Holders of the Class B
         Certificates for Realized Losses that have been allocated to the Class
         B Certificates and not previously reimbursed;

                           (xiv) to pay the Net WAC Rate Carryover Amount, if
         any, for the Class A, Class M-1, Class M-2, Class M-3 and Class B
         Certificates, in that order, in each case until such amount is paid in
         full for such Class; and

                           (xv) to the Class CE Certificates, the Class CE
         Distributable Amount for such Distribution Date.

                  On each Distribution Date, there shall be distributed to the
Holders of the Class R Certificates in respect of the Class R-1 Interest, any
remaining amount in the Distribution Account on such date after the application
pursuant to Sections 4.01, 4.02(a), 4.02(b)(i)-(xv) and 4.02(c). To the extent
that any amounts remain in a REMIC other than REMIC 1 after payment of all
amounts due under this Agreement, such amounts will be distributed to the
related Residual Interest.

                  (c) On each Distribution Date, the Trustee shall withdraw any
amounts then on deposit in the Distribution Account that represent Prepayment
Charges collected by the Servicer in connection with the Principal Prepayment in
full of any of the Mortgage Loans or any Servicer Prepayment Charge Payment
Amount and shall distribute such amounts to the Holders of the Class P
Certificates.

                  Section 4.03      Allocation of Losses.

                  Realized Losses shall be allocated first against the Remaining
Initial Overcollateralization Amount and second to the Subsequent
Overcollateralization Amount, until the Overcollateralization Amount has been
reduced to zero. Any Applied Realized Loss Amount will be allocated against the
Class B, Class M-3, Class M-2, Class M-1 and Class A Certificates, in that order
and until the respective Certificate Principal Balances thereof are reduced to
zero. No allocation of Realized Losses shall be made to the Class P
Certificates.

                  Section 4.04      Method of Distribution.

                  The Trustee shall make distributions in respect of a
Distribution Date to each Certificateholder of record on the related Record Date
(other than as provided in Section 10.01 respecting the final distribution), in
the case of Certificateholders of the Certificates, by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of such Certificates the aggregate initial Certificate
Principal Balance of which is in excess of $5,000,000 (or, in the case of a
Class CE, Class P or Class R Certificate, the Percentage Interest evidenced by
which is greater than a 66% Percentage Interest of the Certificates of its
Class), or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Trustee may deduct a reasonable wire transfer fee
from any payment made by wire transfer. Distributions among Certificateholders
shall be made in proportion to the Percentage Interests evidenced by the
Certificates held by such Certificateholders.

                                      -56-
<PAGE>

                  Section 4.05      Distributions on Book-Entry Certificates.

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

                  Section 4.06      Statements.

                  (a) On each Distribution Date, based, as applicable, on the
Mortgage Loan information contained in the Remittance Report, the Securities
Administrator shall make available on its internet website, initially located at
"www.ctslink.com," a statement (a "Distribution Date Statement") as to the
distributions to be made on such Distribution Date:

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

                           (ii) the Interest Remittance Amount and the amount of
         the distribution made on such Distribution Date to the Holders of each
         Class of Certificates allocable to interest or Class CE Distributable
         Amount, separately identified;

                           (iii) the Overcollateralization Amount, the
         Overcollateralization Release Amount, the Overcollateralization
         Deficiency and the Overcollateralization Target Amount as of such
         Distribution Date and the Monthly Excess Interest Amount and Monthly
         Excess Cashflow Amount for such Distribution Date;

                           (iv) the aggregate amount of servicing compensation
         received by the Servicer during the related Collection Period;

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

                           (vi) the Pool Balance at the close of business at the
         end of the related Due Period;

                           (vii) the number, weighted average remaining term to
         maturity and weighted average Mortgage Interest Rate of the Mortgage
         Loans as of the related Due Date;

                           (viii) the number and aggregate unpaid principal
         balance of Mortgage Loans (a) 30 to 59 days past due on a contractual
         basis, (b) 60 to 89 days past due on a contractual basis, (c) 90 or
         more days past due on a contractual basis, (d) as to which foreclosure
         proceedings have been commenced and (e) in bankruptcy as of the close
         of business on the last day of the calendar month preceding such
         Distribution Date;

                                      -57-
<PAGE>

                           (ix) with respect to any Mortgage Loan that became an
         REO Property during the preceding calendar month, the loan number of
         such Mortgage Loan, the unpaid principal balance and the Principal
         Balance of such Mortgage Loan as of the date it became an REO Property;

                           (x) cumulatively, the total number and cumulative
         principal balance of all REO Properties as of the close of business of
         the last day of the preceding Collection Period;

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

                           (xii) the aggregate amount of Realized Losses
         incurred during the related Collection Period and the cumulative amount
         of Realized Losses;

                           (xiii) the Certificate Principal Balance of each
         Class of Certificates, after giving effect to the distributions, and
         allocations of Realized Losses or Applied Realized Loss Amounts, as
         applicable, made on such Distribution Date, separately identifying any
         reduction thereof due to allocations of Realized Losses or Applied
         Realized Loss Amounts, and the Notional Amount of the Class AIO
         Certificates for that Distribution Date;

                           (xiv) the Accrued Certificate Interest in respect of
         each Class of Offered Certificates for such Distribution Date, and the
         respective portions thereof, if any, remaining unpaid following the
         distributions made in respect of such Certificates on such Distribution
         Date;

                           (xv) the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date, to the extent not covered by
         payments by the Servicer pursuant to Section 3.23, and the amount of
         Relief Act Shortfalls applied to reduce the Interest Remittance Amount
         for each Class for such Distribution Date;

                           (xvi) the amount of the Securities Administration Fee
         paid;

                           (xvii) the aggregate amount of the Credit Risk
         Manager Fee paid;

                           (xviii) any Overcollateralization Deficiency after
         giving effect to the distribution of principal on such Distribution
         Date;

                           (xix) whether a Trigger Event has occurred and is
         continuing, and the cumulative Realized Losses, as a percentage of the
         original Pool Balance;

                           (xx) the Available Funds;

                           (xxi) the Pass-Through Rate at which interest accrues
         for each Class of Certificates for such Distribution Date and the
         Formula Rate at which interest will accrue for such Class (other than
         the Class AIO Certificates) for the next Distribution Date, and the
         Pass-Through Rate for the Class AIO Certificates for the next
         Distribution Date;

                           (xxii) the Liquidation Report for such Distribution
         Date;

                           (xxiii) the aggregate Principal Balance of Mortgage
         Loans purchased by the Seller during the related Collection Period and
         indicating the Section of this Agreement requiring or allowing the
         purchase of each such Mortgage Loan;

                           (xxiv) the aggregate Principal Balance of the
         Mortgage Loans repurchased by the Depositor during the related
         Collection Period in connection with Section 3.16;

                                      -58-
<PAGE>

                           (xxv) the amount of Interest Carry Forward Amount and
         Net WAC Rate Carryover Amount payable on each Class for such
         Distribution Date, separately identifying the portion of each that
         consists of interest accrued on previous such amounts, the amounts paid
         on each Class on such Distribution Date in respect of such items, and
         the amount of Interest Carry Forward Amount and Net WAC Rate Carryover
         Amount that will be payable on each Class on the next Distribution
         Date; and

                           (xxvi) the amount of all reimbursements of Realized
         Losses previously allocated to reduce the Certificate Principal Balance
         of any Class of Certificates that were reimbursed on such Distribution
         Date, and the remaining amount of any Realized Losses that have been so
         allocated and not yet reimbursed, for each Class.

                  Assistance in using the Securities Administrator's website can
be obtained by calling the Securities Administrator's customer service desk at
(301) 815-6600. Parties that are unable to use the above distribution option are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. The Securities Administrator shall
have the right to change the way such reports are distributed in order to make
such distribution more convenient and/or more accessible to the parties, and the
Securities Administrator shall provide timely and adequate notification to all
parties regarding any such change.

                  The Securities Administrator's obligations pursuant to this
Section 4.06 are limited to the extent of its receipt of all necessary
information from the Servicer. The Securities Administrator may fully rely upon
and shall have no liability with respect to information with respect to the
Mortgage Loans provided by the Servicer.

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

                  (b) Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to each Person who at any time during
the calendar year was a Certificateholder of a Regular Certificate, if requested
in writing by such Person, a statement containing the information set forth in
subclauses (i), (ii), (xi), (xii), (xxiii) and (xxiv) above, aggregated for such
calendar year or applicable portion thereof during which such Person was a
Certificateholder, plus other information as the Securities Administrator may
determine and advise the Trustee to be necessary and/or to be required by the
Internal Revenue Service or by federal or state laws, rules or regulations to
enable such Certificateholders to prepare their tax returns for such calendar
year. Such obligations of the Trustee and the Securities Administrator shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be prepared and furnished by the Trustee or the Securities
Administrator to Certificateholders pursuant to any requirements of the Code as
are in force from time to time.

                  (c) On each Distribution Date, the Securities Administrator
shall make available on its website the same information to the Class R
Certificateholders as that provided to the Regular Certificateholders in respect
of such Distribution Date with such other information as the Securities
Administrator deems necessary or appropriate. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be prepared and furnished to Class R
Certificateholders by the Securities Administrator pursuant to any requirements
of the Code as from time to time in force.

                  Section 4.07      Remittance Reports; Advances.

                  (a) On the 15th calendar day of each month, or the preceding
Business Day if such 15th calendar day is not a Business Day, the Servicer shall
deliver to the Securities Administrator by telecopy (or by such other means as
the Servicer and the Trustee may agree from time to time) a Remittance Report
with respect to the related Distribution Date. On the same date as delivery of
the Remittance Report, the Servicer shall deliver or cause to be delivered to
the Securities Administrator in addition to the information provided on the
Remittance Report, such other information reasonably available to it with
respect to the Mortgage Loans as the Securities Administrator may reasonably
request or order in order for the Securities Administrator to perform the
calculations necessary to make the distributions contemplated by Section 4.01,
4.02 and 4.03 and to prepare the statements to Certificateholders contemplated
by Section 4.06. The Securities Administrator shall not be responsible to
recompute, recalculate or verify any information provided to it by the Servicer.

                                      -59-
<PAGE>

                  (b) The amount of Advances to be made by the Servicer for any
Distribution Date shall equal, subject to Section 4.07(d), the aggregate amount
of Monthly Payments (net of the related Servicing Fee), due during the related
Due Period in respect of the Mortgage Loans, which Monthly Payments were
delinquent on a contractual basis as of the close of business on the related
Determination Date.

                  On or before the close of business New York time on the
Servicer Remittance Date, the Servicer shall remit in immediately available
funds to the Trustee for deposit in the Distribution Account an amount equal to
the aggregate amount of Advances, if any, to be made in respect of the Mortgage
Loans for the related Distribution Date either (i) from its own funds or (ii)
from the Collection Account, to the extent of funds held therein for future
distribution (in which case it will cause to be made an appropriate entry in the
records of the Collection Account that amounts held for future distribution have
been, as permitted by this Section 4.07, used by the Servicer in discharge of
any such Advance) or (iii) in the form of any combination of (i) and (ii)
aggregating the total amount of Advances to be made by the Servicer with respect
to the Mortgage Loans. Any amounts held for future distribution and so used
shall be appropriately reflected in the Servicer's records and replaced by the
Servicer by deposit in the Collection Account on or before any future Servicer
Remittance Date to the extent that the Available Funds for the related
Distribution Date (determined without regard to Advances to be made on the
Servicer Remittance Date) shall be less than the total amount that would be
distributed to the Classes of Certificateholders pursuant to Section 4.01 and
4.02 on such Distribution Date if such amounts held for future distributions had
not been so used to make Advances. The Trustee will provide notice to the
Servicer and the Securities Administrator by telecopy by the close of business
on any Servicer Remittance Date in the event that the amount remitted by the
Servicer to the Trustee on such date is less than the Advances required to be
made by the Servicer for the related Distribution Date, as set forth in the
related Remittance Report.

                  (c) The obligation of the Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below, and, with respect to any Mortgage Loan, shall continue until the
earlier of such time as the Trust acquires title to the related Mortgaged
Property or such Mortgage Loan is paid in full by the Mortgagor or disposed of
by the Trust, or until the recovery of all Liquidation Proceeds thereon.

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

                  Section 4.08      [Reserved].

                  Section 4.09      REMIC Distributions.

                  (a) REMIC 5. Interest (and in the case of the Class T5-4
Interest, principal) shall be deemed distributed to each Class of REMIC 5
Components as follows: (i) the Class T5-4, Class T5-11, Class T5-12 and Class
T5-13 Interests shall be entitled to all distributions on the Class T4-4, Class
T4-11, Class T4-12 and Class T4-13 Interests, respectively; and (ii) the Class
T5-AFIO, Class T5-M1IO, Class T5-M2IO, Class T5-M3IO and Class T5-BIO Interests
shall be entitled to a specified portion of interest payments consisting of the
excess of interest distributable on each of the Class T4-AF, Class T4-M1, Class
T4-M2, Class T4-M3 and Class T4-B Interests over interest distributable on the
Class A, Class M-1, Class M-2, Class M-3 and Class B Certificates, respectively.
The Class AIO Certificates shall be entitled to any interest distributions in
respect of the Class T4-AIO Interests. Any shortfalls of interest, including any
Realized Losses allocated to reduce the Subsequent Overcollateralization Amount,
shall be borne, first, by the REMIC 5 Components, pro rata based on interest
accrued, before being allocated to the Class T5 P&I Certificates. Realized
Losses allocated to the Class T5-4 Interest shall equal Realized Losses
allocated to the Class T4-4 Interest pursuant to Section 4.09(b). The Class CE
Interest shall be deemed to receive the aggregate of the amounts distributable
in respect of the REMIC 5 Components. Any portion of the Available Funds
remaining in REMIC 5 on a Distribution Date shall be distributed to the Class R
Certificates in respect of the Class R-5 Interest.

                                      -60-
<PAGE>

                  (b) REMIC 4. On each Distribution Date, the timing and amounts
of principal and interest distributions and allocations of Applied Realized Loss
Amounts and Realized Loss Amortization Amounts on the Classes of REMIC 4 Regular
Interests identified as Corresponding Classes shall be identical to the timing,
amounts and allocations in respect of Corresponding Classes of REMIC 5 Regular
Interests pursuant to Section 4.09(a). The Class T4-4 Interest shall be entitled
to all distributions on the Class T3-4 Interest. The Class T4-AIO Interest shall
be entitled to interest in respect of any interest distributions on the Class
T3-AIO Interest. Interest shortfalls will reduce interest payable, first, on the
Class T4-4 Interest, to the same extent that interest shortfalls are allocable
to the Class T3-4 Interest; second, on the Class T4-11, Class T4-12 and Class
T4-13 Interests, pro rata; third, on the Class T4-B, Class T4-M3, Class T4-M2
and Class T3-M1 Interests, in that order; and fourth, on the Class T4-AF
Interests; provided, that the portion of the interest payable on the Class T4-B,
Class T4-M3, Class T4-M2, Class T4-M1 and Class T4-AF attributable to the Class
T5-BIO, Class T5-M3IO, Class T5-M2IO, Class T5-M1IO and Class T5-AFIO Interests
shall bear interest shortfalls pro rata and prior to the allocation of any
remaining shortfalls to such Interests. Amounts of principal and interest
distributed in respect of, and Realized Losses allocated to, the Class T4-4
Interest shall equal the allocations made to the Class T3-4 Interest, reduced by
any allocation of interest shortfalls to the Class T4-4 Interest pursuant to the
preceding sentence. Amounts in the Distribution Account deemed distributed in
respect of the REMIC 4 Regular Interests shall be treated as held by REMIC 5 for
distribution in accordance with Sections 4.09(a). Any portion of Available Funds
remaining in REMIC 4 on a Distribution Date shall be distributed to the Class R
Certificates in respect of the Class R-4 Interest.

                  (c) REMIC 3. On each Distribution Date, the timing and amounts
of principal distributions and allocations of Realized Losses on each Class of
REMIC 3 Regular Interests shall be identical to the timing, amounts and
allocations in respect of the corresponding Classes of REMIC 2 Regular Interests
pursuant to Section 4.09(d). For these purposes, the Class T3-1 and Class T3-11
Interests correspond to the Class T2-1 Interest, the Class T3-2 and Class T3-12
Interests correspond to the Class T2-2 Interest, the Class T3-3 and Class T3-13
Interests correspond to the Class T2-3 Interest, and the Class T3-4 Interest
corresponds to the Class T2-4 Interest. Interest will accrue on each of the
Class T3-1, Class T3-2 and Class T3-3 Interests at the REMIC 3 Pass-Through
Rate. Interest will accrue on each of the Class T3-11, Class T3-12 and Class
T3-13 Interests at the excess, if any, of the Net Adjusted WAC Rate over the
REMIC 3 Pass-Through Rate. Interest will accrue on the Class T3-4 Interest at
the Net Adjusted WAC Rate. The Class T3-AIO Interest shall be entitled to
interest in respect of any interest distributions on the Class T2-1AIO, Class
T2-2AIO and Class T2-3AIO Interests. Any shortfalls of interest will be
allocated, first, to the Class T3-4 Interest to the extent that interest
shortfalls are allocated to the Class T2-4 Interest; second, pro rata, to the
Class T3-11, Class T3-12 and Class T3-13 Interests; and third, pro rata, to the
Class T3-1, Class T3-2 and Class T3-3 Interests. Amounts in the Distribution
Account deemed distributed in respect of the REMIC 3 Regular Interests shall be
treated as held by REMIC 4 for distribution in accordance with Section 4.09(b).
Any portion of Available Funds remaining in REMIC 3 on a Distribution Date shall
be distributed to the Class R Certificates in respect of the Class R-3 Interest.

                  (d) REMIC 2. On each Distribution Date, the REMIC 2 Regular
Interests, other than the Class T2-1AIO, Class T2-2AIO and Class T2-3AIO
Interests, shall receive distributions of principal in respect of the Class T1-1
and T1-2 Interests. The REMIC Regular Interests Shall receive distributions of
interest from the Class T1-1 and Class T1-2 Interests. Amounts with respect to
interest shall accrue at the Net Adjusted WAC Rate with respect to each of the
Class T2-1, Class T2-2, Class T2-3 and Class T2-4 Interest. Amounts with respect
to interest shall accrue at a rate equal to 4.5% for the Distribution Dates in
April 2002 through January 2003 and thereafter at a rate of zero with respect to
the Class T2-1AIO Interest, at a rate equal to 3.5% for the Distribution Dates
in February 2003 through November 2003 and thereafter at a rate of zero with
respect to the Class T2-2AIO Interest and at a rate equal to 2.5% for the
Distribution Dates in December 2003 through September 2004 and thereafter at
zero with respect to the Class T2-3AIO Interest. Any shortfalls of interest will
be allocated, first, to the Class T2-4 Interest, and second, to the Class T2-1,
Class T2-2 and Class T2-3 Interests, pro rata based on interest accrued. Amounts
in reduction of principal balance of the REMIC 2 Regular Interests shall be
allocated to the Class T2-1, Class T2-2 and Class T2-3 Interests in the
aggregate in an amount equal to the Principal Remittance Amount less the lesser
of Overcollateralization Release Amount and the Remaining Initial
Overcollateralization Amount. Such aggregate amount shall be allocated so that
the principal balance of the Class T2-1, Class T2-2 and Class T2-3 Interests
equal the amounts specified in the definitions thereof in Article I. The portion
of the Principal Remittance Amount equal to the lesser of the
Overcollateralization Release Amount and the Remaining Initial
Overcollateralization Amount shall be allocated to reduce the principal balance
of the Class T2-4 Interest, until it is reduced to zero. Realized Losses shall
be allocated first to the Class T2-4 Interest, until such Class is reduced to
zero, and then pro rata to the Class T2-1, Class T2-2 and Class T2-3 Interests
so that their principal balances equal the amounts specified in the respective
definitions thereof in Article I. Such amounts with respect to principal and any
Realized Losses with respect to principal shall reduce the principal balances of
the REMIC 2 Regular Interests so that, in the aggregate, such balances
correspond to the Pool Balance of the Mortgage Loans as of the last day of the
related Due Period. Amounts in the Distribution Account deemed distributed in
respect of the REMIC 2 Regular Interests shall be treated as held by REMIC 3 for
distribution in accordance with Section 4.09(c). Any amounts remaining in REMIC
2 on a Distribution Date shall be distributed to the Class R Certificates in
respect of the Class R-2 Interest.

                                      -61-
<PAGE>

                  (e) REMIC 1. On each Distribution Date, the REMIC 1 Regular
Interests shall receive distributions of interest and principal equal in the
aggregate to amounts distributable pursuant to Sections 4.01 and 4.02 (other
than to the Class R Certificates in respect of the Class R-1 Interest) from
amounts on deposit in the Distribution Account. Such amounts with respect to
interest shall accrue on each of the REMIC 1 Regular Interests at a rate equal
to the Net WAC Rate. Any shortfalls of interest will be allocated, first, to the
Class T1-2 Interest, and second, to the Class T1-1 Interest, based on interest
accrued. Amounts in reduction of principal balance of the REMIC 1 Regular
Interests shall be allocated to the Class T1-2 Interest and then in reduction of
the Class T1-1 Interest. Such amounts with respect to principal and any Realized
Losses with respect to principal shall reduce the principal balances of the
Class T1-1 and Class T1-2 Interests so that, in the aggregate, such balances
correspond to the Pool Balance of the Mortgage Loans as of the last day of the
related Due Period. Amounts in the Distribution Account deemed distributed in
respect of the REMIC 1 Regular Interests shall be treated as held by REMIC 2 for
distribution in accordance with Section 4.09(d). Any amounts remaining in REMIC
1 on a Distribution Date shall be distributed to the Class R Certificates in
respect of the Class R-1 Interest.

                  (f) Notwithstanding anything to the contrary contained herein,
the above distributions in this Section 4.09 (other than on the Certificates)
are deemed distributions, and distributions of funds from the Distribution
Account shall be made only in accordance with Sections 4.01 and 4.02 hereof.

                                   ARTICLE V

                                THE CERTIFICATES

                  Section 5.01      The Certificates.

                  Each of the Class A, Class AIO, Class M-1, Class M-2, Class
M-3, Class B, Class P, Class CE, and Class R Certificates shall be substantially
in the forms annexed hereto as exhibits, and shall, on original issue, be
executed, authenticated and delivered by the Trustee to or upon the receipt of a
Written Order to Authenticate from the Depositor concurrently with the sale and
assignment to the Trustee of the Trust Fund. Each Class of the Offered
Certificates shall be initially evidenced by one or more Certificates
representing a Percentage Interest with a minimum dollar denomination of $25,000
and integral dollar multiples of $1 in excess thereof. The Class P, Class CE and
Class R Certificates are issuable only in minimum Percentage Interests of 25%.

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

                  Section 5.02      Registration of Transfer and Exchange of
                                    Certificates.

                  (a) The Certificate Registrar shall cause to be kept 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 and shall maintain the Certificate Register at the offices of the
Trustee designated from time to time for such purposes. As of the Closing Date,
the Trustee designates the Corporate Trust Office for such purpose.

                                      -62-
<PAGE>

                  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.

                  At the option of the Certificateholders, Certificates may be
exchanged for other Certificates in authorized denominations and the same
aggregate Percentage Interests, upon surrender of the Certificates to be
exchanged at any such office or agency. Whenever any Certificates are so
surrendered for exchange, the Trustee shall execute on behalf of the Trust and
authenticate and deliver the Certificates which the Certificateholder making the
exchange is entitled to receive. Every Certificate presented or surrendered for
registration of transfer or exchange shall (if so required by the Trustee or the
Certificate Registrar) be duly endorsed by, or be accompanied by a written
instrument of transfer satisfactory to the Trustee and the Certificate Registrar
duly executed by, the Holder thereof or his attorney duly authorized in writing.

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

                  All transfers by Certificate Owners of Book-Entry Certificates
shall be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owners. Each
Depository Participant shall only transfer Book-Entry Certificates of
Certificate Owners that it represents or of brokerage firms for which it acts as
agent in accordance with the Depository's normal procedures. The parties hereto
are hereby authorized to execute a Letter of Representations with the Depository
or take such other action as may be necessary or desirable to register a
Book-Entry Certificate to the Depository. 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 a Servicer Event
of Termination, the Certificate Owners of each Class of Book-Entry Certificates
representing Percentage Interests of such Classes 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 the Book-Entry Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall, at the Depositor's expense, in the case of (i) and (ii)
above, or the Servicer's expense, in the case of (iii) above, execute on behalf
of the Trust and authenticate the Definitive Certificates. Neither the Depositor
nor the Trustee shall be liable for any delay in delivery of such 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, the Securities Administrator, any Paying
Agent and the Depositor shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

                                      -63-
<PAGE>

                  (d) Except with respect to the initial transfer of the Private
Certificates by the Depositor, no transfer, sale, pledge or other disposition of
any Private Certificate shall be made unless such disposition is exempt from the
registration requirements of the Securities Act of 1933, as amended (the "1933
Act"), and any applicable state securities laws or is made in accordance with
the 1933 Act and laws. In the event of any such transfer, either (i) in the case
of a transfer made in reliance upon Rule 144A under the 1933 Act, the proposed
transferee shall deliver to the Trustee a completed investment letter, in
substantially the form attached hereto as Exhibit J-2 or (ii) in the case of any
other transfer, either (A) the Trustee and the Depositor shall require a written
Opinion of Counsel (which may be in-house counsel) acceptable to and in form and
substance reasonably satisfactory to the Trustee and the Depositor that such
transfer may be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from the 1933 Act or is being made pursuant to
the 1933 Act, which Opinion of Counsel shall not be an expense of the Trustee or
the Depositor, or (B) the Trustee shall require the transferor to execute a
transferor certificate (in substantially the form attached hereto as Exhibit L)
and the transferee to execute an investment letter (in substantially the form
attached hereto as Exhibit J-1) acceptable to and in form and substance
reasonably satisfactory to the Depositor and the Trustee certifying to the
Depositor and the Trustee the facts surrounding such transfer, which investment
letter shall not be an expense of the Trustee or the Depositor. The Holder of a
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 and the Securities Administrator shall have received a
representation from the transferee of such Certificate, acceptable to and in
form and substance satisfactory to the Trustee, the Securities Administrator and
the Depositor (such requirement is satisfied only by the Trustee's and the
Securities Administrator's receipt of a representation letter from the
transferee substantially in the form of Exhibit I 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,
or any materially similar provisions of applicable federal, state or local law
("Similar Law") 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.
For purposes of the preceding sentence, such representation shall be deemed to
have been made to the Trustee and the Securities Administrator by the acceptance
by a Certificate Owner of the beneficial interest in any such Class of
ERISA-Restricted Certificates, unless the Trustee and the Securities
Administrator shall have received from the transferee an alternative
representation acceptable in form and substance to the Depositor.
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 ERISA, the Code or Similar Law shall be void and of no effect.

                  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.

                                      -64-
<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 and substance satisfactory to it, of each of the following:

                                    A. an affidavit in the form of Exhibit K
                  hereto from the proposed transferee to the effect that, among
                  other things, 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. Neither the Trustee nor the Securities
         Administrator shall be under any 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 and the Securities Administrator received the
         documents specified in clause (iii). The Trustee and the Securities
         Administrator 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 and the
         Securities Administrator 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 or the Securities
         Administrator 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 or the Securities Administrator 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 Securities Administrator
         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
         Securities Administrator shall be entitled to reasonable compensation
         for providing such information from the person to whom it is provided.

                  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 and the Securities Administrator, in form and substance
satisfactory to the Trustee and the Securities Administrator, (i) written
notification from each Rating Agency that the removal of the restrictions on
Transfer set forth in this Section will not cause such Rating Agency to
downgrade its rating of the Certificates and (ii) an Opinion of Counsel to the
effect that such removal will not cause any REMIC hereunder to fail to qualify
as a REMIC.

                                      -65-
<PAGE>

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

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

                  Section 5.03      Mutilated, Destroyed, Lost or Stolen
                                    Certificates.

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

                  Section 5.04      Persons Deemed Owners.

                  The Servicer, the Depositor, the Trustee, the Securities
Administrator, the Certificate Registrar, any Paying Agent and any agent of the
Servicer, the Depositor, the Securities Administrator, the Certificate
Registrar, any Paying Agent or the Trustee may treat the Person, including a
Depository, in whose name any Certificate is registered as the owner of such
Certificate for the purpose of receiving distributions pursuant to Section 4.01
and 4.02 and for all other purposes whatsoever, and none of the Servicer, the
Trust, the Securities Administrator, the Trustee nor any agent of any of them
shall be affected by notice to the contrary.

                  Section 5.05      Appointment of Paying Agent.

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

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

                                      -66-
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                                   ARTICLE VI

                         THE SERVICER AND THE DEPOSITOR

                  Section 6.01      Liability of the Servicer and the Depositor.

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

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

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

                  Section 6.03      Limitation on Liability of the Servicer and
                                    Others.

                  Neither the Servicer nor any of the directors or officers or
employees or agents of the 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 in good faith pursuant to this Agreement, or for
errors in judgment; provided, however, that this provision shall not protect the
Servicer or any such Person against any liability which would otherwise be
imposed by reason of its willful misfeasance, bad faith or gross negligence in
the performance of duties of the Servicer or by reason of its reckless disregard
of its obligations and duties of the Servicer hereunder. The Servicer and any
director or officer or employee or agent of the Servicer may rely in good faith
on any document of any kind prima facie properly executed and submitted by any
Person respecting any matters arising hereunder. The Servicer and any director
or officer or employee or agent of the 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 Mortgage Loan
or Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of 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. The 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 pursuant to Section 3.04. The Servicer's right to
indemnity or reimbursement pursuant to this Section shall survive any
resignation or termination of the Servicer pursuant to Section 6.04 or 7.01 with
respect to any losses, expenses, costs or liabilities arising prior to such
resignation or termination (or arising from events that occurred prior to such
resignation or termination). This paragraph shall apply to the Servicer solely
in its capacity as Servicer hereunder and in no other capacities.

                  Section 6.04      Servicer Not to Resign.

                  Subject to the provisions of Section 7.01 and Section 6.02,
the Servicer shall not 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
or its subsidiaries or Affiliates at the date of this Agreement or (ii) upon
satisfaction of the following conditions: (a) the Servicer has proposed a
successor servicer to the Trustee and the Securities Administrator in writing
and such proposed successor servicer is reasonably acceptable to the Trustee and
the Securities Administrator; 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 hereunder
will not result in the reduction or withdrawal of the then current rating of the
Regular Certificates or the ratings that are in effect; provided, however, that
no such resignation by the Servicer shall become effective until such successor
servicer or, in the case of (i) above, the Securities Administrator shall have
assumed the Servicer's responsibilities and obligations hereunder or the
Securities Administrator shall have designated a successor servicer in
accordance with Section 7.02. Any such resignation shall not relieve the
Servicer of responsibility for any of the obligations specified in Sections 7.01
and 7.02 as obligations that survive the resignation or termination of the
Servicer. Any such determination permitting the resignation of the Servicer
shall be evidenced by an Opinion of Counsel to such effect delivered to the
Trustee and the Securities Administrator.

                                      -67-
<PAGE>

                  Section 6.05      Delegation of Duties.

                  In the ordinary course of business, the Servicer at any time
may delegate any of its duties hereunder to any Person, including any of its
Affiliates, who agrees to conduct such duties in accordance with standards
comparable to those set forth in Section 3.01. Such delegation shall not relieve
the Servicer of its liabilities and responsibilities with respect to such duties
and shall not constitute a resignation within the meaning of Section 6.04.

                                  ARTICLE VII

                                     DEFAULT

                  Section 7.01      Servicer Events of Termination.

                  (a) If any one of the following events ("Servicer Events of
Termination") shall occur and be continuing:

                           (i) (A) The failure by the Servicer to make any
         Advance, or (B) any other failure by the Servicer to deposit in the
         Collection Account or Distribution Account any deposit required to be
         made under the terms of this Agreement; in each case, which continues
         unremedied for a period of one Business Day after the date upon which
         written notice of such failure shall have been given to the Servicer by
         the Trustee or by any Holder of a Regular Certificate evidencing at
         least 25% of the Voting Rights; or

                           (ii) The failure by the Servicer to make any required
         Servicing Advance which failure continues unremedied for a period of 30
         days, or the failure by the Servicer duly to observe or perform, in any
         material respect, any other covenants, obligations or agreements of the
         Servicer as set forth in this Agreement, which failure continues
         unremedied for a period of 30 days, after the date (A) on which written
         notice of such failure, requiring the same to be remedied, shall have
         been given to the Servicer by the Trustee or by any Holder of a Regular
         Certificate evidencing at least 25% of the Voting Rights or (B) actual
         knowledge of such failure by a Servicing Officer of the Servicer; or

                           (iii) The entry against the Servicer of a decree or
         order by a court or agency or supervisory authority having jurisdiction
         in the premises for the appointment of a trustee, conservator, receiver
         or liquidator in any insolvency, conservatorship, receivership,
         readjustment of debt, marshalling of assets and liabilities or similar
         proceedings, or for the winding up or liquidation of its affairs, and
         the continuance of any such decree or order unstayed and in effect for
         a period of 60 days; or

                           (iv) The Servicer shall voluntarily go into
         liquidation, consent to the appointment of a conservator or receiver or
         liquidator or similar person in any insolvency, readjustment of debt,
         marshalling of assets and liabilities or similar proceedings of or
         relating to the Servicer or of or relating to all or substantially all
         of its property; or a decree or order of a court or agency or
         supervisory authority having jurisdiction in the premises for the
         appointment of a conservator, receiver, liquidator or similar person in
         any insolvency, readjustment of debt, marshalling of assets and
         liabilities or similar proceedings, or for the winding-up or
         liquidation of its affairs, shall have been entered against the
         Servicer and such decree or order shall have remained in force
         undischarged, unbonded or unstayed for a period of 60 days; or the
         Servicer shall admit in writing its inability to pay its debts
         generally as they become due, file a petition to take advantage of any
         applicable insolvency or reorganization statute, make an assignment for
         the benefit of its creditors or voluntarily suspend payment of its
         obligations.

                                      -68-
<PAGE>

                  (b) Then, and in each and every such case, so long as a
Servicer Event of Termination shall not have been remedied within the applicable
grace period, (x) with respect solely to clause (i)(A) above, if such Advance is
not made by 2:00 P.M., New York time, on the Distribution Date, the Trustee may
terminate all of the rights and obligations of the Servicer under this Agreement
and the Securities Administrator, or a successor servicer appointed in
accordance with Section 7.02, shall immediately make such Advance and assume,
pursuant to Section 7.02, the duties of a successor Servicer and (y) in the case
of (i)(B), (ii), (iii), (iv) and (v) above, the Trustee shall, at the direction
of the Holders of each Class of Regular Certificates evidencing Percentage
Interests aggregating not less than 51%, by notice then given in writing to the
Servicer (and to the Trustee if given by Holders of Certificates), terminate all
of the rights and obligations of the Servicer as servicer under this Agreement.
Any such notice to the Servicer shall also be given to each Rating Agency and
the Depositor. On or after the receipt by the Servicer (and by the Trustee if
such notice is given by the Holders) of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the
Certificates or the Mortgage Loans or otherwise, shall pass to and be vested in
the Securities Administrator pursuant to and under this Section; and, without
limitation, the Securities Administrator is hereby authorized and empowered to
execute and deliver, on behalf of the Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement of each
Mortgage Loan and Related Documents or otherwise. The Servicer agrees to
cooperate with the Securities Administrator (or the applicable successor
Servicer) in effecting the termination of the responsibilities and rights of the
Servicer hereunder, including, without limitation, the delivery to the
Securities Administrator of all documents and records requested by it to enable
it to assume the Servicer's functions under this Agreement within ten Business
Days subsequent to such notice, the transfer within one Business Day subsequent
to such notice to the Securities Administrator (or the applicable successor
Servicer) for the administration by it of all cash amounts that shall at the
time be held by the Servicer and to be deposited by it in the Collection
Account, the Distribution Account or any Escrow Account or that have been
deposited by the Servicer in such accounts or thereafter received by the
Servicer with respect to the Mortgage Loans or any REO Property received by the
Servicer (all unreimbursed Advances and Servicing Advances previously made by
the Servicer shall be deducted from all such funds prior to remittance of the
remaining funds to the Trustee). All reasonable costs and expenses (including
attorneys' fees) incurred in connection with transferring the servicing to the
successor Servicer and amending this Agreement to reflect such succession as
Servicer pursuant to this Section shall be paid by the predecessor Servicer upon
presentation of reasonable documentation of such costs and expenses.

                  In connection with any failure by the Servicer to make any
remittance required to be made by the Servicer to the Distribution Account on
the day and by the time such remittance is required to be made under the terms
of this Agreement (without giving effect to any grace or cure period), the
Servicer shall pay to the Securities Administrator for the account of the
Securities Administrator interest at the rate published in The Wall Street
Journal as the "Prime Rate" on any amount not timely remitted from and including
the day such remittance was required to be made to, but not including, the day
on which such remittance was actually made.

                  Section 7.02      Securities Administrator to Act; Appointment
                                    of Successor.

                  (a) Within 90 days of the time the Servicer (and the Trustee,
if notice is sent by the Holders) receives a notice of termination pursuant to
Section 7.01 or 6.04, the Securities Administrator (or such other successor
Servicer as is approved in accordance with this Agreement) shall be the
successor in all respects to the Servicer in its capacity as servicer under this
Agreement and the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof arising on and after
its succession. As compensation therefor, immediately upon assuming the duties
as a successor Servicer, the Securities Administrator (or such other successor
Servicer) shall be entitled to such compensation as the Servicer would have been
entitled to hereunder if no such notice of termination had been given.
Notwithstanding the above, (i) if the Securities Administrator is unwilling to
act as successor Servicer or (ii) if the Securities Administrator is legally
unable so to act, the Securities Administrator shall appoint or petition a court
of competent jurisdiction to appoint, any established housing and home finance
institution, bank or other mortgage loan or home equity loan servicer having a
net worth of not less than $50,000,000 as the successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder; provided, that the appointment of any
such successor Servicer will not result in the qualification, reduction or
withdrawal of the ratings assigned to the Certificates or the ratings that are
in effect by the Rating Agencies as evidenced by a letter to such effect from
the Rating Agencies. Pending appointment of a successor to the Servicer
hereunder, unless the Securities Administrator is prohibited by law from so
acting, the Securities Administrator shall act in such capacity as hereinabove
provided. In connection with such appointment and assumption, the successor
shall be entitled to receive compensation out of payments on Mortgage Loans in
an amount equal to the compensation which the Servicer would otherwise have
received pursuant to Section 3.18 (or such other compensation as the Securities
Administrator and such successor shall agree, not to exceed the Servicing Fee).
The successor servicer shall be entitled to withdraw from the Collection Account
all costs and expenses associated with the transfer of the servicing to the
successor servicer. The appointment of a successor servicer shall not affect any
liability of the predecessor Servicer which may have arisen under this Agreement
prior to its termination as Servicer to pay any deductible under an insurance
policy pursuant to Section 3.12 or to indemnify the Trustee and the Securities
Administrator pursuant to Section 3.26, nor shall any successor Servicer be
liable for any acts or omissions of the predecessor Servicer or for any breach
by such Servicer of any of its representations or warranties contained herein or
in any related document or agreement or for any of obligations to repurchase
Mortgage Loans. The Securities Administrator and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession.

                                      -69-
<PAGE>

                  (b) Any successor, including the Securities Administrator, to
the Servicer as servicer shall during the term of its service as servicer
continue to service and administer the Mortgage Loans for the benefit of
Certificateholders, and maintain in force a policy or policies of insurance
covering errors and omissions in the performance of its obligations as Servicer
hereunder and a Fidelity Bond in respect of its officers, employees and agents
to the same extent as the Servicer is so required pursuant to Section 3.12.

                  Section 7.03      Waiver of Defaults.

                  The Majority Certificateholders may, on behalf of all
Certificateholders, waive any events permitting removal of the Servicer as
servicer pursuant to this Article VII, provided, however, that the Majority
Certificateholders may not waive a default in making a required distribution on
a Certificate without the consent of the Holder of such Certificate. Upon any
waiver of a past default, such default shall cease to exist and any Servicer
Event of Termination arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereto except to the extent
expressly so waived. Notice of any such waiver shall be given by the Trustee to
the Securities Administrator and the Rating Agencies.

                  Section 7.04      Notification to Certificateholders.

                  (a) Upon any termination or appointment of a successor the
Servicer pursuant to this Article VII or Section 6.04, the Trustee shall give
prompt written notice thereof to the Securities Administrator and the
Certificateholders at their respective addresses appearing in the Certificate
Register and each Rating Agency.

                  (b) No later than 60 days after the occurrence of any event
which constitutes or which, with notice or a lapse of time or both, would
constitute a Servicer Event of Termination for five Business Days after a
Responsible Officer of the Trustee becomes aware of the occurrence of such an
event, the Trustee shall transmit by mail to the Securities Administrator and
all Certificateholders notice of such occurrence unless such default or Servicer
Event of Termination shall have been waived or cured. Such notice shall be given
to the Rating Agencies promptly after any such occurrence.

                  Section 7.05      Survivability of Servicer Liabilities.

                  Notwithstanding anything herein to the contrary, upon
termination of the Servicer hereunder, any liabilities of the Servicer which
accrued prior to such termination shall survive such termination.

                                      -70-
<PAGE>

                                  ARTICLE VIII

                  THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

                  Section 8.01      Duties of Trustee and Securities
                                    Administrator.

                  The Trustee, prior to the occurrence of a Servicer Event of
Termination of which a Responsible Officer of the Trustee shall have actual
knowledge and after the curing of all Servicer Events of Termination which may
have occurred, and the Securities Administrator, each undertakes to perform such
duties and only such duties as are specifically set forth in this Agreement as
duties of the Trustee and the Securities Administrator, respectively. If a
Servicer 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 own affairs.

                  Upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee and the Securities Administrator which are specifically required to be
furnished pursuant to any provision of this Agreement, the Trustee and the
Securities Administrator shall examine them to determine whether they conform on
their face to the requirements of this Agreement; provided, however, that
neither the Trustee nor the Securities Administrator shall be responsible for
the accuracy or content of any resolution, certificate, statement, opinion,
report, document, order or other instrument furnished by the Servicer, the
Seller or the Depositor hereunder. If any such instrument is found not to
conform on their face in any material respect to the requirements of this
Agreement, the Trustee shall notify the Certificateholders of such instrument in
the event that the Trustee, after so requesting, does not receive a
satisfactorily corrected instrument.

                  No provision of this Agreement shall be construed to relieve
the Trustee or the Securities Administrator from liability for its own negligent
action, its own negligent failure to act or its own misconduct; provided,
however, that:

                           (i) prior to the occurrence of a Servicer Event of
         Termination, and after the curing of all such Servicer Events of
         Termination which may have occurred, the duties and obligations of the
         Trustee and the Securities Administrator shall be determined solely by
         the express provisions of this Agreement, neither the Trustee nor the
         Securities Administrator shall be liable except for the performance of
         such duties and obligations as are specifically set forth in this
         Agreement, no implied covenants or obligations shall be read into this
         Agreement against the Trustee or the Securities Administrator and, in
         the absence of bad faith on the part of the Trustee or the Securities
         Administrator, the Trustee or the Securities Administrator,
         respectively, 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 or the Securities
         Administrator and conforming to the requirements of this Agreement;

                           (ii) neither the Trustee nor the Securities
         Administrator shall be personally liable for an error of judgment made
         in good faith by a Responsible Officer of the Trustee or the Securities
         Administrator, unless it shall be proved that the Trustee or the
         Securities Administrator, respectively, was negligent in ascertaining
         or investigating the facts related thereto;

                           (iii) neither the Trustee nor the Securities
         Administrator shall 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 Majority Certificateholders
         relating to the time, method and place of conducting any proceeding for
         any remedy available to the Trustee or the Securities Administrator, or
         exercising or omitting to exercise any trust or power conferred upon
         the Trustee or the Securities Administrator, under this Agreement; and

                           (iv) neither the Trustee nor the Securities
         Administrator shall be charged with knowledge of any failure by the
         Servicer to comply with the obligations of the Servicer referred to in
         clauses (i) and (ii) of Section 7.01 or any Servicer Event of
         Termination unless a Responsible Officer of the Trustee nor the
         Securities Administrator, respectively, obtains actual knowledge of
         such failure or the Trustee nor the Securities Administrator,
         respectively, receives written notice of such failure from the Servicer
         or the Majority Certificateholders.

                                      -71-
<PAGE>

                  Neither the Trustee nor the Securities Administrator shall be
required to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it, and none of the provisions contained in this
Agreement shall in any event require the Trustee or the Securities Administrator
to perform, or be responsible for the manner of performance of, any of the
obligations of the Servicer under this Agreement, except during such time, if
any, as the Securities Administrator shall be the successor to, and be vested
with the rights, duties, powers and privileges of, the Servicer in accordance
with the terms of this Agreement.

                  Section 8.02      Certain Matters Affecting the Trustee and
                                    the Securities Administrator.

                  (a) Except as otherwise provided in Section 8.01:

                           (i) the Trustee and the Securities Administrator may
         request and rely upon, and shall be protected in acting or refraining
         from acting upon, any resolution, Officer's Certificate, certificate of
         auditors or any other certificate, statement, instrument, opinion,
         report, notice, request, consent, order, appraisal, bond or other paper
         or document reasonably believed by it to be genuine and to have been
         signed or presented by the proper party or parties, and the manner of
         obtaining consents and of evidencing the authorization of the execution
         thereof by Certificateholders shall be subject to the reasonable
         regulations as the Trustee may prescribe;

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

                           (iii) neither the Trustee nor the Securities
         Administrator shall be under any 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 the Certificateholders pursuant to
         the provisions of this Agreement, unless such Certificateholders shall
         have offered to the Trustee or the Securities Administrator, as the
         case may be, reasonable security or indemnity against the costs,
         expenses and liabilities which may be incurred therein or thereby; the
         right of the Trustee or the Securities Administrator to perform any
         discretionary act enumerated in this Agreement shall not be construed
         as a duty, and neither the Trustee nor the Securities Administrator
         shall be answerable for other than its negligence or willful misconduct
         in the performance of any such act;

                           (iv) neither the Trustee nor the Securities
         Administrator shall be personally liable for any action taken, suffered
         or omitted by it in good faith and believed by it to be authorized or
         within the discretion or rights or powers conferred upon it by this
         Agreement;

                           (v) prior to the occurrence of a Servicer Event of
         Termination and after the curing of all Servicer Events of Termination
         which may have occurred, neither the Trustee nor the Securities
         Administrator shall be bound to make any investigation into the facts
         or matters stated in any resolution, certificate, statement,
         instrument, opinion, report, notice, request, consent, order, approval,
         bond or other paper or documents, unless requested in writing to do so
         by the Majority Certificateholder; provided, however, that if the
         payment within a reasonable time to the Trustee or the Securities
         Administrator of the costs, expenses or liabilities likely to be
         incurred by it in the making of such investigation is, in the opinion
         of the Trustee or the Securities Administrator, not reasonably assured
         to the Trustee or the Securities Administrator by the security afforded
         to it by the terms of this Agreement, the Trustee or the Securities
         Administrator may require reasonable indemnity against such cost,
         expense or liability as a condition to such proceeding. The reasonable
         expense of every such examination following the occurrence of a
         Servicer Event of Termination shall be paid by the Servicer or, if paid
         by the Trustee or the Securities Administrator, shall be reimbursed by
         the Servicer upon demand. Nothing in this clause (v) shall derogate
         from the obligation of the Servicer to observe any applicable law
         prohibiting disclosure of information regarding the Mortgagors;

                                      -72-
<PAGE>

                           (vi) neither the Trustee nor the Securities
         Administrator shall be accountable, or shall have any liability, and
         neither of them makes any representation as to any acts or omissions
         hereunder of the Servicer until, in the case of the Securities
         Administrator, such time as the Securities Administrator may be
         required to act as Servicer pursuant to Section 7.02 and thereupon only
         for the acts or omissions of the Securities Administrator as successor
         Servicer;

                           (vii) each of the Trustee and the Securities
         Administrator may execute any of the trusts or powers hereunder or
         perform any duties hereunder either directly or by or through agents or
         attorneys, or a custodian or Independent Contractor in connection with
         REO Property; provided that neither the Trustee nor the Securities
         Administrator shall be responsible for any misconduct or negligence on
         the part of any agent or Independent Contractor or custodian appointed
         and supervised, or attorney appointed with due care; and

                           (viii) the right of the Trustee or the Securities
         Administrator to perform any discretionary act enumerated in this
         Agreement shall not be construed as a duty, and neither the Trustee nor
         the Securities Administrator shall be answerable for other than its
         negligence or willful misconduct in the performance of such act.

                  Section 8.03      Trustee and Securities Administrator Not
                                    Liable for Certificates or Mortgage Loans.

                  The recitals contained herein and in the Certificates (other
than the authentication of the Trustee on the Certificates) shall be taken as
the statements of the Depositor, and neither the Trustee nor the Securities
Administrator assumes any responsibility for the correctness of the same.
Neither the Trustee nor the Securities Administrator makes any representations
as to the validity or sufficiency of this Agreement or of the Certificates
(other than the signature and authentication of the Trustee on the Certificates,
in the case of the Trustee) or of any Mortgage Loan or Related Document. Neither
the Trustee nor the Securities Administrator shall be accountable for the use or
application by the Servicer, or for the use or application of any funds paid to
the Servicer in respect of the Mortgage Loans or deposited in or withdrawn from
the Collection Account by the Servicer. Neither the Trustee nor the Securities
Administrator shall at any time have any responsibility or liability for or with
respect to the legality, validity and enforceability of any Mortgage or any
Mortgage Loan, or the perfection and priority of any Mortgage or the maintenance
of any such perfection and priority, or for or with respect to the sufficiency
of the Trust or its ability to generate the payments to be distributed to
Certificateholders under this Agreement, including, without limitation: the
existence, condition and ownership of any Mortgaged Property; the existence and
enforceability of any hazard insurance thereon (other than the Securities
Administrator's responsibility if the Securities Administrator shall assume the
duties of the Servicer pursuant to Section 7.02); the validity of the assignment
of any Mortgage Loan to the Trustee or of any intervening assignment; the
completeness of any Mortgage Loan; the performance or enforcement of any
Mortgage Loan (other than the Securities Administrator's responsibility if the
Securities Administrator shall assume the duties of the Servicer pursuant to
Section 7.02); the compliance by the Depositor or the Servicer with any warranty
or representation made under this Agreement or in any related document or the
accuracy of any such warranty or representation (except, in the case of the
Trustee, after receipt of notice of any non-compliance therewith or any breach
thereof); any investment of monies by or at the direction of the Servicer or any
loss resulting therefrom, it being understood that the Trustee shall remain
responsible for any Trust property that it may hold in its individual capacity;
the acts or omissions of any of the Servicer (other than the Securities
Administrator's responsibility if the Securities Administrator shall assume the
duties of the Servicer pursuant to Section 7.02), or any Mortgagor; any action
of the Servicer (other than the Securities Administrator's responsibility if the
Securities Administrator shall assume the duties of the Servicer pursuant to
Section 7.02), taken in the name of the Trust; the failure of the Servicer to
act or perform any duties required of it as agent of the Trust hereunder (other
than the Securities Administrator's responsibility if the Securities
Administrator shall assume the duties of the Servicer pursuant to Section 7.02);
or any action by the Trustee or the Securities Administrator taken at the
instruction of the Servicer (other than the Securities Administrator's
responsibility if the Securities Administrator shall assume the duties of the
Servicer pursuant to Section 7.02); provided, however, that the foregoing shall
not relieve the Trustee or the Securities Administrator of its obligation to
perform their respective duties under this Agreement, including, without
limitation, the Trustee's duty to review the Mortgage Files pursuant to Section
2.01. The Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder.

                                      -73-
<PAGE>

                  Section 8.04      Trustee and Securities Administrator May Own
                                    Certificates.

                  Each of the Trustee and the Securities Administrator in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights as it would have if it were not Trustee or Securities
Administrator and may transact any banking and trust business with the Seller,
the Servicer, the Depositor or their Affiliates.

                  Section 8.05      Trustee and Securities Administrator Fees
                                    and Expenses.

                  The Securities Administrator shall be entitled to the
Securities Administration Fee plus investment income on funds on deposit in the
Distribution Account as set forth in Section 3.25. The fees and expenses of the
Trustee shall be paid in accordance with a side letter agreement between the
Trustee and the Securities Administrator. The Trustee shall withdraw from the
Distribution Account on each Distribution Date and pay to the Securities
Administrator the Securities Administration Fee pursuant to Section 4.01(i). The
Trust shall reimburse the Trustee and the Securities Administrator for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
or the Securities Administrator in accordance with any of the provisions of this
Agreement (including the reasonable compensation and the expenses and
disbursements of its counsel and of all persons not regularly in its employ),
pursuant to Section 4.01(ii), except any such expense, disbursement or advance
as may arise from its negligence or bad faith or which is the responsibility of
Certificateholders or the Trustee or Securities Administrator hereunder. In
addition, the Trustee, the Securities Administrator and their respective
officers, directors, employees and agents shall be indemnified by the Trust
from, and held harmless against, any and all losses, liabilities, damages,
claims or expenses incurred in connection with any legal action relating to this
Agreement or the Certificates, other than any loss, liability or expense (i)
that constitutes a specific liability of the Trustee or the Securities
Administrator under this Agreement or (ii) incurred by reason of willful
misfeasance, bad faith or negligence of the Trustee or Securities Administrator
in the performance of their respective duties hereunder or by reason of the
Trustee's or the Securities Administrator's, as the case may be, reckless
disregard of obligations and duties hereunder. Subject to the provisions of this
Article VIII, the Trustee and its officers, directors, employees and agents
shall be indemnified by the Securities Administrator from, and held harmless
against, any and all losses, liabilities, damages, claims or expenses incurred
by the Trustee in connection with or arising out of the acts or omissions of the
Securities Administrator under this Agreement. Subject to the provisions of this
Article VIII, the Securities Administrator and its officers, directors,
employees and agents shall be indemnified by the Trustee from, and held harmless
against, any and all losses, liabilities, damages, claims or expenses incurred
by the Securities Administrator in connection with or arising out of the acts or
omissions of the Trustee under this Agreement. This Section shall survive
termination of this Agreement or the resignation or removal of any Trustee or
Securities Administrator hereunder.

                  Section 8.06      Eligibility Requirements for Trustee and
                                    Securities Administrator.

                  Each of the Trustee and the Securities Administrator shall at
all times be an entity duly organized and validly existing under the laws of the
United States of America or any state thereof, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000 and a minimum long-term debt rating of BBB by Fitch and S&P
and Baa3 by Moody's and a long term debt rating of at least A1 or better by
Moody's, and subject to supervision or examination by federal or state
authority. If such entity publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 8.06, the combined capital and
surplus of such entity shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. The principal
office of the Trustee and the Securities Administrator (other than the initial
Trustee or Securities Administrator) shall be in a state with respect to which
an Opinion of Counsel has been delivered to such Trustee at the time such
Trustee or Securities Administrator is appointed Trustee or Securities
Administrator to the effect that the Trust will not be a taxable entity under
the laws of such state. In case at any time the Trustee or Securities
Administrator shall cease to be eligible in accordance with the provisions of
this Section 8.06, the Trustee or Securities Administrator shall resign
immediately in the manner and with the effect specified in Section 8.07.

                                      -74-
<PAGE>

                  Section 8.07      Resignation or Removal of Trustee and
                                    Securities Administrator.

                  The Trustee or the Securities Administrator may at any time
resign and be discharged from the trusts hereby created by giving written notice
thereof to the Depositor, the Servicer and each Rating Agency. Upon receiving
such notice of resignation, the Depositor shall promptly appoint a successor
Trustee or Securities Administrator by written instrument, in duplicate, one
copy of which instrument shall be delivered to the resigning Trustee or
Securities Administrator and one copy to the successor Trustee or Securities
Administrator. If no successor Trustee or Securities Administrator shall have
been so appointed and having accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee or Securities
Administrator may petition any court of competent jurisdiction for the
appointment of a successor Trustee or Securities Administrator.

                  If at any time the Trustee or the Securities Administrator
shall cease to be eligible in accordance with the provisions of Section 8.06 and
shall fail to resign after written request therefor by the Depositor, or if at
any time the Trustee or the Securities Administrator shall be legally unable to
act, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee
or the Securities Administrator or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or the Securities
Administrator or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Trustee or the
Securities Administrator, as the case may be. If the Depositor or the Servicer
removes the Trustee or the Securities Administrator under the authority of the
immediately preceding sentence, the Depositor shall promptly appoint a successor
Trustee or Securities Administrator 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 or Securities Administrator.

                  The Majority Certificateholders may at any time remove the
Trustee or the Securities Administrator by written instrument or instruments
delivered to the Servicer, the Depositor, the Securities Administrator and the
Trustee; the Depositor shall thereupon use its best efforts to appoint a
successor Trustee or Securities Administrator in accordance with this Section.

                  Any resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor Trustee or Securities Administrator
pursuant to any of the provisions of this Section 8.07 shall not become
effective until acceptance of appointment by the successor Trustee or Securities
Administrator as provided in Section 8.08.

                  Section 8.08      Successor Trustee and Successor Securities
                                    Administrator.

                  Any successor Trustee or Securities Administrator appointed as
provided in Section 8.07 shall execute, acknowledge and deliver to the
Depositor, the Rating Agencies, the Servicer and to its predecessor Trustee or
Securities Administrator an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor Trustee or Securities
Administrator shall become effective, and such successor Trustee or Securities
Administrator, without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor
hereunder, with like effect as if originally named as Trustee or Securities
Administrator. The Depositor, the Servicer and the predecessor Trustee or
Securities Administrator 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 or Securities Administrator all such rights,
powers, duties and obligations.

                  No successor Trustee or Securities Administrator shall accept
appointment as provided in this Section 8.08 unless at the time of such
acceptance such successor Trustee or Securities Administrator shall be eligible
under the provisions of Section 8.06 and the appointment of such successor
Trustee or Securities Administrator shall not result in a downgrading of the
Regular Certificates by either Rating Agency, as evidenced by a letter from each
Rating Agency.

                  Upon acceptance of appointment by a successor Trustee or
Securities Administrator as provided in this Section 8.08, the successor Trustee
or Securities Administrator shall mail notice of the appointment of a successor
Trustee or Securities Administrator hereunder to all Holders of Certificates at
their addresses as shown in the Certificate Register and to each Rating Agency.

                                      -75-
<PAGE>

                  Section 8.09      Merger or Consolidation of Trustee or
                                    Securities Administrator.

                  Any entity into which the Trustee or the Securities
Administrator may be merged or converted or with which it may be consolidated,
or any entity resulting from any merger, conversion or consolidation to which
the Trustee or the Securities Administrator shall be a party, or any entity
succeeding to the business of the Trustee or the Securities Administrator, shall
be the successor of the Trustee or the Securities Administrator hereunder,
provided such entity shall be eligible under the provisions of Section 8.06 and
8.08, without the execution or filing of any paper or any further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding.

                  Section 8.10      Appointment of Co-Trustee or Separate
                                    Trustee.

                  Notwithstanding any other provisions of this Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any part of the Trust or any Mortgaged Property may at the time be
located, the Depositor and the Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee to act as co-trustee or co-trustees, jointly with the
Trustee, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust, or any part thereof,
and, subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Servicer and the Trustee may consider
necessary or desirable. Any such co-trustee or separate trustee shall be subject
to the written approval of the Servicer. If the Servicer shall not have joined
in such appointment within 15 days after the receipt by it of a request so to
do, or in the case a Servicer Event of Termination shall have occurred and be
continuing, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor Trustee under Section 8.06, and no notice to
Certificateholders of the appointment of any co-trustee or separate trustee
shall be required under Section 8.08. The Servicer shall be responsible for the
fees of any co-trustee or separate trustee appointed hereunder.

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

                           (i) all rights, powers, duties and obligations
         conferred or imposed upon the Trustee shall be conferred or imposed
         upon and exercised or performed by the Trustee and such separate
         trustee or co-trustee jointly (it being understood that such separate
         trustee or co-trustee is not authorized to act separately without the
         Trustee joining in such act), except to the extent that under any law
         of any jurisdiction in which any particular act or acts are to be
         performed, the Trustee shall be incompetent or unqualified to perform
         such act or acts, in which event such rights, powers, duties and
         obligations (including the holding of title to the Trust or any portion
         thereof in any such jurisdiction) shall be exercised and performed
         singly by such separate trustee or co-trustee, but solely at the
         direction of the Trustee;

                           (ii) no trustee hereunder shall be held personally
         liable by reason of any act or omission of any other trustee hereunder;
         and

                           (iii) the Securities Administrator and the Trustee,
         acting jointly, 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, the Rating Agencies, the Securities
Administrator and the Servicer.

                                      -76-
<PAGE>

                  Any separate trustee or co-trustee may, at any time,
constitute the Trustee, its agent or attorney-in-fact, with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trustee, to the extent permitted by law, without the
appointment of a new or successor Trustee.

                  Section 8.11      Limitation of Liability.

                  The Certificates are executed by the Trustee, not in its
individual capacity but solely as Trustee of the Trust, in the exercise of the
powers and authority conferred and vested in it by this Agreement. Each of the
undertakings and agreements made on the part of the Trustee in the Certificates
is made and intended not as a personal undertaking or agreement by the Trustee
but is made and intended for the purpose of binding only the Trust.

                   Section 8.12      Trustee May Enforce Claims Without
                                     Possession of Certificates.

                  (a) All rights of action and claims under this Agreement or
the Certificates may be prosecuted and enforced by the Trustee without the
possession of any of the Certificates or the production thereof in any
proceeding relating thereto, and such proceeding instituted by the Trustee shall
be brought in its own name or in its capacity as Trustee for the benefit of all
Holders of such Certificates, subject to the provisions of this Agreement. Any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursement and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Certificateholders in respect of
which such judgment has been recovered.

                  (b) The Trustee shall afford the Seller, the Depositor, the
Servicer, the Securities Administrator and each Certificateholder upon two
Business Days notice during normal business hours, access to all records
maintained by the Trustee in respect of its duties hereunder and access to
officers of the Trustee responsible for performing such duties. Upon request,
the Trustee shall furnish the Depositor, the Servicer, the Securities
Administrator and any requesting Certificateholder with its most recent
financial statements. The Trustee shall cooperate fully with the Seller, the
Servicer, the Depositor, the Securities Administrator and such Certificateholder
and shall make available to the Seller, the Servicer, the Depositor, the
Securities Administrator and such Certificateholder for review and copying at
the expense of the party requesting such copies, such books, documents or
records as may be requested with respect to the Trustee's duties hereunder. The
Seller, the Depositor, the Servicer, the Securities Administrator and the
Certificateholders shall not have any responsibility or liability for any action
or failure to act by the Trustee and are not obligated to supervise the
performance of the Trustee under this Agreement or otherwise.

                  Section 8.13      Suits for Enforcement.

                  In case a Servicer Event of Termination or other default by
the Servicer hereunder shall occur and be continuing, the Trustee may proceed to
protect and enforce its rights and the rights of the Certificateholders under
this Agreement by a suit, action or proceeding in equity or at law or otherwise,
whether for the specific performance of any covenant or agreement contained in
this Agreement or in aid of the execution of any power granted in this Agreement
or for the enforcement of any other legal, equitable or other remedy, as the
Trustee, being advised by counsel, and subject to the foregoing, shall deem most
effectual to protect and enforce any of the rights of the Trustee and the
Certificateholders.

                  Section 8.14      Waiver of Bond Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the Trustee post a bond or other surety with
any court, agency or body whatsoever.

                                      -77-
<PAGE>

                  Section 8.15      Waiver of Inventory, Accounting and
                                    Appraisal Requirement.

                  The Trustee shall be relieved of, and each Certificateholder
hereby waives, any requirement of any jurisdiction in which the Trust, or any
part thereof, may be located that the Trustee file any inventory, accounting or
appraisal of the Trust with any court, agency or body at any time or in any
manner whatsoever.

                  Section 8.16      Appointment of Custodian.

                  The Trustee may at any time on or after the Closing Date, with
the consent of the Depositor and the Servicer, appoint one or more Custodians to
hold all or a portion of the Mortgage Files as agent for the Trustee, by
entering into a custodial agreement in a form acceptable to the Depositor and
the Servicer. Subject to this Article VIII, the Trustee agrees to comply with
the terms of each custodial agreement and to enforce the terms and provisions
thereof against the Custodian for the benefit of the Certificateholders. Each
Custodian will be a depositary institution subject to supervision by federal or
state authority, shall have a combined capital and surplus of at least
$10,000,000 and shall be qualified to do business in the jurisdiction in which
it holds any Mortgage File and afforded the same protections hereunder as the
Trustee.

                                   ARTICLE IX

                     REMIC AND GRANTOR TRUST ADMINISTRATION

                  Section 9.01      REMIC Administration.

                  (a) The Trustee shall make or cause to be made REMIC elections
for each of REMIC 1, REMIC 2, REMIC 3, REMIC 4, and REMIC 5 as set forth in the
Preliminary Statement on Forms 1066 as prepared by the Securities Administrator
or other appropriate federal tax or information return for the taxable year
ending on the last day of the calendar year in which the Certificates are
issued. The Securities Administrator shall prepare such Forms 1066 and any other
appropriate federal tax or information return and deliver them to the Trustee on
a timely basis for the Trustee's execution. The Trustee shall execute and file
such forms. The regular interests and residual interest in each REMIC shall be
as designated in the Preliminary Statement.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each REMIC within the meaning of Section 860G(a)(9) of the Code.

                  (c) The Securities Administrator shall pay any and all tax
related expenses (not including taxes) of each REMIC, including but not limited
to any professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to such REMIC that involve the Internal
Revenue Service or state tax authorities, but only to the extent that (i) such
expenses are ordinary or routine expenses, including expenses of a routine audit
but not expenses of litigation (except as described in (ii)); or (ii) such
expenses or liabilities (including taxes and penalties) that are attributable to
the negligence or willful misconduct of the Servicer in fulfilling its duties
hereunder. The Securities Administrator shall be entitled to reimbursement of
expenses to the extent provided in clause (i) above from the Trust Fund pursuant
to Sections 4.01(ii) and 8.05 and from the Servicer for expenses described in
clause (ii) above.

                  (d) The Securities Administrator shall prepare or cause to be
prepared, sign and file or cause to be filed, each REMIC's federal and state tax
and information returns as such REMIC's direct representative. The expenses of
preparing and filing such returns shall be borne by the Securities
Administrator. The Securities Administrator will apply for an Employer
Identification Number from the Internal Revenue Service via a form SS-4 or any
other acceptable method for all tax entities and will also file a Form 8811 with
respect to such entities with the Internal Revenue Service.

                                      -78-
<PAGE>

                  (e) The Holder of the Class R Certificates holding the largest
Percentage Interest shall be the "tax matters person" as defined in the REMIC
Provisions (the "Tax Matters Person") with respect to each REMIC, and the
Securities Administrator is irrevocably designated as and shall act as
attorney-in-fact and agent for such Tax Matters Person for each REMIC (the "Tax
Administrator"). The Securities Administrator, as agent for the Tax Matters
Person, shall perform, on behalf of each REMIC, all reporting and other tax
compliance duties that are the responsibility of such REMIC under the Code, the
REMIC Provisions, or other compliance guidance issued by the Internal Revenue
Service or any state or local taxing authority. Among its other duties, if
required by the Code, the REMIC Provisions, or other such guidance, the
Securities Administrator, as agent for the Tax Matters Person, shall provide (i)
to the Treasury or other governmental authority such information as is necessary
for the application of any tax relating to the transfer of a Residual
Certificate to any disqualified person or organization and (ii) to the
Certificateholders such information or reports as are required by the Code or
REMIC Provisions.

                  (f) The Trustee, the Securities Administrator, the Servicer,
and the Holders of Certificates shall take any action or cause any REMIC to take
any action necessary to create or maintain the status of such REMIC as a REMIC
under the REMIC Provisions and shall assist each other as necessary to create or
maintain such status. Neither the Trustee, the Securities Administrator, the
Servicer, nor the Holder of any Residual Certificate shall take any action or
cause any REMIC to take any action or fail to take (or fail to cause to be
taken) any action that, under the REMIC Provisions, if taken or not taken, as
the case may be, could (i) endanger the status of such REMIC as a REMIC or (ii)
result in the imposition of a tax upon such REMIC (including but not limited to
the tax on prohibited transactions as defined in Code Section 860F(a)(2) and the
tax on prohibited contributions set forth on Section 860G(d) of the Code)
(either such event, an "Adverse REMIC Event") unless the Securities
Administrator, the Trustee and the Servicer have received an Opinion of Counsel
(at the expense of the party seeking to take such action), upon which they may
conclusively rely, to the effect that the contemplated action will not endanger
such status or result in the imposition of such a tax. In addition, prior to
taking any action with respect to any REMIC or the assets therein, or causing
such REMIC to take any action, which is not expressly permitted under the terms
of this Agreement, any Holder of a Residual Certificate will consult with the
Securities Administrator, the Trustee and the Servicer, or their respective
designees, in writing, with respect to whether such action could cause an
Adverse REMIC Event to occur with respect to such REMIC, and no such Person
shall take any such action or cause such REMIC to take any such action as to
which the Securities Administrator, the Trustee or the Servicer has advised it
in writing that an Adverse REMIC Event could occur.

                  (g) Each Holder of a Residual Certificate shall pay when due
its pro rata share of any and all taxes imposed on any REMIC by federal or state
governmental authorities. To the extent that such REMIC taxes are not paid by
Residual Certificateholders, the Securities Administrator shall instruct the
Trustee to pay, and the Trustee shall pay, any remaining REMIC taxes out of
current or future amounts otherwise distributable to the Holder of the Residual
Certificate in each REMIC or, if no such amounts are available, out of other
amounts held in the Collection Account, and shall reduce amounts otherwise
payable to Holders of the REMIC Regular Interests or the Certificates, as the
case may be.

                  (h) The Securities Administrator, as agent for the Tax Matters
Person, shall, for federal income tax purposes, maintain or cause to be
maintained books and records with respect to each REMIC on a calendar year and
on an accrual basis.

                  (i) No additional contributions of assets shall be made to any
REMIC, except as expressly provided in this Agreement with respect to Eligible
Substitute Mortgage Loans.

                  (j) Neither the Trustee, the Securities Administrator, nor the
Servicer shall enter into any arrangement by which any REMIC will receive a fee
or other compensation for services.

                  Section 9.02      Prohibited Transactions and Activities.

                  Neither the Seller, the Depositor, the Servicer nor the
Trustee shall sell, dispose of, or substitute for any of the Mortgage Loans,
except in a disposition pursuant to (i) the foreclosure of a Mortgage Loan, (ii)
the bankruptcy of the Trust Fund, (iii) the termination of any REMIC pursuant to
Article X of this Agreement, (iv) a substitution pursuant to Article II of this
Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II of this
Agreement, nor acquire any assets for any REMIC, nor sell or dispose of any
investments in the Distribution Account for gain, nor accept any contributions
to any REMIC after the Closing Date, unless it has received an Opinion of
Counsel (at the expense of the party causing such sale, disposition, or
substitution) that such disposition, acquisition, substitution, or acceptance
will not (a) affect adversely the status of such REMIC as a REMIC or of the
interests therein other than the Residual Certificates as the regular interests
therein, (b) affect the distribution of interest or principal on the
Certificates, (c) result in the encumbrance of the assets transferred or
assigned to the Trust Fund (except pursuant to the provisions of this Agreement)
or (d) cause such REMIC to be subject to a tax on prohibited transactions or
prohibited contributions pursuant to the REMIC Provisions.

                                      -79-
<PAGE>

                  Section 9.03      Indemnification with Respect to Certain
                                    Taxes and Loss of REMIC Status.

                  In the event that any REMIC formed hereunder 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 Holder of the
related Residual Certificate against any and all losses, claims, damages,
liabilities or expenses ("Losses") resulting from such negligence; provided,
however, that the Servicer shall not be liable for any such Losses attributable
to the action or inaction of the Trustee, the Securities Administrator, the
Depositor or the Holder of such Residual Certificate, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of such
Residual Certificate on which the Servicer has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of such
Residual Certificate now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Servicer have any
liability (1) for any action or omission that is taken in accordance with and in
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).

                  Section 9.04      REO Property.

                  (a) Subject to compliance with applicable laws and regulations
as shall at any time be in force, and notwithstanding any other provision of
this Agreement, the Servicer, acting on behalf of the Trust hereunder, shall not
rent, lease, or otherwise earn income on behalf of any REMIC with respect to any
REO Property which might cause such REO Property to fail to qualify as
"foreclosure" property within the meaning of Section 860G(a)(8) of the Code or
result in the receipt by any REMIC of any "income from non-permitted assets"
within the meaning of Section 860F(a)(2) of the Code or any "net income from
foreclosure property" which is subject to tax under the REMIC Provisions unless
the Servicer has advised the Trustee in writing to the effect that, under the
REMIC Provisions, such action would not adversely affect the status of any REMIC
as a REMIC and any income generated for such REMIC by the REO Property would not
result in the imposition of a tax upon such REMIC.

                  (b) The Servicer shall make reasonable efforts to sell any REO
Property for its fair market value. In any event, however, the Servicer shall
dispose of any REO Property before the close of the third calendar year
beginning after the year of its acquisition by the Trust Fund unless the
Servicer has received a grant of extension from the Internal Revenue Service to
the effect that, under the REMIC Provisions and any relevant proposed
legislation and under applicable state law, any REMIC may hold REO Property for
a longer period without adversely affecting its REMIC status or causing the
imposition of a Federal or state tax upon any REMIC. If the Servicer has
received such an extension, then the Servicer shall continue to attempt to sell
the REO Property for its fair market value as determined in good faith by the
Servicer for such longer period as such extension permits (the "Extended
Period"). If the Servicer has not received such an extension and the Servicer is
unable to sell the REO Property by September 30 of the third year after its
acquisition by the Trust Fund or if the Servicer has received such an extension,
and the Servicer is unable to sell the REO Property within the period ending
three months before the close of the Extended Period, the Servicer shall, before
the end of the applicable period, (i) purchase such REO Property at a price
equal to the REO Property's fair market value as determined in good faith by the
Servicer or (ii) auction the REO Property to the highest bidder (which may be
the Servicer) in an auction reasonably designed to produce a fair price prior to
the expiration of the applicable period.

                                      -80-
<PAGE>

                  Section 9.05      Grantor Trust Administration.

                  The parties intend that the portions of the Trust Fund
consisting of the right of the Class P Certificates to receive Prepayment
Charges and Servicer Prepayment Charge Payment Amounts 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
Securities Administrator shall furnish or cause to be furnished to the Holders
of the Class P Certificates and shall file or cause to be filed with the
Internal Revenue Service together with Form 1041 or such other form as may be
applicable, their allocable shares of income with respect to the property held
by the Grantor Trust, at the time or times and in the manner required by the
Code.

                                   ARTICLE X

                                   TERMINATION

                  Section 10.01     Termination.

                  (a) The respective obligations and responsibilities of the
Servicer, the Depositor, the Securities Administrator and the Trustee created
hereby (other than the obligation of the Trustee to make certain payments to
Certificateholders after the final Distribution Date and the obligation of the
Servicer to send certain notices as hereinafter set forth and other than as set
forth in Section 7.05) shall terminate upon written notice to the Trustee upon
the earliest of (i) the Distribution Date on which the Certificate Principal
Balance of each Class of Certificates has been reduced to zero, (ii) the final
payment or other liquidation of the last Mortgage Loan in the Trust, and (iii)
the optional purchase by the Majority Class CE Certificateholders or the
Servicer of the Mortgage Loans as described below. Notwithstanding the
foregoing, in no event shall the trust created hereby continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James, living on the date hereof.

                  The Majority Class CE Certificateholders may, at its option,
or if such option is not exercised by the Majority Class CE Certificateholders,
the Servicer may, terminate the Trust Fund and retire the Offered Certificates
on the next succeeding Distribution Date upon which the aggregate current Pool
Balance is less than 10% of the aggregate Pool Balance of the Mortgage Loans as
of the Cut-off Date by purchasing all of the outstanding (i) Mortgage Loans in
the Trust Fund at a price equal to the sum of the outstanding Principal Balance
of the Mortgage Loans and except to the extent previously advanced by the
Servicer, accrued and unpaid interest thereon at the weighted average of the
Mortgage Interest Rates through the end of the Due Period preceding the final
Distribution Date plus unreimbursed Servicing Advances, Advances and any unpaid
Servicing Fees allocable to such Mortgage Loans and (ii) REO Properties in the
Trust Fund at a price equal to their fair market value as determined in good
faith by the Servicer (the "Termination Price").

                  In connection with any such purchase pursuant to the preceding
paragraph, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account all amounts then on deposit in the Collection Account (less
amounts permitted to be withdrawn by the Servicer pursuant to Section 3.07),
which deposit shall be deemed to have occurred immediately following such
purchase.

                  Any such purchase shall be accomplished by delivery to the
Trustee for deposit into the Distribution Account as part of Available Funds on
the Determination Date before such Distribution Date of the Termination Price.

                  (b) Notice of any termination, specifying the Distribution
Date (which shall be a date that would otherwise be a Distribution Date) upon
which the Certificateholders may surrender their Certificates to the Trustee for
payment of the final distribution and cancellation, shall be given promptly by
the Trustee upon the Trustee receiving written notice of such date from the
Servicer, by letter to the Certificateholders and the Securities Administrator
mailed not earlier than the 15th day of the month preceding the month of such
final distribution and not later than the 15th day of the month of such final
distribution specifying (1) the Distribution Date upon which final distribution
of the Certificates will be made upon presentation and surrender of such
Certificates at the office or agency of the Trustee therein designated, (2) the
amount of any such final distribution and (3) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office or agency
of the Trustee therein specified.

                  (c) Upon presentation and surrender of the Certificates, the
Trustee shall cause to be distributed to the Holders of the Certificates on the
Distribution Date for such final distribution, in proportion to the Percentage
Interests of their respective Class and to the extent that funds are available
for such purpose, an amount equal to the amount required to be distributed to
such Holders in accordance with the provisions of Sections 4.01 and 4.02 for
such Distribution Date.

                                      -81-
<PAGE>

                  (d) In the event that all Certificateholders shall not
surrender their Certificates for final payment and cancellation on or before
such final Distribution Date, the Trustee shall promptly following such date
cause all funds in the Distribution Account not distributed in final
distribution to Certificateholders to be withdrawn therefrom and credited to the
remaining Certificateholders by depositing such funds in a separate escrow
account for the benefit of such Certificateholders, and the Servicer (if the
Servicer has exercised its right to purchase the Mortgage Loans) or the Trustee
(in any other case) shall give a second written notice to the remaining
Certificateholders, to surrender their Certificates for cancellation and receive
the final distribution with respect thereto. If within nine months after the
second notice all the Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets which remain subject hereto, and the Trustee upon
transfer of such funds shall be discharged of any responsibility for such funds,
and the Certificateholders shall look to the Class R Certificateholders for
payment.

                  Section 10.02     Additional Termination Requirements.

                  (a) In the event that the Servicer exercises its purchase
option as provided in Section 10.01, the Trust shall be terminated in accordance
with the following additional requirements, unless the Trustee shall have been
furnished with an Opinion of Counsel to the effect that the failure of the Trust
to comply with the requirements of this Section will not (i) result in the
imposition of taxes on "prohibited transactions" of the Trust as defined in
Section 860F of the Code or (ii) cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

                           (i) The Trustee shall designate a date within 90 days
         prior to the final Distribution Date as the date of adoption of plans
         of complete liquidation of each of REMIC 1, REMIC 2, REMIC 3, REMIC 4
         and REMIC 5 and shall specify such date in the final federal income tax
         return of each REMIC;

                           (ii) After the date of adoption of such plans of
         complete liquidation and at or prior to the final Distribution Date,
         the Trustee shall sell all of the assets of the Trust to the Servicer
         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 in the following order of priority (A) to
         the Holders of each of the Class A, AIO, Class M-1, Class M-2, Class
         M-3, and Class B Certificates, the related Certificate Principal
         Balance, as applicable, plus one month's interest thereon at the
         applicable Pass-Through Rate, (B) to the Class CE Certificates, the
         amount of any remaining Monthly Excess Cash Flow Amounts not previously
         distributed thereon, (C) to the remaining REMIC Regular Interests the
         amounts allocable thereto pursuant to Sections 4.02(b) and 4.09 and (D)
         to the Class R Certificateholders, all cash on hand after such payment
         (other than cash retained to meet claims) and the Trust shall terminate
         at such time.

                  (b) By their acceptance of Certificates, the Holders thereof
hereby agree to appoint the Trustee as their attorney in fact to: (i) designate
such date of adoption of plans of complete liquidation and (ii) to take such
other action in connection therewith as may be reasonably required to carry out
such plans of complete liquidation all in accordance with the terms hereof.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  Section 11.01     Amendment.

                  This Agreement may be amended from time to time by the
Depositor, the Servicer, the Securities Administrator and the Trustee; and
without the consent of the Certificateholders, (i) to cure any ambiguity, (ii)
to correct or supplement any provisions herein which may be defective or
inconsistent with any other provisions herein or (iii) to make any other
provisions with respect to matters or questions arising under this Agreement,
which shall not be inconsistent with the provisions of this Agreement; provided,
however, that any such action listed in clause (i) through (iii) above shall not
adversely affect in any respect the interests of any Certificateholder, as
evidenced by (i) notice in writing to the Depositor, the Servicer, the
Securities Administrator and the Trustee from the Rating Agencies that such
action will not result in the reduction or withdrawal of the rating of any
outstanding Class of Certificates with respect to which it is a Rating Agency,
or (ii) an Opinion of Counsel delivered to the Servicer and the Trustee.

                                      -82-
<PAGE>

                  In addition, this Agreement may be amended from time to time
by the Depositor, the Servicer, the Securities Administrator and the Trustee,
with the consent of the Majority Certificateholders for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement or of modifying in any manner the rights of the Holders of
Certificates; provided, however, that no such amendment or waiver shall (x)
reduce in any manner the amount of, or delay the timing of, payments on the
Certificates which are required to be made on any Certificate without the
consent of the Holder of such Certificate, (y) adversely affect in any material
respect the interests of the Holders of any Class of Certificates in a manner
other than as described in clause (x) above, without the consent of the Holders
of Certificates of such Class evidencing at least a 66% Percentage Interest in
such Class, or (z) reduce the percentage of Voting Rights required by clause (y)
above without the consent of the Holders of all Certificates of such Class then
outstanding. Upon approval of an amendment, a copy of such amendment shall be
sent to the Rating Agencies.

                  Notwithstanding any provision of this Agreement to the
contrary, the Trustee shall not consent to any amendment to this Agreement
unless it shall have first received an Opinion of Counsel upon which it may
conclusively rely, delivered by (and at the expense of) the Person seeking such
Amendment, to the effect that such amendment will not result in the imposition
of a tax on any REMIC constituting part of the Trust Fund pursuant to the REMIC
Provisions or cause any REMIC constituting part of the Trust to fail to qualify
as a REMIC at any time that any Certificates are outstanding, that the execution
of the amendment is authorized or permitted by this Agreement and that all
conditions precedent to the execution of the amendment have been satisfied.

                  Promptly after the execution of any such amendment the Trustee
shall furnish, at the expense of the Person that requested the amendment if such
Person is the Servicer (but in no event at the expense of the Trustee),
otherwise at the expense of the Trust, a copy of such amendment and the Opinion
of Counsel referred to in the immediately preceding paragraph to the Servicer
and each Rating Agency.

                  It shall not be necessary for the consent of
Certificateholders under this Section 11.01 to approve the particular form of
any proposed amendment; instead it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof by Certificateholders
shall be subject to such reasonable regulations as the Trustee may prescribe.

                  Each of the Trustee and the Securities Administrator may, but
shall not be obligated to, enter into any amendment pursuant to this 11.01
Section that affects its rights, duties and immunities under this Agreement or
otherwise.

                  Section 11.02     Recordation of Agreement; Counterparts.

                  To the extent permitted by applicable law, this Agreement is
subject to recordation in all appropriate public offices for real property
records in all the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the expense of the Trust, but only upon direction of
Certificateholders, accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
together constitute but one and the same instrument.

                                      -83-
<PAGE>

                  Section 11.03     Limitation on Rights of Certificateholders.

                  The death or incapacity of any Certificateholder shall not (i)
operate to terminate this Agreement or the Trust, (ii) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust, or (iii) otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

                  Except as expressly provided for herein, no Certificateholder
shall have any right to vote or in any manner otherwise control the operation
and management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth or contained in the terms of the Certificates be
construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

                  No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as herein provided, and unless also the Holders
of Certificates entitled to at least 25% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee for 15 days after
its receipt of such notice, request and offer of indemnity, shall have neglected
or refused to institute any such action, suit or proceeding. It is understood
and intended, and expressly covenanted by each Certificateholder with every
other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, which priority or
preference is not otherwise provided for herein, or to enforce any right under
this Agreement, except in the manner herein provided and for the equal, ratable
and common benefit of all Certificateholders. For the protection and enforcement
of the provisions of this Section 11.03 each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

                  Section 11.04     Governing Law; Jurisdiction.

                  This Agreement shall be construed in accordance with the laws
of the State of New York, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws. With respect
to any claim arising out of this Agreement, each party irrevocably submits to
the exclusive jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in The City of New
York, and each party irrevocably waives any objection which it may have at any
time to the laying of venue of any suit, action or proceeding arising out of or
relating hereto brought in any such courts, irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought
in any inconvenient forum and further irrevocably waives the right to object,
with respect to such claim, suit, action or proceeding brought in any such
court, that such court does not have jurisdiction over such party, provided that
service of process has been made by any lawful means.

                  Section 11.05     Notices.

                  All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first Class mail, postage prepaid, or by express delivery service,
to (a) in the case of the Trustee, First Union National Bank, 401 South Tryon
Street, 12th Floor, NC1179, Charlotte, NC 28288-1179, Attention: Structured
Finance Trust Services - ABFC 2002-WF1, or such other address as may hereafter
be furnished to the Depositor, the Securities Administrator and the Servicer in
writing by the Trustee, (b) in the case of the Depositor, Asset Backed Funding
Corporation, 100 North Tryon Street, 11th Floor, Charlotte, N.C. 28255
Attention: ABFC Mortgage Loan Asset-Backed Certificates, Series 2002-WF1, or
such other address as may be furnished to the Servicer, the Securities
Administrator and the Trustee in writing by the Depositor, (c) in the case of
the Securities Administrator, Wells Fargo Bank Minnesota, National Association,
11000 Broken Land Parkway, Columbia, Maryland 21044-3562, Attention: Client
Manager-ABFC, Series 2002-1, or to such other address as may hereafter be
furnished to the Depositor, the Servicer and the Trustee by the Securities
Administrator, and in the case of the Servicer, Wells Fargo Home Mortgage, Inc.,
Legal Dept. - MACX 2401-06T, 1 Home Campus, Des Moines, Iowa 50328, Attention:
General Counsel and Wells Fargo Home Mortgage, Inc. Investor Services MAC
#X2401-042, John B. Brown, or such other address as may be furnished to the
Depositor, the Securities Administrator and the Trustee in writing by the
Servicer. Any notice required or permitted to be mailed to a Certificateholder
shall be given by first Class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Notice of any Servicer Event of
Termination shall be given by telecopy and by certified mail. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have duly been given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice required to be
telecopied hereunder shall also be mailed to the appropriate party in the manner
set forth above.

                                      -84-
<PAGE>

                  Section 11.06     Severability of Provisions.

                  If any one or more of the covenants, agreements, provisions or
terms of this Agreement shall for any reason whatsoever be held invalid, then
such covenants, agreements, provisions or terms shall be deemed severable from
the remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions of
this Agreement or of the Certificates or the rights of the Holders thereof.

                  Section 11.07     Article and Section References.

                  All article and Section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  Section 11.08     Notice to the Rating Agencies.

                  (a) Each of the Trustee and the Securities Administrator shall
be obligated to use its best reasonable efforts promptly to provide notice to
the Rating Agencies with respect to each of the following of which a Responsible
Officer of the Trustee or Securities Administrator, as the case may be, has
actual knowledge:

                           (i) any material change or amendment to this
         Agreement;

                           (ii) the occurrence of any Servicer Event of
         Termination that has not been cured or waived;

                           (iii) the resignation or termination of the Servicer,
         the Securities Administrator or the Trustee;

                           (iv) the final payment to Holders of the Certificates
         of any Class;

                           (v) any change in the location of any Account; and

                           (vi) if the Securities Administrator is acting as
         successor Servicer pursuant to Section 7.02 hereof, any event that
         would result in the inability of the Securities Administrator to make
         Advances.

                  (b) In addition, the Securities Administrator shall promptly
furnish to each Rating Agency copies of the following:

                                    (A) each annual statement as to compliance
                  of the Servicer described in Section 3.19 hereof;

                                    (B) each annual independent public
                  accountants' servicing report as to the Servicer described in
                  Section 3.20 hereof; and

                                      -85-
<PAGE>

                                    (C) each notice delivered pursuant to
                  Section 7.01(a) hereof which relates to the fact that the
                  Servicer has not made an Advance.

                  Any such notice pursuant to this Section 11.08 shall be in
writing and shall be deemed to have been duly given if personally delivered or
mailed by first Class mail, postage prepaid, or by express delivery service to
Standard & Poor's, 55 Water Street, 15th Floor, New York, NY 10041, Attention:
Leslie Albergo; Fitch, Inc., State Street Plaza, New York, New York 10004,
Attention: Christopher Schiavone; and Moody's Investors Service, Inc., 99 Church
Street, New York, New York 10007, Attention: Residential Mortgage Monitoring
Group.

                  Section 11.09     Further Assurances.

                  Notwithstanding any other provision of this Agreement, neither
the Regular Certificateholders nor the Trustee shall have any obligation to
consent to any amendment or modification of this Agreement unless they have been
provided reasonable security or indemnity against their out-of-pocket expenses
(including reasonable attorneys' fees) to be incurred in connection therewith.

                  Section 11.10     Benefits of Agreement.

                  Nothing in this Agreement or in the Certificates, expressed or
implied, shall give to any Person, other than the Certificateholders and the
parties hereto and their successors hereunder, any benefit or any legal or
equitable right, remedy or claim under this Agreement.

                  Section 11.11     Acts of Certificateholders.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Agreement to be given or taken
by the Certificateholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Certificateholders in
person or by agent duly appointed in writing; and such action shall become
effective when such instrument or instruments are delivered to the Trustee, the
Securities Administrator and the Servicer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "act" of the Certificateholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Agreement
and conclusive in favor of the Trustee and the Trust, if made in the manner
provided in this Section 11.11.

                  (b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by a signer acting in a capacity other than his or her
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.

                  (c) Any request, demand, authorization, direction, notice,
consent, waiver or other action by any Certificateholder shall bind every future
Holder of such Certificate and the Holder of every Certificate issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof, in
respect of anything done, omitted or suffered to be done by the Trustee or the
Trust in reliance thereon, whether or not notation of such action is made upon
such Certificate.

                                      -86-
<PAGE>

                  IN WITNESS WHEREOF, the Depositor, the Servicer, the
Securities Administrator and the Trustee have caused their names to be signed
hereto by their respective officers thereunto duly authorized, all as of the day
and year first above written.

                              ASSET BACKED FUNDING CORPORATION, as
                                  Depositor

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

                              WELLS FARGO HOME MORTGAGE, INC., as Servicer

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

                              FIRST UNION NATIONAL BANK, solely as Trustee
                                  and not in its individual capacity

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

                              WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                                  as Securities Administrator

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

             [SIGNATURE PAGE TO THE POOLING AND SERVICING AGREEMENT]
<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

                  On the ____ day of _______________, 20__ before me, a notary
public in and for said State, personally appeared ________________ known to me
to be a _____________________ of Asset Backed Funding Corporation, a Delaware
corporation that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

                  On the _____ day of _______________, 20__ before me, a notary
public in and for said State, personally appeared _________________, known to me
to be ______________________ of First Union National Bank, a national banking
association that executed the within instrument, and also known to me to be the
person who executed it on behalf of said association, and acknowledged to me
that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

                  On the _____ day of ______________, 20__ before me, a notary
public in and for said State, personally appeared _______________, known to me
to be a ______________________ of Wells Fargo Home Mortgage, Inc., a California
corporation, that executed the within instrument, and also known to me to be the
person who executed it on behalf of said limited partnership, and acknowledged
to me that such limited partnership executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

                  On the _____ day of _______________, 20__ before me, a notary
public in and for said State, personally appeared _________________, known to me
to be ______________________ of Wells Fargo Bank Minnesota, National
Association, a national banking association that executed the within instrument,
and also known to me to be the person who executed it on behalf of said
association, and acknowledged to me that such corporation executed the within
instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

<PAGE>

                                   EXHIBIT A-1

                         FORM OF THE CLASS A CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2002-WF1, CLASS A

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class A                      Initial Certificate Principal
                                              Balance of this Certificate: $[  ]
Pass-Through Rate: Variable
                                              Servicer: Wells Fargo Home
                                              Mortgage, Inc.
Date of Pooling and Servicing Agreement
and Cut-off Date:  March 1, 2002              Trustee: First Union National Bank

First Distribution Date:  April 25, 2002      Securities Administrator: Wells
                                              Fargo Bank Minnesota, National
                                              Association
Final Scheduled Distribution Date:
December 25, 2032                             CUSIP:  04542B AE 2

Closing Date:  March 28, 2002                 ISIN No. US04542BAE20

Original Class Certificate Principal           No. __
Balance of the Class A
Certificates:  $283,830,000

                                      A-1
<PAGE>

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _______________ is the registered owner of
a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class A Certificates) in that certain beneficial ownership interest
evidenced by all the Class A Certificates in the Trust Fund created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Asset Backed Funding Corporation (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer, the
Securities Administrator, and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class A
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                                      A-2
<PAGE>

                  The Class A Pass-Through Rate for the first Interest Accrual
Period will be [___]% per annum. Interest will accrue on the Class A
Certificates during each subsequent Interest Accrual Period at a rate equal to
the lesser of (i) the lesser of (a) LIBOR plus 0.29% per annum (or LIBOR plus
0.58% per annum, after the Optional Termination Date) and (b) the Maximum Cap
Rate for the related Distribution Date, and (ii) the Net Adjusted WAC Rate for
the related Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing a Percentage Interest in the Class A Certificates.

                  The Class A Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                      A-3
<PAGE>

                  No service charge will be made for any such registration of
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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                      A-4
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March  [___], 2002

                                                  FIRST UNION NATIONAL BANK,
                                                     as Trustee

                                                  By:
                                                      --------------------------
                                                         Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class A Certificates referred to in the
within-mentioned Agreement.

                                                   FIRST UNION NATIONAL BANK, as
                                                        Certificate Registrar

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

Date of authentication:  March [_____], 2002

                                      A-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT - as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN - as joint tenants with right                         ______________
         of survivorship and not as                             (State)
         tenants in common
         Additional abbreviations may also be used though not in the above list.

                            ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)______________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

      I (we) further direct the Certificate Registrar to issue a new Certificate
of a like Percentage Interest and Class to the above named assignee and deliver
such Certificate to the following address:

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

Dated:
                                          --------------------------------------
                                          Signature by or on behalf of assign or

                                          --------------------------------------
                                          Signature Guaranteed

                                      A-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

            The assignee should include the following for purposes of
distribution:

            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      A-7
<PAGE>

                                   EXHIBIT A-2

                        FORM OF THE CLASS AIO CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2002-WF1, CLASS AIO

evidencing a beneficial ownership interest in a portion of a trust fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class AIO                      Initial Notional Amount of this
                                                Certificate:  [   ]

Pass-Through Rate:  Variable                    Percentage Interest:  [   ]

Date of Pooling and Servicing Agreement
and  Cut-off Date:  March 1, 2002               Servicer: Wells Fargo Home
                                                Mortgage, Inc.

                                                Trustee: First Union National
                                                Bank
First Distribution Date:  April 25, 2002
                                                Securities Administrator: Wells
                                                Fargo Bank  Minnesota, National
Final Scheduled Distribution Date:              Association
September 25, 2004
                                                CUSIP:  04542B  AF  9
Closing Date:  March 28, 2002
                                                ISIN No.:  US04542BAF94

Initial Aggregate Notional Amount of             No. ___
the Class AIO Certificates as of the
Closing Date:  $34,196,000

                                      A-2-1
<PAGE>

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                                    CLASS AIO

THIS CERTIFICATE IS NOT ENTITLED TO ANY DISTRIBUTIONS WITH RESPECT TO PRINCIPAL
ON ANY MORTGAGE LOANS IN THE TRUST

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that __________________________________ is the
registered owner of a Percentage Interest set forth above in that certain
beneficial ownership interest evidenced by all the Class AIO Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Asset Backed Funding Corporation
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), the Servicer, the Securities Administrator and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class AIO Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class AIO
Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class AIO Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                                     A-2-2
<PAGE>

                  Interest will accrue on the Notional Amount of the Class AIO
Certificates at the applicable Pass-Through Rate, which will be: (A) for the
Distribution Dates in April 2002 through January 2003, 4.50% per annum, (B) for
the Distribution Dates in February 2003 through November 2003, 3.50% per annum,
(C) for the Distribution Dates in December 2003 through September 2004, 2.50%
per annum, and (D) for the Distribution Date in October 2004 and thereafter,
0.00% per annum.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing the Percentage Interest specified on the face hereof.

                  The Class AIO Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Servicer, the Securities Administrator and the
Trustee with the consent of the Holders of Certificates entitled to the Voting
Rights identified in the agreement. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange herefor or in lieu hereof whether or not notation of such
consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Class AIO Certificates are issuable in fully registered
form only without coupons in Classes and denominations representing Percentage
Interests specified in the Agreement. As provided in the Agreement and subject
to certain limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                     A-2-3
<PAGE>

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

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     A-2-4
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [___], 2002

                                                 FIRST UNION NATIONAL BANK, as
                                                      Trustee

                                                 By:
                                                     ---------------------------
                                                          Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class AIO Certificates referred to in the
within-mentioned Agreement.

Dated:  March [____], 2002

                                                 FIRST UNION NATIONAL BANK, as
                                                      Certificate Registrar

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

                                     A-2-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT - as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN  - as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
          list.

                           ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

_______________________________________________________________________________

Dated:

                                         ---------------------------------------
                                         Signature by or on behalf of assignor

                                         ---------------------------------------
                                         Signature Guaranteed

                                     A-2-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

            The assignee should include the following for purposes of
distribution:

            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     A-2-7
<PAGE>

                                    EXHIBIT B

                           FORM OF CLASS B CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS AIO,
CLASS M-1, CLASS M-2 AND CLASS M-3 CERTIFICATES AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS B CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE TO
PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS B CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS B CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF SUCH
CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT IT IS NOT A PLAN
INVESTOR OR THAT AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA AND
THE CODE APPLIES TO THE ACQUISITION, HOLDING, AND RESALE OF SUCH CERTIFICATE AND
TRANSACTIONS IN CONNECTION WITH THE SERVICING, MANAGEMENT AND OPERATION OF THE
TRUST.

                                      B-1
<PAGE>

          ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES SERIES 2002-WF1,
                                    CLASS B

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class B                   Initial Certificate Principal Balance
                                           of this Certificate: $[  ]
Pass-Through Rate: Variable
                                           Servicer: Wells Fargo Home Mortgage,
                                           Inc.
Date of Pooling and Servicing Agreement
and Cut-off Date: March 1, 2002            Trustee: First Union National Bank

First Distribution Date:  April 25, 2002   Securities Administrator: Wells Fargo
                                           Bank  Minnesota, National Association
Final Scheduled Distribution Date:
December 25, 2032                          CUSIP:  04542B AK 8

Closing Date: March 28, 2002               ISIN NO. US04542BAK89

Original Class Certificate Principal        No. ___
Balance of the Class B Certificates
as of the Closing Date: $3,420,000

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that ______________ is the registered owner of
a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class B Certificates) in that certain beneficial ownership interest
evidenced by all the Class B Certificates in the Trust Fund created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Asset Backed Funding Corporation (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer, the
Securities Administrator and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                                      B-2
<PAGE>

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class B Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class B
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Class B Pass-Through Rate for the first Interest Accrual
Period will be for the first Interest Accrual Period, ____% per annum. For any
subsequent Interest Accrual Period, a per annum rate equal to the lesser of: (i)
the lesser of (a) LIBOR plus 4.75% per annum and (b) the Maximum Cap Rate for
the related Distribution Date, and (ii) the Net Adjusted WAC Rate for the
related Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing a Percentage Interest in the Class B Certificates.

                  The Class B Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                      B-3
<PAGE>

                  This certificate is subordinated in right of payment to the
Class A, Class AIO, Class M-1, Class M-2 and Class M-3 Certificates as described
in the Pooling and Servicing Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the 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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                                      B-4
<PAGE>

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                      B-5
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [___], 2002

                                              FIRST UNION NATIONAL BANK, as
                                                   Trustee

                                              By:
                                                  -----------------------------
                                                          Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class B Certificates referred to in the
within-mentioned Agreement.

                                             FIRST UNION NATIONAL BANK, as
                                                  Certificate Registrar

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

Date of authentication: March [___], 2002

                                      B-6
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT - as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN  - as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common
          Additional abbreviations may also be used though not in the above
          list.

                                   ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)_____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

            I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

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

Dated:

                                          --------------------------------------
                                          Signature by or on behalf of assignor

                                          --------------------------------------
                                          Signature Guaranteed

                                      B-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

            The assignee should include the following for purposes of
distribution:

           Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                      B-8
<PAGE>

                                   EXHIBIT C-1

                           FORM OF CLASS R CERTIFICATE

THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS THE "RESIDUAL
INTEREST" IN FIVE SEPARATE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

THIS CLASS R CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES OF THIS
SERIES TO THE EXTENT DESCRIBED HEREIN AND IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

THIS CLASS R CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH TIME AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS CLASS R CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT, INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES,
KEOGH PLANS AND COLLECTIVE INVESTMENT FUNDS AND SEPARATE ACCOUNTS IN WHICH SUCH
PLANS, ACCOUNTS OR ARRANGEMENTS ARE INVESTED, THAT IS SUBJECT TO THE FIDUCIARY
RESPONSIBILITY PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE") (EACH, A "PLAN") OR ANY PERSON WHO IS DIRECTLY OR
INDIRECTLY PURCHASING THE CLASS R CERTIFICATE ON BEHALF OF, AS A NAMED FIDUCIARY
OF, AS TRUSTEE OF, OR WITH ASSETS OF A PLAN.

                                     C-1-1
<PAGE>

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A FORM OF ERISA REPRESENTATION AND
A RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT AND (1) SUCH TRANSFEREE IS NOT (A) 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, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF
THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511
OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE
(ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B) OR (C) BEING
HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION OR (E) ANY OTHER ENTITY IDENTIFIED AS A DISQUALIFIED
ORGANIZATION UNDER THE CODE AND (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
ASSESSMENT OR COLLECTION OF TAX, AND (3) SUCH TRANSFEREE SATISFIES CERTAIN
ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE. EACH HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(d) OF THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS
PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CLASS R CERTIFICATE.

                                     C-1-2
<PAGE>

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2002-WF1, CLASS R

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class R                    Servicer: Wells Fargo Home Mortgage,
                                            Inc.

Date of Pooling and  Servicing  Agreement   Trustee:  First Union National Bank
and Cut-off Date: March 1, 2002
                                            Securities Administrator: Wells
                                            Fargo Bank Minnesota, National
First Distribution Date:  April 25, 2002    Association

Maturity Date:  N/A                         No. ___

Closing Date:  March 28, 2002

Percentage Interest:  ___%

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _______________________ is the registered
owner of a Percentage Interest set forth above in that certain beneficial
ownership interest evidenced by all the Class R Certificates in the Trust Fund
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the "Agreement"), among Asset Backed Funding Corporation (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
the Servicer, the Securities Administrator and the Trustee, a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R Certificates on such Distribution
Date pursuant to the Agreement.

                                     C-1-3
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class R
Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class R Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing the Percentage Interest specified on the face hereof.

                  The Class R Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                                     C-1-4
<PAGE>

                  The Class R Certificates are issuable in fully registered form
only without coupons in Classes and denominations representing Percentage
Interests specified in the Agreement. As provided in the Agreement and subject
to certain limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No transfer of this Certificate shall be made unless that
transfer is made pursuant to an effective registration statement under the 1933
Act and effective registration or qualification under applicable state
securities laws, or is made in a transaction that does not require such
registration or qualification. In the event that a transfer is to be made
without registration or qualification, the Trustee shall require, in order to
assure compliance with such laws, either (i) in the case of a transfer made in
reliance on Rule 144A under the 1933 Act, that the proposed transferee delivers
to the Trustee a completed investment letter in substantially the form attached
to the Agreement as Exhibit J-2, or (ii) in the case of any other transfer, that
the Certificateholder desiring to effect the transfer and such
Certificateholder's prospective transferee each execute a representation letter
in substantially the forms of Exhibit L and Exhibit J-1 attached to the
Agreement, respectively, certifying to the Depositor and the Trustee the facts
surrounding the transfer as described in Section 5.02 of the Agreement, or that
the Depositor and the Trustee shall require an Opinion of Counsel satisfactory
to them that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the
Depositor, the Securities Administrator, the Trustee or the Certificate
Registrar, in their respective capacities as such. None of the Depositor, the
Securities Administrator, the Certificate Registrar nor the Trustee is obligated
to register or qualify the Class of Certificates specified on the face hereof
under the 1933 Act or any other securities law or to take any action not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Securities Administrator, the Depositor, the Certificate Registrar,
the Servicer, and any Servicer against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  The Trustee shall, as a condition to registration of the
transfer, require delivery to it, in form and substance satisfactory to it, an
affidavit in the form of Exhibit K attached to the Agreement executed by the
proposed transferee to the effect that, among other things, 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.

                  No transfer of a Certificate or any interest therein may be
made to employee benefit plans and certain other retirement plans and
arrangements, including individual retirement accounts and annuities, Keogh
plans and collective investment funds and separate accounts in which such plans,
accounts or arrangements are invested that are subject to the fiduciary
responsibility provisions of ERISA or Section 4975 of the Code or any person who
is directly or indirectly purchasing the Certificate or interest therein on
behalf of, as named fiduciary of, as trustee of, or with assets of a Plan.

                                     C-1-5
<PAGE>

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed for all purposes to have consented to the provisions of Section
5.02 of the Agreement and to any amendment of the Agreement deemed necessary by
counsel of the Depositor to ensure that the transfer of this Certificate to any
Person other than a Permitted Transferee or any other Person will not cause the
Trust to cease to qualify as five separate REMICs or cause the imposition of a
tax upon the Trust.

                  No service charge will be made for any such registration of
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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-1-6
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [___], 2002

                                               FIRST UNION NATIONAL BANK,
                                                     as Trustee

                                               By:
                                                   -----------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class R Certificates referred to in the
within-mentioned Agreement.

Dated:  March [___], 2002

                                                  FIRST UNION NATIONAL BANK, as
                                                       Certificate Registrar

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

                                     C-1-7
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT - as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN  - as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common
          Additional abbreviations may also be used though not in the above
          list.

                           ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within asset-backed Certificate and hereby authorize(s) the
registration of transfer of such interest to assignee on the Certificate
Register of the Trust Fund.

            I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

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

Dated:

                                         ---------------------------------------
                                         Signature by or on behalf of assignor

                                         ---------------------------------------
                                         Signature Guaranteed

                                     C-1-8
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     C-1-9
<PAGE>

                                   EXHIBIT C-2

                          FORM OF CLASS M-1 CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A AND CLASS
AIO CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-1 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS M-1 CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS M-1 CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF
SUCH CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT IT IS NOT A
PLAN INVESTOR OR THAT AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF
ERISA AND THE CODE APPLIES TO THE ACQUISITION, HOLDING, AND RESALE OF SUCH
CERTIFICATE AND TRANSACTIONS IN CONNECTION WITH THE SERVICING, MANAGEMENT AND
OPERATION OF THE TRUST.

                                     C-2-1
<PAGE>

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2002-WF1, CLASS M-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class M-1                   Initial Certificate Principal
                                             Balance of this Certificate: $[  ]
Pass-Through Rate: Variable
                                             Servicer: Wells Fargo Home Mortgage
                                             , Inc.
Date of Pooling and Servicing Agreement
and Cut-off Date: March 1, 2002              Trustee: First Union National Bank

First Distribution Date:  April 25, 2002     Securities Administrator: Wells
                                             Fargo Bank Minnesota, National
                                             Association
Final Scheduled Distribution Date:
December 25, 2032                            CUSIP:  04542B AG 7

Closing Date: March 28, 2002                 ISIN No. US04542BAG77

Original Class Certificate Principal         No. ___
Balance of the Class M-1 Certificates
as of the Closing Date: $20,518,000

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that _________________ is the registered owner
of a Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-1 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-1 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                                     C-2-2
<PAGE>

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class M-1
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Class M-1 Pass-Through Rate for the first Interest Accrual
Period will be for the first Interest Accrual Period, ____% per annum. For any
subsequent Interest Accrual Period, a per annum rate equal to the lesser of: (i)
the lesser of (a) LIBOR plus 0.75% per annum (or LIBOR plus 1.125% per annum,
after the Optional Termination Date) and (b) the Maximum Cap Rate for the
related Distribution Date, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing a Percentage Interest in the Class M-1 Certificates.

                  The Class M-1 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                     C-2-3
<PAGE>

                  This certificate is subordinated in right of payment to the
Class A and Class AIO Certificates as described in the Pooling and Servicing
Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the 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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                                     C-2-4
<PAGE>

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-2-5
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [___], 2002

                                               FIRST UNION NATIONAL BANK, as
                                                    Trustee

                                               By:
                                                   -----------------------------
                                                         Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class M-1 Certificates referred to in the
within-mentioned Agreement.

                                                FIRST UNION NATIONAL BANK, as
                                                     Certificate Registrar

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

Date of authentication: March [___], 2002

                                     C-2-6
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT - as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN  - as joint tenants with right                       ________________
          of survivorship and not as                            (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
          list.

                            ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within asset-backed Certificate and hereby authorize(s) the
registration of transfer of such interest to assignee on the Certificate
Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

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

Dated:

                                          ------------------------------------
                                          Signature by or on behalf of assignor

                                          ------------------------------------
                                          Signature Guaranteed

                                     C-2-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     C-2-8
<PAGE>

                                   EXHIBIT C-3

                          FORM OF CLASS M-2 CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS AIO
AND CLASS M-1 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-2 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS M-2 CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS M-2 CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF
SUCH CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT IT IS NOT A
PLAN INVESTOR OR THAT AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF
ERISA AND THE CODE APPLIES TO THE ACQUISITION, HOLDING, AND RESALE OF SUCH
CERTIFICATE AND TRANSACTIONS IN CONNECTION WITH THE SERVICING, MANAGEMENT AND
OPERATION OF THE TRUST.

                                     C-3-1
<PAGE>

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2002-WF1, CLASS M-2

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class M-2                  Initial Certificate Principal
                                            Balance of this Certificate: $[  ]
Pass-Through Rate:  Variable
                                            Servicer: Wells Fargo Home
                                            Mortgage, Inc.
Date of Pooling and Servicing Agreement
and Cut-off Date: March 1, 2002             Trustee: First Union National Bank

First Distribution Date:  April 25, 2002    Securities Administrator: Wells
                                            Fargo Bank  Minnesota, National
                                            Association
Final Scheduled Distribution Date:
December 25, 2032                           CUSIP:  04542B AH5

Closing Date:  March 28, 2002               ISIN No. US04542BAH50

Original Class Certificate Principal         No. ___
Balance of the Class M-2 Certificates
as of the Closing Date: $17,953,000

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that ___________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-2 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-2 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                                     C-3-2
<PAGE>

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class M-2
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Class M-2 Pass-Through Rate for the first Interest Accrual
Period will be for the first Interest Accrual Period, ____% per annum. For any
subsequent Interest Accrual Period, a per annum rate equal to the lesser of: (i)
the lesser of (a) LIBOR plus 1.30% per annum (or LIBOR plus 1.95% per annum,
after the Optional Termination Date) and (b) the Maximum Cap Rate for the
related Distribution Date, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing a Percentage Interest in the Class M-2 Certificates.

                  The Class M-2 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                                     C-3-3
<PAGE>

                  This certificate is subordinated in right of payment to the
Class A, Class AIO and Class M-1 Certificates as described in the Pooling and
Servicing Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the 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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                                     C-3-4
<PAGE>

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-3-5
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [__], 2002

                                             FIRST UNION NATIONAL BANK, as
                                                  Trustee

                                             By:
                                                 -------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class M-2 Certificates referred to in the
within-mentioned Agreement.

                                             FIRST UNION NATIONAL BANK, as
                                                  Certificate Registrar

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

Date of authentication: March [__], 2002

                                     C-3-6
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT - as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN  - as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
          list.

                            ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)______________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

            I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

-------------------------------------------------------------------------------
Dated:

                                          --------------------------------------
                                          Signature by or on behalf of assignor

                                          --------------------------------------
                                          Signature Guaranteed

                                     C-3-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                 The assignee should include the following for purposes of
distribution:

            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     C-3-8
<PAGE>

                                   EXHIBIT C-4

                          FORM OF CLASS M-3 CERTIFICATE

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, CLASS AIO,
CLASS M-1 AND CLASS M-2 CERTIFICATES AS DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS BENEFICIAL
OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND CERTAIN OTHER
PROPERTY.

THE CLASS M-3 CERTIFICATES ARE ONLY OFFERED FOR SALE, AND ARE ONLY TRANSFERABLE
TO PLAN INVESTORS IF AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF ERISA
AND THE CODE APPLIES. EACH PURCHASER OF A CLASS M-3 CERTIFICATE, OTHER THAN THE
INITIAL PURCHASER OF THE CLASS M-3 CERTIFICATE, BY VIRTUE OF ITS PURCHASE OF
SUCH CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED EITHER THAT IT IS NOT A
PLAN INVESTOR OR THAT AN EXEMPTION FROM THE PROHIBITED TRANSACTION RULES OF
ERISA AND THE CODE APPLIES TO THE ACQUISITION, HOLDING, AND RESALE OF SUCH
CERTIFICATE AND TRANSACTIONS IN CONNECTION WITH THE SERVICING, MANAGEMENT AND
OPERATION OF THE TRUST.

                                     C-4-1
<PAGE>

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2002-WF1, CLASS M-3

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class M-3                 Initial Certificate Principal
                                           Balance of this Certificate: $[  ]
Pass-Through Rate:  Variable
                                           Servicer: Wells Fargo Home Mortgage,
                                           Inc.
Date of Pooling and Servicing Agreement
and Cut-off Date: March 1, 2002            Trustee: First Union National Bank

First Distribution Date: April 25, 2002    Securities Administrator: Wells Fargo
                                           Bank Minnesota, National
                                           Association
Final Scheduled Distribution Date:
December 25, 2032                          CUSIP:  04542B AJ 1

Closing Date:  March 28, 2002              ISIN No. US04542BAJ17

Original Class Certificate Principal       No. ___
Balance of the Class M-3 Certificates
as of the Closing Date: $14,533,000

DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ABOVE.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that ___________ is the registered owner of a
Percentage Interest (obtained by dividing the Initial Certificate Principal
Balance of this Certificate by the Original Class Certificate Principal Balance
of the Class M-3 Certificates) in that certain beneficial ownership interest
evidenced by all the Class M-3 Certificates in the Trust Fund created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Asset Backed Funding Corporation (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer, the Securities Administrator and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                                     C-4-2
<PAGE>

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class M-3
Certificates the aggregate Initial Certificate Principal Balance of which is in
excess of $5,000,000, or by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register, provided that the Certificate Registrar may deduct a
reasonable wire transfer fee from any payment made by wire transfer.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Class M-3 Pass-Through Rate for the first Interest Accrual
Period will be for the first Interest Accrual Period, ____% per annum. For any
subsequent Interest Accrual Period, a per annum rate equal to the lesser of: (i)
the lesser of (a) LIBOR plus 1.90% per annum (or LIBOR plus 2.85% per annum,
after the Optional Termination Date) and (b) the Maximum Cap Rate for the
related Distribution Date, and (ii) the Net Adjusted WAC Rate for the related
Distribution Date.

                                     C-4-3
<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing a Percentage Interest in the Class M-3 Certificates.

                  The Class M-3 Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  This certificate is subordinated in right of payment to the
Class A, Class AIO, Class M-1 and Class M-2 Certificates as described in the
Pooling and Servicing Agreement referred to herein.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the 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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                                     C-4-4
<PAGE>

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-4-5
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [__], 2002

                                               FIRST UNION NATIONAL BANK, as
                                                    Trustee

                                               By:
                                                   -----------------------------
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class M-3 Certificates referred to in the
within-mentioned Agreement.

                                               FIRST UNION NATIONAL BANK, as
                                                    Certificate Registrar

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

Date of authentication: March [__], 2002

                                     C-4-6
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common          UNIF GIFT MIN ACT - Custodian
                                                            (Cust) (Minor)
TEN ENT - as tenants by the entireties                      under Uniform Gifts
                                                            to Minors Act
JT TEN  - as joint tenants with right                       ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
          list.

                                   ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)______________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

            I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

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

Dated:

                                           -------------------------------------
                                           Signature by or on behalf of assignor

                                           -------------------------------------
                                           Signature Guaranteed

                                     C-4-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:
            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     C-4-8
<PAGE>

                                   EXHIBIT C-5

                          FORM OF CLASS CE CERTIFICATES

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A DIRECT OR
INDIRECT BENEFICIAL INTEREST IN A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND IN
CERTAIN OTHER PROPERTY.

THIS CLASS CE CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES OF THIS
SERIES TO THE EXTENT DESCRIBED HEREIN AND IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

THIS CLASS CE CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH TIME AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS CLASS CE CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT, INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES,
KEOGH PLANS AND COLLECTIVE INVESTMENT FUNDS AND SEPARATE ACCOUNTS IN WHICH SUCH
PLANS, ACCOUNTS OR ARRANGEMENTS ARE INVESTED, THAT IS SUBJECT TO THE FIDUCIARY
RESPONSIBILITY PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE") (EACH, A "PLAN") OR ANY PERSON WHO IS DIRECTLY OR
INDIRECTLY PURCHASING THE CLASS CE CERTIFICATE ON BEHALF OF, AS A NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH ASSETS OF A PLAN.

                                     C-5-1
<PAGE>

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2002-WF1, CLASS CE

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class CE                  Servicer:  Wells Fargo Home Mortgage,
                                           Inc.

Date of Pooling and Servicing Agreement
and Cut-off Date:                          Trustee: First Union National Bank
March 1, 2002
                                           Securities Administrator: Wells Fargo
                                           Bank Minnesota, National
First Distribution Date:  April 25, 2002   Association

Final Scheduled Distribution Date:         No. ___
December 25, 2032

Closing Date:  March 28, 2002

Percentage Interest:  ___%

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that __________________________________ is the
registered owner of a Percentage Interest set forth above in that certain
beneficial ownership interest evidenced by all the Class CE Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Asset Backed Funding Corporation
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), the Servicer, the Securities Administrator and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class CE Certificates on such Distribution
Date pursuant to the Agreement.

                                     C-5-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class CE
Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class CE Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing the Percentage Interest specified on the face hereof.

                  The Class CE Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Securities Administrator and the Trustee with the consent of the
Holders of Certificates entitled to the Voting Rights identified in the
agreement. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                                     C-5-3
<PAGE>

                  The Class CE Certificates are issuable in fully registered
form only without coupons in Classes and denominations representing Percentage
Interests specified in the Agreement. As provided in the Agreement and subject
to certain limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No transfer of this Certificate shall be made unless that
transfer is made pursuant to an effective registration statement under the 1933
Act and effective registration or qualification under applicable state
securities laws, or is made in a transaction that does not require such
registration or qualification. In the event that a transfer is to be made
without registration or qualification, the Trustee shall require, in order to
assure compliance with such laws, either (i) in the case of a transfer made in
reliance on Rule 144A under the 1933 Act, that the proposed transferee delivers
to the Trustee a completed investment letter in substantially the form attached
to the Agreement as Exhibit J-2, or (ii) in the case of any other transfer, that
the Certificateholder desiring to effect the transfer and such
Certificateholder's prospective transferee each execute a representation letter
in substantially the forms of Exhibit L and Exhibit J-1 attached to the
Agreement, respectively, certifying to the Depositor and the Trustee the facts
surrounding the transfer as described in Section 5.02 of the Agreement, or that
the Depositor and the Trustee shall require an Opinion of Counsel satisfactory
to them that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the
Depositor, the Securities Administrator, the Trustee or the Certificate
Registrar, in their respective capacities as such. None of the Depositor, the
Securities Administrator, the Certificate Registrar nor the Trustee is obligated
to register or qualify the Class of Certificates specified on the face hereof
under the 1933 Act or any other securities law or to take any action not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Securities Administrator, the Depositor, the Certificate Registrar,
Servicer and any Servicer against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

                  No transfer of a Certificate or any interest therein may be
made to employee benefit plans and certain other retirement plans and
arrangements, including individual retirement accounts and annuities, Keogh
plans and collective investment funds and separate accounts in which such plans,
accounts or arrangements are invested that are subject to the fiduciary
responsibility provisions of ERISA and Section 4975 of the Code or any person
who is directly or indirectly purchasing the Certificate or interest therein on
behalf of, as named fiduciary of, as trustee of, or with assets of a Plan.

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

                                     C-5-4
<PAGE>

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-5-5
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [___], 2002

                                             FIRST UNION NATIONAL BANK, as
                                                  Trustee

                                             By:
                                                 -------------------------------
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class CE Certificates referred to in the
within-mentioned Agreement.

Dated:  March [____], 2002

                                             FIRST UNION NATIONAL BANK, as
                                                  Certificate Registrar

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

                                     C-5-6
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT - as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN  - as joint tenants with right                        ________________
          of survivorship and not as                              (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
          list.

                                   ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) ____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

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

Dated:

                                           -------------------------------------
                                           Signature by or on behalf of assignor

                                           -------------------------------------
                                           Signature Guaranteed

                                     C-5-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     C-5-8
<PAGE>

                                   EXHIBIT C-6

                           FORM OF CLASS P CERTIFICATE

THIS CLASS P CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION THAT DOES
NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT, INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES,
KEOGH PLANS AND COLLECTIVE INVESTMENT FUNDS AND SEPARATE ACCOUNTS IN WHICH SUCH
PLANS, ACCOUNTS OR ARRANGEMENTS ARE INVESTED, THAT IS SUBJECT TO THE FIDUCIARY
RESPONSIBILITY PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE") (EACH, A "PLAN") OR ANY PERSON WHO IS DIRECTLY OR
INDIRECTLY PURCHASING THE CLASS P CERTIFICATE ON BEHALF OF, AS A NAMED FIDUCIARY
OF, AS TRUSTEE OF, OR WITH ASSETS OF A PLAN.

                  ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2002-WF1, CLASS P

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate adjustable-rate one-
to four-family first lien mortgage loans formed and sold by

                        ASSET BACKED FUNDING CORPORATION

Series 2002-WF1, Class P                   Servicer: Wells Fargo Home Mortgage,
                                           Inc.

Date of Pooling and Servicing Agreement    Trustee: First Union National Bank
and Cut-off Date:  March 1, 2002
                                           Securities Administrator: Wells Fargo
                                           Bank  Minnesota, National Association
First Distribution Date:  April 25, 2002

Final Scheduled Distribution Date:         No. ___
December 25, 2032

Closing Date:  March 28, 2002

Percentage Interest:  ___%

                                     C-6-1
<PAGE>

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN ASSET BACKED
FUNDING CORPORATION, THE SERVICER, THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR
ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that __________________________________ is the
registered owner of a Percentage Interest set forth above in that certain
beneficial ownership interest evidenced by all the Class P Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Asset Backed Funding Corporation
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), the Servicer, the Securities Administrator and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from Prepayment Charges and Servicer Prepayment Charge Payment Amounts
in the Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class P Certificates on such Distribution Date pursuant to the
Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Certificate Registrar
in writing at least five Business Days prior to the Record Date immediately
prior to such Distribution Date and is the registered owner of Class P
Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class P Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as ABFC Mortgage Loan Asset-Backed Certificates of the
Series specified on the face hereof (herein called the "Certificates") and
representing the Percentage Interest specified on the face hereof.

                  The Class P Certificates are limited in right of payment to
Prepayment Charges received on the Mortgage Loans and Servicer Prepayment Charge
Payment Amounts, all as more specifically set forth herein and in the Agreement.
As provided in the Agreement, withdrawals from the Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement of
advances made, or certain expenses incurred, with respect to the Mortgage Loans.

                                     C-6-2
<PAGE>

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Securities Administrator, the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates entitled to the Voting Rights
identified in the agreement. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Class P Certificates are issuable in fully registered form
only without coupons in Classes and denominations representing Percentage
Interests specified in the Agreement. As provided in the Agreement and subject
to certain limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No transfer of this Certificate shall be made unless that
transfer is made pursuant to an effective registration statement under the 1933
Act and effective registration or qualification under applicable state
securities laws, or is made in a transaction that does not require such
registration or qualification. In the event that a transfer is to be made
without registration or qualification, the Trustee shall require, in order to
assure compliance with such laws, either (i) in the case of a transfer made in
reliance on Rule 144A under the 1933 Act, that the proposed transferee delivers
to the Trustee a completed investment letter in substantially the form attached
to the Agreement as Exhibit J-2, or (ii) in the case of any other transfer, that
the Certificateholder desiring to effect the transfer and such
Certificateholder's prospective transferee each execute a representation letter
in substantially the forms of Exhibit L and Exhibit J-1 attached to the
Agreement, respectively, certifying to the Depositor and the Trustee the facts
surrounding the transfer as described in Section 5.02 of the Agreement, or that
the Depositor and the Trustee shall require an Opinion of Counsel satisfactory
to them that such transfer may be made without such registration or
qualification, which Opinion of Counsel shall not be an expense of the
Depositor, the Securities Administrator, the Trustee or the Certificate
Registrar, in their respective capacities as such. None of the Depositor, the
Securities Administrator, the Certificate Registrar nor the Trustee is obligated
to register or qualify the Class of Certificates specified on the face hereof
under the 1933 Act or any other securities law or to take any action not
otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any such Certificateholder
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Securities Administrator, the Depositor, the Certificate Registrar,
the Servicer and any Servicer against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

                                     C-6-3
<PAGE>

                  No transfer of a Certificate or any interest therein may be
made to employee benefit plans and certain other retirement plans and
arrangements, including individual retirement accounts and annuities, Keogh
plans and collective investment funds and separate accounts in which such plans,
accounts or arrangements are invested that are subject to the fiduciary
responsibility provisions of ERISA and Section 4975 of the Code or any person
who is directly or indirectly purchasing the Certificate or interest therein on
behalf of, as named fiduciary of, as trustee of, or with assets of a Plan.

                  No service charge will be made for any such registration of
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.

                  The Depositor, the Servicer, the Securities Administrator, the
Trustee and the Certificate Registrar and any agent of the Depositor, the
Servicer, the Securities Administrator, the Trustee or the Certificate Registrar
may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Servicer, the Securities
Administrator, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by or on behalf of the Trustee and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund, and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement from the
Trust Fund of all Mortgage Loans and all property acquired in respect of such
Mortgage Loans. The Agreement permits, but does not require, the party
designated in the Agreement to purchase from the Trust Fund all Mortgage Loans
and all property acquired in respect of any Mortgage Loan at a price determined
as provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Principal Balance of the Mortgage Loans at the time of purchase
being 10% or less of the Cut-off Date Aggregate Principal Balance.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

                                     C-6-4
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated:  March [___], 2002

                                                  FIRST UNION NATIONAL BANK, as
                                                       Trustee

                                                  By:
                                                      --------------------------
                                                          Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class P Certificates referred to in the
within-mentioned Agreement.

Dated:  March [___], 2002

                                                  FIRST UNION NATIONAL BANK, as
                                                       Certificate Registrar

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

                                     C-6-5
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM - as tenants in common           UNIF GIFT MIN ACT - Custodian
                                                             (Cust) (Minor)
TEN ENT - as tenants by the entireties                       under Uniform Gifts
                                                             to Minors Act
JT TEN  - as joint tenants with right                        ________________
          of survivorship and not as                             (State)
          tenants in common

          Additional abbreviations may also be used though not in the above
          list.

                           ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) _____________________________________________
a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

            I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

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

Dated:

                                          --------------------------------------
                                          Signature by or on behalf of assignor

                                          --------------------------------------
                                          Signature Guaranteed

                                     C-6-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:
            Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to_________________________________________________
_______________________________________________________________________________
for the account of _______________________________, account number_____________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by _______________________________________________,
the assignee named above, or ____________________________________, as its agent.

                                     C-6-7
<PAGE>

                                    EXHIBIT D

                             MORTGAGE LOAN SCHEDULE

                                      D-1
<PAGE>

                                       E-1
                                    EXHIBIT E

                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:      First Union National Bank
         401 South Tryon Street, 12th Floor NC 1179
         Charlotte, North Carolina  28288-1179
         Attn:  Structured Finance Trust Services - ABFC 2002-WF1

         Re:      Pooling and Servicing Agreement dated as of March 1, 2002
                  among Asset Backed Funding Corporation, as depositor, Wells
                  Fargo Bank Minnesota, National Association, as securities
                  administrator, Wells Fargo Home Mortgage, Inc., as servicer,
                  and First Union National Bank, as trustee.

                  All capitalized terms used herein shall have the means
ascribed to them in the Pooling and Servicing Agreement (the "Agreement")
referenced above.

                  In connection with the administration of the Mortgage Loans
held by you as Trustee pursuant to the 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            Reason:
                                                --------------------------------

                         [SIGNATURES ON FOLLOWING PAGE]

                                      E-1
<PAGE>

                                   Servicer:  Wells Fargo Home Mortgage, Inc.

                                   By:
                                       ----------------------------------------
                                   (authorized signer)

                                   Address:  Legal Dept. - MACX 2401-06T
                                   1 Home Campus
                                   Des Moines, Iowa 50328

                                   Date:
                                         --------------------------------------
Custodian

First Union National Bank

                  Please acknowledge the execution of the above request by your
signature and date below:

-------------------------------                      ------------------
         Signature                                   Date

Documents returned to Custodian:

-------------------------------                      ------------------
         Custodian                                   Date

                                      E-2
<PAGE>

                                   EXHIBIT F-1

                          FORM OF INITIAL CERTIFICATION

                                                                 _________, 20__

Asset Backed Funding Corporation
Bank of America Corporate Center
100 North Tryon Street
Charlotte, North Carolina  28255

Wells Fargo Home Mortgage, Inc.
Legal Department - MAC X2401-06T
1 Home Campus
Des Moines, Iowa  50328

Wells Fargo Bank Minnesota, National Association
11000 Broken Land Parkway
Columbia, Maryland  21044-3562
Attention:  Client Manager - ABFC 2002-WF1

Re: ABFC 2002-WF1 Trust Mortgage Loan Asset-Backed Certificates, Series 2002-WF1

Ladies and Gentlemen:

         The undersigned, as Trustee, hereby certifies that except as noted on
the schedule of exceptions attached hereto as Schedule A, it has received a
Mortgage File with respect to each Mortgage Loan listed on the Mortgage Loan
Schedule attached as Exhibit D to the Agreement (as defined below), which
contains each of the Mortgage Loan Documents required to be included in the
Mortgage File, as set forth in Section 2.01 of the Pooling and Servicing
Agreement (the "Agreement"), dated as of March 1, 2002, among Asset Backed
Funding Corporation, as depositor, Wells Fargo Home Mortgage, Inc., as servicer,
Wells Fargo Bank Minnesota, National Association, as securities administrator,
and the undersigned, as trustee.

         The Trustee further certifies as to each Mortgage Note that the
Mortgage Note bears an original of an endorsement as set forth in clause (i) of
Section 2.01 of the Agreement.

         Except as described herein, the Trustee has made no independent
examination of any documents contained in any Mortgage File. The Trustee makes
no representations as to: (i) the validity, legality, sufficiency,
enforceability or genuineness of any of the documents contained in any Mortgage
Files or any of the Mortgage Loans listed on the Mortgage Loan Schedule attached
as Exhibit D to the Agreement or (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan.

                                     F-1-1
<PAGE>

                            [SIGNATURE PAGE FOLLOWS]

                                     F-1-2
<PAGE>

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Agreement.

                                            FIRST UNION NATIONAL BANK,
                                            as Trustee

                                            By:
                                                  ------------------------------

                                            Name:
                                                  ------------------------------

                                            Title:
                                                  ------------------------------

                                     F-1-3
<PAGE>

                       Schedule A to Initial Certification

                                   Exceptions

                                     F-1-4
<PAGE>

                                      F-2-3
                                   EXHIBIT F-2

                          FORM OF INTERIM CERTIFICATION

                                                                 _________, 20__

Asset Backed Funding Corporation             Wells Fargo Home Mortgage, Inc.
100 North Tryon Street                       Legal Department - MAC X2401-06T
Charlotte, North Carolina 28255              1 Home Campus
                                             Des Moines, Iowa  50328

Wells Fargo Bank Minnesota, National Association
11000 Broken Land Parkway
Columbia, Maryland  21044-3562
Attention:  Client Manager - ABFC 2002-WF1

Re:  ABFC Trust 2002-WF1 Asset-Backed Certificates Series 2002-WF1

Ladies and Gentlemen:

                  The undersigned, as Trustee, hereby certifies that as to each
Mortgage Loan listed on the Mortgage Loan Schedule attached as Exhibit D to the
Agreement (as defined below) (other than any Mortgage Loan which has been
liquidated or otherwise released to the Trustee or its designee) it has reviewed
the Mortgage File and has determined that, except as noted on the schedule of
exceptions attached hereto as Schedule A: (i) all documents required to be
included in the Mortgage File are in its possession; (ii) such documents have
been reviewed by it and appear regular on their face and relate to such Mortgage
Loan; and (iii) based on such examination, and only as to such documents, the
Mortgage Loan information set forth on the Mortgage Loan Schedule attached as
Exhibit D to the Agreement, as described in clauses (1), (2), (5), (7), (10),
(12), (18), (19), (20), (21), (22), and (25) of the definition of "Mortgage Loan
Schedule" in Section 1.01 of the Agreement, with respect to the Mortgage Loan
accurately reflects information set forth in the related Mortgage File. The
undersigned further certifies that the Trustee's review of each Mortgage File
included each of the procedures set forth in Section 2.02 of the Pooling and
Servicing Agreement (the "Agreement"), dated as of March 1, 2002, among Asset
Backed Funding Corporation, as depositor, Wells Fargo Home Mortgage, Inc., as
servicer, Wells Fargo Bank Minnesota, National Association, as securities
administrator, and the undersigned, as Trustee.

                  Except as described herein, the Trustee has made no
independent examination of any documents contained in any Mortgage File. The
Trustee makes no representations as to: (i) the validity, legality, sufficiency,
enforceability or genuineness of any of the documents contained in any Mortgage
File or any of the Mortgage Loans listed on the Mortgage Loan Schedule attached
as Exhibit D to the Agreement or (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan.

                                     F-2-1
<PAGE>

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Agreement.

                                            FIRST UNION NATIONAL BANK,
                                            as Trustee

                                            By:
                                                  ------------------------------

                                            Its:
                                                  ------------------------------

                                     F-2-2
<PAGE>

                      Schedule A - to Interim Certification

                                   Exceptions

                                     F-2-3
<PAGE>

                                   EXHIBIT F-3

                           FORM OF FINAL CERTIFICATION

                                                                 _________, 20__

Asset Backed Funding Corporation              Wells Fargo Home Mortgage, Inc.
100 North Tryon Street                        Legal Department - MAC X2401-06T
Charlotte, North Carolina 28255               1 Home Campus
                                              Des Moines, Iowa  50328

Wells Fargo Bank Minnesota, National Association
11000 Broken Land Parkway
Columbia, Maryland  21044-3562
Attention:  Client Manager - ABFC 2002-WF1

Re:  ABFC Trust 2002-WF1 Asset-Backed Certificates Series 2002-WF1

Ladies and Gentlemen:

                  The undersigned, as Trustee, hereby certifies that, except as
noted on the schedule of exceptions attached hereto as Schedule A, it has
received for each Mortgage Loan listed on the Mortgage Loan Schedule attached as
Exhibit D to the Agreement (as defined below) (other than a Mortgage Loan that
has been liquidated or otherwise released to the Trustee or its designee), a
complete Mortgage File that includes each of the documents required to be
included in the Mortgage File, as set forth in Section 2.01 of the Pooling and
Servicing Agreement (the "Agreement"), dated as of March 1, 2002, among Asset
Backed Funding Corporation, as depositor, Wells Fargo Home Mortgage, Inc., as
servicer, Wells Fargo Bank Minnesota, National Association, as securities
administrator and the undersigned, as Trustee.

         The Trustee has made no independent examination of any documents
contained in any Mortgage File beyond the review specifically required in the
Agreement. The Trustee makes no representations as to: (i) the validity,
legality, sufficiency, enforceability or genuineness of any of the documents
contained in the Mortgage File or any of the Mortgage Loans listed on the
Mortgage Loan Schedule attached as Exhibit D to the Agreement, (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan or (iii) whether any Mortgage File should include any guarantee agreement,
assumption agreement, modification agreement, written assurance or substitution
agreement.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Agreement.

                                            FIRST UNION NATIONAL BANK,
                                            as Trustee

                                            By:
                                                  ------------------------------

                                            Its:
                                                  ------------------------------

                                     F-3-1
<PAGE>

                       Schedule A - to Final Certification

                                   EXCEPTIONS

                                      F-3-2
<PAGE>

                                    EXHIBIT G

                        MORTGAGE LOAN PURCHASE AGREEMENT

                                       G-1
<PAGE>

                                    EXHIBIT H

                             AFFIDAVIT OF LOST NOTE

      I, ________________ being duly sworn, do hereby state under oath that:

1.    I as _______________ [title] of Wells Fargo Home Mortgage, Inc., (the
      "Seller"), am authorized to make this Affidavit on behalf of the seller.

2.    The Seller is the current payee under the following described mortgage
      note (the Note"):

                                    Loan No:        "LoanNumber"

                                    Borrower(s):    "BorrowersNames"

                                    Original Amount:  $"LoanAmt"

                                    Rate of Interest: "InterestRate"%

      Address of Mortgaged Property:    "Address", "City", "State" "Zip"

3.    The Note was not located after a thorough and diligent search.

4.    Attached hereto is a true and correct copy of the Note, endorsed in blank
      by Lender.

5.    The Seller hereby agrees to indemnify and hold harmless, its successors,
and assigns, against any loss, from the unavailability of the original Note,
provided that in no event shall the Seller be liable for special or
consequential damages with respect to the foregoing, including but not limited
to, any claim for lost profits.

                                             EXECUTED THIS ___ day of ______, on
                                             behalf of the Seller by:

                                             -----------------------------------
                                                                          [Name]

         On ____ day of _____________, before me appeared Heather Partin to me
personally known, who being, duly sworn did say that she is the Vice President
of Wells Fargo Home Mortgage Inc., and that said Affidavit of Lost Note was
signed and sealed on behalf of such corporation and said Patricia Staples
acknowledged this instrument to be the free act of deed of said corporation.

                  ----------------------------------------------
                  Notary Public in and for the State of Maryland

                  My Commission expires: __________________

                                       H-1
<PAGE>

                                    EXHIBIT I

                          FORM OF ERISA REPRESENTATION

Asset Backed Funding Corporation
100 North Tryon Street
Charlotte, North Carolina  28255

First Union National Bank
401 South Tryon Street, 12th Floor NC 1179
Charlotte, North Carolina  28288-1179
Attn:  Structured Finance Trust Services - ABFC 2002-WF1

    Re:     ABFC Mortgage Loan Asset-Backed Funding Certificates,
            Series 2002-WF1

Ladies and Gentlemen:

            1. [The undersigned is the ______________________ of (the
"Transferee") a [corporation duly organized] and existing under the laws of
__________, on behalf of which he makes this affidavit.] [The undersigned,
___________________, is the transferee (the "Transferee").]

            2. The Transferee hereby acknowledges that under the terms of the
Pooling and Servicing Agreement (the "Agreement") dated as of March 1, 2002,
among Asset Backed Funding Corporation, as depositor (the "Depositor"), Wells
Fargo Home Mortgage, Inc., as servicer, Wells Fargo Bank Minnesota, National
Association, as securities administrator (the "Securities Administrator"), and
First Union National Bank, as trustee (the "Trustee"), no transfer of the
ERISA-Restricted Certificates shall be permitted to be made to any person unless
the Depositor and the Certificate Registrar (as defined in the Agreement) have
received a certificate from such transferee in the form hereof.

            3. The Transferee either (x) (i) is not an employee benefit plan
subject to Section 406 or Section 407 of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), or Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code"), the Trustee of any such plan or a person
acting on behalf of any such plan nor a person using the assets of any such plan
or (ii) (except in the case of the Class P, Class R or Class CE Certificates) 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 (y) (except in the case of a Class R Certificate) shall deliver
to the Certificate Registrar and the Depositor an opinion of counsel (a "Benefit
Plan Opinion") satisfactory to the Certificate Registrar, and upon which the
Certificate Registrar and the Depositor shall be entitled to rely, to the effect
that the purchase or holding of such Certificate by the Transferee will not
result in the assets of the Trust Fund being deemed to be plan assets and
subject to the prohibited transaction provisions of ERISA or the Code and will
not subject the Trustee, the Securities Administrator or the Depositor to any
obligation in addition to those undertaken by such entities in the Pooling and
Servicing Agreement, which opinion of counsel shall not be an expense of the
Trustee, the Securities Administrator or the Depositor.

                                      I-1
<PAGE>

                  Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Agreement.

                                      I-2
<PAGE>

                  IN WITNESS WHEREOF, the Transferee has executed this
certificate.

                                              ----------------------------------
                                             [Transferee]

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

                                      I-3
<PAGE>

                                   EXHIBIT J-1

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                                                          [DATE]

Asset Backed Funding Corporation
100 North Tryon Street
Charlotte, North Carolina  28255

First Union National Bank
401 South Tryon Street, 12th Floor NC1179
Charlotte, North Carolina 28288-1179
Attn:  Structured Finance Trust Services - ABFC 2002-WF1

         Re:      ABFC Mortgage Loan Asset-Backed Certificates, Series 2002-WF1

Ladies and Gentlemen:

                  In connection with our acquisition of the ABFC Mortgage Loan
Asset-Backed Certificates, Series 2002-WF1 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are 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), (e) we agree that the
Certificates must be held indefinitely by us and we acknowledge that we are able
to bear the economic risk of investment in the Certificates, (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, (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this Certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Certificate has executed
and delivered to you a certificate to substantially the same effect as this
certificate, and (3) the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement and (h)
we acknowledge that the Certificates will bear a legend setting forth the
applicable restrictions on transfer.

                                      J1-1
<PAGE>

                                                  Very truly yours,

                                                  [NAME OF TRANSFEREE]

                                                  By:
                                                      --------------------------
                                                          Authorized Officer

                                      J1-2
<PAGE>

                                   EXHIBIT J-2

                       FORM OF RULE 144A INVESTMENT LETTER

                                     [DATE]

Asset Backed Funding Corporation
100 North Tryon Street
Charlotte, North Carolina  28255

First Union National Bank
401 South Tryon Street, 12th Floor NC1179
Charlotte, North Carolina 28288-1179
Attn:  Structured Finance Trust Services - ABFC 2002-WF1

         Re:      ABFC Mortgage Loan Asset-Backed Certificates, Series 2002-WF1

Ladies and Gentlemen:

                  In connection with our acquisition of the ABFC Mortgage Loan
Asset-Backed Certificates, Series 2002-WF1 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we 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, (d) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities Act and have completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2. We
are aware that the sale to us is being made in reliance on Rule 144A. We are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, and who executes a
certification in the form of this letter and a certification in the form of
either Annex 1 or Annex 2 attached hereto, or (ii) pursuant to another exemption
from registration under the Securities Act.

                                      J2-1
<PAGE>

                                              Very truly yours,

                                              [NAME OF TRANSFEREE]

                                              By:
                                                  ------------------------------
                                                      Authorized Officer

                                      J2-2
<PAGE>

                                                          ANNEX 1 TO EXHIBIT J-2

            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 ("Rule
144A") under the Securities Act of 1933, as amended (the "1933 Act") because (i)
the Buyer owned and/or invested on a discretionary basis $________(1) in
securities (except for the excluded securities referred to below) as of the end
of the Buyer's most recent fiscal year (such amount being calculated in
accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the
category marked below.

            ___ Corporation, etc. The Buyer is a corporation (other than a bank,
            savings and loan association or similar institution), Massachusetts
            or similar business trust, partnership, or charitable organization
            described in Section 501(c)(3) of the Internal Revenue Code of 1986,
            as amended.

            ___ Bank. The Buyer (a) is a national bank or banking institution as
            defined in Section 3(a)(2) of the 1933 Act 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 as of a date not more than 16 months preceding
            the date of this certification in the case of a U.S. bank, and not
            more than 18 months preceding the date of this certification in the
            case of a foreign bank or equivalent institution, a copy of which
            financial statements are 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 referenced in Section
            3(a)(5)(A) of the 1933 Act, which is supervised and examined by a
            State or Federal authority having supervisory authority 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, as of a date not more than 16 months preceding the date
            of this certification in the case of a U.S. bank, and not more than
            18 months preceding the date of this certification in the case of a
            foreign bank or equivalent institution, a copy of which financial
            statements are 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.

                                      J2-3
<PAGE>

            ___ 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, as defined
            in Section 2(13) of the 1933 Act, 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.

            ___ Other. (Please supply a brief description of the entity and a
            cross-reference to the paragraph and subparagraph under subsection
            (a)( 1) of Rule 144A pursuant to which it qualifies. Note that
            registered investment companies should complete Annex 2 rather than
            this Annex 1.)

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

                                      J2-4
<PAGE>

            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) 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.
For purposes of determining the aggregate amount of securities owned and/or
invested on a discretionary basis by the Buyer, the Buyer did not inclued any of
the securities referred to in this paragraph.

            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.

            vi. Will the Buyer be purchasing the Certificates  _____   _____
                only for the Buyer's own account?                  YES    NO

            If the answer to the foregoing question is "NO," the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

            vii. 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.

                          [SIGNATURE ON FOLLOWING PAGE]

                                      J2-5
<PAGE>

                                               ---------------------------------
                                               Print Name of Buyer

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

                                               Date:
                                                     ---------------------------

                                      J2-6
<PAGE>

                                                          ANNEX 2 TO EXHIBIT J-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 ("Rule
144A") under the Securities Act of 1933, as amended (the "1933 Act") 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 (the "1940 Act") 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 in paragraph 4 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 in paragraph 4 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 in paragraph 4 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, except for a unit investment trust
whose assets consist solely of shares of one or more Registered Investment
Companies (provided that each series of a "series company," as defined in Rule
18f-2 under the 1940 Act, shall be deemed to be a separate investment company)
that have the same investment adviser (or, in the case of unit investment
trusts, the same depositor) or investment advisers (or depositors) 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).

                                      J2-7
<PAGE>

            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) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps. For purposes of determining the aggregate
amount of securities owned and/or invested on a discretionary basis by the
Buyer, or owned by the Buyer's Family of Investment Companies, the securities
referred to in this paragraph were excluded.

            5. The Buyer is familiar with Rule 144A and understands that the
parties to which this certification is being made are relying and will continue
to rely on the statements made herein because one or more sales to the Buyer
will be in reliance on Rule I 44A.

            ____    ____   Will the Buyer be purchasing the Transferred Owner
             Yes      No   Trust Certificates only for the Buyer's own account?

            6. If the answer to the foregoing question is "NO," the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

            7. The undersigned will notify the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Buyer's purchase of the Transferred Owner Trust
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:
                                             -----------------------------------

                                      J2-8
<PAGE>

                                    EXHIBIT K

                 FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT

          ABFC MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2002-WF1

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 Certificates (the "Certificates") issued
pursuant to the Pooling and Servicing Agreement, (the "Agreement"), relating to
the above-referenced Certificates, among Asset Backed Funding Corporation, as
depositor, Wells Fargo Home Mortgage, Inc., as servicer, Wells Fargo Bank
Minnesota, National Association, as securities administrator, and First Union
National Bank, as trustee (the "Trustee"). Capitalized terms used, but not
defined herein shall have the meanings ascribed to such terms in the Agreement.
The Transferee has authorized the undersigned to make this affidavit on behalf
of the Transferee.

            2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificates either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

            3. The Transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the Certificates to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if 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 Certificates if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
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.)

                                       K-1
<PAGE>

            5. The Transferee has reviewed the provisions of Section 5.02(d) of
the Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificates including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(d) of the Agreement and the
restrictions noted on the face of the Certificates. 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
Certificates, 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 in this 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 Certificates.

            8. The Transferee's taxpayer identification number is        .

            9. The Transferee is a U.S. Person as defined in the Pooling and
Servicing Agreement.

            10. The Transferee is aware that the Certificates may be a
"noneconomic residual interest" within the meaning of proposed Treasury
regulations promulgated pursuant to the Code and that the transferor of a
noneconomic residual interest will remain liable for any taxes due with respect
to the income on such residual interest, unless no significant purpose of the
transfer was to impede the assessment or collection of tax.

            11. The Transferee is not an employee benefit plan that is subject
to ERISA or a plan that is subject to Section 4975 of the Code, nor are we
acting on behalf of such a plan.

                                      K-2
<PAGE>

            IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this            day of                , 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__ .

                                      K-3
<PAGE>

                                    EXHIBIT L

                         FORM OF TRANSFEROR CERTIFICATE

                                                                          [DATE]

Asset Backed Funding Corporation
100 North Tryon Street
Charlotte, North Carolina  28255

First Union National Bank
401 South Tryon Street, 12th Floor NC 1179
Charlotte, North Carolina  28288-1179
Attn:  Structured Finance Trust Services - ABFC 2002-WF1

         Re:      ABFC Mortgage Loan Asset-Backed Certificates, Series 2002-WF1

Ladies and Gentlemen:

                  In connection with our disposition of the ABFC Mortgage Loan
Asset-Backed Certificates, Series 2002-WF1 (the "Certificates"), we certify that
(a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) to
the extent we are disposing of a Class [ ] Certificate, we have no knowledge the
Transferee is not a Permitted Transferee and (d) no purpose of the proposed
disposition of a Class [ ] Certificate is to impede the assessment or collection
of tax.

                                             Very truly yours,

                                             [---------------------]

                                             By:
                                                 -------------------------------

                                      L-1
<PAGE>

                                    EXHIBIT M

                              DEPOSITORY AGREEMENT

                                      M-1
<PAGE>

                                    EXHIBIT N

                    MONTHLY INFORMATION DELIVERED BY SERVICER

1.    With respect to the Mortgage Pool, the number and Principal Balances of
      all Mortgage Loans which were the subject of Principal Prepayments during
      the related Collection Period.

2.    With respect to the Mortgage Pool, the amount of all curtailments which
      were received during the related Collection Period.

3.    With respect to the Mortgage Pool, the aggregate amount of principal
      portion of all Monthly Payments received during the related Collection
      Period.

4.    With respect to the Mortgage Pool, the amount of interest received on the
      Mortgage Loans during the related Collection Period.

5.    With respect to the Mortgage Pool, the aggregate amount of the Advances
      made and recovered with respect to such Distribution Date.

6.    With respect to the Mortgage Pool, the delinquency and foreclosure
      information and the amount of Mortgage Loan Losses during the related
      Collection Period.

7.    With respect to the Mortgage Pool, the weighted average maturity, the
      weighted average Mortgage Interest Rate and the weighted average Net
      Mortgage Interest Rate as of the last day of the Collection Period
      preceding the related Accrual Period.

8.    The Servicing Fees paid and Servicing Fees accrued during the related
      Collection Period.

9.    The amount of all payments or reimbursements to the Servicer paid or to be
      paid since the prior Distribution Date (or in the case of the first
      Distribution Date, since the Closing Date).

10.   The Pool Balance as of the beginning and as of the end of the preceding
      Collection Period.

11.   With respect to the Mortgage Pool, the number of Mortgage Loans
      outstanding at the beginning and at the end of the related Collection
      Period.

12.   The aggregate interest accrued on the Mortgage Loans at their respective
      Mortgage Interest Rates for the related Collection Period.

13.   The amount deposited in the Collection Account which may not be withdrawn
      therefrom pursuant to an Order of a United States Bankruptcy Court of
      competent jurisdiction imposing a stay pursuant to Section 362 of U.S.
      Bankruptcy Code.

14.   The aggregate Realized Losses since the Cut-off Date as of the end of the
      related Collection Period.

15.   The Overcollateralized Amount, the Targeted Overcollateralization Amount,
      any Overcollateralization Deficiency and any Overcollateralization Release
      Amount, in each case after giving effect to distributions on such
      Distribution Date.

                                      N-1
<PAGE>

                                   SCHEDULE I

                           PREPAYMENT CHARGE SCHEDULE

                                  SCHEDULE I-3

<PAGE>

                                  SCHEDULE I-4RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.,
                                    Company,

                        RESIDENTIAL FUNDING CORPORATION,
                                Master Servicer,

                                       and
                         BANK ONE, NATIONAL ASSOCIATION,
                                     Trustee

                               SERIES SUPPLEMENT,
                           DATED AS OF MARCH 1, 2002,

                                       TO

                                STANDARD TERMS OF
                         POOLING AND SERVICING AGREEMENT

                            DATED AS OF JULY 1, 2001

                       Mortgage Pass-Through Certificates

                                 Series 2002-S5

<PAGE>

<TABLE>
<CAPTION>

                                       TABLE OF CONTENTS

                                                                                          PAGE

                                          ARTICLE I

                                         DEFINITIONS
<S>             <C>                                                                         <C>
        Section 1.01  Definitions..........................................................-5-
        Section 1.02  Use of Words and Phrases............................................-23-
        Section 1.03  Determination of LIBOR..............................................-23-

                                          ARTICLE II

                                CONVEYANCE OF MORTGAGE LOANS;
                              ORIGINAL ISSUANCE OF CERTIFICATES
        Section 2.01  Conveyance of Mortgage Loans.  (See Section 2.01 of the Standard Terms)
                       ...................................................................-25-
        Section 2.02  Acceptance by Trustee.  (See Section 2.02 of the Standard Terms)
                       ...................................................................-25-
        Section 2.03  Representations, Warranties and Covenants of the Master Servicer and the
                      Company.............................................................-25-
                      -------
        Section 2.04  Representations and Warranties of Sellers. (See Section 2.04 of the Standard
                      Terms)
                      ------
                       ...................................................................-27-
        Section 2.05  Execution and Authentication of Certificates........................-28-

                                         ARTICLE III

                                 ADMINISTRATION AND SERVICING
                                      OF MORTGAGE LOANS

                                          ARTICLE IV

                                PAYMENTS TO CERTIFICATEHOLDERS
        Section 4.01  Certificate Account.  (See Section 4.01 of the Standard Terms)
                       ...................................................................-30-
        Section 4.02  Distributions.......................................................-30-
        Section 4.03  Statements to Certificateholders.  (See Section 4.03(a) through (d) of the
                      Standard Terms and Exhibit Three attached hereto)...................-42-
        Section 4.04  Distribution of Reports to the Trustee and the Company; Advances by the
                      Master Servicer.
                       ...................................................................-42-
        Section 4.05  Allocation of Realized Losses.......................................-43-

<PAGE>

        Section 4.06  Reports of Foreclosures and Abandonment of Mortgaged Property.  (See
                      Section 4.06 of the Standard Terms)
                       ...................................................................-45-
        Section 4.07  Optional Purchase of Defaulted Mortgage Loans.  (See Section 4.07 of the
                      Standard Terms)
                       ...................................................................-45-
        Section 4.08  [Reserved]
                       ...................................................................-45-
        Section 4.09  Distributions on the Uncertificated REMIC I Regular Interests.......-45-
        Section 4.10  Distributions on the Uncertificated Class A-V REMIC Regular Interests
                       ...................................................................-46-

                                          ARTICLE V

                                       THE CERTIFICATES
        Section 5.01. The Certificates.  (See Section 5.01 of the Standard Terms).........-53-
        Section 5.02. Registration of Transfer and Exchange of Certificates...............-53-
        Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.  (See Section 5.03 of the
                      Standard Terms).....................................................-53-
        Section 5.04. Persons Deemed Owners.  (See Section 5.04 of the Standard Terms)
                       ...................................................................-53-
        Section 5.05. Appointment of Paying Agent.  (See Section 5.05 of the Standard Terms)
                       ...................................................................-53-

                                   ARTICLE VI

        Section 10.01 REMIC Administration.  (See Section 10.01 of the Standard Terms)
                        ...................................................................-58-

<PAGE>

        Section 10.02 Master Servicer; REMIC Administrator and Trustee Indemnification.  (See
                      Section 10.02 of the  Standard Terms)...............................-58-
        Section 10.03 Designation of REMIC(s).............................................-58-
        Section 10.04 [Reserved]..........................................................-58-
        Section 10.05 Compliance with Withholding Requirements............................-58-

                                          ARTICLE XI

                                   MISCELLANEOUS PROVISIONS
        Section 11.01 Amendment.  (See Section 11.01 of the Standard Terms)
                       ...................................................................-59-
        Section 11.02 Recordation of Agreement.  Counterparts.  (See Section 11.02 of the Standard
                      Terms)
                       ...................................................................-59-
        Section 11.03 Limitation on Rights of Certificateholders.  (See Section 11.03 of the Standard
                      Terms)
                       ...................................................................-59-
        Section 11.04 Governing Laws.  (See Section 11.04 of the Standard Terms)
                       ...................................................................-59-
        Section 11.05 Notices.............................................................-59-
        Section 11.06 Required Notices to Rating Agency and Subservicer.
                       ...................................................................-60-
        Section 11.07 Severability of Provisions. (See Section 11.07 of the Standard Terms)
                       ...................................................................-61-
        Section 11.08 Supplemental Provisions for Resecuritization.  (See Section 11.08 of the Standard
                      Terms)
                       ...................................................................-61-
        Section 11.09 Allocation of Voting Rights.........................................-61-

</TABLE>

<PAGE>

EXHIBITS

Exhibit One:          Mortgage Loan Schedule
Exhibit Two:          Schedule of Discount Fractions
Exhibit Three:        Information to be Included in
                      Monthly Distribution Date Statement
Exhibit Four:         Standard Terms of Pooling and Servicing
                      Agreement dated as of July 1, 2001

<PAGE>

        This is a Series  Supplement,  dated as of March 1,  2002  (the  "Series
Supplement"), to the Standard Terms of Pooling and Servicing Agreement, dated as
of July 1, 2001 and attached as Exhibit Four hereto (the  "Standard  Terms" and,
together with this Series Supplement,  the "Pooling and Servicing  Agreement" or
"Agreement"),  among  RESIDENTIAL  FUNDING  MORTGAGE  SECURITIES I, INC., as the
company  (together with its permitted  successors and assigns,  the  "Company"),
RESIDENTIAL FUNDING CORPORATION, as master servicer (together with its permitted
successors  and  assigns,  the  "Master  Servicer"),   and  BANK  ONE,  NATIONAL
ASSOCIATION, as Trustee (together with its permitted successors and assigns, the
"Trustee").

                                     PRELIMINARY STATEMENT

        The  Company   intends  to  sell  Mortgage   Pass-Through   Certificates
(collectively, the "Certificates"),  to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the  Trust  Fund.  As  provided  herein,  the REMIC  Administrator  will make an
election  to  treat  the  entire  segregated  pool of  assets  described  in the
definition  of  REMIC I (as  defined  herein),  and  subject  to this  Agreement
(including the Mortgage Loans but excluding the Initial  Monthly  Payment Fund),
as a real estate mortgage  investment conduit (a "REMIC") for federal income tax
purposes and such segregated pool of assets will be designated as the "REMIC I."
The  Uncertificated  REMIC I Regular  Interests  will be "regular  interests" in
REMIC I and the  Class  R-I  Certificates  will be the sole  class of  "residual
interests" in REMIC I for purposes of the REMIC  Provisions (as defined herein).
A segregated  pool of assets  consisting of the  Uncertificated  REMIC I Regular
Interests  will be  designated as "REMIC II," and the REMIC  Administrator  will
make a separate REMIC election with respect thereto. The Class A-1 Certificates,
Class A-2 Certificates,  Class A-3 Certificates,  Class A-4 Certificates,  Class
A-5  Certificates,  Class A-6 Certificates,  Class A-7  Certificates,  Class A-8
Certificates,  Class A-9  Certificates,  Class  A-10  Certificates,  Class  A-11
Certificates,  Class  A-12  Certificates,  Class  A-13  Certificates,  Class A-P
Certificates,   Class  M-1  Certificates,  Class  M-2  Certificates,  Class  M-3
Certificates,   Class  B-1  Certificates,  Class  B-2  Certificates,  Class  B-3
Certificates and the  Uncertificated  Class A-V REMIC Regular  Interests will be
"regular interests" in REMIC II and the Class R-II Certificates will be the sole
class of "residual interests" therein for purposes of the REMIC Provisions.  The
Class A-V Certificates will represent the entire beneficial  ownership  interest
in the Uncertificated Class A-V REMIC Regular Interests.

        The terms and provisions of the Standard  Terms are hereby  incorporated
by reference herein as though set forth in full herein. If any term or provision
contained  herein shall  conflict  with or be  inconsistent  with any  provision
contained  in the  Standard  Terms,  the terms  and  provisions  of this  Series
Supplement  shall govern.  Any  cross-reference  to a section of the Pooling and
Servicing  Agreement,  to the extent the terms of the Standard  Terms and Series
Supplement conflict with respect to that section, shall be a cross- reference to
the  related  section  of the  Series  Supplement.  All  capitalized  terms  not
otherwise  defined  herein  shall have the  meanings  set forth in the  Standard
Terms. The Pooling and Servicing  Agreement shall be dated as of the date of the
Series Supplement.

        The  following  table  irrevocably  sets  forth  the  designation,   the
Uncertificated REMIC I Pass- Through Rate, the initial Uncertificated  Principal
Balance,  and solely for  purposes of  satisfying  Treasury  regulation  Section
1.860G-1(a)(4)(iii),  the  "latest  possible  maturity  date"  for  each  of the
Uncertificated  REMIC I Regular Interests.  None of the  Uncertificated  REMIC I
Regular Interests will be certificated.

                                             -1-

<PAGE>

<TABLE>
<CAPTION>

                          UNCERTIFICATED    INITIAL UNCERTIFICATED           LATEST
                         -REMIC-I-PASS---------PRINCIPAL-BALANCE------POSSIBLE-MATURITY(1)
      DESIGNATION          THROUGH RATE
---------------------------------------------------------------------------------------------
<S>                           <C>         <C>                                       <C> <C>
REMIC I Regular Interest      6.00%       $           238,909,079.14          March 25, 2017
           W
REMIC I Regular Interest      5.25%       $            50,000,000.00          March 25, 2017
           X
REMIC I Regular Interest      8.50%       $            15,000,000.00          March 25, 2017
           Y
REMIC I Regular Interest      0.00%       $             1,236,032.53          March 25, 2017
           Z
        REMIC I            Variable (2)                       N/A(3)          March 25, 2017
  IO Regular Interests

</TABLE>

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

(1)     Solely for  purposes  of  Section  1.860G-1(a)(4)(iii)  of the  Treasury
        regulations,  the Distribution  Date immediately  following the maturity
        date for the  Mortgage  Loan  with  the  latest  maturity  date has been
        designated  as the  "latest  possible  maturity  date" for each  REMIC I
        Regular Interest.

(2)  Calculated  in   accordance   with  the   definition   of   "Uncertificated
     Pass-Through Rate" herein.

(3)  The  Uncertificated  REMIC I IO Regular  Interests  have no  Uncertificated
     Principal Balance.

                                             -2-

<PAGE>

        The following table sets forth the designation, type, Pass-Through Rate,
aggregate Initial Certificate Principal Balance,  Maturity Date, initial ratings
and certain features for each Class of Certificates  comprising the interests in
the Trust Fund created hereunder.
<TABLE>
<CAPTION>

                            AGGREGATE
                             INITIAL
                           CERTIFICATE
                PASS-       PRINCIPAL                                 MATURITY                       MINIMUM
DESIGNATION  THROUGH RATE    BALANCE            FEATURES1               DATE        FITCH/ S&P   DENOMINATIONS2

<S>     <C>     <C>       <C>                                            <C> <C>                     <C>
Class A-1       6.00%     $31,000,000.00          Senior           March 25, 2017    AAA/AAA         $25,000
Class A-2       6.00%     $27,149,000.00 Senior/Accretion Directed March 25, 2017    AAA/AAA         $25,000
Class A-3       5.25%     $50,000,000.00 Senior/Accretion Directed March 25, 2017    AAA/AAA         $25,000
                                                Senior/Accretion
Class A-4       6.00%     $17,594,000.00     Directed/Retail       March 25, 2017    AAA/AAA         $1,000
Class A-5       6.00%     $23,247,000.00   Super Senior/Accrual    March 25, 2017    AAA/AAA         $25,000
Class A-6       6.00%     $ 1,000,000.00      Senior Support       March 25, 2017    AAA/AAA         $25,000
              Adjustable                     Senior/Accretion
Class A-7        Rate     $15,000,000.00     Directed/Floater      March 25, 2017    AAA/AAA         $25,000
              Adjustable                      Senior/Inverse
Class A-8        Rate     $         0.00  Floater/Interest Only    March 25, 2017    AAA/AAA         $25,000
Class A-9       6.00%     $60,000,000.00          Senior           March 25, 2017    AAA/AAA         $25,000
Class A-10      6.00%     $12,000,000.00          Senior           March 25, 2017    AAA/AAA         $25,000
Class A-11      6.00%     $23,798,000.00          Senior           March 25, 2017    AAA/AAA         $25,000
Class A-12      6.00%     $13,716,000.00      Senior/Lockout       March 25, 2017    AAA/AAA         $25,000
Class A-13      6.00%     $25,590,000.00          Senior           March 25, 2017    AAA/AAA         $25,000
                                                Senior/Principal
Class A-P       0.00%     $ 1,236,032.53           Only            March 25, 2017    AAA/AAA         $25,000
                                           Senior/Interest Only/
Class A-V    Variable Rate$         0.00      Variable Strip       March 25, 2017    AAA/AAA           20%
Class R-I       6.00%     $       100.00     Senior/Residual       March 25, 2017    AAA/AAA           20%
Class R-II      6.00%     $       100.00     Senior/Residual       March 25, 2017    AAA/AAA           20%

______________

1    The Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class
     A-7, Class A-8, Class A-9, Class A-10,  Class A-11,  Class A-12, Class A-13
     and Class M Certificates shall be Book-Entry  Certificates.  The Class A-P,
     Class  A-V,  Class R and Class B  Certificates  shall be  delivered  to the
     holders thereof in physical form.

2    The Certificates,  other than the Class A-V and Class R Certificates, shall
     be  issuable  in  minimum  dollar  denominations  as  indicated  above  (by
     Certificate  Principal  Balance or  Notional  Amount,  as  applicable)  and
     integral  multiples  of $1 (or $1,000 in the case of the Class  A-4,  Class
     A-P, Class B-1, Class B-2 and Class B-3  Certificates)  in excess  thereof,
     except  that  one  Certificate  of  any  of  the  Class  A-P  and  Class  B
     Certificates  that contains an uneven multiple of $1,000 shall be issued in
     a denomination  equal to the sum of the related  minimum  denomination  set
     forth  above and such  uneven  multiple  for such  Class or the sum of such
     denomination and an integral  multiple of $1,000.  The Class R Certificates
     and Class A-V  Certificates  shall be issuable in minimum  denominations of
     not less than a 20% Percentage Interest;  provided, however, that one Class
     R  Certificate  will be issuable  to  Residential  Funding as "tax  matters
     person"  pursuant  to Section  10.01(c)  and (e) in a minimum  denomination
     representing a Percentage Interest of not less than 0.01%.

                                             -3-

<PAGE>

Class M-1       6.00%     $ 1,984,000.00        Mezzanine          March 25, 2017     NA/AA          $25,000
Class M-2       6.00%     $   610,300.00        Mezzanine          March 25, 2017      NA/A         $250,000
Class M-3       6.00%     $   457,700.00        Mezzanine          March 25, 2017     NA/BBB        $250,000
Class B-1       6.00%     $   305,200.00       Subordinate         March 25, 2017     NA/BB         $250,000
Class B-2       6.00%     $   152,600.00       Subordinate         March 25, 2017      NA/B         $152,600
Class B-3       6.00%     $   305,179.14       Subordinate         March 25, 2017     NA/NA         $250,000
</TABLE>

        The Mortgage Loans have an aggregate principal balance as of the Cut-off
Date of $305,145,211.67.

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

                                             -4-

<PAGE>

                                           ARTICLE I

                                          DEFINITIONS

        Section 1.01  Definitions.

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

     Accretion  Directed  Certificates:  Any one of the Class A-2  Certificates,
Class A-3 Certificates, Class A-4 Certificates or Class A-7 Certificates.

        Accretion Termination Date: The earlier to occur of (i) the Distribution
Date on which the  Certificate  Principal  Balances  of the  Accretion  Directed
Certificates  have been  reduced to zero and (ii) the Credit  Support  Depletion
Date.

        Accrual Certificates: The Class A-5 Certificates.

        Accrual  Distribution  Amount:  With respect to each  Distribution  Date
prior to the Accretion Termination Date, an amount equal to the aggregate amount
of Accrued Certificate  Interest on the Class A-5 Certificates for such date, to
the extent added to the amount  thereof  pursuant to Section  4.02(f);  provided
that,  with  respect  to  each  Distribution  Date  on or  after  the  Accretion
Termination Date, the Accrued Certificate Interest on the Class A-5 Certificates
for such date remaining after reduction of the Certificate Principal Balances of
the  Accretion  Directed  Certificates  to zero will be payable to the Class A-5
Certificateholders  pursuant  to  Section  4.02(a)(i)  hereof  on the  Accretion
Termination Date; and provided further,  that if the Accretion  Termination Date
is the Credit Support  Depletion Date, the entire amount of Accrued  Certificate
Interest on the Class A-5 Certificates for that date will be payable as interest
to the Class A-5 Certificateholders pursuant to Section 4.02(a)(i) hereof.

        Accrued  Certificate  Interest:  With respect to each Distribution Date,
(a) in the case of each Class of  Certificates  (other  than the  Interest  Only
Certificates  and Principal  Only  Certificates),  interest  accrued  during the
related  Interest  Accrual Period on the  Certificate  Principal  Balance of the
Certificates of that Class  immediately  prior to such  Distribution Date at the
related Pass-Through Rate and (b) as to the Interest Only Certificates, interest
accrued during the related Interest  Accrual Period at the related  Pass-Through
Rate on the Notional Amount thereof immediately prior to such Distribution Date.
Accrued Certificate  Interest will be calculated on the basis of a 360-day year,
consisting of twelve 30-day months. In each case Accrued Certificate Interest on
any Class or Subclass of Certificates will be reduced by the amount of:

        (i)    Prepayment  Interest  Shortfalls  on all  Mortgage  Loans (to the
               extent  not  offset by the  Master  Servicer  with a  payment  of
               Compensating Interest as provided in Section 4.01),

                                             -5-

<PAGE>

        (ii)   the interest  portion  (adjusted to the Net Mortgage Rate (or the
               Modified  Net  Mortgage  Rate in the case of a Modified  Mortgage
               Loan)) of Realized Losses on all Mortgage Loans (including Excess
               Special Hazard  Losses,  Excess Fraud Losses,  Excess  Bankruptcy
               Losses and  Extraordinary  Losses) not allocated solely to one or
               more specific Classes of Certificates pursuant to Section 4.05,

        (iii)  the interest  portion of Advances that were (A)  previously  made
               with  respect to a Mortgage  Loan or REO Property on all Mortgage
               Loans which remained unreimbursed  following the Cash Liquidation
               or REO  Disposition  of such Mortgage Loan or REO Property or (B)
               made  with  respect  to   delinquencies   that  were   ultimately
               determined  to be Excess  Special  Hazard  Losses,  Excess  Fraud
               Losses, Excess Bankruptcy Losses or Extraordinary Losses, and

        (iv)   any other interest  shortfalls  not covered by the  subordination
               provided by the Class M  Certificates  and Class B  Certificates,
               including  interest  that is not  collectible  from the Mortgagor
               pursuant to the Relief Act, as amended, or similar legislation or
               regulations as in effect from time to time,

with all such reductions  allocated among all of the  Certificates in proportion
to their  respective  amounts of Accrued  Certificate  Interest  payable on such
Distribution Date absent such reductions,  with the remainder of such reductions
allocated among the Holders of the Class M Certificates and Class B Certificates
in  proportion  to their  respective  amounts  of Accrued  Certificate  Interest
payable on such  Distribution  Date absent such reductions.  In addition to that
portion of the reductions described in the preceding sentence that are allocated
to any  Class  of Class B  Certificates  or any  Class of Class M  Certificates,
Accrued Certificate Interest on such Class of Class B Certificates or such Class
of Class M Certificates will be reduced by the interest portion (adjusted to the
Net Mortgage Rate) of Realized Losses that are allocated solely to such Class of
Class B Certificates  or such Class of Class M Certificates  pursuant to Section
4.05.

     Adjustable  Rate  Certificates:  Any one of the Class A-7  Certificates  or
Class A-8 Certificates.

        Bankruptcy  Amount:  As of any date of determination  prior to the first
anniversary  of the Cut-off Date, an amount equal to the excess,  if any, of (A)
$100,000 over (B) the aggregate amount of Bankruptcy  Losses allocated solely to
one or more specific  Classes of Certificates in accordance with Section 4.05 of
this Series  Supplement.  As of any date of  determination on or after the first
anniversary of the Cut-off Date, an amount equal to

               (1) the lesser of (a) the Bankruptcy  Amount calculated as of the
        close of business on the Business  Day  immediately  preceding  the most
        recent anniversary of the Cut-off Date coinciding with or preceding such
        date  of  determination  (or,  if  such  date  of  determination  is  an
        anniversary of the Cut-off Date, the Business Day immediately  preceding
        such  date of  determination)  (for  purposes  of this  definition,  the
        "Relevant Anniversary") and (b) the greater of

                                             -6-

<PAGE>

                      (A)  the  greater  of  (i)  0.0006  times  the   aggregate
               principal  balance of all the Mortgage Loans in the Mortgage Pool
               as of the Relevant Anniversary (other than Additional  Collateral
               Loans, if any) having a Loan-to-Value  Ratio at origination which
               exceeds 75% and (ii) $100,000; and

                      (B) the greater of (i) the product of (x) an amount  equal
               to the largest  difference in the related Monthly Payment for any
               Non-Primary  Residence Loan remaining in the Mortgage Pool (other
               than Additional  Collateral  Loans, if any) which had an original
               Loan-to-Value  Ratio of 80% or greater  that would  result if the
               Net  Mortgage  Rate  thereof  was equal to the  weighted  average
               (based on the principal  balance of the Mortgage  Loans as of the
               Relevant  Anniversary)  of the Net Mortgage Rates of all Mortgage
               Loans as of the Relevant  Anniversary less 1.25% per annum, (y) a
               number equal to the weighted average  remaining term to maturity,
               in months,  of all  Non-Primary  Residence Loans remaining in the
               Mortgage  Pool as of the Relevant  Anniversary,  and (z) one plus
               the  quotient of the number of all  Non-Primary  Residence  Loans
               remaining  in the  Mortgage  Pool  divided by the total number of
               Outstanding  Mortgage  Loans  in  the  Mortgage  Pool  as of  the
               Relevant Anniversary,  and (ii) an amount equal to the excess, if
               any, of (1) $50,000,  over (2) the aggregate amount of Bankruptcy
               Losses  allocated  solely  to one or  more  specific  Classes  of
               Certificates  in accordance  with Section 4.05 since the Relevant
               Anniversary.

        The  Bankruptcy  Amount  may be further  reduced by the Master  Servicer
(including  accelerating the manner in which such coverage is reduced)  provided
that prior to any such  reduction,  the Master Servicer shall (i) obtain written
confirmation  from each Rating Agency that such  reduction  shall not reduce the
rating  assigned to any Class of  Certificates  by such Rating  Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the  Closing  Date by such  Rating  Agency  and (ii)  provide  a copy of such
written confirmation to the Trustee.

        Certificate:  Any Class A, Class M, Class B or Class R Certificate.

        Certificate  Account:  The  separate  account or  accounts  created  and
maintained  pursuant  to Section  4.01 of the  Standard  Terms,  which  shall be
entitled  "Bank  One,  National  Association,  as  trustee,  in  trust  for  the
registered holders of Residential  Funding Mortgage Securities I, Inc., Mortgage
Pass-Through  Certificates,  Series  2002-S5"  and  which  must  be an  Eligible
Account.

     Certificate Principal Balance: With respect to each Certificate (other than
any Interest Only  Certificate),  on any date of determination,  an amount equal
to:

          (i)  the Initial Certificate  Principal Balance of such Certificate as
               specified on the face thereof, plus

                                             -7-

<PAGE>

        (ii)   in the case of the Accrual  Certificates,  an amount equal to the
               aggregate Accrued  Certificate  Interest added to the Certificate
               Principal  Balance  thereof prior to such date of  determination,
               minus

        (iii)  the  sum  of  (x)  the   aggregate  of  all  amounts   previously
               distributed  with respect to such Certificate (or any predecessor
               Certificate)  and  applied  to reduce the  Certificate  Principal
               Balance thereof pursuant to Section 4.02(a) and (y) the aggregate
               of all reductions in Certificate Principal Balance deemed to have
               occurred in connection with Realized Losses which were previously
               allocated to such  Certificate (or any  predecessor  Certificate)
               pursuant to Section 4.05,

provided,  that the  Certificate  Principal  Balance of the Class of Subordinate
Certificates  with the Lowest  Priority at any given time shall be calculated to
equal the Percentage Interest evidenced by such Certificate times the excess, if
any, of (A) the then aggregate  Stated  Principal  Balance of the Mortgage Loans
over (B) the then aggregate  Certificate  Principal Balance of all other Classes
of Certificates then outstanding.

        Class A  Certificate:  Any one of the Class A-1,  Class A-2,  Class A-3,
Class A-4,  Class A-5,  Class A-6,  Class A-7, Class A-8, Class A-9, Class A-10,
Class  A-11,  Class  A-12,  Class  A-13,  Class A-P or Class  A-V  Certificates,
executed  by  the  Trustee  and  authenticated  by  the  Certificate   Registrar
substantially in the form annexed to the Standard Terms as Exhibit A.

        Class R Certificate: Any one of the Class R-I Certificates or Class R-II
Certificates  executed  by the  Trustee  and  authenticated  by the  Certificate
Registrar  substantially  in the form annexed to the Standard Terms as Exhibit D
and evidencing an interest designated as a "residual interest" in each REMIC for
purposes of the REMIC Provisions.

        Closing Date: March 27, 2002.

        Corporate Trust Office:  The principal office of the Trustee at which at
any particular  time its corporate trust business with respect to this Agreement
shall  be  administered,  which  office  at the  date of the  execution  of this
instrument is located at 1 Bank One Plaza,  Suite  IL1-0126,  Chicago,  Illinois
60670- 0126, Attention: Residential Funding Corporation Series 2002-S5.

        Corresponding  Certificated  Interests:  With respect to  Uncertificated
REMIC I Regular  Interest  W, the Class A-1,  Class A-2,  Class A-4,  Class A-5,
Class A-6,  Class A-9, Class A-10,  Class A-11,  Class A-12,  Class A-13,  Class
R-II,  Class M-1,  Class  M-2,  Class  M-3,  Class B-1,  Class B-2 and Class B-3
Certificates;  with respect to  Uncertificated  REMIC I Regular  Interest X, the
Class A-3 Certificates;  with respect to Uncertificated REMIC I Regular Interest
Y, the Class A-7 Certificates;  with respect to  Uncertificated  REMIC I Regular
Interest Z, the Class A-P Certificates;  and with respect to the  Uncertificated
REMIC I IO Regular Interests, the Class A-V Certificates.

        Cut-off Date: March 1, 2002.

                                             -8-

<PAGE>

     Determination  Date:  With  respect to any  Distribution  Date,  the second
Business Day prior to each Distribution Date.

        Discount Net Mortgage Rate: 6.00% per annum.

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

        Eligible Funds: On any  Distribution  Date, the portion,  if any, of the
Available  Distribution  Amount  remaining after reduction by the sum of (i) the
aggregate  amount of Accrued  Certificate  Interest on the Senior  Certificates,
(ii) the Senior  Principal  Distribution  Amount  (determined  without regard to
Section  4.02(a)(ii)(Y)(D)  of this  Series  Supplement),  (iii)  the  Class A-P
Principal   Distribution   Amount   (determined   without   regard  to   Section
4.02(b)(i)(E)  of this  Series  Supplement)  and (iv) the  aggregate  amount  of
Accrued  Certificate   Interest  on  the  Class  M,  Class  B-1  and  Class  B-2
Certificates.

        Floater Certificates:  Any one of the A-7 Certificates.

        Fraud Loss  Amount:  As of any date of  determination  after the Cut-off
Date,  an amount  equal to: (X) prior to the third  anniversary  of the  Cut-off
Date, an amount equal to 1.0% of the aggregate  outstanding principal balance of
all of the Mortgage  Loans as of the Cut-off Date minus the aggregate  amount of
Fraud Losses allocated solely to one or more specific Classes of Certificates in
accordance with Section 4.05 of this Series Supplement since the Cut-off Date up
to such date of determination and (Y) from the third to the fifth anniversary of
the Cut-off Date, an amount equal to (1) the lesser of (a) the Fraud Loss Amount
as of the most  recent  anniversary  of the  Cut-off  Date and (b)  0.50% of the
aggregate  outstanding  principal balance of all of the Mortgage Loans as of the
most recent  anniversary  of the Cut-off Date minus (2) the aggregate  amount of
Fraud Losses allocated solely to one or more specific Classes of Certificates in
accordance  with  Section 4.05 of this Series  Supplement  since the most recent
anniversary of the Cut-off Date up to such date of  determination.  On and after
the fifth anniversary of the Cut-off Date, the Fraud Loss Amount shall be zero.

        The Fraud  Loss  Amount may be  further  reduced by the Master  Servicer
(including  accelerating the manner in which such coverage is reduced)  provided
that prior to any such  reduction,  the Master Servicer shall (i) obtain written
confirmation  from each Rating Agency that such  reduction  shall not reduce the
rating  assigned to any Class of  Certificates  by such Rating  Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the  Closing  Date by such  Rating  Agency  and (ii)  provide  a copy of such
written confirmation to the Trustee.

        Indirect Depository Participant: An institution that is not a Depository
Participant  but clears  through or  maintains  a  custodial  relationship  with
Participants and has access to the Depository's clearing system.

     Initial Monthly Payment Fund:  $194,095,  representing  scheduled principal
amortization  and interest at the Net Mortgage Rate during the Due Period ending
in March 2002, for those Mortgage Loans for

                                             -9-

<PAGE>

which the Trustee  will not be entitled to receive  such  payment in  accordance
with the definition of "Trust Fund".  The Initial  Monthly Payment Fund will not
be part of any REMIC.

        Initial  Notional  Amount:  With respect to the Class A-8  Certificates,
$15,000,000.00.  With respect to any Class A-V  Certificates or Subclass thereof
issued pursuant to Section 5.01(c), the aggregate Cut-off Date Principal Balance
of the  Mortgage  Loans  corresponding  to the  Uncertificated  Class  A-V REMIC
Regular Interests represented by such Class or Subclass on such date.

        Initial  Subordinate  Class  Percentage:  With  respect to each Class of
Subordinate  Certificates,  an amount  which is equal to the  initial  aggregate
Certificate Principal Balance of such Class of Subordinate  Certificates divided
by the aggregate  Stated  Principal  Balance of all the Mortgage Loans as of the
Cut-off Date as follows:

        Class M-1: 0.65%                    Class B-1: 0.10%
        Class M-2: 0.20%                    Class B-2: 0.05%
        Class M-3: 0.15%                    Class B-3: 0.10%

        Interest Accrual Period:  With respect to any  Certificates  (other than
the Class A-7  Certificates  and Class A-8  Certificates)  and any  Distribution
Date, the calendar  month  preceding the month in which such  Distribution  Date
occurs.  With respect to the Class A-7 Certificates and Class A-8  Certificates,
the one-month period commencing on the 25th day of the month preceding the month
in which the distribution date occurs and ending on the 24th day of the month in
which the distribution date occurs.

     Interest Only Certificates:  Any one of Class A-8 Certificates or Class A-V
Certificates.  The Interest Only Certificates will have no Certificate Principal
Balance.

        Inverse Floater Certificates:  Any one of the Class A-8 Certificates.

        LIBOR  Dusiness  Day:  Any day other than (i) a Saturday  or a Sunday or
(ii) a day on which  banking  institutions  in the city of London,  England  are
required or authorized by law to be closed.

        LIBOR Rate Adjustment Date: With respect to each  Distribution  Date and
the Floater  Certificates  and Inverse  Floater  Certificates,  the second LIBOR
Business Day  immediately  preceding the  commencement  of the related  Interest
Accrual  Period on which  banks are open for  dealing  in foreign  currency  and
exchange in London, England.

        Lockout Certificates: The Class A-12 Certificates.

        Lockout Prepayment Percentage: For any Distribution Date occurring prior
to the Distribution  Date in April 2007, 0%. For any Distribution Date occurring
after the first five years  following the Closing Date, a percentage  determined
as  follows:  (i) for any  Distribution  Date  during  the sixth  year after the
Closing Date, 30%; (ii) for any Distribution  Date during the seventh year after
the Closing Date, 40%; (iii) for any

                                             -10-

<PAGE>

Distribution  Date during the eighth year after the Closing Date,  60%; (iv) for
any Distribution Date during the ninth year after the Closing Date, 80%; and (v)
for any Distribution Date thereafter, 100%.

        Lockout Scheduled Percentage:  For any Distribution Date occurring prior
to the  Distribution  Date in April 2007, 0%, and beginning on the  Distribution
Date in April 2007 and thereafter, 100%.

        Maturity  Date:  With respect to each Class of  Certificates,  March 25,
2017, the Distribution Date immediately  following the latest scheduled maturity
date of any Mortgage Loan.

        Mortgage Loan Schedule: The list or lists of the Mortgage Loans attached
hereto as Exhibit One (as amended  from time to time to reflect the  addition of
Qualified  Substitute  Mortgage Loans),  which list or lists shall set forth the
following information as to each Mortgage Loan:

        (a)    the Mortgage Loan identifying number ("RFC LOAN #");
        (b)    the maturity of the Mortgage Note ("MATURITY DATE");
        (c)    the Mortgage Rate ("ORIG RATE");
        (d)    the Subservicer pass-through rate ("CURR NET");
        (e)    the Net Mortgage Rate ("NET MTG RT");
        (f)    the Pool Strip Rate ("STRIP");

          (g)  the initial scheduled  monthly payment of principal,  if any, and
               interest ("ORIGINAL P & I");

        (h)    the Cut-off Date Principal Balance ("PRINCIPAL BAL");
        (i)    the Loan-to-Value Ratio at origination ("LTV");
        (j)    the rate at which the  Subservicing  Fee accrues  ("SUBSERV FEE")
               and at which the Servicing Fee accrues ("MSTR SERV FEE");
        (k)    a  code  "T,"  "BT"  or  "CT"  under  the  column  "LN  FEATURE,"
               indicating  that the  Mortgage  Loan is  secured  by a second  or
               vacation residence; and
        (l)    a code "N" under the  column  "OCCP  CODE,"  indicating  that the
               Mortgage Loan is secured by a non-owner occupied residence.

Such schedule may consist of multiple reports that collectively set forth all of
the information required.

        Notional Amount: As of any Distribution  Date, with respect to the Class
A-8 Certificates, an amount equal to the aggregate Certificate Principal Balance
of the Class A-7 Certificates.  For federal income tax purposes,  however, as of
any  Distribution  Date,  with  respect  to  the  Class  A-8  Certificates,  the
equivalent of the foregoing,  expressed as the Uncertificated  Principal Balance
of  Uncertificated  REMIC I Regular  Interest  Y. As of the  Closing  Date,  the
Notional  Amount  of the  Class  A-8  Certificates  is  equal  to  approximately
$15,000,000.00.  As of any  Distribution  Date,  with  respect  to any Class A-V
Certificates  or  Subclass  thereof  issued  pursuant  to Section  5.01(c),  the
aggregate  Stated Principal  Balance of the Mortgage Loans  corresponding to the
Uncertificated  Class A-V REMIC Regular  Interests  represented by such Class or
Subclass as of the day immediately  preceding such  Distribution  Date (or, with
respect  to the  initial  Distribution  Date,  at the close of  business  on the
Cut-off Date).

                                             -11-

<PAGE>

        Pass-Through Rate: With respect to the Class A Certificates  (other than
the  Adjustable  Rate,  Class  A-V and  Principal  Only  Certificates),  Class M
Certificates, Class B Certificates and Class R Certificates and any Distribution
Date, the per annum rates set forth in the Preliminary  Statement  hereto.  With
respect to the Class A-7  Certificates  and the initial Interest Accrual Period,
2.33% per annum, and as to any Interest Accrual Period  thereafter,  a per annum
rate equal to LIBOR plus 0.45%, subject to a maximum rate of 8.50% per annum and
a minimum rate of 0.45% per annum.  With  respect to the Class A-8  Certificates
and the initial Interest Accrual Period, 6.17% per annum, and as to any Interest
Accrual Period thereafter,  a per annum rate equal to 8.05% minus LIBOR, subject
to a maximum rate of 8.05% per annum and a minimum rate of 0.00% per annum. With
respect to the Class A-V Certificates  (other than any Subclass thereof) and any
Distribution  Date,  a  rate  equal  to the  weighted  average,  expressed  as a
percentage,  of the Pool Strip Rates of all Mortgage Loans as of the Due Date in
the related Due Period, weighted on the basis of the respective Stated Principal
Balances  of such  Mortgage  Loans  as of the  day  immediately  preceding  such
Distribution  Date (or,  with respect to the initial  Distribution  Date, at the
close  of  business  on  the  Cut-off  Date).  With  respect  to the  Class  A-V
Certificates and the initial Distribution Date the Pass-Through Rate is equal to
0.2032% per annum.  With respect to any Subclass of Class A-V  Certificates  and
any  Distribution  Date,  a rate equal to the weighted  average,  expressed as a
percentage,  of the Pool Strip Rates of all Mortgage Loans  corresponding to the
Uncertificated Class A-V REMIC Regular Interests represented by such Subclass as
of the Due  Date  in the  related  Due  Period,  weighted  on the  basis  of the
respective  Stated  Principal  Balances  of such  Mortgage  Loans  as of the day
immediately  preceding  such  Distribution  Date (or with respect to the initial
Distribution  Date, at the close of business on the Cut-off Date). The Principal
Only  Certificates  have no  Pass-Through  Rate and are not  entitled to Accrued
Certificate Interest.

        Prepayment Assumption: A prepayment assumption of 275% of the prepayment
speed  assumption,  used for  determining the accrual of original issue discount
and market  discount  and premium on the  Certificates  for  federal  income tax
purposes.  The prepayment speed assumption assumes a constant rate of prepayment
of mortgage loans of 0.2% per annum of the then outstanding principal balance of
such  mortgage  loans in the  first  month of the  life of the  mortgage  loans,
increasing by an additional  0.2% per annum in each  succeeding  month until the
thirtieth month,  and a constant 6% per annum rate of prepayment  thereafter for
the life of the mortgage loans.

        Prepayment  Distribution  Percentage:  With respect to any  Distribution
Date  and  each  Class  of  Subordinate   Certificates,   under  the  applicable
circumstances set forth below, the respective percentages set forth below:

               (i) For any Distribution  Date prior to the Distribution  Date in
        April 2007  (unless  the  Certificate  Principal  Balances of the Senior
        Certificates  (other than the Class A-P Certificates)  have been reduced
        to zero), 0%.

               (ii) For any  Distribution  Date for which  clause (i) above does
        not  apply,  and on which  any  Class of  Subordinate  Certificates  are
        outstanding:

                                             -12-

<PAGE>

                      (a) in the case of the Class of  Subordinate  Certificates
               then  outstanding  with the Highest Priority and each other Class
               of  Subordinate  Certificates  for which the  related  Prepayment
               Distribution Trigger has been satisfied, a fraction, expressed as
               a percentage, the numerator of which is the Certificate Principal
               Balance  of such  Class  immediately  prior to such  date and the
               denominator  of  which  is the sum of the  Certificate  Principal
               Balances  immediately  prior  to such  date of (1) the  Class  of
               Subordinate   Certificates  then  outstanding  with  the  Highest
               Priority and (2) all other  Classes of  Subordinate  Certificates
               for which the respective  Prepayment  Distribution  Triggers have
               been satisfied; and

                      (b) in  the  case  of  each  other  Class  of  Subordinate
               Certificates for which the Prepayment  Distribution Triggers have
               not been satisfied, 0%; and

               (iii)  Notwithstanding  the foregoing,  if the application of the
        foregoing  percentages on any  Distribution  Date as provided in Section
        4.02 of this Series Supplement (determined without regard to the proviso
        to the definition of "Subordinate  Principal Distribution Amount") would
        result in a distribution in respect of principal of any Class or Classes
        of  Subordinate  Certificates  in an amount  greater than the  remaining
        Certificate  Principal  Balance  thereof  (any such  class,  a "Maturing
        Class"),  then:  (a)  the  Prepayment  Distribution  Percentage  of each
        Maturing  Class  shall be  reduced  to a level  that,  when  applied  as
        described above, would exactly reduce the Certificate  Principal Balance
        of such Class to zero;  (b) the  Prepayment  Distribution  Percentage of
        each  other  Class  of  Subordinate  Certificates  (any  such  Class,  a
        "Non-Maturing  Class")  shall be  recalculated  in  accordance  with the
        provisions  in paragraph  (ii) above,  as if the  Certificate  Principal
        Balance of each Maturing Class had been reduced to zero (such percentage
        as recalculated, the "Recalculated Percentage"); (c) the total amount of
        the  reductions  in  the  Prepayment  Distribution  Percentages  of  the
        Maturing  Class or  Classes  pursuant  to clause  (a) of this  sentence,
        expressed  as an  aggregate  percentage,  shall be  allocated  among the
        Non-Maturing  Classes in  proportion  to their  respective  Recalculated
        Percentages (the portion of such aggregate reduction so allocated to any
        Non- Maturing Class, the "Adjustment Percentage");  and (d) for purposes
        of such  Distribution  Date, the Prepayment  Distribution  Percentage of
        each Non-Maturing  Class shall be equal to the sum of (1) the Prepayment
        Distribution  Percentage  thereof,  calculated  in  accordance  with the
        provisions  in  paragraph  (ii)  above as if the  Certificate  Principal
        Balance of each  Maturing  Class had not been reduced to zero,  plus (2)
        the related Adjustment Percentage.

        Principal Only Certificates:  Any one of the Class A-P Certificates.

        Record Date:  With respect to each  Distribution  Date and each Class of
Certificates (other than the Class A-7 Certificates and Class A-8 Certificates),
the close of business on the last  Business Day of the month next  preceding the
month in which the  related  Distribution  Date  occurs.  With  respect  to each
Distribution Date and the Class A-7 Certificates and Class A-8 Certificates, the
24th day of the month in which such Distribution Date occurs.

     Relief  Act:  The  Soldiers'  and  Sailors'  Civil  Relief Act of 1940,  as
amended, or similar legislation or regulations as in effect from time to time.

                                             -13-

<PAGE>

     Relief Act Shortfalls:  Shortfalls in interest  payable by a Mortgagor that
is not collectable from the Mortgagor pursuant to the Relief Act.

        REMIC I: The  segregated  pool of assets  related to this  Series,  with
respect  to which a REMIC  election  is to be made  (except as  provided  below)
pursuant to this Agreement, consisting of:

          (i)  the Mortgage Loans and the related  Mortgage Files and collateral
               securing such Mortgage Loans,

        (ii)   all payments on and  collections in respect of the Mortgage Loans
               due  after  the  Cut-off  Date  as  shall  be on  deposit  in the
               Custodial Account or in the Certificate Account and identified as
               belonging to the Trust Fund,  including amounts on deposit in the
               Initial Monthly Payment Fund,

        (iii)  property  that secured a Mortgage Loan and that has been acquired
               for the benefit of the  Certificateholders by foreclosure or deed
               in lieu of foreclosure,

          (iv) the hazard insurance policies and Primary Insurance Policies,  if
               any, and

        (v)    all proceeds of clauses (i) through (iv) above.

        Notwithstanding the foregoing,  the REMIC election specifically excludes
the Initial Monthly Payment Fund.

        REMIC I Certificates:  The Class R-I Certificates.

        REMIC II: The segregated pool of assets consisting of the Uncertificated
REMIC I Regular  Interests  conveyed  in trust to the Trustee for the benefit of
the holders of the Class A-1,  Class A-2, Class A-3, Class A-4, Class A-5, Class
A-6, Class A-7, Class A-8, Class A-9, Class A-10,  Class A-11, Class A-12, Class
A-13,  Class A-P,  Class A-V,  Class M-1, Class M-2, Class M-3, Class B-1, Class
B-2, Class B-3 and R-II  Certificates  pursuant to Section 2.06, with respect to
which a separate  REMIC  election is to be made. The REMIC election with respect
to REMIC II specifically excludes the Initial Monthly Payment Fund.

        REMIC II Certificates: Any of the Class A-1, Class A-2, Class A-3, Class
A-4, Class A-5,  Class A-6,  Class A-7, Class A-8, Class A-9, Class A-10,  Class
A-11,  Class A-12, Class A-13, Class A-P, Class A-V, Class M-1, Class M-2, Class
M-3, Class B-1, Class B-2, Class B-3 and Class R-II Certificates.

        Scheduled Final Distribution Date: March 25, 2017.

                                             -14-

<PAGE>

        Senior  Certificate:  Any one of the  Class A  Certificates  or  Class R
Certificates,  executed  by the  Trustee and  authenticated  by the  Certificate
Registrar  substantially  in the form annexed to the Standard Terms as Exhibit A
and Exhibit D, respectively.

        Senior Percentage: As of any Distribution Date, the lesser of 100% and a
fraction,  expressed as a  percentage,  the  numerator of which is the aggregate
Certificate  Principal Balance of the Senior  Certificates (other than the Class
A-P   Certificates)   immediately  prior  to  such  Distribution  Date  and  the
denominator  of which is the aggregate  Stated  Principal  Balance of all of the
Mortgage  Loans (or related  REO  Properties)  (other than the related  Discount
Fraction of each Discount  Mortgage Loan) immediately prior to such Distribution
Date.

        Senior Principal  Distribution  Amount: As to any Distribution Date, the
lesser of (a) the balance of the Available  Distribution  Amount remaining after
the distribution of all amounts  required to be distributed  pursuant to Section
4.02(a)(i),  Section  4.02(a)(ii)(X)  of this Series  Supplement,  or, after the
Credit  Support  Depletion  Date,  the amount  required to be distributed to the
Class  A-P  Certificateholders  pursuant  to  Section  4.02(c)  of  this  Series
Supplement  and (b) the sum of the  amounts  required to be  distributed  to the
Senior   Certificateholders  on  such  Distribution  Date  pursuant  to  Section
4.02(a)(ii)(Y), (xvi) and (xvii) of this Series Supplement.

        Senior Support Certificates:  Any of the Class A-6 Certificates.

        Special Hazard Amount:  As of any Distribution  Date, an amount equal to
$3,580,814  minus the sum of (i) the aggregate  amount of Special  Hazard Losses
allocated  solely to one or more specific  Classes of Certificates in accordance
with Section 4.05 of this Series  Supplement and (ii) the Adjustment  Amount (as
defined below) as most recently calculated.  For each anniversary of the Cut-off
Date, the Adjustment  Amount shall be equal to the amount,  if any, by which the
amount  calculated in accordance  with the preceding  sentence  (without  giving
effect to the deduction of the Adjustment Amount for such  anniversary)  exceeds
the greater of (A) the greatest of (i) twice the outstanding  principal  balance
of the  Mortgage  Loan in the  Trust  Fund  which  has the  largest  outstanding
principal   balance  on  the  Distribution   Date  immediately   preceding  such
anniversary,  (ii) the product of 1.00% multiplied by the outstanding  principal
balance of all Mortgage Loans on the  Distribution  Date  immediately  preceding
such anniversary and (iii) the aggregate  outstanding  principal  balance (as of
the immediately preceding Distribution Date) of the Mortgage Loans in any single
five-digit California zip code area with the largest amount of Mortgage Loans by
aggregate  principal  balance as of such  anniversary and (B) the greater of (i)
the product of 0.50%  multiplied  by the  outstanding  principal  balance of all
Mortgage Loans on the Distribution  Date immediately  preceding such anniversary
multiplied  by a  fraction,  the  numerator  of which is equal to the  aggregate
outstanding  principal  balance (as of the  immediately  preceding  Distribution
Date) of all of the Mortgage  Loans secured by Mortgaged  Properties  located in
the State of California divided by the aggregate  outstanding  principal balance
(as of the  immediately  preceding  Distribution  Date)  of all of the  Mortgage
Loans,  expressed  as a  percentage,  and the  denominator  of which is equal to
34.95% (which  percentage is equal to the percentage of Mortgage Loans initially
secured by Mortgaged Properties located in the State of California) and (ii) the
aggregate  outstanding  principal  balance  (as  of  the  immediately  preceding
Distribution Date) of the largest

                                             -15-

<PAGE>

Mortgage Loan secured by a Mortgaged Property (or, with respect to a Cooperative
Loan, the related Cooperative Apartment) located in the State of California.

        The Special Hazard Amount may be further  reduced by the Master Servicer
(including  accelerating the manner in which coverage is reduced)  provided that
prior to any such  reduction,  the  Master  Servicer  shall (i)  obtain  written
confirmation  from each Rating Agency that such  reduction  shall not reduce the
rating  assigned to any Class of  Certificates  by such Rating  Agency below the
lower of the then-current  rating or the rating assigned to such Certificates as
of the  Closing  Date by such  Rating  Agency  and (ii)  provide  a copy of such
written confirmation to the Trustee.

        Subordinate   Principal   Distribution   Amount:  With  respect  to  any
Distribution Date and each Class of Subordinate Certificates, (a) the sum of (i)
the product of (x) the related  Subordinate  Class Percentage for such Class and
(y) the aggregate of the amounts  calculated  for such  Distribution  Date under
clauses (1), (2) and (3) of Section  4.02(a)(ii)(Y)(A) of this Series Supplement
(without  giving effect to the Senior  Percentage)  to the extent not payable to
the  Senior  Certificates;  (ii)  such  Class's  pro  rata  share,  based on the
Certificate  Principal  Balance of each Class of Subordinate  Certificates  then
outstanding,    of   the    principal    collections    described   in   Section
4.02(a)(ii)(Y)(B)(b)  of this Series  Supplement  (without  giving effect to the
Senior Accelerated  Distribution  Percentage) to the extent such collections are
not otherwise  distributed to the Senior Certificates;  (iii) the product of (x)
the related  Prepayment  Distribution  Percentage  and (y) the  aggregate of all
Principal  Prepayments  in Full  received in the related  Prepayment  Period and
Curtailments  received in the preceding  calendar  month (other than the related
Discount  Fraction of such Principal  Prepayments in Full and Curtailments  with
respect to a  Discount  Mortgage  Loan) to the extent not  payable to the Senior
Certificates;  (iv) if such Class is the Class of Subordinate  Certificates with
the  Highest  Priority,   any  Excess  Subordinate  Principal  Amount  for  such
Distribution  Date; and (v) any amounts described in clauses (i), (ii) and (iii)
as determined for any previous  Distribution Date, that remain  undistributed to
the extent that such amounts are not  attributable to Realized Losses which have
been allocated to a Class of Subordinate  Certificates minus (b) with respect to
the Class of  Subordinate  Certificates  with the  Lowest  Priority,  any Excess
Subordinate Principal Amount for such Distribution Date; provided, however, that
the  Subordinate  Principal  Distribution  Amount  for any Class of  Subordinate
Certificates on any  Distribution  Date shall in no event exceed the outstanding
Certificate Principal Balance of such Class of Certificates immediately prior to
such date.

        Super Senior Certificates: Any of the Class A-5 Certificates.

        Super Senior Optimal Percentage: As to any Distribution Date on or after
the Credit Support Depletion Date and the Super Senior Certificates, a fraction,
expressed as a percentage,  the numerator of which is the Certificate  Principal
Balance of the Super Senior Certificates  immediately prior to such Distribution
Date and the denominator of which is the aggregate Certificate Principal Balance
of the Senior  Certificates  (other  than the  related  Class A-P  Certificates)
immediately prior to such Distribution Date.

        Super  Senior  Optimal   Principal   Distribution   Amount:  As  to  any
Distribution  Date on or after the Credit  Support  Depletion Date and the Super
Senior Certificates, the product of (a) the then-applicable Super Senior Optimal
Percentage and (b) the Senior Principal Distribution Amount.

                                             -16-

<PAGE>

        Trust Fund:  REMIC I, REMIC II and the Initial Monthly Payment Fund.

        Uncertificated  Class A-V REMIC Accrued  Interest:  With respect to each
Distribution Date, as to each  Uncertificated  Class A-V REMIC Regular Interest,
an amount equal to the  aggregate  amount of Accrued  Certificate  Interest that
would  result  under  the  terms  of  the   definition   thereof  on  each  such
uncertificated  interest,  if  the  Pass-Through  Rate  on  such  uncertificated
interest was equal to the related  Uncertificated  Class A-V REMIC  Pass-Through
Rate and the notional  amount of such  uncertificated  interest was equal to the
related  Uncertificated  Class A-V REMIC  Notional  Amount;  provided,  that any
reduction  in the  amount of Accrued  Certificate  Interest  resulting  from the
allocation of Prepayment Interest  Shortfalls,  Realized Losses or other amounts
to the Class A-V  Certificateholders  pursuant to Section  4.05 hereof  shall be
allocated to the  Uncertificated  Class A-V REMIC Regular  Interests pro rata in
accordance  with the amount of interest  accrued  with  respect to each  related
Uncertificated Class A-V REMIC Notional Amount and such Distribution Date.

        Uncertificated  Class A-V REMIC  Notional  Amount:  With respect to each
Uncertificated  Class A-V REMIC  Regular  Interest,  the  amount of the  related
Uncertificated REMIC I IO Notional Amount.

        Uncertificated  Class A-V REMIC  Pass-Through Rate: With respect to each
Uncertificated Class A-V REMIC Regular Interest, 100% of the interest payable on
the related Uncertificated REMIC I IO Regular Interest.

        Uncertificated  Class A-V REMIC Regular Interest  Distribution  Amounts:
With  respect to any  Distribution  Date,  the sum of the  amounts  deemed to be
distributed  on the  Uncertificated  Class AV REMIC  Regular  Interests for such
Distribution Date pursuant to Section 4.08(a).

        Uncertificated Class A-V REMIC Regular Interests: The 161 uncertificated
partial  undivided  beneficial  ownership  interests in the Trust Fund  numbered
sequentially  from 1 through 161 each relating to the  particular  Mortgage Loan
identified by sequential  number on the Mortgage Loan  Schedule,  each having no
principal balance, and each bearing the respective Pool Strip Rate on the Stated
Principal Balance of the related Mortgage Loan.

        Uncertificated  Principal Balance:  With respect to each  Uncertificated
REMIC I Regular Interest on any date of determination, an amount equal to (A)(i)
$238,909,079.14  with respect to Uncertificated REMIC I Regular Interest W, (ii)
$50,000,000.00  with  respect  to  Uncertificated  REMIC I Regular  Interest  X,
(iii)$15,000,000.00  with respect to Uncertificated  REMIC I Regular Interest Y,
and (iv) $1,236,032.53  with respect to Uncertificated  REMIC I Regular Interest
Z,  minus (B) the sum of (x) the  aggregate  of all  amounts  previously  deemed
distributed   with   respect  to  such   interest  and  applied  to  reduce  the
Uncertificated Principal Balance thereof pursuant to Section 4.09(a)(ii) and (y)
the aggregate of all reductions in  Uncertificated  Principal  Balance deemed to
have occurred in connection  with Realized  Losses that were  previously  deemed
allocated to the Uncertificated Principal Balance of such Uncertificated REMIC I
Regular Interest pursuant to Section 4.09(d).

                                             -17-

<PAGE>

        Uncertificated   REMIC  I  Accrued   Interest:   With  respect  to  each
Distribution  Date,  (i) as to  Uncertificated  REMIC I Regular  Interest  W, an
amount equal to the aggregate amount of Accrued Certificate  Interest that would
result under the terms of the  definition  thereof on the Class A-1,  Class A-2,
Class A-4, Class A-5, Class A-6, Class A-9, Class A-10,  Class A-11, Class A-12,
Class A-13,  Class R-II,  Class M-1,  Class M-2, Class M-3, Class B-1, Class B-2
and Class B-3  Certificates  if the Pass-  Through  Rate on each such Class were
equal to the  Uncertificated  REMIC I Pass-Through  Rate and the  Uncertificated
Principal  Balances  were  the  Certificate  Principal  Balances,   (ii)  as  to
Uncertificated  REMIC I Regular  Interest  X, an amount  equal to the  aggregate
amount of Accrued Certificate  Interest that would result under the terms of the
definition  thereof on the Class A-3  Certificates if the  Pass-Through  Rate on
each such Class were equal to the  Uncertificated  REMIC I Pass-Through Rate and
the Uncertificated  Principal Balances were the Certificate  Principal Balances,
(iii) as to  Uncertificated  REMIC I Regular  Interest Y, an amount equal to the
aggregate  amount of Accrued  Certificate  Interest  that would result under the
terms  of  the  definition   thereof  on  the  Class  A-7  Certificates  if  the
Pass-Through  Rate on each such Class were equal to the  Uncertificated  REMIC I
Pass-Through Rate and the Uncertificated Principal Balances were the Certificate
Principal  Balances,  and  (iv) as to  each  Uncertificated  REMIC I IO  Regular
Interest,  an  amount  equal to the  aggregate  amount  of  Accrued  Certificate
Interest  that would  result under the terms of the  definition  thereof on each
such  uncertificated  interest,  if the Pass-Through Rate on such uncertificated
interest was equal to the related  Uncertificated  REMIC I Pass-Through Rate and
the  notional  amount of such  uncertificated  interest was equal to the related
Uncertificated REMIC I IO Notional Amount;  provided,  that any reduction in the
amount  of  Accrued  Certificate  Interest  resulting  from  the  allocation  of
Prepayment  Interest  Shortfalls,  Realized  Losses  or  other  amounts  to  the
Certificates  pursuant to Sections 4.02(a) and 4.05 hereof shall be allocated to
the Uncertificated REMIC I Regular Interests for which such Certificates are the
Corresponding Certificated Interests.

        Uncertificated  REMIC  I  IO  Notional  Amount:  With  respect  to  each
Uncertificated  REMIC I IO Regular  Interest,  an amount equal to the  aggregate
Stated Principal Balance of the related Non-Discount Mortgage Loan.

        Uncertificated  REMIC I IO  Regular  Interests:  The 549  uncertificated
partial undivided  beneficial ownership interests in REMIC I, each relating to a
Mortgage  Loan with a Net  Mortgage  Rate in excess  of  6.00%,  each  having no
principal balance, and each bearing interest at the related Uncertificated REMIC
I Pass-Through Rate on the related Uncertificated REMIC I IO Notional Amount.

        Uncertificated  REMIC I Pass-Through  Rate:  With respect to each of the
Uncertificated  REMIC I Regular Interests W, X, Y and Z, 6.00%, 5.25%, 8.50% and
0.00%, respectively. With respect to Uncertificated REMIC I IO Regular Interest,
an amount equal to the Pool Strip Rate for the related Mortgage Loan.

        Uncertificated  REMIC I Regular  Interest W: An  uncertificated  partial
undivided  beneficial  ownership  interest in REMIC I having a principal balance
equal to the aggregate  Certificate  Principal  Balance of the Class A-1,  Class
A-2, Class A-4, Class A-5, Class A-6, Class A-9, Class A-10,  Class A-11,  Class
A-12,  Class A-13, Class R-II, Class M-1, Class M-2, Class M-3, Class B-1, Class
B-2 and Class B-3  Certificates,  and which  bears  interest  at a rate equal to
6.00% per annum.

                                             -18-

<PAGE>

        Uncertificated  REMIC I Regular  Interest X: An  uncertificated  partial
undivided  beneficial  ownership  interest in REMIC I having a principal balance
equal  to  the  aggregate   Certificate  Principal  Balance  of  the  Class  A-3
Certificates and which bears interest at a rate equal to 5.25% per annum.

        Uncertificated  REMIC I Regular  Interest Y: An  uncertificated  partial
undivided  beneficial  ownership  interest in REMIC I having a principal balance
equal  to  the  aggregate   Certificate  Principal  Balance  of  the  Class  A-7
Certificates, and which bears interest at a rate equal to 8.50% per annum.

        Uncertificated  REMIC I Regular  Interest Z: An  uncertificated  partial
undivided  beneficial  ownership  interest in REMIC I having a principal balance
equal  to  the  aggregate   Certificate  Principal  Balance  of  the  Class  A-P
Certificates, and which bears interest at a rate equal to 0.00% per annum.

        Uncertificated REMIC I Regular Interests: Uncertificated REMIC I Regular
Interest W, Uncertificated  REMIC I Regular Interest X,  Uncertificated  REMIC I
Regular  Interest  Y,  Uncertificated   REMIC  I  Regular  Interest  Z  and  the
Uncertificated REMIC I IO Regular Interests.

        Uncertificated  REMIC I IO Regular Interest  Distribution  Amount:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated  REMIC  I IO  Regular  Interests  for  such
Distribution Date pursuant to Section 4.09(a).

        Uncertificated  REMIC I Regular  Interest W  Distribution  Amount:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated   REMIC  I  Regular  Interest  W  for  such
Distribution Date pursuant to Section 4.09(a).

        Uncertificated  REMIC I Regular  Interest X  Distribution  Amount:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated   REMIC  I  Regular  Interest  X  for  such
Distribution Date pursuant to Section 4.09(a).

        Uncertificated  REMIC I Regular  Interest Y  Distribution  Amount:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated   REMIC  I  Regular  Interest  Y  for  such
Distribution Date pursuant to Section 4.09(a).

        Uncertificated  REMIC I Regular  Interest Z  Distribution  Amount:  With
respect  to  any  Distribution  Date,  the  sum  of  the  amounts  deemed  to be
distributed  on  the  Uncertificated   REMIC  I  Regular  Interest  Z  for  such
Distribution Date pursuant to Section 4.09(a).

        Uncertificated  REMIC  I  Regular  Interest  Distribution  Amounts:  The
Uncertificated   REMIC  I  Regular   Interest   W   Distribution   Amount,   the
Uncertificated   REMIC  I  Regular   Interest   X   Distribution   Amount,   the
Uncertificated   REMIC  I  Regular   Interest   Y   Distribution   Amount,   the
Uncertificated   REMIC  I  Regular  Interest  Z  Distribution   Amount  and  the
Uncertificated REMIC I IO Regular Interest Distribution Amount.

     Underwriter:   UBS  Warburg   LLC  and   Residential   Funding   Securities
Corporation.

                                             -19-

<PAGE>

        Section 1.02  Use of Words and Phrases.

        "Herein," "hereby," "hereunder," "hereof," "hereinbefore," "hereinafter"
and other  equivalent  words refer to the Pooling and  Servicing  Agreement as a
whole. All references herein to Articles, Sections or Subsections shall mean the
corresponding  Articles,  Sections and  Subsections in the Pooling and Servicing
Agreement.  The  definitions  set forth herein include both the singular and the
plural.

        Section 1.03 Determination of LIBOR.

        LIBOR  applicable to the  calculation of the  Pass-Through  Rates on the
Floater Certificates and Inverse Floater Certificates,  if any, for any Interest
Accrual  Period  (other  than  the  initial  Interest  Accrual  Period)  will be
determined on each LIBOR Rate Adjustment Date.

        On each LIBOR Rate Adjustment Date (other than for the initial  Interest
Accrual  Period),  LIBOR  shall be  established  by the  Trustee  and, as to any
Interest Accrual Period,  will equal the rate for one month United States dollar
deposits that appears on the Telerate Screen Page 3750 as of 11:00 a.m.,  London
time, on such LIBOR Rate Adjustment Date.  "Telerate Screen Page 3750" means the
display  designated as page 3750 on the Telerate  Service (or such other page as
may  replace  page 3750 on that  service for the  purpose of  displaying  London
interbank  offered rates of major  banks).  If such rate does not appear on such
page (or such other page as may replace  that page on that  service,  or if such
service is no longer offered, LIBOR shall be so established by use of such other
service  for  displaying  LIBOR or  comparable  rates as may be  selected by the
Trustee  after  consultation  with the  Master  Servicer),  the rate will be the
Reference Bank Rate.  The "Reference  Bank Rate" will be determined on the basis
of the rates at which  deposits in U.S.  Dollars  are  offered by the  reference
banks (which shall be any three major banks that are engaged in  transactions in
the London interbank market, selected by the Trustee after consultation with the
Master  Servicer) as of 11:00 a.m.,  London time,  on the LIBOR Rate  Adjustment
Date to prime banks in the London  interbank market for a period of one month in
amounts  approximately equal to the aggregate  Certificate  Principal Balance of
the Floater Certificates and Inverse Floater Certificates then outstanding.  The
Trustee will request the principal  London office of each of the reference banks
to  provide  a  quotation  of its  rate.  If at least  two such  quotations  are
provided,  the rate will be the arithmetic mean of the quotations  rounded up to
the next  multiple  of 1/16%.  If on such date  fewer  than two  quotations  are
provided as requested,  the rate will be the arithmetic mean of the rates quoted
by one or more  major  banks in New York City,  selected  by the  Trustee  after
consultation with the Master Servicer,  as of 11:00 a.m., New York City time, on
such date for loans in U.S.  Dollars to leading  European  banks for a period of
one month in amounts approximately equal to, with respect to each of the Floater
Certificates  and  Inverse  Floater  Certificates,   the  Certificate  Principal
Balances  of  the  Floater   Certificates  and  Inverse  Floater   Certificates,
respectively,  then outstanding. If no such quotations can be obtained, the rate
will be LIBOR for the prior Distribution Date, or in the case of the first LIBOR
Rate Adjustment  Date,  1.88% with respect to the Adjustable Rate  Certificates;
provided however,  if, under the priorities listed previously in this paragraph,
LIBOR  for a  Distribution  Date  would  be  based  on  LIBOR  for the  previous
Distribution Date for the third consecutive Distribution Date, the Trustee shall
select an  alternative  comparable  index over which the Trustee has no control,
used for determining  one-month  Eurodollar lending rates that is calculated and
published or otherwise made available by an independent party.

                                             -20-

<PAGE>

        The  establishment  of LIBOR by the Trustee on any LIBOR Rate Adjustment
Date  and  the  Trustee's  subsequent  calculation  of  the  Pass-Through  Rates
applicable to each of the Floater  Certificates and Inverse Floater Certificates
for the relevant Interest Accrual Period, in the absence of manifest error, will
be final and binding.

        Promptly  following  each LIBOR Rate  Adjustment  Date the Trustee shall
supply the Master  Servicer  with the results of its  determination  of LIBOR on
such date.  Furthermore,  the Trustee  will supply to any  Certificateholder  so
requesting  by  telephone  the  Pass-Through   Rates  on  each  of  the  Floater
Certificates   and  Inverse  Floater   Certificates  for  the  current  and  the
immediately preceding Interest Accrual Period.

                                             -21-

<PAGE>

                                          ARTICLE II

                                CONVEYANCE OF MORTGAGE LOANS;
                              ORIGINAL ISSUANCE OF CERTIFICATES

          Section 2.01  Conveyance of Mortgage  Loans.  (See Section 2.01 of the
               Standard Terms)

          Section 2.02 Acceptance by Trustee.  (See Section 2.02 of the Standard
               Terms)

          Section 2.03  Representations,  Warranties and Covenants of the Master
               Servicer and the Company.

               (a) For  representations,  warranties and covenants of the Master
        Servicer, see Section 2.03(a) of the Standard Terms.

               (b) The Company hereby represents and warrants to the Trustee for
        the benefit of  Certificateholders  that as of the Closing  Date (or, if
        otherwise specified below, as of the date so specified):

                      (i) No  Mortgage  Loan is 30 or more  days  Delinquent  in
               payment of  principal  and interest as of the Cut-off Date and no
               Mortgage  Loan  has  been so  Delinquent  more  than  once in the
               12-month period prior to the Cut-off Date;

                      (ii) The  information set forth in Exhibit One hereto with
               respect to each Mortgage Loan or the Mortgage  Loans, as the case
               may be, is true and correct in all material  respects at the date
               or dates respecting which such information is furnished;

                      (iii) The Mortgage Loans are fully-amortizing,  fixed-rate
               mortgage  loans with level Monthly  Payments due on the first day
               of  each  month  and  terms  to   maturity  at   origination   or
               modification of not more than 30 years;

                      (iv) To the best of the Company's knowledge, if a Mortgage
               Loan is  secured by a  Mortgaged  Property  with a  Loan-to-Value
               Ratio at  origination in excess of 80%, such Mortgage Loan is the
               subject of a Primary  Insurance  Policy that  insures that (a) at
               least 25% of the Stated Principal Balance of the Mortgage Loan at
               origination  if the Loan-  to-Value  Ratio is between  95.00% and
               90.01%,  (b) at least 12% of such  balance  if the  Loan-to-Value
               Ratio is between  90.00% and 85.01%,  and (c) at least 6% of such
               balance if the Loan-to-Value  Ratio is between 85.00% and 80.01%.
               To the  best  of  the  Company's  knowledge,  each  such  Primary
               Insurance  Policy is in full force and effect and the  Trustee is
               entitled to the  benefits  thereunder.  One  Pledged  Asset Loan,
               representing   approximately   0.2%  of  the  Mortgage  Loans  by
               aggregate Stated  Principal  Balance as of the Cut-off Date, will
               be secured by Pledged Assets in addition to the related Mortgaged
               Property and in lieu of any Primary Insurance Policy;

                                             -22-

<PAGE>

                      (v) The  issuers of the  Primary  Insurance  Policies  are
               insurance companies whose  claims-paying  abilities are currently
               acceptable to each Rating Agency;

                      (vi) No more than 1.2% of the Mortgage  Loans by aggregate
               Stated  Principal  Balance as of the Cut-off  Date are secured by
               Mortgaged  Properties  located  in  any  one  zip  code  area  in
               California  and no  more  than  0.7%  of the  Mortgage  Loans  by
               aggregate  Stated  Principal  Balance as of the Cut-off  Date are
               secured by Mortgaged  Properties located in any one zip code area
               outside California;

                      (vii) The improvements  upon the Mortgaged  Properties are
               insured against loss by fire and other hazards as required by the
               Program Guide,  including  flood  insurance if required under the
               National  Flood  Insurance Act of 1968, as amended.  The Mortgage
               requires the Mortgagor to maintain such casualty insurance at the
               Mortgagor's  expense,  and on the  Mortgagor's  failure to do so,
               authorizes the holder of the Mortgage to obtain and maintain such
               insurance at the  Mortgagor's  expense and to seek  reimbursement
               therefor from the Mortgagor;

                      (viii) Immediately prior to the assignment of the Mortgage
               Loans to the Trustee,  the Company had good title to, and was the
               sole owner of, each  Mortgage  Loan free and clear of any pledge,
               lien,  encumbrance  or  security  interest  (other than rights to
               servicing and related  compensation) and such assignment  validly
               transfers ownership of the Mortgage Loans to the Trustee free and
               clear of any pledge, lien, encumbrance or security interest;

                    (ix) 13.46% of the Mortgage Loans were underwritten  under a
               reduced loan documentation program;

                      (x) Each  Mortgagor  represented  in its loan  application
               with  respect to the  related  Mortgage  Loan that the  Mortgaged
               Property would be  owner-occupied  and therefore  would not be an
               investor  property as of the date of origination of such Mortgage
               Loan. No Mortgagor is a corporation or a partnership;

                    (xi) None of the Mortgage Loans is a Buydown Mortgage Loan;

                      (xii) Each Mortgage Loan constitutes a qualified  mortgage
               under Section  860G(a)(3)(A) of the Code and Treasury Regulations
               Section 1.860G-2(a)(1);

                      (xiii) A policy of title insurance was effective as of the
               closing  of each  Mortgage  Loan and is  valid  and  binding  and
               remains in full force and effect, unless the Mortgaged Properties
               are  located in the State of Iowa and an  attorney's  certificate
               has been provided as described in the Program Guide;

                                             -23-

<PAGE>

                      (xiv)  None of the Mortgage Loans are Cooperative Loans;

                      (xv) With respect to each Mortgage Loan originated under a
               "streamlined"  Mortgage  Loan  program  (through  which no new or
               updated  appraisals  of  Mortgaged  Properties  are  obtained  in
               connection with the refinancing thereof),  the related Seller has
               represented  that either (a) the value of the  related  Mortgaged
               Property as of the date the Mortgage Loan was  originated was not
               less than the  appraised  value of such  property  at the time of
               origination   of  the   refinanced   Mortgage  Loan  or  (b)  the
               Loan-to-Value  Ratio  of the  Mortgage  Loan  as of the  date  of
               origination  of the Mortgage Loan  generally  meets the Company's
               underwriting guidelines;

                    (xvi)  Interest on each  Mortgage  Loan is calculated on the
               basis of a 360-day year consisting of twelve 30-day months;

                    (xvii) None of the  Mortgage  Loans  contains in the related
               Mortgage File a Destroyed Mortgage Note; and

                      (xviii)One of the Mortgage Loans is a Pledged Asset Loan.

It is understood and agreed that the representations and warranties set forth in
this Section 2.03(b) shall survive delivery of the respective  Mortgage Files to
the Trustee or any Custodian.

        Upon discovery by any of the Company,  the Master Servicer,  the Trustee
or any Custodian of a breach of any of the  representations  and  warranties set
forth  in this  Section  2.03(b)  that  materially  and  adversely  affects  the
interests of the  Certificateholders in any Mortgage Loan, the party discovering
such breach shall give prompt written notice to the other parties (any Custodian
being so obligated under a Custodial Agreement);  provided, however, that in the
event of a breach  of the  representation  and  warranty  set  forth in  Section
2.03(b)(xii),  the party  discovering  such breach shall give such notice within
five days of discovery. Within 90 days of its discovery or its receipt of notice
of  breach,  the  Company  shall  either  (i) cure such  breach in all  material
respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase
Price and in the manner set forth in Section  2.02;  provided  that the  Company
shall have the option to  substitute  a Qualified  Substitute  Mortgage  Loan or
Loans  for such  Mortgage  Loan if such  substitution  occurs  within  two years
following the Closing Date;  provided that if the omission or defect would cause
the Mortgage Loan to be other than a "qualified  mortgage" as defined in Section
860G(a)(3) of the Code,  any such cure or  repurchase  must occur within 90 days
from the date  such  breach  was  discovered.  Any  such  substitution  shall be
effected  by the  Company  under the same terms and  conditions  as  provided in
Section 2.04 for  substitutions  by  Residential  Funding.  It is understood and
agreed that the  obligation of the Company to cure such breach or to so purchase
or  substitute  for any Mortgage Loan as to which such a breach has occurred and
is continuing shall constitute the sole remedy  respecting such breach available
to the  Certificateholders  or the Trustee on behalf of the  Certificateholders.
Notwithstanding  the  foregoing,  the  Company  shall  not be  required  to cure
breaches  or  purchase  or  substitute  for  Mortgage  Loans as provided in this
Section  2.03(b) if the  substance of the breach of a  representation  set forth
above also constitutes fraud in the origination of the Mortgage Loan.

                                             -24-

<PAGE>

          Section 2.04  Representations and Warranties of Sellers.  (See Section
               2.04 of the Standard Terms)

        Section 2.05  Execution and Authentication of Certificates.

        The Trustee  acknowledges the assignment to it of the Mortgage Loans and
the  delivery  of the  Mortgage  Files to it, or any  Custodian  on its  behalf,
subject to any exceptions noted, together with the assignment to it of all other
assets  included  in the Trust  Fund,  receipt of which is hereby  acknowledged.
Concurrently with such delivery and in exchange therefor, the Trustee,  pursuant
to the written request of the Company  executed by an officer of the Company has
executed and caused to be  authenticated  and  delivered to or upon the order of
the  Company  the  Certificates  in  authorized   denominations  which  evidence
ownership of the entire Trust Fund.

                                             -25-

<PAGE>

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS
                     (SEE ARTICLE III OF THE STANDARD TERMS)

                                      -26-

<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

          Section 4.01  Certificate  Account.  (See Section 4.01 of the Standard
               Terms)

        Section 4.02  Distributions.

               (a) On each  Distribution  Date (x) the Master Servicer on behalf
        of the Trustee or (y) the Paying Agent  appointed by the Trustee,  shall
        distribute  to the  Master  Servicer,  in  the  case  of a  distribution
        pursuant  to  Section  4.02(a)(iii)  below,  the amount  required  to be
        distributed to the Master Servicer or a Sub-Servicer pursuant to Section
        4.02(a)(iii) below, and to each  Certificateholder of record on the next
        preceding Record Date (other than as provided in Section 9.01 respecting
        the final distribution),  either (1) in immediately  available funds (by
        wire transfer or otherwise) to the account of such  Certificateholder at
        a bank or other entity having appropriate  facilities therefor,  if such
        Certificateholder  has so  notified  the Master  Servicer  or the Paying
        Agent, as the case may be, or (2) if such  Certificateholder  has not so
        notified the Master  Servicer or the Paying Agent by the Record Date, by
        check  mailed to such  Certificateholder  at the  address of such Holder
        appearing in the Certificate Register,  such  Certificateholder's  share
        (which share (A) with respect to each Class of Certificates  (other than
        any  Subclass  of the  Class  A-V  Certificates),  shall be based on the
        aggregate of the Percentage Interests represented by Certificates of the
        applicable Class held by such Holder or (B) with respect to any Subclass
        of the Class A-V  Certificates,  shall be equal to the  amount  (if any)
        distributed  pursuant  to Section  4.02(a)(i)  below to each Holder of a
        Subclass  thereof) of the following  amounts,  in the following order of
        priority  (subject to the provisions of Section 4.02(b) below),  in each
        case to the extent of the Available Distribution Amount:

                      (i) to the Senior  Certificates  (other than the Principal
               Only Certificates, and prior to the related Accretion Termination
               Date,  the  Accrual  Certificates,  to the extent of the  Accrual
               Distribution  Amount)  on a  pro  rata  basis  based  on  Accrued
               Certificate Interest payable on such Certificates with respect to
               such  Distribution  Date,  Accrued  Certificate  Interest on such
               Classes of Certificates  (or Subclasses,  if any, with respect to
               the Class A- V Certificates) for such Distribution Date, plus any
               Accrued  Certificate  Interest thereon  remaining unpaid from any
               previous  Distribution  Date  except  as  provided  in  the  last
               paragraph   of  this  Section   4.02(a)  (the  "Senior   Interest
               Distribution Amount"); and

                      (ii) (X) to the  Class  A-P  Certificates,  the  Class A-P
               Principal  Distribution  Amount (as defined in Section 4.02(b)(i)
               herein); and

                             (Y) to the  Senior  Certificates  (other  than  the
               Class A-P Certificates),  in the priorities and amounts set forth
               in Section  4.02(b)(ii)  through Section 4.02(f),  the sum of the
               following  (applied to reduce the Certificate  Principal Balances
               of such Senior Certificates, as applicable):

                                             -27-

<PAGE>

                             (A) the  Senior  Percentage  for such  Distribution
                      Date times the sum of the following:

                                    (1) the  principal  portion of each  Monthly
                             Payment  due during the  related Due Period on each
                             Outstanding  Mortgage  Loan (other than the related
                             Discount  Fraction of the principal portion of such
                             payment with respect to a Discount  Mortgage Loan),
                             whether or not  received on or prior to the related
                             Determination  Date, minus the principal portion of
                             any Debt Service  Reduction (other than the related
                             Discount  Fraction of the principal portion of such
                             Debt  Service   Reductions  with  respect  to  each
                             Discount  Mortgage  Loan) which together with other
                             Bankruptcy Losses exceeds the Bankruptcy Amount;

                                    (2)  the  Stated  Principal  Balance  of any
                             Mortgage  Loan  repurchased  during  the  preceding
                             calendar   month   (or   deemed  to  have  been  so
                             repurchased in accordance  with Section  3.07(b) of
                             the Standard Terms) pursuant to Sections 2.02, 2.04
                             or 4.07 of the  Standard  Terms and Section 2.03 of
                             the Standard Terms and this Series Supplement,  and
                             the  amount  of  any  shortfall  deposited  in  the
                             Custodial    Account   in   connection   with   the
                             substitution of a Deleted Mortgage Loan pursuant to
                             Section 2.04 of the Standard  Terms or Section 2.03
                             of the Standard  Terms and this Series  Supplement,
                             during the preceding calendar month (other than the
                             related Discount  Fraction of such Stated Principal
                             Balance or shortfall  with respect to each Discount
                             Mortgage Loan); and

                                    (3)  the  principal  portion  of  all  other
                             unscheduled   collections   (other  than  Principal
                             Prepayments  in Full and  Curtailments  and amounts
                             received in connection  with a Cash  Liquidation or
                             REO  Disposition  of a Mortgage  Loan  described in
                             Section    4.02(a)(ii)(Y)(B)    of   this    Series
                             Supplement,  including without limitation Insurance
                             Proceeds,  Liquidation  Proceeds and REO  Proceeds)
                             received  during the preceding  calendar  month (or
                             deemed to have been so received in accordance  with
                             Section  3.07(b)  of  the  Standard  Terms)  to the
                             extent applied by the Master Servicer as recoveries
                             of principal of the related  Mortgage Loan pursuant
                             to Section 3.14 of the  Standard  Terms (other than
                             the  related  Discount  Fraction  of the  principal
                             portion  of  such  unscheduled  collections,   with
                             respect to each Discount Mortgage Loan);

                             (B) with respect to each  Mortgage Loan for which a
                      Cash Liquidation or a REO Disposition  occurred during the
                      preceding  calendar  month (or was deemed to have occurred
                      during such period in accordance  with Section  3.07(b) of
                      the  Standard  Terms)  and did not  result  in any  Excess
                      Special  Hazard  Losses,   Excess  Fraud  Losses,   Excess
                      Bankruptcy Losses or Extraordinary Losses, an

                                             -28-

<PAGE>

                      amount  equal to the lesser of (a) the  Senior  Percentage
                      for such  Distribution  Date  times the  Stated  Principal
                      Balance of such  Mortgage  Loan  (other  than the  related
                      Discount Fraction of such Stated Principal  Balance,  with
                      respect to each Discount Mortgage Loan) and (b) the Senior
                      Accelerated  Distribution Percentage for such Distribution
                      Date times the related unscheduled  collections (including
                      without   limitation   Insurance   Proceeds,   Liquidation
                      Proceeds and REO  Proceeds)  to the extent  applied by the
                      Master  Servicer as recoveries of principal of the related
                      Mortgage  Loan  pursuant to Section  3.14 of the  Standard
                      Terms  (in  each  case  other  than  the  portion  of such
                      unscheduled  collections,   with  respect  to  a  Discount
                      Mortgage Loan,  included in Section  4.02(b)(i)(C) of this
                      Series Supplement);

                             (C) the Senior Accelerated  Distribution Percentage
                      for such  Distribution  Date  times the  aggregate  of all
                      Principal  Prepayments  in Full  received  in the  related
                      Prepayment   Period  and  Curtailments   received  in  the
                      preceding  calendar month (other than the related Discount
                      Fraction  of  such  Principal   Prepayments  in  Full  and
                      Curtailments,  with  respect  to  each  Discount  Mortgage
                      Loan);

                         (D) any Excess  Subordinate  Principal  Amount for such
                    Distribution Date; and

                             (E) any amounts  described in  subsection  (ii)(Y),
                      clauses  (A),  (B)  and (C) of this  Section  4.02(a),  as
                      determined  for  any  previous  Distribution  Date,  which
                      remain  unpaid  after  application  of amounts  previously
                      distributed pursuant to this clause (E) to the extent that
                      such amounts are not attributable to Realized Losses which
                      have been allocated to the Subordinate Certificates;

                      (iii)  if  the  Certificate   Principal  Balances  of  the
               Subordinate  Certificates  have not been reduced to zero,  to the
               Master  Servicer or a  Sub-Servicer,  by remitting for deposit to
               the Custodial Account,  to the extent of and in reimbursement for
               any  Advances  or  Sub-Servicer  Advances  previously  made  with
               respect  to any  Mortgage  Loan  or  REO  Property  which  remain
               unreimbursed  in whole or in part following the Cash  Liquidation
               or REO  Disposition of such Mortgage Loan or REO Property,  minus
               any such  Advances  that were made with respect to  delinquencies
               that ultimately  constituted Excess Special Hazard Losses, Excess
               Fraud Losses, Excess Bankruptcy Losses or Extraordinary Losses;

                      (iv) to the  Holders  of the Class M-1  Certificates,  the
               Accrued Certificate  Interest thereon for such Distribution Date,
               plus any Accrued  Certificate  Interest thereon  remaining unpaid
               from any previous Distribution Date, except as provided below;

                      (v) to the  Holders  of the  Class  M-1  Certificates,  an
               amount equal to (x) the Subordinate Principal Distribution Amount
               for such Class of Certificates for such Distribution  Date, minus
               (y) the amount of any Class A-P Collection Shortfalls for such

                                             -29-

<PAGE>

               Distribution   Date  or   remaining   unpaid  for  all   previous
               Distribution  Dates, to the extent the amounts available pursuant
               to clause (x) of Sections 4.02(a)(vii), (ix), (xi), (xiii), (xiv)
               and (xv) of this Series  Supplement  are  insufficient  therefor,
               applied in reduction of the Certificate  Principal Balance of the
               Class M-1 Certificates;

                      (vi) to the  Holders  of the Class M-2  Certificates,  the
               Accrued Certificate  Interest thereon for such Distribution Date,
               plus any Accrued  Certificate  Interest thereon  remaining unpaid
               from any previous Distribution Date, except as provided below;

                      (vii) to the  Holders  of the Class M-2  Certificates,  an
               amount equal to (x) the Subordinate Principal Distribution Amount
               for such Class of Certificates for such Distribution  Date, minus
               (y) the amount of any Class A-P  Collection  Shortfalls  for such
               Distribution   Date  or   remaining   unpaid  for  all   previous
               Distribution  Dates, to the extent the amounts available pursuant
               to clause (x) of Sections  4.02(a)(ix),  (xi), (xiii),  (xiv) and
               (xv) of this Series Supplement are insufficient therefor, applied
               in reduction of the  Certificate  Principal  Balance of the Class
               M-2 Certificates;

                      (viii) to the Holders of the Class M-3  Certificates,  the
               Accrued Certificate  Interest thereon for such Distribution Date,
               plus any Accrued  Certificate  Interest thereon  remaining unpaid
               from any previous Distribution Date, except as provided below;

                      (ix) to the  Holders  of the  Class M-3  Certificates,  an
               amount equal to (x) the Subordinate Principal Distribution Amount
               for such Class of Certificates for such  Distribution  Date minus
               (y) the amount of any Class A-P  Collection  Shortfalls  for such
               Distribution   Date  or   remaining   unpaid  for  all   previous
               Distribution  Dates, to the extent the amounts available pursuant
               to clause (x) of Sections 4.02(a)(xi),  (xiii), (xiv) and (xv) of
               this Series  Supplement  are  insufficient  therefor,  applied in
               reduction of the Certificate  Principal  Balance of the Class M-3
               Certificates;

                      (x) to the  Holders  of the  Class B-1  Certificates,  the
               Accrued Certificate  Interest thereon for such Distribution Date,
               plus any Accrued  Certificate  Interest thereon  remaining unpaid
               from any previous Distribution Date, except as provided below;

                      (xi) to the  Holders  of the  Class B-1  Certificates,  an
               amount equal to (x) the Subordinate Principal Distribution Amount
               for such Class of Certificates for such  Distribution  Date minus
               (y) the amount of any Class A-P  Collection  Shortfalls  for such
               Distribution   Date  or   remaining   unpaid  for  all   previous
               Distribution  Dates, to the extent the amounts available pursuant
               to clause (x) of Sections  4.02(a)(xiii),  (xiv) and (xv) of this
               Series Supplement are insufficient therefor, applied in reduction
               of  the   Certificate   Principal   Balance   of  the  Class  B-1
               Certificates;

                                             -30-

<PAGE>

                      (xii) to the  Holders of the Class B-2  Certificates,  the
               Accrued Certificate  Interest thereon for such Distribution Date,
               plus any Accrued  Certificate  Interest thereon  remaining unpaid
               from any previous Distribution Date, except as provided below;

                      (xiii) to the  Holders of the Class B-2  Certificates,  an
               amount equal to (x) the Subordinate Principal Distribution Amount
               for such Class of Certificates for such  Distribution  Date minus
               (y) the amount of any Class A-P  Collection  Shortfalls  for such
               Distribution   Date  or   remaining   unpaid  for  all   previous
               Distribution  Dates, to the extent the amounts available pursuant
               to clause (x) of  Sections  4.02(a)(xiv)  and (xv) of this Series
               Supplement are insufficient therefor, applied in reduction of the
               Certificate Principal Balance of the Class B-2 Certificates;

                      (xiv) to the  Holders  of the Class B-3  Certificates,  an
               amount equal to (x) the Accrued Certificate  Interest thereon for
               such  Distribution  Date, plus any Accrued  Certificate  Interest
               thereon  remaining  unpaid from any previous  Distribution  Date,
               except as provided  below,  minus (y) the amount of any Class A-P
               Collection  Shortfalls  for such  Distribution  Date or remaining
               unpaid for all  previous  Distribution  Dates,  to the extent the
               amounts available  pursuant to clause (x) of Section 4.02(a) (xv)
               of this Series Supplement are insufficient therefor;

                      (xv) to the  Holders  of the  Class B-3  Certificates,  an
               amount equal to (x) the Subordinate Principal Distribution Amount
               for such Class of Certificates for such  Distribution  Date minus
               (y) the amount of any Class A-P  Collection  Shortfalls  for such
               Distribution   Date  or   remaining   unpaid  for  all   previous
               Distribution  Dates  applied  in  reduction  of  the  Certificate
               Principal Balance of the Class B-3 Certificates;

                      (xvi) to the  Senior  Certificates,  in the  priority  set
               forth in Section 4.02(b) of this Series Supplement,  the portion,
               if any, of the Available  Distribution Amount remaining after the
               foregoing  distributions,   applied  to  reduce  the  Certificate
               Principal Balances of such Senior  Certificates,  but in no event
               more than the aggregate of the outstanding  Certificate Principal
               Balances  of  each  such  Class  of  Senior   Certificates,   and
               thereafter,  to  each  Class  of  Subordinate  Certificates  then
               outstanding  beginning with such Class with the Highest Priority,
               any portion of the Available  Distribution Amount remaining after
               the Senior Certificates have been retired,  applied to reduce the
               Certificate  Principal  Balance of each such Class of Subordinate
               Certificates,   but  in  no  event  more  than  the   outstanding
               Certificate  Principal  Balance of each such Class of Subordinate
               Certificates; and

               (xvii) to the Class R-II  Certificates,  the balance,  if any, of
          the Available Distribution Amount.

        Notwithstanding the foregoing, on any Distribution Date, with respect to
the Class of Subordinate Certificates outstanding on such Distribution Date with
the Lowest Priority, or in the event the Subordinate  Certificates are no longer
outstanding, the Senior Certificates, Accrued Certificate Interest thereon

                                             -31-

<PAGE>

remaining unpaid from any previous  Distribution Date will be distributable only
to the extent that such unpaid Accrued Certificate  Interest was attributable to
interest  shortfalls  relating to the failure of the Master Servicer to make any
required Advance,  or the determination by the Master Servicer that any proposed
Advance would be a  Nonrecoverable  Advance with respect to the related Mortgage
Loan where such Mortgage Loan has not yet been the subject of a Cash Liquidation
or REO Disposition or the related Liquidation Proceeds and REO Proceeds have not
yet been distributed to the Certificateholders.

               (b) Distributions of principal on the Senior Certificates on each
        Distribution  Date occurring prior to the Credit Support  Depletion Date
        will be made as follows:

                      (i) to the Class A-P  Certificates,  until the Certificate
               Principal  Balance  thereof is reduced  to zero,  an amount  (the
               "Class A-P Principal Distribution Amount") equal to the aggregate
               of:

                             (A) the related Discount  Fraction of the principal
                      portion of each Monthly Payment on each Discount  Mortgage
                      Loan due during the  related  Due  Period,  whether or not
                      received  on or prior to the related  Determination  Date,
                      minus the Discount  Fraction of the  principal  portion of
                      any related Debt Service  Reduction  which  together  with
                      other Bankruptcy Losses exceeds the Bankruptcy Amount;

                             (B) the related Discount  Fraction of the principal
                      portion of all  unscheduled  collections  on each Discount
                      Mortgage Loan received during the preceding calendar month
                      or, in the case of Principal  Prepayments in Full,  during
                      the related Prepayment Period (other than amounts received
                      in connection  with a Cash  Liquidation or REO Disposition
                      of a  Discount  Mortgage  Loan  described  in  clause  (C)
                      below),   including   Principal   Prepayments   in   Full,
                      Curtailments and repurchases (including deemed repurchases
                      under Section  3.07(b) of the Standard  Terms) of Discount
                      Mortgage  Loans (or,  in the case of a  substitution  of a
                      Deleted Mortgage Loan, the Discount Fraction of the amount
                      of any  shortfall  deposited in the  Custodial  Account in
                      connection with such substitution);

                             (C) in connection with the Cash  Liquidation or REO
                      Disposition  of a  Discount  Mortgage  Loan  that  did not
                      result in any Excess Special  Hazard Losses,  Excess Fraud
                      Losses,  Excess Bankruptcy Losses or Extraordinary Losses,
                      an  amount  equal  to the  lesser  of (1)  the  applicable
                      Discount  Fraction of the Stated Principal Balance of such
                      Discount   Mortgage   Loan   immediately   prior  to  such
                      Distribution  Date  and (2) the  aggregate  amount  of the
                      collections  on such Discount  Mortgage Loan to the extent
                      applied as recoveries of principal;

                             (D) any  amounts  allocable  to  principal  for any
                      previous Distribution Date (calculated pursuant to clauses
                      (A) through (C) above) that remain undistributed; and

                                             -32-

<PAGE>

                             (E)  the   amount  of  any  Class  A-P   Collection
                      Shortfalls  for such  Distribution  Date and the amount of
                      any Class A-P Collection  Shortfalls  remaining unpaid for
                      all previous Distribution Dates, but only to the extent of
                      the Eligible Funds for such Distribution Date;

                      (ii) an amount  equal to the Accrual  Distribution  Amount
               shall be distributed concurrently as follows:

                             (A)  24.7387077080%  to the Class A-2 Certificates,
                      until the Certificate  Principal  Balance thereof has been
                      reduced to zero; and

                             (B)  75.2612922920%  in  the  following  order  and
priority:

                                    (1) first, concurrently on a pro rata basis,
                             to  the  Class  A-3   Certificates  and  Class  A-7
                             Certificates,   until  the  Certificate   Principal
                             Balances thereof have been reduced to zero; and

                         (2) second,  to the Class A-4  Certificates,  until the
                    Certificate  Principal  Balance  thereof has been reduced to
                    zero;

                      (iii) the Senior  Principal  Distribution  Amount shall be
        distributed,  concurrently, to the Class R-I Certificates and Class R-II
        Certificates,  on a pro rata  basis,  until  the  Certificate  Principal
        Balances thereof have been reduced to zero;

                      (iv) the  balance  of the  Senior  Principal  Distribution
        Amount remaining after the distribution  described in clause (iii) above
        shall be distributed concurrently as follows:

                             (A)  10.3300965697%  to the Class A-1 Certificates,
                      until the Certificate  Principal  Balance thereof has been
                      reduced to zero;

                             (B)  0.3332289216%  to the Class A-6  Certificates,
                             until the Certificate Principal Balance thereof has
                             been reduced to zero;

                             (C)  44.3161142842%  in  the  following  order  and
priority:

                                    (1) first, concurrently as follows:

                         (a) 24.7387077080% to the Class A-2 Certificates, until
                    the Certificate  Principal  Balance thereof has been reduced
                    to zero; and

                         (b) 75.2612922920% in the following order and priority:

                                             -33-

<PAGE>

                         (i) first,  concurrently  on a pro rata  basis,  to the
                    Class A-3 Certificates and Class A-7 Certificates, until the
                    Certificate  Principal Balances thereof have been reduced to
                    zero; and

                         (ii) second, to the Class A-4  Certificates,  until the
                    Certificate  Principal  Balance  thereof has been reduced to
                    zero; and

                         (2) second,  to the Class A-5  Certificates,  until the
                    Certificate  Principal  Balance  thereof has been reduced to
                    zero; and

     (D) 45.0205602245% in the following order and priority:

          (1) first, to the Lockout Certificates:

               (a) the Lockout Scheduled Percentage of the Lockout Certificates'
          pro rata share (based on the aggregate  Certificate  Principal Balance
          of the Senior Certificates (other than the Class A-P Certificates)) of
          the    aggregate   of   the    collections    described   in   Section
          4.02(a)(ii)(y)(A), (B) and (E); and

               (b)   the   Lockout   Prepayment   Percentage   of  the   Lockout
          Certificates'  pro rata  share  (based  on the  aggregate  Certificate
          Principal Balance of the Senior Certificates (other than the Class A-P
          Certificates))  of the  aggregate  of  the  collections  described  in
          Section 4.02(a)(ii)(y)(C);

          provided  that,  if the  aggregate of the amounts set forth in Section
          4.02(a)(ii)(y)(A),  (B),  (C) and (E) is more than the  balance of the
          Available  Distribution  Amount  remaining  after the Senior  Interest
          Distribution  Amount and the Class A-P  Distribution  Amount have been
          distributed,  the amount paid to the Lockout Certificates  pursuant to
          this  clause  (iv)(D)(1)  shall be reduced  by an amount  equal to the
          Lockout   Certificates'   pro  rata  share  (based  on  the  aggregate
          Certificate  Principal Balance of the Senior  Certificates (other than
          the Class A-P Certificates)) of such difference; and

               (2)  second,  concurrently,   62.3897038751%  to  the  Class  A-9
          Certificates,  11.0010874222%  to  the  Class  A-10  Certificates  and
          26.6092087027%  to the Class A-13  Certificates,  until the  aggregate
          Certificate  Principal Balance of the Class A-9 Certificates and Class
          A-13 Certificates has been reduced to zero;

                                             -34-

<PAGE>

               (3)  third,  concurrently,   11.0010874222%  to  the  Class  A-10
          Certificates and 88.9989125778% to the Class A-11 Certificates,  until
          the Certificate  Principal  Balance of the Class A-10 Certificates has
          been reduced to zero;

               (4) fourth, to the Class A-11 Certificates, until the Certificate
          Principal Balance thereof has been reduced to zero; and

               (5) fifth,  to the Lockout  Certificates,  until the  Certificate
          Principal Balance thereof has been reduced to zero.

               (c) On or after the  occurrence of the Credit  Support  Depletion
        Date but prior to the reduction of the Certificate  Principal Balance of
        the Senior Support  Certificates  to zero,  all  priorities  relating to
        distributions as described in Section 4.02(b) of this Series  Supplement
        in respect of principal  among the Senior  Certificates  (other than the
        Class A-P Certificates) will be disregarded,  and (i) an amount equal to
        the  Discount  Fraction  of  the  principal  portion  of  scheduled  and
        unscheduled  payments  received or  advanced in respect of the  Discount
        Mortgage Loans will be distributed to the Class A-P  Certificates,  (ii)
        the Senior  Principal  Distribution  Amount will be  distributed  to the
        remaining Senior  Certificates  (other than the Class A-P  Certificates)
        pro rata in accordance  with their  respective  outstanding  Certificate
        Principal  Balances and (iii) the amount set forth in Section 4.02(a)(i)
        herein  will be  distributed  as set forth  therein;  provided  that the
        aggregate amount  distributable  to the Senior Support  Certificates and
        Super Senior Certificates will be distributed among such Certificates in
        the following priority:  first, to the Super Senior Certificates,  up to
        an amount equal to the Accrued Certificate  Interest thereon;  second to
        the Super Senior Certificates,  up to the Super Senior Optimal Principal
        Distribution  Amount, in reduction of the Certificate  Principal Balance
        thereof,  until such Certificate  Principal  Balance has been reduced to
        zero; third, to the Senior Support  Certificates,  up to an amount equal
        to the Accrued Certificate  Interest thereon;  and fourth, to the Senior
        Support  Certificates,  the remainder,  until the Certificate  Principal
        Balance thereof is reduced to zero.

               (d) On or after the  occurrence of the Credit  Support  Depletion
        Date and after the reduction of the Certificate Principal Balance of the
        Senior  Support   Certificates  to  zero,  all  priorities  relating  to
        distributions  as described in clauses  4.02(b) and (c) above in respect
        of principal  among the various  classes of Senior  Certificates  (other
        than the Class A-P Certificates) will be disregarded, an amount equal to
        the Discount Fraction of the principal portion of scheduled payments and
        unscheduled  collections  received  or  advanced  in respect of Discount
        Mortgage Loans will be distributed  to the Class A-P  Certificates,  and
        the Senior  Principal  Distribution  Amount will be  distributed  to the
        remaining Senior  Certificates  (other than the Class A-P  Certificates)
        pro rata in accordance  with their  respective  outstanding  Certificate
        Principal  Balances and the amount set forth in Section  4.02(a)(i) will
        be distributed as set forth therein.

               (e) After the reduction of the Certificate  Principal Balances of
        the Senior  Certificates (other than the Class A-P Certificates) to zero
        but prior to the Credit Support Depletion Date, the

                                             -35-

<PAGE>

        Senior  Certificates  (other  than the Class A-P  Certificates)  will be
        entitled  to no  further  distributions  of  principal  thereon  and the
        Available  Distribution Amount will be paid solely to the Holders of the
        Class A-P Certificates, Class A-V Certificates, Class M Certificates and
        Class B Certificates in each case as described herein.

               (f) On each Distribution Date prior to the Accretion  Termination
        Date,  an amount equal to the Accrued  Certificate  Interest  that would
        otherwise be distributed on the Class A-5 Certificates shall be added to
        Certificate Principal Balance of the Class A-5 Certificates. On or after
        the Accretion Termination Date, the entire amount of Accrued Certificate
        Interest on the Class A-5 Certificates for such  Distribution Date shall
        be  payable  to the Class A-5  Certificateholders  pursuant  to  Section
        4.02(a)(i)  of this  Series  Supplement  to the extent not  required  to
        reduce the  Certificate  Principal  Balances of the  Accretion  Directed
        Certificates to zero on such Accretion  Termination Date;  provided that
        if the Accretion  Termination Date is the Credit Support Depletion Date,
        the  entire  amount of  Accrued  Certificate  Interest  on the Class A-5
        Certificates  for such  Distribution  Date will be paid to the Class A-5
        Certificateholders to the extent of Accrued Certificate Interest on that
        class  of  Certificates  for the  related  Distribution  Date.  Any such
        Accrued  Certificate  Interest  on the Class A-5  Certificates  which is
        required  to  be  paid  to  the  Holders  of  the   Accretion   Directed
        Certificates  in reduction of its Certificate  Principal  Balance on the
        Accretion  Termination  Date will be added to the Certificate  Principal
        Balance of the Class A-5  Certificates  in the manner  described  in the
        first sentence of this Section 4.02(f).

               (g) In addition to the foregoing  distributions,  with respect to
        any Mortgage Loan that was previously the subject of a Cash  Liquidation
        or an REO  Disposition  that  resulted in a Realized  Loss, in the event
        that  within  two  years  of the date on which  such  Realized  Loss was
        determined to have occurred the Master Servicer receives amounts,  which
        the  Master  Servicer  reasonably   believes  to  represent   subsequent
        recoveries (net of any related liquidation expenses), or determines that
        it  holds  surplus  amounts  previously   reserved  to  cover  estimated
        expenses, specifically related to such Mortgage Loan (including, but not
        limited to, recoveries in respect of the  representations and warranties
        made by the related Seller pursuant to the applicable Seller's Agreement
        and  assigned  to the  Trustee  pursuant  to Section  2.04),  the Master
        Servicer   shall    distribute    such   amounts   to   the   applicable
        Certificateholders  of the Class or Classes to which such  Realized Loss
        was allocated  (with the amounts to be distributed  allocated among such
        Classes in the same  proportions  as such Realized Loss was  allocated),
        and within each such Class to the Certificateholders of record as of the
        Record Date immediately  preceding the date of such  distribution (or if
        such  Class  of   Certificates   is  no  longer   outstanding,   to  the
        Certificateholders  of record at the time  that such  Realized  Loss was
        allocated);   provided  that  no  such  distribution  to  any  Class  of
        Certificates of subsequent  recoveries  related to a Mortgage Loan shall
        exceed,  either  individually  or in the aggregate and together with any
        other amounts paid in reimbursement  therefor, the amount of the related
        Realized  Loss  that  was  allocated  to  such  Class  of  Certificates.
        Notwithstanding  the foregoing,  no such distribution shall be made with
        respect to the  Certificates  of any Class to the extent that either (i)
        such Class was protected  against the related  Realized Loss pursuant to
        any instrument or fund  established  under Section 11.01(e) or (ii) such
        Class of  Certificates  has been deposited into a separate trust fund or
        other structuring vehicle and separate certificates or other

                                             -36-

<PAGE>

        instruments  representing  interests  therein have been issued in one or
        more classes, and any of such separate certificates or other instruments
        were protected against the related Realized Loss pursuant to any limited
        guaranty, payment obligation, irrevocable letter of credit, surety bond,
        insurance  policy  or  similar  instrument  or  a  reserve  fund,  or  a
        combination thereof. Any amount to be so distributed with respect to the
        Certificates of any Class shall be distributed by the Master Servicer to
        the  Certificateholders  of record  as of the  Record  Date  immediately
        preceding  the  date  of  such  distribution  (i)  with  respect  to the
        Certificates of any Class (other than the Class A-V Certificates),  on a
        pro rata basis  based on the  Percentage  Interest  represented  by each
        Certificate  of such Class as of such Record Date and (ii) with  respect
        to the Class A-V  Certificates,  to the  Class A-V  Certificates  or any
        Subclass thereof in the same proportion as the related Realized Loss was
        allocated.  Any amounts to be so distributed shall not be remitted to or
        distributed  from  the  Trust  Fund,  and  shall  constitute  subsequent
        recoveries  with respect to Mortgage  Loans that are no longer assets of
        the Trust Fund.

               (h) Each  distribution  with respect to a Book-Entry  Certificate
        shall be paid to the Depository,  as Holder thereof,  and the Depository
        shall  be  solely   responsible   for   crediting  the  amount  of  such
        distribution   to  the  accounts  of  its  Depository   Participants  in
        accordance with its normal procedures. Each Depository Participant shall
        be  responsible  for disbursing  such  distribution  to the  Certificate
        Owners that it represents and to each indirect  participating  brokerage
        firm (a  "brokerage  firm") for which it acts as agent.  Each  brokerage
        firm shall be responsible for disbursing funds to the Certificate Owners
        that it represents.  None of the Trustee, the Certificate Registrar, the
        Company or the Master Servicer shall have any responsibility therefor.

               (i) Except as otherwise  provided in Section  9.01, if the Master
        Servicer anticipates that a final distribution with respect to any Class
        of Certificates will be made on the next  Distribution  Date, the Master
        Servicer  shall,  no later than the  Determination  Date in the month of
        such final  distribution,  notify the Trustee and the Trustee shall,  no
        later than two (2) Business Days after such Determination  Date, mail on
        such date to each Holder of such Class of  Certificates  a notice to the
        effect that:  (i) the Trustee  anticipates  that the final  distribution
        with  respect  to  such  Class  of  Certificates  will  be  made on such
        Distribution  Date but only  upon  presentation  and  surrender  of such
        Certificates  at the  office of the  Trustee or as  otherwise  specified
        therein, and (ii) no interest shall accrue on such Certificates from and
        after the end of the related Interest Accrual Period.  In the event that
        Certificateholders  required to surrender their Certificates pursuant to
        Section   9.01(c)  do  not  surrender  their   Certificates   for  final
        cancellation,  the Trustee shall cause funds  distributable with respect
        to such  Certificates to be withdrawn from the  Certificate  Account and
        credited  to  a  separate   escrow  account  for  the  benefit  of  such
        Certificateholders as provided in Section 9.01(d).

          Section 4.03  Statements to  Certificateholders.  (See Section 4.03(a)
               through  (d) of the  Standard  Terms and Exhibit  Three  attached
               hereto)

        (e) The Trustee  will make the reports  referred to in this Section 4.03
(and, at its option,  any additional files containing the same information in an
alternative format) available each month to

                                             -37-

<PAGE>

Certificateholders and other parties to the Agreement via the Trustee's website,
which is presently  located at  www.abs.bankone.com.  Persons that are unable to
use the above website are entitled to have a paper copy mailed to them via first
class mail by calling the Trustee at (800) 524-9472.  The Trustee shall have the
right  to  change  the way the  reports  referred  to in this  Section  4.03 are
distributed  in order to make such  distribution  more  convenient  and/or  more
accessible to the above parties and to the Certificateholders. The Trustee shall
provide timely and adequate  notification to all the parties mentioned above and
to the Certificateholders regarding any such change.

          Section 4.04  Distribution  of Reports to the Trustee and the Company;
               Advances  by  the  Master  Servicer.  (See  Section  4.04  of the
               Standard Terms)

        Section 4.05  Allocation of Realized Losses.

        Prior to each Distribution Date, the Master Servicer shall determine the
total  amount  of  Realized  Losses,   if  any,  that  resulted  from  any  Cash
Liquidation, Servicing Modification, Debt Service Reduction, Deficient Valuation
or REO Disposition that occurred during the related Prepayment Period or, in the
case of a Servicing  Modification  that  constitutes a reduction of the interest
rate on a Mortgage Loan, the amount of the reduction in the interest  portion of
the  Monthly  Payment  due during the  related  Due  Period.  The amount of each
Realized  Loss shall be  evidenced  by an  Officers'  Certificate.  All Realized
Losses, other than Excess Special Hazard Losses,  Extraordinary  Losses,  Excess
Bankruptcy Losses or Excess Fraud Losses, shall be allocated as follows:  first,
to the Class B-3 Certificates  until the Certificate  Principal  Balance thereof
has been  reduced  to zero;  second,  to the  Class B-2  Certificates  until the
Certificate  Principal  Balance thereof has been reduced to zero;  third, to the
Class B-1 Certificates until the Certificate  Principal Balance thereof has been
reduced to zero;  fourth,  to the Class M-3  Certificates  until the Certificate
Principal  Balance  thereof has been  reduced to zero;  fifth,  to the Class M-2
Certificates until the Certificate Principal Balance thereof has been reduced to
zero;  sixth,  to the Class M-1  Certificates  until the  Certificate  Principal
Balance thereof has been reduced to zero; and, thereafter,  if any such Realized
Losses are on a Discount  Mortgage  Loan,  to the Class A-P  Certificates  in an
amount equal to the Discount Fraction of the principal portion thereof,  and the
remainder of such Realized Losses on the Discount  Mortgage Loans and the entire
amount of such Realized Losses on Non-Discount  Mortgage Loans will be allocated
among all the Senior  Certificates  (other than the Class A-P Certificates) on a
pro rata basis,  as described  below.  Any Excess Special Hazard Losses,  Excess
Bankruptcy  Losses,  Excess Fraud Losses,  Extraordinary  Losses on Non-Discount
Mortgage Loans will be allocated among the Senior  Certificates  (other than the
Class A-P  Certificates) and Subordinate  Certificates,  on a pro rata basis, as
described below.  The principal  portion of such Realized Losses on the Discount
Mortgage  Loans will be  allocated  to the Class A-P  Certificates  in an amount
equal to the Discount Fraction thereof and the remainder of such Realized Losses
on the Discount  Mortgage Loans and the entire amount of such Realized Losses on
Non- Discount  Mortgage  Loans will be allocated  among the Senior  Certificates
(other than the Class A-P Certificates) and Subordinate  Certificates,  on a pro
rata  basis,  as  described  below,  provided,  however,  that  Realized  Losses
otherwise  allocable to the Super Senior  Certificates  will be allocated to the
Senior  Support  Certificates  until the  Certificate  Principal  Balance of the
Senior Support Certificates is reduced to zero.

                                             -38-

<PAGE>

        As used herein,  an  allocation of a Realized Loss on a "pro rata basis"
among two or more specified Classes of Certificates means an allocation on a pro
rata  basis,  among the  various  Classes  so  specified,  to each such Class of
Certificates  on the  basis  of their  then  outstanding  Certificate  Principal
Balances prior to giving effect to distributions to be made on such Distribution
Date in the case of the  principal  portion of a  Realized  Loss or based on the
Accrued Certificate  Interest thereon payable on such Distribution Date (without
regard to any Compensating  Interest for such Distribution  Date) in the case of
an interest  portion of a Realized  Loss;  provided  that,  in  determining  the
Certificate  Principal  Balance of the Accrual  Certificates  for the purpose of
allocating  any portion of a Realized Loss thereto,  the  Certificate  Principal
Balance of the Accrual Certificates shall be deemed to be equal to the lesser of
(a) the original  Certificate  Principal Balance of such Certificate and (b) the
Certificate  Principal  Balance of such  Certificate  prior to giving  effect to
distributions  made  on  such  Distribution  Date.  Except  as  provided  in the
following  sentence,  any allocation of the principal portion of Realized Losses
(other than Debt Service Reductions) to a Class of Certificates shall be made by
reducing the Certificate  Principal  Balance thereof by the amount so allocated,
which allocation shall be deemed to have occurred on such Distribution Date. Any
allocation of the principal  portion of Realized Losses (other than Debt Service
Reductions) to the Subordinate  Certificates  then  outstanding  with the Lowest
Priority shall be made by operation of the definition of "Certificate  Principal
Balance" and by operation of the provisions of Section  4.02(a).  Allocations of
the  interest  portions of Realized  Losses shall be made in  proportion  to the
amount of Accrued  Certificate  Interest and by operation of the  definition  of
"Accrued  Certificate  Interest"  and by operation of the  provisions of Section
4.02(a).  Allocations of the principal portion of Debt Service  Reductions shall
be made by operation of the provisions of Section  4.02(a).  All Realized Losses
and all other losses  allocated  to a Class of  Certificates  hereunder  will be
allocated  among the  Certificates of such Class in proportion to the Percentage
Interests  evidenced  thereby;  provided that if any Subclasses of the Class A-V
Certificates have been issued pursuant to Section 5.01(c),  such Realized Losses
and other  losses  allocated  to the Class A-V  Certificates  shall be allocated
among  such  Subclasses  in  proportion  to the  respective  amounts  of Accrued
Certificate  Interest payable on such Distribution Date that would have resulted
absent such reductions.

          Section 4.06  Reports of  Foreclosures  and  Abandonment  of Mortgaged
               Property. (See Section 4.06 of the Standard Terms)

          Section 4.07  Optional  Purchase of  Defaulted  Mortgage  Loans.  (See
               Section 4.07 of the Standard Terms)

          Section 4.08 [Reserved]

          Section 4.09  Distributions  on the  Uncertificated  REMIC  I  Regular
               Interests.

        (a) On each  Distribution Date the Trustee shall be deemed to distribute
to itself, as the holder of the Uncertificated  REMIC I Regular Interests,  from
REMIC I, the following  amounts in the following order of priority to the extent
of the Available  Distribution Amount reduced by distributions made to the Class
R-I Certificates pursuant to Section 4.02(a):

                                             -39-

<PAGE>

             (i)  Uncertificated  REMIC I Accrued Interest on the Uncertificated
        REMIC  I  Regular  Interests  for  such  Distribution   Date,  plus  any
        Uncertificated  REMIC I Accrued Interest  thereon  remaining unpaid from
        any previous Distribution Date; and

            (ii) In accordance  with the priority set forth in Section  4.09(b),
        an  amount  equal to the sum of the  amounts  in  respect  of  principal
        distributable  on the Class A-1  Certificates,  Class A-2  Certificates,
        Class A-3 Certificates,  Class A-4 Certificates, Class A-5 Certificates,
        Class A-6 Certificates,  Class A-7 Certificates, Class A-8 Certificates,
        Class  A-9   Certificates,   Class   A-10   Certificates,   Class   A-12
        Certificates, Class A-13 Certificates, Class A-P Certificates, Class M-1
        Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class B-1
        Certificates,  Class B-2 Certificates,  Class B-3 Certificates and Class
        R-II Certificates  under Section 4.02(a),  as allocated thereto pursuant
        to Section 4.02(b).

        (b)  The  amount  described  in  Section  4.09(a)(ii)  shall  be  deemed
distributed to (i) Uncertificated REMIC I Regular Interest W, (ii)Uncertificated
REMIC I Regular Interest X, (iii)  Uncertificated REMIC I Regular Interest Y and
(iv) Uncertificated REMIC I Regular Interest Z with the amount to be distributed
allocated among such interests in accordance  with the priority  assigned to the
(i) Class A-1,  Class A-2,  Class A-4,  Class A-5,  Class A-6,  Class A-9, Class
A-10,  Class A-11,  Class A- 12, Class A-13,  Class R-II,  Class M-1, Class M-2,
Class  M-3,  Class  B-1,  Class B-2 and Class B-3  Certificates,  (ii) Class A-3
Certificates,  (iii)  Class A-7  Certificates  and (iv) Class A-P  Certificates,
respectively,  under Section 4.02(b) until the Uncertificated  Principal Balance
of each such interest is reduced to zero.

        (c)  The  portion  of  the  Uncertificated   REMIC  I  Regular  Interest
Distribution Amounts described in Section 4.09(a)(i) shall be deemed distributed
by REMIC I to REMIC II in accordance with the priority  assigned to the REMIC II
Certificates relative to that assigned to the REMIC I Certificates under Section
4.02(b).

        (d) In determining from time to time the Uncertificated  REMIC I Regular
Interest  Distribution  Amounts,  Realized Losses  allocated to the Certificates
shall be  allocated  to  Uncertificated  REMIC I Regular  Interests  in the same
amounts and priorities as allocated to the Corresponding Certificated Interests.

        (e) Notwithstanding the deemed distributions on the Uncertificated REMIC
I Regular Interests described in this Section 4.09,  distributions of funds from
the Certificate Account shall be made only in accordance with Section 4.02.

          Section 4.10  Distributions  on the  Uncertificated  Class  A-V  REMIC
               Regular Interests.

        (a) On each Distribution Date, the Trustee shall be deemed to distribute
to  itself,  as the  holder  of  the  Uncertificated  Class  A-V  REMIC  Regular
Interests, from REMIC II, Uncertificated Class A-V REMIC Accrued Interest on the
Uncertificated Class A-V REMIC Regular Interests for such Distribution

                                             -40-

<PAGE>

Date, plus any Uncertificated Class A-V REMIC Accrued Interest thereon remaining
unpaid from any previous Distribution Date.

        (b) In determining from time to time the Uncertificated  Class A-V REMIC
Regular Interest  Distribution  Amounts,  Realized Losses allocated to the Class
A-V Certificates  under Section 4.05 shall be deemed allocated to Uncertificated
Class  A-V  REMIC   Regular   Interests  on  a  pro  rata  basis  based  on  the
Uncertificated  Class A-V REMIC  Accrued  Interest for the related  Distribution
Date.

        (c) On each Distribution Date, the Trustee shall be deemed to distribute
from the Trust Fund, in the priority set forth in Sections 4.02(a), to the Class
A-V  Certificates,  the amounts  distributable  thereon from the  Uncertificated
Class  A-V  REMIC  Regular  Interest  Distribution  Amounts  deemed to have been
received by the Trustee from the Trust Fund under this Section 4.08.  The amount
deemed distributable  hereunder with respect to the Class A-V Certificates shall
equal 100% of the amounts payable with respect to the  Uncertificated  Class A-V
REMIC Regular Interests.

        (d) Notwithstanding the deemed distributions on the Uncertificated Class
A-V REMIC Regular  Interests  described in this Section 4.10,  distributions  of
funds from the Certificate Account shall be made only in accordance with Section
4.02.

                                             -41-

<PAGE>

                                    ARTICLE V

                                THE CERTIFICATES

          Section 5.01.  The  Certificates.  (See  Section  5.01 of the Standard
               Terms)

          Section 5.02. Registration of Transfer and Exchange of Certificates.

          (a)  - (e)(iii)(A). (See Section 5.02(a) - (e)(iii)(A) of the Standard
               Terms)

               (B) Any purported  Certificate Owner whose acquisition or holding
               of any Class M Certificate (or interest  therein) was effected in
               violation  of the  restrictions  in this  Section  5.02(e)  shall
               indemnify and hold harmless the Company,  the Trustee, the Master
               Servicer,  any  Subservicer,  the Underwriters and the Trust Fund
               from  and  against  any and all  liabilities,  claims,  costs  or
               expenses incurred by such parties as a result of such acquisition
               or holding.

               (f) - (h).  (See Section 5.02(f) - (h) of the Standard Terms)

          Section 5.03. Mutilated,  Destroyed, Lost or Stolen Certificates. (See
               Section 5.03 of the Standard Terms)

          Section 5.04. Persons Deemed Owners. (See Section 5.04 of the Standard
               Terms)

          Section 5.05.  Appointment  of Paying Agent.  (See Section 5.05 of the
               Standard Terms)

                                             -42-

<PAGE>

                                          ARTICLE VI

                             THE COMPANY AND THE MASTER SERVICER
                            (SEE ARTICLE VI OF THE STANDARD TERMS)

                                             -43-

<PAGE>

                                          ARTICLE VII

                                           DEFAULT
                           (SEE ARTICLE VII OF THE STANDARD TERMS)

                                             -44-

<PAGE>

                                         ARTICLE VIII

                                    CONCERNING THE TRUSTEE
                           (SEE ARTICLE VIII OF THE STANDARD TERMS)

                                             -45-

<PAGE>

                                          ARTICLE IX

                                         TERMINATION
                            (SEE ARTICLE IX OF THE STANDARD TERMS)

                                             -46-

<PAGE>

                                    ARTICLE X

                                REMIC PROVISIONS

          Section 10.01 REMIC Administration. (See Section 10.01 of the Standard
               Terms)

          Section  10.02  Master  Servicer;   REMIC  Administrator  and  Trustee
               Indemnification. (See Section 10.02 of the Standard Terms)

        Section 10.03 Designation of REMIC(s).

        The REMIC Administrator will make elections to treat each of REMIC I and
REMIC II, and  subject  to this  Agreement  (including  the  Mortgage  Loans but
excluding the Initial  Monthly  Payment Fund) as a REMIC for federal  income tax
purposes.

        The Uncertificated  REMIC I Regular Interests shall be designated as the
"regular  interests" and the Class R-I  Certificates  shall be designated as the
sole class of "residual  interests" in REMIC I. The Class A-1,  Class A-2, Class
A-3,  Class A-4,  Class A-5,  Class A-6,  Class A-7, Class A-8, Class A-9, Class
A-10, Class A-11, Class A-12, Class A-13, Class A-P, Class M-1, Class M-2, Class
M-3,  Class B-1, Class B-2 and Class B-3  Certificates  and the rights in and to
which  will be  represented  by the Class  A-V  Certificates,  will be  "regular
interests" in REMIC II, and the Class R-II  Certificates  will be the sole class
of "residual interests" therein for purposes of the REMIC Provisions (as defined
in the Standard  Terms) under  federal  income tax law. On and after the date of
issuance of any Subclass of Class A-V  Certificates  pursuant to Section 5.01(c)
of the Standard Terms, any such Subclass will represent the Uncertificated Class
A-V REMIC Regular  Interest or Interests  specified by the initial Holder of the
Class A-V Certificates pursuant to said Section.

        Section 10.04 [Reserved].

        Section 10.05 Compliance with Withholding Requirements.

        Notwithstanding  any other provision of this  Agreement,  the Trustee or
any Paying  Agent,  as  applicable,  shall  comply with all federal  withholding
requirements  respecting payments to  Certificateholders,  including interest or
original  interest discount payments or advances thereof that the Trustee or any
Paying Agent, as applicable,  reasonably believes are applicable under the Code.
The consent of Certificateholders shall not be required for such withholding. In
the event the Trustee or any Paying  Agent,  as  applicable,  does  withhold any
amount from interest or original issue discount  payments or advances thereof to
any Certificateholder pursuant to federal withholding requirements,  the Trustee
or any Paying Agent,  as applicable,  shall indicate the amount withheld to such
Certificateholder pursuant to the terms of such requirements.

                                             -47-

<PAGE>

                                          ARTICLE XI

                                   MISCELLANEOUS PROVISIONS

          Section 11.01 Amendment. (See Section 11.01 of the Standard Terms)

          Section 11.02  Recordation  of Agreement.  Counterparts.  (See Section
               11.02 of the Standard Terms)

          Section 11.03 Limitation on Rights of Certificateholders. (See Section
               11.03 of the Standard Terms)

        Section 11.04 Governing Laws.  (See Section 11.04 of the Standard Terms)

          Section 11.05 Notices.  All demands and notices  hereunder shall be in
               writing and shall be deemed to have been duly given if personally
               delivered  at or  mailed  by  registered  mail,  postage  prepaid
               (except for notices to the Trustee  which shall be deemed to have
               been duly given only when received),  to the appropriate  address
               for each  recipient  listed in the table  below or, in each case,
               such other  address as may  hereafter  be furnished in writing to
               the Master Servicer, the Trustee and the Company, as applicable:

           Recipient                                        Address

                                 8400 Normandale Lake Boulevard
                                 Suite 250, Minneapolis, Minnesota 55437,
Company                          Attention:  President
                                 2255 N. Ontario Street, Suite 400
                                 Burbank, California 91504-2130,
Master Servicer                  Attention:  Managing Director/Master Servicing
                                 Corporate Trust Office
                                 The Trustee  designates its offices  located at
                                 55 Water Street,  1st Floor New York,  New York
                                 10041, for the purposes of Section 8.12 of
Trustee                          the Standard Terms
                                 55 Water Street
Standard and Poor's              New York, New York 10041
                                 One State Street Plaza, 32nd Floor
Fitch                            New York, New York 10004

Any notice  required or permitted to be mailed to a  Certificateholder  shall be
given by first class  mail,  postage  prepaid,  at the address of such Holder as
shown in the Certificate Register. Any notice so mailed

                                             -48-

<PAGE>

within the time prescribed in this Agreement  shall be conclusively  presumed to
have been duly given, whether or not the Certificateholder receives such notice.

        Section 11.06 Required Notices to Rating Agency and Subservicer.

        The Company,  the Master Servicer or the Trustee,  as applicable,  shall
notify each Rating  Agency and the  Subservicer  at such time as it is otherwise
required  pursuant to this Agreement to give notice of the occurrence of, any of
the events described in clause (a), (b), (c), (d), (g), (h), (i) or (j) below or
provide a copy to each Rating  Agency at such time as  otherwise  required to be
delivered  pursuant to this  Agreement  of any of the  statements  described  in
clauses (e) and (f) below:

               (a)    a material change or amendment to this Agreement,

               (b)    the occurrence of an Event of Default,

               (c) the termination or appointment of a successor Master Servicer
          or Trustee or a change in the majority ownership of the Trustee,

               (d) the filing of any claim under the Master  Servicer's  blanket
        fidelity bond and the errors and omissions  insurance policy required by
        Section 3.12 or the  cancellation  or modification of coverage under any
        such instrument,

               (e) the statement required to be delivered to the Holders of each
          Class of Certificates pursuant to Section 4.03,

               (f) the statements  required to be delivered pursuant to Sections
          3.18 and 3.19,

               (g) a change in the  location  of the  Custodial  Account  or the
          Certificate Account,

               (h) the  occurrence  of any monthly  cash flow  shortfall  to the
        Holders of any Class of  Certificates  resulting from the failure by the
        Master Servicer to make an Advance pursuant to Section 4.04,

               (i)    the occurrence of the Final Distribution Date, and

               (j)    the repurchase of or substitution for any Mortgage Loan,

provided,  however,  that with respect to notice of the occurrence of the events
described in clauses (d), (g) or (h) above,  the Master  Servicer  shall provide
prompt  written  notice to each Rating  Agency and the  Subservicer  of any such
event known to the Master Servicer.

          Section 11.07  Severability  of Provisions.  (See Section 11.07 of the
               Standard Terms)

                                             -49-

<PAGE>

          Section  11.08  Supplemental  Provisions  for  Resecuritization.  (See
               Section 11.08 of the Standard Terms)

          Section 11.09 Allocation of Voting Rights.

        97.0%  of  all  Voting  Rights  shall  be  allocated  among  Holders  of
Certificates,   other  than  the  Interest   Only   Certificates   and  Residual
Certificates, in proportion to the outstanding Certificate Principal Balances of
their  respective  Certificates,  1.0% of all Voting  Rights  shall be allocated
among the Holders of the Class A-8 Certificates, 1.0% of all Voting Rights shall
be allocated among the Holders of the Class A-V  Certificates in accordance with
their respective  Percentage  Interests;  and 0.5% and 0.5% of all Voting Rights
shall be  allocated  among the Holders of the Class R-I  Certificates  and Class
R-II Certificates,  respectively, in accordance with their respective Percentage
Interests.

                                             -50-

<PAGE>

        IN WITNESS  WHEREOF,  the Company,  the Master  Servicer and the Trustee
have  caused  their  names to be  signed  hereto  by their  respective  officers
thereunto  duly  authorized and their  respective  seals,  duly attested,  to be
hereunto affixed, all as of the day and year first above written.

[Seal]                                          RESIDENTIAL FUNDING MORTGAGE
                                                        SECURITIES I, INC.

Attest:                                         By:
        ---------------------------------------
        Name:  Lisa Lundsten                            Name:  Randy Van Zee
        Title:   Vice President                         Title:    Vice President

[Seal]                                          RESIDENTIAL FUNDING CORPORATION

Attest:                                         By:
       ----------------------------------------
        Name:  Randy Van Zee                            Name: Lisa Lundsten
        Title:   Director                               Title: Managing Director

[Seal]                                          BANK ONE, NATIONAL ASSOCIATION
                                                                  as Trustee

Attest:
        ---------------------------------------
        Name:                                   By:
                                                   ----------------------------
        Title:                                   Name:   Keith R. Richardson
                                                 Title:     Vice President

                                             -1-

<PAGE>

STATE OF MINNESOTA              )
                                ) ss.:
COUNTY OF HENNEPIN              )

               On the 27th day of March,  2002 before me, a notary public in and
for said  State,  personally  appeared  Randy Van Zee,  known to me to be a Vice
President  of  Residential  Funding  Mortgage  Securities  I,  Inc.,  one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said  corporation,  and  acknowledged  to me
that such corporation executed the within instrument.

               IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                    Notary Public

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

[Notarial Seal]

                                             -2-

<PAGE>

STATE OF MINNESOTA              )
                                ) ss.:
COUNTY OF HENNEPIN              )

               On the 27th day of March,  2002 before me, a notary public in and
for said State, personally appeared Lisa Lundsten,  known to me to be a Managing
Director  of  Residential  Funding  Corporation,  one of the  corporations  that
executed  the  within  instrument,  and also  known to me to be the  person  who
executed  it on behalf of said  corporation,  and  acknowledged  to me that such
corporation executed the within instrument.

               IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                    Notary Public

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

[Notarial Seal]

                                             -3-

<PAGE>

STATE OF ILLINOIS               )
                                ) ss.:
COUNTY OF COOK                  )

               On the 27th day of March,  2002 before me, a notary public in and
for said State,  personally  appeared Keith R.  Richardson,  known to me to be a
Vice President of Bank One, National Association, a national banking association
that executed the within  instrument,  and also known to me to be the person who
executed it on behalf of said banking  corporation  and  acknowledged to me that
such banking corporation executed the within instrument.

               IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                    Notary Public

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

[Notarial Seal]

                                             -4-

<PAGE>

                                         EXHIBIT ONE
                                    MORTGAGE LOAN SCHEDULE
                                   (Available Upon Request)

  RUN ON     : 03/21/02           RFC DISCLOSURE SYSTEM       RFFSDFIX-01
  AT         : 07.24.57           FIXED PASSTHRU REPORT       AMORTIZED BALANCE
  SERIES     : RFMSI 2002-S5                                  CUTOFF : 03/01/02
  POOL       : 0004577
             :
             :
  POOL STATUS: F

    RFC LOAN NUMBER                      SUB SERV FEE
    PRINCIPAL BALANCE                    MSTR SERV FEE
    CURR NOTE RATE                       ALL EXP
    RFC NET RATE                         MISC EXP
    NET MTG RATE(INVSTR RATE)            SPREAD
    POST STRIP RATE                      STRIP
  --------------------------------------------------------------------------

      5489779                              .2500
      337,871.54                          .0800
            7.1250                         .0000
            6.8750                         .0000
            6.7950                         .0000
            6.0000                         .7950

      5664287                              .2500
      335,625.05                          .0800
            6.8750                         .0000
            6.6250                         .0000
            6.5450                         .0000
            6.0000                         .5450

      5747872                              .2500
      303,951.38                          .0800
            6.6250                         .0000
            6.3750                         .0000
            6.2950                         .0000
            6.0000                         .2950

      5850724                              .2500
      322,561.31                          .0800
            6.7500                         .0000
            6.5000                         .0000
            6.4200                         .0000
            6.0000                         .4200

      5910474                              .2500
       89,320.50                          .0800
            7.1250                         .0000
            6.8750                         .0000
            6.7950                         .0000
            6.0000                         .7950

      5923674                              .2500
      300,117.97                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700
1

      6014306                              .2500
      466,458.21                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      6036176                              .2500
      509,239.31                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      6138794                              .5000
      349,234.19                          .0800
            7.1250                         .0000
            6.6250                         .0000
            6.5450                         .0000
            6.0000                         .5450

      6153642                              .2500
      402,324.31                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      6168280                              .2500
      280,684.72                          .0800
            7.2500                         .0000
            7.0000                         .0000
            6.9200                         .0000
            6.0000                         .9200

      6168362                              .2500
      338,373.25                          .0800
            7.0000                         .0000
            6.7500                         .0000
            6.6700                         .0000
            6.0000                         .6700

      6252394                              .2500
      341,678.23                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      6262992                              .2500
      366,682.78                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700
1

      6263020                              .2500
      742,297.87                          .0800
            6.3750                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      6318526                              .2500
      511,875.39                          .0800
            7.1250                         .0000
            6.8750                         .0000
            6.7950                         .0000
            6.0000                         .7950

      6332446                              .2500
      643,541.03                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      6333074                              .2500
      486,392.33                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      6385862                              .2500
      394,620.77                          .0800
            6.7500                         .0000
            6.5000                         .0000
            6.4200                         .0000
            6.0000                         .4200

      6536300                              .2500
      500,971.93                          .0800
            6.5000                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      6585734                              .2500
      595,993.38                          .0800
            6.3750                         .0000
            6.1250                         .0000
            6.0450                         .0000
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      6650208                              .2500
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      8260852                              .5000
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            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8260854                              .5000
      405,000.00                          .0300
            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275736                              .2500
      647,812.17                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275740                              .5000
      400,000.00                          .0800
            6.8750                         .0000
            6.3750                         .0000
            6.2950                         .0000
            6.0000                         .2950

      8275742                              .2500
      543,000.00                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275748                              .3750
      403,651.34                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275750                              .2500
      529,000.00                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000
1

      8275752                              .3750
      650,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275760                              .3750
      440,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275764                              .5000
      142,200.00                          .0300
            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275768                              .3750
      350,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275770                              .5000
      626,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275776                              .5000
      400,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275778                              .5000
      324,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275780                              .5000
      342,000.00                          .0300
            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000
1

      8275782                              .5000
      386,058.94                          .0800
            6.8750                         .0000
            6.3750                         .0000
            6.2950                         .0000
            6.0000                         .2950

      8275784                              .3750
      388,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275786                              .3750
      447,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275788                              .2500
      400,000.00                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275794                              .5000
      470,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275798                              .2500
      542,168.95                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275800                              .3750
      475,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275802                              .3750
      448,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000
1

      8275804                              .5000
      350,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275868                              .5000
      358,776.88                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275870                              .2500
      387,690.67                          .0300
            6.2500                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275872                              .5000
      571,132.53                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275874                              .5000
      448,517.52                          .0300
            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275876                              .5000
      578,109.72                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275878                              .5000
      358,826.72                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275880                              .5000
      647,881.58                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450
1

      8275882                              .5000
      541,000.00                          .0300
            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275892                              .5000
      459,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275896                              .5000
      375,000.00                          .0800
            6.6250                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

      8275898                              .3750
      620,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275900                              .5000
      405,000.00                          .0300
            6.5000                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000

      8275902                              .5000
      382,000.00                          .0800
            6.7500                         .0000
            6.2500                         .0000
            6.1700                         .0000
            6.0000                         .1700

      8275908                              .3750
      650,000.00                          .0300
            6.3750                         .0000
            6.0000                         .0000
            5.9700                         .0000
            5.9700                         .0000
1

      8283308                              .2500
      357,000.00                          .0800
            6.3750                         .0000
            6.1250                         .0000
            6.0450                         .0000
            6.0000                         .0450

  TOTAL NUMBER OF LOANS:      710
  TOTAL BALANCE........:        305,145,211.67

  RUN ON     : 03/21/02            RFC DISCLOSURE SYSTEM      RFFSDFIX-01
  AT         : 07.24.57            INITIAL SECURITY FEES      AMORTIZED BALANCE
  SERIES     : RFMSI 2002-S5        FIXED SUMMARY REPORT      CUTOFF : 03/01/02
  POOL       : 0004577
             :
             :
  POOL STATUS: F

                                   WEIGHTED AVERAGES      FROM         TO
  ---------------------------------------------------------------------------
  CURR NOTE RATE                        6.5201            5.3750      7.5000
  RFC NET RATE                          6.2476            5.1250      7.2500
  NET MTG RATE(INVSTR RATE)             6.1789            5.0950      7.1700
  POST STRIP RATE                       5.9757            5.0950      6.0000
  SUB SERV FEE                           .2726             .2500       .7500
  MSTR SERV FEE                          .0687             .0300        .0800
  ALL EXP                                .0000             .0000       .0000
  MISC EXP                               .0000             .0000       .0000
  SPREAD                                 .0000             .0000       .0000
  STRIP                                  .2032             .0000      1.1700

  TOTAL NUMBER OF LOANS:   710
  TOTAL BALANCE........:     305,145,211.67

                             ***************************
                             *      END OF REPORT      *
                             ***************************
  RUN ON     : 03/21/02           RFC DISCLOSURE SYSTEM       RFFSD177-01
  AT         : 07.24.57          FIXED RATE LOAN LISTING      AMORTIZED BALANCE
  SERIES     : RFMSI 2002-S5                                  CUTOFF : 03/01/02
  POOL       : 0004577
             :
             :
  POOL STATUS: F

  RFC LOAN #     S/S CODE          PMT TYPE      ORIGINAL BAL     LOAN FEATURE
                                   ORIG TERM     PRINCIPAL BAL    # OF UNITS
  ORIG RATE                                      ORIGINAL P+I     LTV
  CURR NET                                       CURRENT P+I
  CITY           STATE  ZIP        LOAN PURP     NOTE DATE        MI CO CODE
  SERVICER LOAN #                  PROP TYPE     1ST PMT DATE     MI CVG
  SELLER LOAN #                    OCCP CODE     MATURITY DATE
  INVESTOR LOAN #
  ______________________________________________________________________________

    5489779          F96/G01             F          340,000.00         ZZ
                                         180        337,871.54          1
                                       7.125          3,079.83         35
                                       6.875          3,079.83
    MAHWAH TOWNSHIP  NJ   07430          1            12/19/01         00
    0433564531                           05           02/01/02          0
    0105958                              O            01/01/17
    0

    5664287          757/G01             F          340,000.00         ZZ
                                         180        335,625.05          1
                                       6.875          3,032.30         58
                                       6.625          3,032.30
    LONG GROVE       IL   60047          2            10/05/01         00
    0433307022                           05           12/01/01          0
    1000387744                           O            11/01/16
    0

    5747872          369/G01             F          308,000.00         ZZ
                                         180        303,951.38          1
                                       6.625          2,704.23         63
                                       6.375          2,704.23
    SCOTTSDALE       AZ   85258          2            10/08/01         00
    0433396488                           03           12/01/01          0
    0073446858                           O            11/01/16
    0

    5850724          L60/F27             F          330,000.00         ZZ
                                         180        322,561.31          1
                                       6.750          2,920.20         60
                                       6.500          2,920.20
    MANASSAS         VA   20109          1            08/10/01         00
    6920132225                           05           10/01/01          0
1

    6920132225                           O            09/01/16
    0

    5910474          E22/G01             F           91,000.00         ZZ
                                         180         89,320.50          4
                                       7.125            824.31         46
                                       6.875            824.31
    CHICAGO          IL   60629          2            10/05/01         00
    0412991747                           05           12/01/01          0
    0412991747                           O            11/01/16
    0

    5923674          L46/L46             F          305,200.00         ZZ
                                         180        300,117.97          1
                                       6.500          2,658.62         38
                                       6.250          2,658.62
    DALLAS           TX   75243          2            10/03/01         00
    0000944884                           05           11/01/01          0
    0000944884                           O            10/01/16
    0

    6014306          964/G01             F          468,000.00         ZZ
                                         180        466,458.21          1
                                       6.500          4,076.79         72
                                       6.250          4,076.79
    FRESNO           CA   93704          2            01/29/02         00
    0433665601                           05           03/01/02          0
    149513                               O            02/01/17
    0

    6036176          P60/G01             F          516,100.00         ZZ
                                         180        509,239.31          1
                                       6.500          4,495.79         72
                                       6.250          4,495.79
    BELLEFONTAINE    OH   43311          2            10/24/01         00
    0433601341                           05           12/01/01          0
    1310001201                           O            11/01/16
    0

    6138794          405/405             F          356,000.00         ZZ
                                         180        349,234.19          1
                                       7.125          3,224.76         69
                                       6.625          3,224.76
    CORTLANDT MANOR  NY   10567          2            09/05/01         00
    0017596529                           05           10/01/01          0
    0017596529                           O            09/01/16
    0

1

    6153642          757/G01             F          405,000.00         ZZ
                                         180        402,324.31          1
                                       6.500          3,527.98         75
                                       6.250          3,527.98
    MONROE           CT   06468          1            12/07/01         00
    0433584877                           05           02/01/02          0
    1000479731                           O            01/01/17
    0

    6168280          025/025             F          287,000.00         ZZ
                                         180        280,684.72          1
                                       7.250          2,619.92         57
                                       7.000          2,619.92
    PARRISH          FL   34219          2            07/26/01         00
    0025863044                           05           09/01/01          0
    0025863044                           O            08/01/16
    0

    6168362          025/025             F          345,000.00         ZZ
                                         180        338,373.25          1
                                       7.000          3,100.96         59
                                       6.750          3,100.96
    KANSAS CITY      MO   64149          5            08/23/01         00
    0139449508                           05           10/01/01          0
    0139449508                           O            09/01/16
    0

    6252394          313/G01             F          344,000.00         ZZ
                                         180        341,678.23          1
                                       6.250          2,949.54         80
                                       6.000          2,949.54
    ARLINGTON        TX   76006          2            12/14/01         00
    0433651023                           05           02/01/02          0
    0008469652                           O            01/01/17
    0

    6262992          E82/G01             F          371,900.00         ZZ
                                         180        366,682.78          1
                                       6.500          3,239.65         67
                                       6.250          3,239.65
    MALIBU           CA   90265          2            10/24/01         00
    0400519732                           05           12/01/01          0
    1496274                              O            11/01/16
    0

    6263020          W56/M32             F          752,400.00         ZZ
                                         180        742,297.87          1
                                       6.375          6,502.62         81
                                       6.125          6,502.62
1

    IRVINE           CA   92612          2            10/29/01         00
    400523197                            05           12/01/01          0
    0400523197                           O            11/01/16
    0

    6318526          830/G01             F          515,100.00         ZZ
                                         180        511,875.39          1
                                       7.125          4,665.94         26
                                       6.875          4,665.94
    LOS ANGELES      CA   90049          2            12/21/01         00
    0433616638                           05           02/01/02          0
    LOVETT546251                         O            01/01/17
    0

    6332446          356/G01             F          650,000.00         ZZ
                                         180        643,541.03          1
                                       6.500          5,662.20         61
                                       6.250          5,662.20
    WALNUT CREEK     CA   94598          5            11/21/01         00
    0433701992                           05           01/01/02          0
    2911022                              O            12/01/16
    0

    6333074          Q59/G01             F          488,000.00         ZZ
                                         180        486,392.33          1
                                       6.500          4,251.00         57
                                       6.250          4,251.00
    ARCADIA          CA   91006          2            01/16/02         00
    0433634060                           05           03/01/02          0
    304439                               O            02/01/17
    0

    6385862          994/X14             F          400,000.00         ZZ
                                         180        394,620.77          1
                                       6.750          3,539.64         40
                                       6.500          3,539.64
    CUMBERLAND FORE  ME   04110          1            10/05/01         00
    0218882755                           05           12/01/01          0
    218882755                            O            11/01/16
    0

    6536300          964/G01             F          506,000.00         ZZ
                                         180        500,971.93          1
                                       6.500          4,407.81         69
                                       6.250          4,407.81
    RENO             NV   89509          2            11/19/01         00
    0433564754                           05           01/01/02          0
    162232                               O            12/01/16
    0
1

    6585734          313/G01             F          600,000.00         ZZ
                                         180        595,993.38          1
                                       6.375          5,185.50         55
                                       6.125          5,185.50
    FOX POINT        WI   53217          5            12/21/01         00
    0433672524                           05           02/01/02          0
    847550                               O            01/01/17
    0

    6650208          964/G01             F          375,000.00         ZZ
                                         180        372,495.86          1
                                       6.375          3,240.94         46
                                       6.125          3,240.94
    APTOS            CA   95003          5            12/19/01         00
    0433562170                           05           02/01/02          0
    172883                               O            01/01/17
    0

    6654438          944/G01             F          450,000.00         ZZ
                                         180        448,501.50          1
                                       6.375          3,889.13         25
                                       6.125          3,889.13
    COLTS NECK       NJ   07722          2            01/22/02         00
    0433641230                           05           03/01/02          0
    W01095253                            O            02/01/17
    0

    6663246          E84/G01             F          325,000.00         ZZ
                                         180        321,804.79          1
                                       6.625          2,853.48         28
                                       6.375          2,853.48
    CROWNSVILLE      MD   21032          2            11/30/01         00
    0433701778                           05           01/01/02          0
    68010178                             O            12/01/16
    0

    6667310          313/G01             F          375,000.00         ZZ
                                         180        371,193.59          1
                                       6.250          3,215.34         70
                                       6.000          3,215.34
    POTOMAC FALLS    VA   20165          5            12/05/01         00
    0433652344                           05           01/01/02          0
    8493728                              O            12/01/16
    0

    6668178          825/G01             F          589,000.00         ZZ
                                         180        585,232.16          1
1

                                       6.875          5,253.02         79
                                       6.625          5,253.02
    GUNNISON         CO   81230          2            12/14/01         00
    0433575800                           05           02/01/02          0
    SPALLONENICH                         O            01/01/17
    0

    6673308          964/G01             F          518,000.00         ZZ
                                         180        514,503.86          1
                                       6.250          4,441.45         67
                                       6.000          4,441.45
    MORGAN HILL      CA   95037          2            12/06/01         00
    0433607447                           03           02/01/02          0
    400170517                            O            01/01/17
    0

    6674410          J95/J95             F          316,000.00         ZZ
                                         180        311,846.21          1
                                       6.625          2,774.47         72
                                       6.375          2,774.47
    BEND             OR   97701          2            10/16/01         00
    0027657618                           05           12/01/01          0
    0027657618                           O            11/01/16
    0

    6714362          313/G01             F          400,000.00         ZZ
                                         180        397,328.90          1
                                       6.375          3,457.01         29
                                       6.125          3,457.01
    CAMARILLO        CA   93010          1            12/04/01         00
    0433648805                           03           02/01/02          0
    8515868                              O            01/01/17
    0

    6716348          964/G01             F          541,000.00         ZZ
                                         180        539,255.77          1
                                       6.750          4,787.36         21
                                       6.500          4,787.36
    HILLSBOROUGH     CA   94010          5            01/22/02         00
    0433699956                           05           03/01/02          0
    175036                               O            02/01/17
    0

    6718584          964/G01             F          390,000.00         ZZ
                                         180        387,339.60          1
                                       6.125          3,317.44         52
                                       5.875          3,317.44
    ORINDA           CA   94563          5            12/18/01         00
    0433642246                           05           02/01/02          0
1

    400170856                            O            01/01/17
    0

    6725664          356/G01             F          400,000.00         ZZ
                                         180        398,724.25          1
                                       6.875          3,567.42         60
                                       6.625          3,567.42
    BRENTWOOD        CA   94513          5            01/15/02         00
    0433669736                           05           03/01/02          0
    28863538                             O            02/01/17
    0

    6757116          994/X14             F          485,000.00         ZZ
                                         180        478,759.25          1
                                       6.875          4,325.49         75
                                       6.625          4,325.49
    BREWSTER         NY   10509          1            10/25/01         00
    0403839779                           05           12/01/01          0
    403839779                            O            11/01/16
    0

    6775320          964/G01             F          575,000.00         ZZ
                                         180        571,119.12          1
                                       6.250          4,930.19         52
                                       6.000          4,930.19
    FREMONT          CA   94539          2            12/17/01         00
    0433611860                           05           02/01/02          0
    400169852                            O            01/01/17
    0

    6775330          964/G01             F          420,000.00         ZZ
                                         180        417,165.28          1
                                       6.250          3,601.18         60
                                       6.000          3,601.18
    FREMONT          CA   94539          2            12/17/01         00
    0433644259                           05           02/01/02          0
    400170083                            O            01/01/17
    0

    6777618          E86/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.625          3,511.98         61
                                       6.375          3,511.98
    ROCKVILLE CENTR  NY   11570          2            02/01/02         00
    0433733235                           05           04/01/02          0
    165533                               O            03/01/17
    0

1

    6784326          964/G01             F          605,000.00         ZZ
                                         180        600,303.09          1
                                       6.375          5,228.72         67
                                       6.125          5,228.72
    LAS VEGAS        NV   89117          2            12/13/01         00
    0433548690                           05           02/01/02          0
    168109                               O            01/01/17
    0

    6786068          696/G01             F          300,000.00         ZZ
                                         180        297,018.95          1
                                       6.500          2,613.32         22
                                       6.250          2,613.32
    WASHINGTON       DC   20008          2            11/14/01         00
    0433443579                           05           01/01/02          0
    30201194                             O            12/01/16
    0

    6786100          D03/D03             F          260,000.00         ZZ
                                         180        259,143.45          1
                                       6.500          2,264.88         22
                                       6.250          2,264.88
    STANFORD         CA   94305          5            01/10/02         00
    OKIMO1010001404                      02           03/01/02          0
    OKIMO1010001404                      O            02/01/17
    0

    6810888          964/G01             F          570,000.00         ZZ
                                         180        566,152.89          1
                                       6.250          4,887.31         80
                                       6.000          4,887.31
    COVINA           CA   91724          2            12/18/01         00
    0433697984                           05           02/01/02          0
    169976                               O            01/01/17
    0

    6814694          E84/G01             F          400,000.00         ZZ
                                         180        397,300.28          1
                                       6.250          3,429.69         54
                                       6.000          3,429.69
    DENVER           CO   80220          2            12/06/01         00
    0433741436                           05           02/01/02          0
    81061084                             O            01/01/17
    0

    6815148          Q97/G01             F          380,000.00         ZZ
                                         180        377,435.25          1
                                       6.250          3,258.21         73
                                       6.000          3,258.21
1

    NEWTOWN          PA   18940          5            12/17/01         00
    0433608916                           05           02/01/02          0
    16111210                             O            01/01/17
    0

    6826448          025/025             F          320,000.00         ZZ
                                         180        314,727.54          1
                                       6.625          2,809.58         58
                                       6.375          2,809.58
    SAVANNAH         GA   31419          2            09/20/01         00
    0026061119                           05           11/01/01          0
    0026061119                           O            10/01/16
    0

    6826472          025/025             F          425,000.00         ZZ
                                         180        416,724.00          1
                                       6.875          3,790.39         69
                                       6.625          3,790.39
    RICHMOND         VA   23221          2            09/06/01         00
    0130472103                           03           11/01/01          0
    0130472103                           O            10/01/16
    0

    6826504          025/025             F          400,000.00         ZZ
                                         180        317,295.85          1
                                       7.000          3,595.32         58
                                       6.750          3,595.32
    SUDBURY          MA   01776          2            09/06/01         00
    0139402556                           05           11/01/01          0
    0139402556                           O            10/01/16
    0

    6826526          025/025             F          385,000.00         ZZ
                                         180        378,723.36          1
                                       6.750          3,406.91         55
                                       6.500          3,406.91
    NEEDHAM          MA   02494          2            09/17/01         00
    0139450811                           05           11/01/01          0
    0139450811                           O            10/01/16
    0

    6826540          025/025             F          317,000.00         ZZ
                                         180        310,833.48          1
                                       6.375          2,739.68         43
                                       6.125          2,739.68
    WINCHESTER       MA   01890          2            09/21/01         00
    0139549109                           05           11/01/01          0
    0139549109                           O            10/01/16
    0
1

    6826546          025/025             F          360,000.00         ZZ
                                         180        353,630.60          1
                                       6.625          3,160.78         59
                                       6.375          3,160.78
    NAPERVILLE       IL   60564          2            09/28/01         00
    0139559918                           03           11/01/01          0
    0139559918                           O            10/01/16
    0

    6830008          E84/G01             F          845,000.00         ZZ
                                         180        839,535.97          1
                                       6.750          7,477.48         65
                                       6.500          7,477.48
    TULSA            OK   74137          2            12/14/01         00
    0433630548                           05           02/01/02          0
    82040341                             O            01/01/17
    0

    6831420          964/G01             F          345,000.00         ZZ
                                         180        342,671.48          1
                                       6.250          2,958.11         60
                                       6.000          2,958.11
    SANTA CLARA      CA   95051          2            12/12/01         00
    0433698123                           05           02/01/02          0
    400169680                            O            01/01/17
    0

    6831450          964/G01             F          315,000.00         ZZ
                                         180        312,617.44          1
                                       6.375          2,722.39         72
                                       6.125          2,722.39
    NOVATO           CA   94947          5            12/14/01         00
    0433562477                           05           02/01/02          0
    170064                               O            01/01/17
    0

    6848478          994/X14             F          300,000.00         ZZ
                                         180        296,139.71          1
                                       6.875          2,675.57         69
                                       6.625          2,675.57
    MILFORD          CT   06460          1            10/05/01         00
    1000360066                           05           12/01/01          0
    100036006                            O            11/01/16
    0

    6848502          994/X14             F          340,000.00         ZZ
                                         180        335,530.77          1
1

                                       6.625          2,985.18         68
                                       6.375          2,985.18
    CINCINNATI       OH   45249          2            10/23/01         00
    404234483                            05           12/01/01          0
    404234483                            O            11/01/16
    0

    6860238          L60/F27             F          270,000.00         ZZ
                                         180        262,347.42          1
                                       6.875          2,408.01         43
                                       6.625          2,408.01
    PINEHURST        NC   28374          1            08/23/01         00
    6610433950                           03           10/01/01          0
    6610433950                           O            09/01/16
    0

    6861916          964/G01             F          324,000.00         ZZ
                                         180        321,766.23          1
                                       6.000          2,734.10         45
                                       5.750          2,734.10
    MORAGA           CA   94556          5            12/18/01         00
    0433677234                           03           02/01/02          0
    400169978                            O            01/01/17
    0

    6871154          313/G01             F          450,000.00         ZZ
                                         180        446,995.03          1
                                       6.375          3,889.13         37
                                       6.125          3,889.13
    HINEDALE         IL   60521          5            12/17/01         00
    0433665593                           05           02/01/02          0
    0008472359                           O            01/01/17
    0

    6893120          F28/G01             F          346,000.00         ZZ
                                         180        342,561.85          1
                                       6.500          3,014.03         51
                                       6.250          3,014.03
    SEATTLE          WA   98126          2            11/12/01         00
    0433434073                           05           01/01/02          0
    7600590                              O            12/01/16
    0

    6899240          E86/G01             F          356,000.00         ZZ
                                         180        356,000.00          1
                                       6.750          3,150.28         80
                                       6.500          3,150.28
    GAMBRILLS        MD   21054          2            02/06/02         00
    0433693256                           03           04/01/02          0
1

    1                                    O            03/01/17
    0

    6901510          964/G01             F          386,000.00         ZZ
                                         180        384,728.35          1
                                       6.500          3,362.48         62
                                       6.250          3,362.48
    DANVILLE         CA   94526          2            01/25/02         00
    0433719317                           05           03/01/02          0
    177717                               O            02/01/17
    0

    6910890          313/G01             F          350,000.00         ZZ
                                         180        347,637.72          1
                                       6.250          3,000.99         58
                                       6.000          3,000.99
    PUNTA GORDA      FL   33950          2            12/13/01         00
    0433655768                           05           02/01/02          0
    0008451239                           O            01/01/17
    0

    6912208          356/G01             F          395,000.00         ZZ
                                         180        393,780.65          1
                                       7.250          3,605.81         44
                                       7.000          3,605.81
    OAKLAND          CA   94618          5            12/31/01         00
    0433609633                           05           03/01/02          0
    28868073                             O            02/01/17
    0

    6924628          E22/G01             F          376,000.00         ZZ
                                         180        373,542.38          1
                                       6.625          3,301.26         63
                                       6.375          3,301.26
    WASHINGTON       MI   48094          2            12/06/01         00
    0413219395                           05           02/01/02          0
    0413219395                           O            01/01/17
    0

    6931546          N47/G01             F          402,000.00         ZZ
                                         180        399,315.56          1
                                       6.375          3,474.29         69
                                       6.125          3,474.29
    PORTLAND         OR   97211          2            12/20/01         00
    0433564739                           05           02/01/02          0
    20410565                             O            01/01/17
    0

1

    6937636          163/G01             F          392,000.00         ZZ
                                         180        390,749.76          1
                                       6.875          3,496.07         70
                                       6.625          3,496.07
    OLD BETHPAGE     NY   11804          1            01/02/02         00
    0433561917                           05           03/01/02          0
    1000327081                           O            02/01/17
    0

    6939676          U80/U80             F          399,950.00         ZZ
                                         120        395,187.23          1
                                       6.500          4,541.35         58
                                       6.250          4,541.35
    HARTSVILLE       SC   29550          2            12/18/01         00
    10005059                             05           02/01/02          0
    10005059                             O            01/01/12
    0

    6940684          E86/G01             F          450,000.00         ZZ
                                         180        448,549.16          1
                                       6.750          3,982.09         32
                                       6.500          3,982.09
    LONGBOAT KEY     FL   34228          2            01/23/02         00
    0433644853                           05           03/01/02          0
    0000167266                           O            02/01/17
    0

    6948732          313/G01             F          505,000.00         ZZ
                                         180        501,591.59          1
                                       6.250          4,329.99         70
                                       6.000          4,329.99
    CHICAGO          IL   60657          5            12/18/01         00
    0433672961                           05           02/01/02          0
    8492530                              O            01/01/17
    0

    6949354          313/G01             F          324,000.00         ZZ
                                         180        319,873.52          1
                                       6.875          2,889.61         13
                                       6.625          2,889.61
    ATLANTA          GA   30327          2            11/12/01         00
    0433454964                           05           01/01/02          0
    8415598                              O            12/01/16
    0

    6949432          313/G01             F          450,000.00         ZZ
                                         180        444,526.54          1
                                       6.625          3,950.98         52
                                       6.375          3,950.98
1

    SCITUATE         MA   02066          2            11/21/01         00
    0433535945                           05           01/01/02          0
    8417644                              O            12/01/16
    0

    6951174          116/116             F          690,450.00         ZZ
                                         180        685,937.08          1
                                       6.625          6,062.11         69
                                       6.375          6,062.11
    THE WOODLANDS    TX   77381          2            12/20/01         00
    091020823                            05           02/01/02          0
    091020823                            O            01/01/17
    0

    6953876          964/G01             F          425,000.00         ZZ
                                         180        423,599.87          1
                                       6.500          3,702.21         22
                                       6.250          3,702.21
    CORTE MADERA     CA   94925          2            01/16/02         00
    0433631496                           05           03/01/02          0
    176327                               O            02/01/17
    0

    6956620          964/G01             F          330,500.00         ZZ
                                         180        329,422.87          1
                                       6.625          2,901.77         34
                                       6.375          2,901.77
    SAN FRANCISCO    CA   94123          5            02/01/02         00
    0433694668                           05           03/01/02          0
    177774                               O            02/01/17
    0

    6956880          R65/G01             F          374,000.00         ZZ
                                         180        371,502.54          1
                                       6.375          3,232.30         32
                                       6.125          3,232.30
    MONTCLAIR        NJ   07042          2            12/18/01         00
    0433604378                           05           02/01/02          0
    1                                    O            01/01/17
    0

    6958596          253/253             F          650,000.00         ZZ
                                         180        643,261.20          1
                                       6.000          5,485.07         45
                                       5.750          5,485.07
    SANTA FE         NM   87501          4            11/19/01         00
    955146                               05           01/01/02          0
    955146                               O            12/01/16
    0
1

    6959552          E86/G01             F          321,000.00         ZZ
                                         180        321,000.00          1
                                       6.500          2,796.25         54
                                       6.250          2,796.25
    RIVER FOREST     IL   60305          2            02/08/02         00
    0433693215                           05           04/01/02          0
    0000149401                           O            03/01/17
    0

    6963606          964/G01             F          348,000.00         T
                                         180        346,803.38          1
                                       6.000          2,936.62         50
                                       5.750          2,936.62
    DICOVERY BAY     CA   94514          2            01/25/02         00
    0433708583                           05           03/01/02          0
    160170                               O            02/01/17
    0

    6965412          964/G01             F          630,000.00         ZZ
                                         180        627,902.10          1
                                       6.375          5,444.78         50
                                       6.125          5,444.78
    SARATOGA         CA   95070          2            01/28/02         00
    0433714862                           05           03/01/02          0
    400178745                            O            02/01/17
    0

    6972904          964/G01             F          310,000.00         ZZ
                                         180        307,951.92          1
                                       6.500          2,700.44         22
                                       6.250          2,700.44
    SARATOGA         CA   95070          2            12/26/01         00
    0433666872                           05           02/01/02          0
    400172074                            O            01/01/17
    0

    6974484          944/G01             F          432,500.00         ZZ
                                         180        431,090.43          1
                                       6.625          3,797.33         31
                                       6.375          3,797.33
    DULUTH           GA   30097          2            01/14/02         00
    0433596889                           05           03/01/02          0
    W01095357                            O            02/01/17
    0

    6979892          964/G01             F          539,800.00         ZZ
                                         180        538,021.68          1
1

                                       6.500          4,702.24         80
                                       6.250          4,702.24
    CAVE CREEK       AZ   85331          2            01/02/02         00
    0433687092                           03           03/01/02          0
    171520                               O            02/01/17
    0

    7009014          964/G01             F          346,000.00         ZZ
                                         180        344,860.13          1
                                       6.500          3,014.04         51
                                       6.250          3,014.04
    SOLVANG          CA   93463          2            01/14/02         00
    0433628922                           05           03/01/02          0
    179527                               O            02/01/17
    0

    7010942          E22/G01             F          420,000.00         ZZ
                                         180        417,195.37          1
                                       6.375          3,629.85         55
                                       6.125          3,629.85
    OAK PARK         IL   60302          5            12/12/01         00
    0413278367                           05           02/01/02          0
    0413278367                           O            01/01/17
    0

    7011456          E82/G01             F          317,300.00         ZZ
                                         180        315,226.07          1
                                       6.625          2,785.87         45
                                       6.375          2,785.87
    PLYMOUTH         MN   55447          2            12/14/01         00
    0400533782                           05           02/01/02          0
    0400533782                           O            01/01/17
    0

    7016308          757/G01             F          399,900.00         ZZ
                                         180        398,568.33          1
                                       6.375          3,456.14         71
                                       6.125          3,456.14
    KINGSTON         MA   02364          2            01/02/02         00
    0433546173                           05           03/01/02          0
    1                                    O            02/01/17
    0

    7027072          U80/U80             F          525,000.00         ZZ
                                         180        521,531.51          1
                                       6.500          4,573.31         75
                                       6.250          4,573.31
    HARTSVILLE       SC   29550          2            12/10/01         00
    10004242                             05           02/01/02          0
1

    10004242                             O            01/01/17
    0

    7035906          994/X14             F          385,500.00         ZZ
                                         180        381,669.35          1
                                       6.500          3,358.12         78
                                       6.250          3,358.12
    ROCHESTER        MI   48306          2            11/15/01         00
    0219045816                           05           01/01/02          0
    219045816                            O            12/01/16
    0

    7036462          Q97/G01             F          550,000.00         ZZ
                                         180        546,366.34          1
                                       6.500          4,791.09         50
                                       6.250          4,791.09
    NANTUCKET        MA   02554          5            11/28/01         00
    0433679214                           05           02/01/02          0
    16111095                             O            01/01/17
    0

    7046068          M27/G01             F          675,000.00         ZZ
                                         180        665,937.09          1
                                       6.375          5,833.69         69
                                       6.125          5,833.69
    MEMPHIS          TN   38120          2            11/02/01         00
    0433701539                           05           12/01/01          0
    600690270                            O            11/01/16
    0

    7046500          A46/G01             F          487,000.00         ZZ
                                         180        483,782.55          1
                                       6.500          4,242.30         70
                                       6.250          4,242.30
    KINGWOOD         TX   77339          2            12/13/01         00
    0433499803                           03           02/01/02          0
    0554513                              O            01/01/17
    0

    7047440          822/G01             F          556,000.00         ZZ
                                         180        552,326.70          1
                                       6.500          4,843.36         75
                                       6.250          4,843.36
    MIDLOTHIAN       VA   23113          2            12/26/01         00
    0433619178                           05           02/01/02          0
    0126092893                           O            01/01/17
    0

1

    7056076          B65/G01             F          378,800.00         ZZ
                                         180        376,270.47          1
                                       6.375          3,273.79         72
                                       6.125          3,273.79
    POWELL           OH   43065          2            12/18/01         00
    0433539269                           05           02/01/02          0
    0118758                              O            01/01/17
    0

    7073686          964/G01             F          379,000.00         ZZ
                                         180        376,441.99          1
                                       6.250          3,249.64         66
                                       6.000          3,249.64
    SACRAMENTO       CA   95818          5            12/17/01         00
    0433712486                           05           02/01/02          0
    169271                               O            01/01/17
    0

    7076928          N28/G01             F          410,200.00         ZZ
                                         180        408,891.71          1
                                       6.875          3,658.39         53
                                       6.625          3,658.39
    WOODLAND         WA   98674          5            01/04/02         00
    0433612868                           05           03/01/02          0
    26983                                O            02/01/17
    0

    7087302          E86/G01             F          635,000.00         ZZ
                                         180        628,690.10          1
                                       6.500          5,531.53         64
                                       6.250          5,531.53
    ELBURN           IL   60119          5            12/04/01         00
    0433613130                           05           01/01/02          0
    0000156180                           O            12/01/16
    0

    7101856          E84/G01             F          368,000.00         ZZ
                                         180        365,542.61          1
                                       6.375          3,180.44         74
                                       6.125          3,180.44
    FRANKTOWN        CO   80116          2            12/28/01         00
    0433721511                           05           02/01/02          0
    81080822                             O            01/01/17
    0

    7106546          F99/G01             F          334,000.00         ZZ
                                         180        331,769.65          1
                                       6.375          2,886.60         76
                                       6.125          2,886.60
1

    CHESHIRE         CT   06410          5            12/11/01         00
    0433601721                           05           02/01/02          0
    4702218978                           O            01/01/17
    0

    7109322          R65/G01             F          311,000.00         ZZ
                                         180        311,000.00          1
                                       5.875          2,603.44         58
                                       5.625          2,603.44
    OAKLAND          CA   94602          2            02/08/02         00
    0433736568                           05           04/01/02          0
    20016762                             O            03/01/17
    0

    7112872          405/405             F          400,000.00         ZZ
                                         180        378,094.35          1
                                       6.500          3,484.43         76
                                       6.000          3,484.43
    CHESTERFIELD     MO   63017          1            09/20/01         00
    0012452769                           03           11/01/01          0
    0012452769                           O            10/01/16
    0

    7112890          405/405             F          400,000.00         ZZ
                                         120        392,883.62          1
                                       6.625          4,567.40         54
                                       6.125          4,567.40
    EDISON           NJ   08820          2            11/16/01         00
    0017855388                           05           01/01/02          0
    0017855388                           O            12/01/11
    0

    7112972          405/405             F          310,800.00         ZZ
                                         180        308,790.26          1
                                       6.750          2,750.30         72
                                       6.250          2,750.30
    FRISCO           TX   75034          2            12/07/01         00
    0018100917                           03           02/01/02          0
    0018100917                           O            01/01/17
    0

    7115902          M27/G01             F          626,300.00         ZZ
                                         180        624,280.75          1
                                       6.750          5,542.19         66
                                       6.500          5,542.19
    NEW LONDON       NC   28127          2            01/09/02         00
    0433615788                           05           03/01/02          0
    600723226                            O            02/01/17
    0
1

    7116988          N47/G01             F          307,500.00         ZZ
                                         180        305,468.45          1
                                       6.500          2,678.66         56
                                       6.250          2,678.66
    HUNTSVILLE       AL   35801          2            12/28/01         00
    0433565041                           05           02/01/02          0
    40113316                             O            01/01/17
    0

    7118056          964/G01             F          399,950.00         ZZ
                                         180        398,632.40          1
                                       6.500          3,484.00         43
                                       6.250          3,484.00
    MILL VALLEY      CA   94941          5            01/24/02         00
    0433662293                           05           03/01/02          0
    180748                               O            02/01/17
    0

    7128428          L46/L46             F          320,500.00         ZZ
                                         180        319,421.23          1
                                       6.250          2,748.04         73
                                       6.000          2,748.04
    DALLAS           TX   75214          2            01/14/02         00
    0000953265                           05           03/01/02          0
    0000953265                           O            02/01/17
    0

    7129024          E82/G01             F          160,500.00         ZZ
                                         180        159,439.63          1
                                       6.500          1,398.13         52
                                       6.250          1,398.13
    SIMI VALLEY      CA   93065          2            12/21/01         00
    0400550927                           05           02/01/02          0
    1606563                              O            01/01/17
    0

    7129640          E82/G01             F          364,000.00         ZZ
                                         180        361,569.32          1
                                       6.375          3,145.87         73
                                       6.125          3,145.87
    EAST FREEHOLD    NJ   07728          2            12/18/01         00
    0400539276                           05           02/01/02          0
    0400539276                           O            01/01/17
    0

    7129716          313/G01             F          395,000.00         ZZ
                                         180        393,698.70          1
1

                                       6.500          3,440.88         72
                                       6.250          3,440.88
    NORWICH          CT   06360          2            01/11/02         00
    0433646361                           05           03/01/02          0
    0008535528                           O            02/01/17
    0

    7139546          E22/G01             F          399,950.00         ZZ
                                         180        397,363.79          1
                                       6.750          3,539.20         70
                                       6.500          3,539.20
    WEST BLOOMFIELD  MI   48302          1            12/28/01         00
    0413458167                           05           02/01/02          0
    0413458167                           O            01/01/17
    0

    7140854          575/G01             F          510,000.00         ZZ
                                         180        508,319.85          1
                                       6.500          4,442.65         63
                                       6.250          4,442.65
    POTOMAC          MD   20854          5            01/29/02         00
    0433708914                           09           03/01/02          0
    0012102521                           O            02/01/17
    0

    7144170          461/G01             F          480,000.00         ZZ
                                         180        474,171.27          1
                                       6.375          4,148.41         74
                                       6.125          4,148.41
    SAN DIEGO        CA   92117          1            12/03/01         00
    0433629904                           05           01/01/02          0
    9031060882                           O            12/01/16
    0

    7153114          313/G01             F          325,000.00         ZZ
                                         180        323,906.09          1
                                       6.250          2,786.62         60
                                       6.000          2,786.62
    POWAY            CA   92064          5            01/09/02         00
    0433648136                           05           03/01/02          0
    8503120                              O            02/01/17
    0

    7167898          H22/G01             F          469,000.00         ZZ
                                         180        467,471.48          1
                                       6.625          4,117.79         70
                                       6.375          4,117.79
    OYSTER BAY       NY   11771          1            01/09/02         00
    0433575990                           05           03/01/02          0
1

    0112015                              O            02/01/17
    0

    7170922          286/286             F          406,000.00         ZZ
                                         180        397,338.61          1
                                       6.375          3,508.86         71
                                       6.125          3,508.86
    COLUMBUS         OH   43220          2            11/08/01         00
    0684984                              05           01/01/02          0
    684984                               O            12/01/16
    0

    7170932          286/286             F          385,000.00         ZZ
                                         180        378,485.66          1
                                       6.625          3,380.28         43
                                       6.375          3,380.28
    PARADISE VALLEY  AZ   85253          5            09/21/01         00
    0584822                              05           11/01/01          0
    584822                               O            10/01/16
    0

    7170974          286/286             F          298,000.00         ZZ
                                         180        294,041.05          1
                                       6.500          2,595.90         72
                                       6.250          2,595.90
    DUBLIN           OH   43017          2            10/19/01         00
    0616696                              05           12/01/01          0
    616696                               O            11/01/16
    0

    7170978          286/286             F          600,000.00         ZZ
                                         180        594,037.88          1
                                       6.500          5,226.64         53
                                       6.250          5,226.64
    CHICAGO          IL   60610          5            11/09/01         00
    0621939                              05           01/01/02          0
    621939                               O            12/01/16
    0

    7180138          736/G01             F          102,000.00         ZZ
                                         180        100,129.62          1
                                       6.375            881.54         56
                                       6.125            881.54
    LOS ANGELES      CA   91331          2            11/12/01         00
    0433577657                           05           01/01/02          0
    104898382                            O            12/01/16
    0

1

    7207866          738/G01             F          376,916.00         ZZ
                                         180        375,700.78          1
                                       6.750          3,335.37         80
                                       6.500          3,335.37
    RALEIGH          NC   27606          1            01/10/02         00
    0433616182                           09           03/01/02          0
    40157056                             O            02/01/17
    0

    7223082          J83/G01             F          315,000.00         ZZ
                                         180        311,768.58          1
                                       6.125          2,679.47         64
                                       5.875          2,679.47
    BIRMINGHAM       AL   35242          2            11/27/01         00
    0433658655                           03           01/01/02          0
    309758                               O            12/01/16
    0

    7224424          736/G01             F          453,000.00         ZZ
                                         180        448,401.86          1
                                       6.250          3,884.13         58
                                       6.000          3,884.13
    ORANGE           CA   92867          2            11/28/01         00
    0433577699                           03           01/01/02          0
    105007819                            O            12/01/16
    0

    7232322          964/G01             F          347,000.00         ZZ
                                         180        345,856.83          1
                                       6.500          3,022.75         78
                                       6.250          3,022.75
    LAKE FOREST      CA   92630          2            01/08/02         00
    0433600392                           09           03/01/02          0
    165111                               O            02/01/17
    0

    7233786          714/G01             F          650,000.00         ZZ
                                         180        645,566.01          1
                                       6.125          5,529.06         44
                                       5.875          5,529.06
    MEQUON           WI   53092          2            12/26/01         00
    0433615580                           05           02/01/02          0
    1                                    O            01/01/17
    0

    7236282          601/G01             F          408,750.00         ZZ
                                         180        406,106.89          1
                                       6.750          3,617.07         76
                                       6.500          3,617.07
1

    HOUSTON          TX   77024          1            12/19/01         00
    0433560455                           05           02/01/02          0
    TORRES360                            O            01/01/17
    0

    7238694          S43/G01             F          485,000.00         ZZ
                                         180        483,419.33          1
                                       6.625          4,258.27         57
                                       6.375          4,258.27
    ALBUQUERQUE      NM   87107          2            01/17/02         00
    0433605227                           05           03/01/02          0
    011994                               O            02/01/17
    0

    7240092          E45/G01             F          180,000.00         ZZ
                                         180        179,444.35          1
                                       7.250          1,643.15         75
                                       7.000          1,643.15
    CORONA           CA   92882          1            01/09/02         00
    0433656956                           05           03/01/02          0
    197766                               O            02/01/17
    0

    7241914          624/G01             F          120,000.00         ZZ
                                         180        119,600.40          1
                                       6.375          1,037.10         46
                                       6.125          1,037.10
    SAN DIEGO        CA   92111          5            01/11/02         00
    0433607454                           05           03/01/02          0
    39000410883F                         O            02/01/17
    0

    7245630          R65/G01             F          385,000.00         ZZ
                                         180        383,745.24          1
                                       6.625          3,380.28         51
                                       6.375          3,380.28
    COCKEYSVILLE     MD   21030          2            01/08/02         00
    0433613403                           05           03/01/02          0
    1                                    O            02/01/17
    0

    7251570          L46/L46             F          477,450.00         ZZ
                                         180        475,699.40          1
                                       6.750          4,225.01         70
                                       6.500          4,225.01
    DALLAS           TX   75230          2            01/15/02         00
    0000955559                           05           03/01/02          0
    0000955559                           O            02/01/17
    0
1

    7256514          M45/G01             F          390,000.00         ZZ
                                         180        387,505.15          1
                                       6.875          3,478.24         55
                                       6.625          3,478.24
    PRINCETON        NJ   08540          5            12/18/01         00
    0433522943                           05           02/01/02          0
    A0316752                             O            01/01/17
    0

    7258134          M45/G01             F          355,000.00         ZZ
                                         180        352,609.92          1
                                       6.500          3,092.44         59
                                       6.250          3,092.44
    POTOMAC          MD   20854          2            12/13/01         00
    0433528049                           05           02/01/02          0
    A0306888                             O            01/01/17
    0

    7259528          025/025             F          544,000.00         ZZ
                                         180        536,924.94          1
                                       6.750          4,813.91         80
                                       6.500          4,813.91
    SPOKANE          WA   99208          2            10/12/01         00
    0130433360                           03           12/01/01          0
    0130433360                           O            11/01/16
    0

    7260338          025/025             F          397,000.00         ZZ
                                         180        391,945.93          1
                                       7.000          3,568.35         53
                                       6.750          3,568.35
    ANDOVER          MA   01810          5            10/19/01         00
    0139471098                           05           12/01/01          0
    0139471098                           O            11/01/16
    0

    7261704          964/G01             F          765,000.00         ZZ
                                         180        765,000.00          1
                                       6.375          6,611.52         55
                                       6.125          6,611.52
    COTO DE CAZA AR  CA   92679          5            02/14/02         00
    0433720778                           03           04/01/02          0
    180268                               O            03/01/17
    0

    7267812          225/G01             F          746,000.00         ZZ
                                         120        732,183.31          1
1

                                       5.875          8,235.38         68
                                       5.625          8,235.38
    YORK             PA   17402          5            11/15/01         00
    0433621471                           05           01/01/02          0
    6560115                              O            12/01/11
    0

    7268882          025/025             F          508,000.00         ZZ
                                         180        501,393.16          1
                                       6.750          4,495.34         80
                                       6.500          4,495.34
    TAMPA            FL   33613          1            10/03/01         00
    0025097007                           03           12/01/01          0
    0025097007                           O            11/01/16
    0

    7276282          994/X14             F          463,000.00         ZZ
                                         180        459,973.75          1
                                       6.625          4,065.11         62
                                       6.375          4,065.11
    IOWA CITY        IA   52246          5            12/01/01         00
    0404448415                           05           02/01/02          0
    404448415                            O            01/01/17
    0

    7276304          994/X14             F          385,000.00         ZZ
                                         180        381,174.30          1
                                       6.500          3,353.77         52
                                       6.250          3,353.77
    FAIRFIELD        CT   06430          2            11/16/01         00
    1000351641                           05           01/01/02          0
    1000351641                           O            12/01/16
    0

    7276410          994/X14             F          434,300.00         ZZ
                                         180        430,030.22          1
                                       6.625          3,813.13         46
                                       6.375          3,813.13
    E NORWALK        CT   06855          1            11/09/01         00
    1000356038                           05           01/01/02          0
    1000356038                           O            12/01/16
    0

    7276432          994/X14             F          400,000.00         ZZ
                                         180        395,536.72          1
                                       6.250          3,429.69         84
                                       6.000          3,429.69
    LEXINGTON        KY   40513          2            11/29/01         12
    0404534413                           05           01/01/02         12
1

    404534413                            O            12/01/16
    0

    7276444          994/X14             F          390,000.00         ZZ
                                         180        386,124.62          1
                                       6.500          3,397.32         46
                                       6.250          3,397.32
    BROOKLINE        MA   02445          2            11/19/01         00
    1000351786                           05           01/01/02          0
    1000351786                           O            12/01/16
    0

    7277636          B57/G01             F          166,100.00         ZZ
                                         180        165,570.24          1
                                       6.875          1,481.37         62
                                       6.625          1,481.37
    NORTH HILLS      CA   91343          2            01/11/02         00
    0433681749                           05           03/01/02          0
    2119742                              O            02/01/17
    0

    7287880          E82/G01             F          620,000.00         ZZ
                                         180        617,913.15          1
                                       6.250          5,316.02         69
                                       6.000          5,316.02
    NORTHVILLE       MI   48167          2            01/04/02         00
    0400545224                           05           03/01/02          0
    0400545224                           O            02/01/17
    0

    7288554          550/550             F          358,000.00         ZZ
                                         180        356,850.76          1
                                       6.800          3,177.91         27
                                       6.550          3,177.91
    CHEVY CHASE      MD   20815          2            01/03/02         00
    120562785000000                      05           03/01/02          0
    120562785                            O            02/01/17
    0

    7297442          893/G01             F          412,000.00         ZZ
                                         180        410,642.71          1
                                       6.500          3,588.96         45
                                       6.250          3,588.96
    SAN JOSE         CA   95138          2            01/11/02         00
    0433616273                           05           03/01/02          0
    M11226031                            O            02/01/17
    0

1

    7297488          076/076             F          371,000.00         ZZ
                                         180        367,251.99          1
                                       6.625          3,257.36         77
                                       6.375          3,257.36
    LEMONT           IL   60439          2            11/28/01         00
    12093702                             05           01/01/02          0
    2093702                              O            12/01/16
    0

    7297494          076/076             F          328,000.00         ZZ
                                         180        324,532.95          1
                                       6.625          2,879.82         53
                                       6.375          2,879.82
    FENTON           MI   48430          2            10/30/01         00
    12137510                             05           01/01/02          0
    2137510                              O            12/01/16
    0

    7297496          076/076             F          469,000.00         ZZ
                                         180        464,289.76          1
                                       6.375          4,053.33         73
                                       6.125          4,053.33
    SPRINGFIELD      MO   65809          2            11/15/01         00
    12156204                             05           01/01/02          0
    2156204                              O            12/01/16
    0

    7297500          076/076             F          538,600.00         ZZ
                                         180        529,819.29          1
                                       6.750          4,766.12         72
                                       6.500          4,766.12
    LEOLA            PA   17540          2            09/05/01         00
    14245743                             05           12/01/01          0
    4245743                              O            11/01/16
    0

    7300842          369/G01             F          385,000.00         ZZ
                                         180        383,785.34          1
                                       7.000          3,460.49         50
                                       6.750          3,460.49
    VIRGINIA BEACH   VA   23451          2            01/21/02         00
    0433641974                           05           03/01/02          0
    20033683                             O            02/01/17
    0

    7302798          R65/G01             F          345,300.00         ZZ
                                         180        341,795.07          1
                                       6.250          2,960.68         74
                                       6.000          2,960.68
1

    MCLEAN           VA   22101          5            11/09/01         00
    0433611332                           05           01/01/02          0
    190156                               O            12/01/16
    0

    7315630          369/G01             F          392,000.00         ZZ
                                         180        390,722.43          1
                                       6.625          3,441.74         72
                                       6.375          3,441.74
    DAVIE            FL   33328          5            01/25/02         00
    0433675196                           09           03/01/02          0
    0073772816                           O            02/01/17
    0

    7318410          994/X14             F          472,500.00         ZZ
                                         180        461,972.21          1
                                       6.500          4,115.98         68
                                       6.250          4,115.98
    SCARBOROUGH      ME   04074          5            12/03/01         00
    1000321251                           01           02/01/02          0
    1000321251                           O            01/01/17
    0

    7318444          994/X14             F          460,000.00         ZZ
                                         180        443,731.37          1
                                       7.125          4,166.83         80
                                       6.875          4,166.83
    CHARLESTOWN      MA   02129          1            03/30/01         00
    80492652                             01           05/01/01          0
    80492652                             O            04/01/16
    0

    7318666          R65/G01             F          370,000.00         ZZ
                                         180        370,000.00          1
                                       6.500          3,223.10         55
                                       6.250          3,223.10
    ARLINGTON        VA   22207          5            02/07/02         00
    0433692795                           05           04/01/02          0
    20016561                             O            03/01/17
    0

    7322720          Q59/G01             F          370,000.00         ZZ
                                         180        368,781.07          1
                                       6.500          3,223.10         59
                                       6.250          3,223.10
    LA HABRA         CA   90631          2            01/15/02         00
    0433633666                           03           03/01/02          0
    304626                               O            02/01/17
    0
1

    7327188          964/G01             F          399,900.00         ZZ
                                         180        398,610.69          1
                                       6.750          3,538.75         46
                                       6.500          3,538.75
    PALO ALTO        CA   94306          5            01/22/02         00
    0433635802                           05           03/01/02          0
    178612                               O            02/01/17
    0

    7340280          L96/G01             F          350,000.00         ZZ
                                         180        348,871.57          1
                                       6.750          3,097.18         39
                                       6.500          3,097.18
    LOS ANGELES      CA   91316          2            01/16/02         00
    0433674256                           05           03/01/02          0
    530566                               O            02/01/17
    0

    7342282          964/G01             F          480,000.00         ZZ
                                         180        480,000.00          1
                                       6.500          4,181.32         53
                                       6.250          4,181.32
    LOS ALTOS        CA   94024          2            01/29/02         00
    0433694361                           05           04/01/02          0
    182018                               O            03/01/17
    0

    7348228          830/G01             F          136,500.00         T
                                         180        136,050.32          1
                                       6.500          1,189.06         44
                                       6.250          1,189.06
    SAN DIEGO        CA   92109          2            01/18/02         00
    0433672656                           01           03/01/02          0
    1934843                              O            02/01/17
    0

    7348734          D03/D03             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.125          3,402.50         43
                                       5.875          3,402.50
    STANFORD         CA   94305          2            02/04/02         00
    1010001431                           02           04/01/02          0
    1010001431                           O            03/01/17
    0

    7348892          926/926             F          515,000.00         ZZ
                                         180        513,392.77          1
1

                                       7.125          4,665.04         47
                                       6.875          4,665.04
    HILTON HEAD ISL  SC   29926          5            01/25/02         00
    02019875                             03           03/01/02          0
    02019875                             O            02/01/17
    0

    7349512          025/025             F          390,400.00         ZZ
                                         180        385,322.60          1
                                       6.750          3,454.69         51
                                       6.500          3,454.69
    POTOMAC          MD   20854          2            10/03/01         00
    0130508575                           05           12/01/01          0
    0130508575                           O            11/01/16
    0

    7364046          964/G01             F          447,000.00         ZZ
                                         180        445,543.18          1
                                       6.625          3,924.63         39
                                       6.375          3,924.63
    HAYWARD          CA   94539          5            01/30/02         00
    0433692548                           05           03/01/02          0
    400165441                            O            02/01/17
    0

    7372230          B57/G01             F          530,000.00         ZZ
                                         180        528,272.67          1
                                       6.625          4,653.37         51
                                       6.375          4,653.37
    SANTA CLARITA    CA   91321          5            01/30/02         00
    0433692621                           05           03/01/02          0
    2120024                              O            02/01/17
    0

    7384570          964/G01             F          399,950.00         ZZ
                                         180        398,632.40          1
                                       6.500          3,484.00         67
                                       6.250          3,484.00
    SOUTH SAN FRANC  CA   94080          5            01/18/02         00
    0433682309                           03           03/01/02          0
    161086                               O            02/01/17
    0

    7386232          D03/D03             F          400,000.00         ZZ
                                         180        398,668.00          1
                                       6.375          3,457.00         54
                                       6.125          3,457.00
    PALO ALTO        CA   94303          5            01/18/02         00
    1010001310                           05           03/01/02          0
1

    1010001310                           O            02/01/17
    0

    7388606          975/G01             F          400,000.00         ZZ
                                         180        398,682.24          1
                                       6.500          3,484.43         59
                                       6.250          3,484.43
    LA HABRA HEIGHT  CA   90631          2            01/21/02         00
    0433719309                           05           03/01/02          0
    2015525                              O            02/01/17
    0

    7390134          356/G01             F          412,000.00         ZZ
                                         180        412,000.00          1
                                       7.000          3,703.18         64
                                       6.750          3,703.18
    PIEDMONT         CA   94610          5            01/30/02         00
    0433693447                           05           04/01/02          0
    28860971                             O            03/01/17
    0

    7401242          E82/G01             F          189,000.00         ZZ
                                         180        188,370.63          1
                                       6.375          1,633.43         60
                                       6.125          1,633.43
    THOUSAND OAKS    CA   91320          2            01/10/02         00
    0400529681                           05           03/01/02          0
    1785829                              O            02/01/17
    0

    7401256          E82/G01             F          228,000.00         ZZ
                                         180        227,264.91          1
                                       6.750          2,017.59         74
                                       6.500          2,017.59
    EVERETT          WA   98203          2            01/09/02         00
    0400555959                           05           03/01/02          0
    0400555959                           O            02/01/17
    0

    7404094          624/G01             F          379,000.00         ZZ
                                         180        377,737.93          1
                                       6.375          3,275.51         61
                                       6.125          3,275.51
    CAYUCOS          CA   93430          2            01/14/02         00
    0433621034                           05           03/01/02          0
    72014612493F                         O            02/01/17
    0

1

    7408436          964/G01             F          430,000.00         ZZ
                                         180        428,583.40          1
                                       6.500          3,745.77         48
                                       6.250          3,745.77
    REDWOOD CITY     CA   94065          2            01/30/02         00
    0433685757                           05           03/01/02          0
    184012                               O            02/01/17
    0

    7413070          076/076             F          453,000.00         ZZ
                                         180        448,498.60          1
                                       6.500          3,946.12         72
                                       6.250          3,946.12
    WAUSAU           WI   54401          2            11/26/01         00
    1986123                              05           01/01/02          0
    1986123                              O            12/01/16
    0

    7413368          F28/G01             F          303,000.00         ZZ
                                         180        301,040.70          1
                                       6.750          2,681.28         80
                                       6.500          2,681.28
    CUMBERLAND       ME   04021          2            12/17/01         00
    0433597127                           05           02/01/02          0
    7829373                              O            01/01/17
    0

    7413424          F28/G01             F          360,000.00         ZZ
                                         180        357,672.12          1
                                       6.750          3,185.67         56
                                       6.500          3,185.67
    WILTON           CT   06897          2            12/26/01         00
    0433591609                           05           02/01/02          0
    7095965                              O            01/01/17
    0

    7413478          F28/G01             F          343,100.00         ZZ
                                         180        340,857.42          1
                                       6.625          3,012.40         46
                                       6.375          3,012.40
    NAPERVILLE       IL   60540          2            12/11/01         00
    0433589421                           03           02/01/02          0
    7608247                              O            01/01/17
    0

    7413518          F28/G01             F          335,250.00         ZZ
                                         180        330,936.13          1
                                       6.875          2,989.94         69
                                       6.625          2,989.94
1

    BOCA RATON       FL   33434          2            10/17/01         00
    0433597473                           03           12/01/01          0
    B0109003                             O            11/01/16
    0

    7413526          F28/G01             F          650,000.00         ZZ
                                         180        643,541.03          1
                                       6.500          5,662.20         50
                                       6.250          5,662.20
    BETHESDA         MD   20817          5            11/29/01         00
    0433603719                           05           01/01/02          0
    7734852                              O            12/01/16
    0

    7425164          E22/G01             F          519,000.00         ZZ
                                         180        517,326.70          1
                                       6.750          4,592.68         80
                                       6.500          4,592.68
    LAS VEGAS        NV   89145          2            01/04/02         00
    0413401266                           03           03/01/02          0
    0413401266                           O            02/01/17
    0

    7441428          E82/G01             F          300,100.00         ZZ
                                         180        299,111.35          1
                                       6.500          2,614.19         61
                                       6.250          2,614.19
    ROUND HILL       VA   20141          2            01/14/02         00
    0400550943                           05           03/01/02          0
    0400550943                           O            02/01/17
    0

    7446226          G75/G75             F          329,300.00         ZZ
                                         180        326,096.95          1
                                       6.750          2,914.01         76
                                       6.500          2,914.01
    CLOSTER          NJ   07624          2            11/21/01         00
    0004504711                           05           01/01/02          0
    04504711                             O            12/01/16
    0

    7454984          N47/G01             F          330,000.00         ZZ
                                         180        328,924.49          1
                                       6.625          2,897.38         88
                                       6.375          2,897.38
    VESTAVIA         AL   35216          2            01/31/02         14
    0433705084                           05           03/01/02         12
    40113322                             O            02/01/17
    0
1

    7464568          A06/G01             F          298,000.00         ZZ
                                         180        297,028.78          1
                                       6.625          2,616.43         58
                                       6.375          2,616.43
    HUNTINGTON WOOD  MI   48070          2            01/10/02         00
    0433602729                           05           03/01/02          0
    1000020152048                        O            02/01/17
    0

    7487962          076/076             F          369,300.00         ZZ
                                         180        365,669.27          1
                                       6.625          3,242.43         57
                                       6.375          3,242.43
    FORT WORTH       TX   76107          2            11/12/01         00
    1998629                              05           01/01/02          0
    1998629                              O            12/01/16
    0

    7487966          076/076             F          528,500.00         ZZ
                                         180        524,778.20          1
                                       6.500          4,603.80         71
                                       6.250          4,603.80
    RIDGEFIELD       CT   06877          2            12/19/01         00
    2065219                              05           02/01/02          0
    2065219                              O            01/01/17
    0

    7487972          076/076             F          498,500.00         ZZ
                                         180        493,546.48          1
                                       6.500          4,342.47         61
                                       6.250          4,342.47
    ORLANDO          FL   32804          2            11/26/01         00
    2159518                              05           01/01/02          0
    2159518                              O            12/01/16
    0

    7487976          076/076             F          375,000.00         ZZ
                                         180        371,273.69          1
                                       6.500          3,266.65         55
                                       6.250          3,266.65
    TULSA            OK   74137          2            11/29/01         00
    2202147                              03           01/01/02          0
    2202147                              O            12/01/16
    0

    7487980          076/076             F          620,000.00         ZZ
                                         180        615,859.83          1
1

                                       6.375          5,358.35         79
                                       6.125          5,358.35
    MONTGOMERY       AL   36117          2            12/07/01         00
    2215579                              05           02/01/02          0
    2215579                              O            01/01/17
    0

    7489492          369/G01             F          392,000.00         ZZ
                                         180        388,980.33          1
                                       6.875          3,496.07         70
                                       6.625          3,496.07
    NEWTOWN          PA   18940          2            12/24/01         00
    0433618147                           05           02/01/02          0
    0073709271                           O            01/01/17
    0

    7492450          369/G01             F          499,500.00         ZZ
                                         180        497,854.44          1
                                       6.500          4,351.19         57
                                       6.250          4,351.19
    DALLAS           TX   75225          2            01/25/02         00
    0433662566                           05           03/01/02          0
    0073776551                           O            02/01/17
    0

    7495546          E33/G01             F          607,000.00         ZZ
                                         180        605,021.73          1
                                       6.625          5,329.42         45
                                       6.375          5,329.42
    HIGHLAND PARK    IL   60035          2            01/17/02         00
    0433608841                           05           03/01/02          0
    BRONSON                              O            02/01/17
    0

    7504560          956/G01             F          555,000.00         ZZ
                                         180        551,333.30          1
                                       6.500          4,834.65         59
                                       6.250          4,834.65
    SAN JOSE         CA   95126          2            12/12/01         00
    0433619814                           05           02/01/02          0
    111110060                            O            01/01/17
    0

    7504630          956/G01             F          640,000.00         ZZ
                                         180        635,344.52          1
                                       6.500          5,575.09         43
                                       6.250          5,575.09
    BELLEVUE         WA   98005          2            12/06/01         00
    0433619939                           05           02/01/02          0
1

    1311110204                           O            01/01/17
    0

    7511018          E22/G01             F          309,000.00         ZZ
                                         180        307,992.94          1
                                       6.625          2,713.00         46
                                       6.375          2,713.00
    LEMONT           IL   60439          2            01/15/02         00
    0413336710                           03           03/01/02          0
    0413336710                           O            02/01/17
    0

    7511782          956/G01             F          320,000.00         ZZ
                                         180        317,930.78          1
                                       6.750          2,831.71         61
                                       6.500          2,831.71
    SAN DIEGO        CA   92130          2            12/03/01         00
    0433610078                           03           02/01/02          0
    1511110014                           O            01/01/17
    0

    7512126          956/G01             F          341,600.00         ZZ
                                         180        339,391.10          1
                                       6.750          3,022.85         80
                                       6.500          3,022.85
    LEXINGTON        KY   40509          1            12/31/01         00
    0433611001                           05           02/01/02          0
    331112086                            O            01/01/17
    0

    7512418          956/G01             F          403,000.00         ZZ
                                         180        400,422.00          1
                                       6.875          3,594.17         79
                                       6.625          3,594.17
    PORTLAND         OR   97214          2            12/18/01         00
    0433611308                           05           02/01/02          0
    1711110142                           O            01/01/17
    0

    7512692          956/G01             F          301,000.00         ZZ
                                         180        298,040.75          1
                                       6.625          2,642.76         61
                                       6.375          2,642.76
    PACIFIC GROVE    CA   93950          2            11/20/01         00
    0433611506                           05           01/01/02          0
    1111110756                           O            12/01/16
    0

1

    7513268          956/G01             F          350,000.00         ZZ
                                         180        347,712.32          1
                                       6.625          3,072.98         49
                                       6.375          3,072.98
    RIDGEWOOD        NJ   07450          2            12/05/01         00
    0433603487                           05           02/01/02          0
    911110001                            O            01/01/17
    0

    7519440          L46/L46             F          380,000.00         ZZ
                                         180        380,000.00          1
                                       6.500          3,310.21         76
                                       6.250          3,310.21
    PLANO            TX   75093          2            02/15/02         00
    0000957514                           03           04/01/02          0
    0000957514                           O            03/01/17
    0

    7524890          964/G01             F          580,000.00         ZZ
                                         180        580,000.00          1
                                       6.500          5,052.43         20
                                       6.250          5,052.43
    HILLSBOROUGH     CA   94010          2            02/08/02         00
    0433704046                           05           04/01/02          0
    184575                               O            03/01/17
    0

    7530994          964/G01             F          460,000.00         ZZ
                                         180        460,000.00          1
                                       6.500          4,007.10         80
                                       6.250          4,007.10
    LOS ANGELES      CA   90068          2            01/31/02         00
    0433685823                           05           04/01/02          0
    400177948                            O            03/01/17
    0

    7538546          964/G01             F          430,000.00         ZZ
                                         180        430,000.00          1
                                       6.625          3,775.38         44
                                       6.375          3,775.38
    SAN MATEO        CA   94402          2            02/07/02         00
    0433727591                           05           04/01/02          0
    400184075                            O            03/01/17
    0

    7541886          964/G01             F          399,995.00         ZZ
                                         180        399,995.00          1
                                       6.625          3,511.93         55
                                       6.375          3,511.93
1

    FOSTER CITY      CA   94404          5            02/12/02         00
    0433704293                           05           04/01/02          0
    186798                               O            03/01/17
    0

    7544020          994/X14             F          343,000.00         ZZ
                                         180        340,758.08          1
                                       6.625          3,011.52         68
                                       6.375          3,011.52
    MIAMI            FL   33014          2            12/26/01         00
    219057704                            05           02/01/02          0
    219057704                            O            01/01/17
    0

    7551840          R84/G01             F          498,450.00         ZZ
                                         180        496,842.95          1
                                       6.750          4,410.83         74
                                       6.500          4,410.83
    HOUSTON          TX   77005          2            02/01/02         00
    0433665478                           05           03/01/02          0
    0530430                              O            02/01/17
    0

    7556398          E22/G01             F          448,000.00         ZZ
                                         180        446,571.16          1
                                       6.875          3,995.51         50
                                       6.625          3,995.51
    BRUCE TWP        MI   48317          2            01/18/02         00
    0413449372                           29           03/01/02          0
    0413449372                           O            02/01/17
    0

    7557704          405/405             F          310,000.00         ZZ
                                         180        304,301.90          1
                                       6.750          2,743.22         53
                                       6.250          2,743.22
    COOKSVILLE       MD   21723          1            09/28/01         00
    0012529509                           03           11/01/01          0
    0012529509                           O            10/01/16
    0

    7557716          405/405             F          325,000.00         ZZ
                                         180        321,804.79          1
                                       6.625          2,853.48         52
                                       6.125          2,853.48
    DALLAS           TX   75229          1            11/29/01         00
    0012725917                           05           01/01/02          0
    0012725917                           O            12/01/16
    0
1

    7557756          405/405             F          486,000.00         ZZ
                                         180        484,416.07          1
                                       6.625          4,267.05         39
                                       6.125          4,267.05
    LOS ANGELES      CA   90064          2            01/04/02         00
    0018083048                           05           03/01/02          0
    0018083048                           O            02/01/17
    0

    7557770          405/405             F          440,000.00         ZZ
                                         180        436,458.61          1
                                       6.375          3,802.71         54
                                       6.000          3,802.71
    RANCHO PALOS VE  CA   90275          5            12/17/01         00
    0019967371                           05           02/01/02          0
    0019967371                           O            01/01/17
    0

    7558572          E82/G01             F          303,200.00         ZZ
                                         180        302,222.45          1
                                       6.750          2,683.05         80
                                       6.500          2,683.05
    ARLINGTON        MA   02476          2            01/22/02         00
    0400568978                           05           03/01/02          0
    0400568978                           O            02/01/17
    0

    7559042          994/X14             F          390,000.00         ZZ
                                         180        387,395.70          1
                                       6.375          3,370.58         78
                                       6.125          3,370.58
    BOCA RATON       FL   33432          2            12/03/01         00
    219123852                            05           02/01/02          0
    219123852                            O            01/01/17
    0

    7559058          994/X14             F          385,000.00         ZZ
                                         180        382,401.51          1
                                       6.250          3,301.08         51
                                       6.000          3,301.08
    BETHESDA         MD   20816          5            12/18/01         00
    219111972                            05           02/01/02          0
    219111972                            O            01/01/17
    0

    7559060          994/X14             F          590,000.00         ZZ
                                         180        586,184.86          1
1

                                       6.750          5,220.97         43
                                       6.500          5,220.97
    WESTWOOD         MA   02090          2            12/14/01         00
    1000367457                           05           02/01/02          0
    1000367457                           O            01/01/17
    0

    7559070          994/X14             F          480,000.00         ZZ
                                         180        476,760.33          1
                                       6.250          4,115.63         74
                                       6.000          4,115.63
    WILMINGRON       NC   28403          2            12/10/01         00
    81413588                             05           02/01/02          0
    81413588                             O            01/01/17
    0

    7559076          994/X14             F          647,500.00         ZZ
                                         180        643,267.81          1
                                       6.625          5,685.01         54
                                       6.375          5,685.01
    OLD TAPPAN       NJ   07675          2            12/19/01         00
    403965957                            05           02/01/02          0
    403965957                            O            01/01/17
    0

    7559102          994/X14             F          488,000.00         ZZ
                                         180        484,635.57          1
                                       6.000          4,118.02         80
                                       5.750          4,118.02
    LAFAYETTE        LA   70508          2            12/14/01         00
    81422757                             05           02/01/02          0
    81422757                             O            01/01/17
    0

    7559106          994/X14             F          307,450.00         ZZ
                                         180        303,232.01          1
                                       6.250          2,636.15         67
                                       6.000          2,636.15
    HOUSTON          TX   77005          2            11/15/01         00
    218949141                            05           01/01/02          0
    218949141                            O            12/01/16
    0

    7559108          994/X14             F          485,000.00         ZZ
                                         180        481,930.77          1
                                       7.000          4,359.32         55
                                       6.750          4,359.32
    BASKING RIDGE    NJ   07920          1            12/21/01         00
    1000365114                           05           02/01/02          0
1

    1000365114                           O            01/01/17
    0

    7559130          994/X14             F          360,000.00         ZZ
                                         180        357,570.25          1
                                       6.250          3,086.72         75
                                       6.000          3,086.72
    GLENVIEW         IL   60025          2            11/30/01         00
    219113093                            05           02/01/02          0
    219113093                            O            01/01/17
    0

    7559132          994/X14             F          380,000.00         ZZ
                                         180        376,264.06          1
                                       6.625          3,336.38         72
                                       6.375          3,336.38
    CANTON           CT   06019          2            11/26/01         00
    1000361536                           05           01/01/02          0
    1000361536                           O            12/01/16
    0

    7559136          994/X14             F          475,500.00         ZZ
                                         180        467,665.41          1
                                       6.625          4,174.87         27
                                       6.375          4,174.87
    UPPER BROOKVILL  NY   11771          2            09/28/01         00
    1000275831                           05           11/01/01          0
    1000275831                           O            10/01/16
    0

    7560814          405/405             F          463,600.00         ZZ
                                         180        460,504.23          1
                                       6.375          4,006.66         65
                                       6.000          4,006.66
    HOUSTON          TX   77027          2            12/20/01         00
    12730834                             05           02/01/02          0
    12730834                             O            01/01/17
    0

    7560826          405/405             F          375,000.00         ZZ
                                         180        372,386.11          1
                                       6.000          3,164.47         55
                                       5.750          3,164.47
    LIGHTHOUSE POIN  FL   33064          2            12/24/01         00
    17923350                             05           02/01/02          0
    17923350                             O            01/01/17
    0

1

    7560846          405/405             F          593,000.00         ZZ
                                         180        591,004.02          1
                                       6.250          5,084.52         41
                                       6.000          5,084.52
    DANVILLE         CA   94506          5            01/10/02         00
    18062216                             03           03/01/02          0
    18062216                             O            02/01/17
    0

    7560852          405/405             F          575,000.00         ZZ
                                         180        573,146.15          1
                                       6.750          5,088.23         34
                                       6.000          5,088.23
    CRESSKILL        NJ   07626          2            01/11/02         00
    18092577                             05           03/01/02          0
    18092577                             O            02/01/17
    0

    7560854          405/405             F          999,950.00         ZZ
                                         180        996,760.78          1
                                       6.875          8,918.10         50
                                       6.125          8,918.10
    FORT LAUDERDALE  FL   33308          2            01/08/02         00
    18132498                             05           03/01/02          0
    18132498                             O            02/01/17
    0

    7560878          405/405             F          109,000.00         ZZ
                                         180        108,272.11          1
                                       6.375            942.04         38
                                       6.000            942.04
    PLACENTIA        CA   92870          5            12/11/01         00
    19991579                             05           02/01/02          0
    19991579                             O            01/01/17
    0

    7562698          N47/G01             F          840,000.00         ZZ
                                         180        840,000.00          1
                                       6.375          7,259.70         70
                                       6.125          7,259.70
    ALAMO            CA   94507          1            02/01/02         00
    0433649647                           05           04/01/02          0
    20220086                             O            03/01/17
    0

    7563222          E84/G01             F          373,000.00         ZZ
                                         180        370,613.90          1
                                       6.875          3,326.62         59
                                       6.625          3,326.62
1

    LONG BEACH       CA   90803          2            12/03/01         00
    0433617370                           03           02/01/02          0
    75513469                             O            01/01/17
    0

    7563858          M27/G01             F          477,500.00         ZZ
                                         180        477,500.00          1
                                       6.625          4,192.42         35
                                       6.375          4,192.42
    CHARLOTTE        NC   28270          2            02/06/02         00
    0433703915                           05           04/01/02          0
    600731179                            O            03/01/17
    0

    7566852          E84/G01             F          350,000.00         ZZ
                                         180        347,687.66          1
                                       6.500          3,048.88         34
                                       6.250          3,048.88
    INCLINE VILLAGE  NV   89451          2            11/28/01         00
    0433700465                           05           02/01/02          0
    40510436                             O            01/01/17
    0

    7568916          E11/G01             F        1,000,000.00         ZZ
                                         180      1,000,000.00          1
                                       6.375          8,642.50         43
                                       6.125          8,642.50
    EDEN PRAIRIE     MN   55344          2            02/19/02         00
    0433727732                           05           04/01/02          0
    0050001040595                        O            03/01/17
    0

    7572446          W53/G01             F          600,000.00         ZZ
                                         180        595,950.40          1
                                       6.250          5,144.54         48
                                       6.000          5,144.54
    SADDLE RIVER     NJ   07458          5            12/21/01         00
    0433678323                           05           02/01/02          0
    5000861400                           O            01/01/17
    0

    7580012          893/G01             F          733,000.00         ZZ
                                         180        730,559.10          1
                                       6.375          6,334.96         47
                                       6.125          6,334.96
    HILLSBOROUGH     CA   94010          2            01/15/02         00
    0433629979                           05           03/01/02          0
    H11120031                            O            02/01/17
    0
1

    7580232          K21/G01             F          325,000.00         ZZ
                                         180        325,000.00          1
                                       6.500          2,831.10         40
                                       6.250          2,831.10
    BELMONT          CA   94002          2            02/06/02         00
    0433688454                           05           04/01/02          0
    0117097                              O            03/01/17
    0

    7583834          U39/U39             F          335,000.00         ZZ
                                         180        293,817.45          1
                                       6.875          2,987.71         60
                                       6.625          2,987.71
    SAN ANTONIO      TX   78257          2            05/07/01         00
    0009638199                           03           07/01/01          0
    0009638199                           O            06/01/16
    0

    7583882          U39/U39             F          350,000.00         ZZ
                                         180        347,612.46          1
                                       6.125          2,977.19         47
                                       5.875          2,977.19
    RENO             NV   89509          1            12/10/01         00
    0117245648                           03           02/01/02          0
    0117245648                           O            01/01/17
    0

    7583894          U39/U39             F          460,000.00         ZZ
                                         180        456,657.09          1
                                       5.375          3,728.14         52
                                       5.125          3,728.14
    SAN DIEGO        CA   92130          1            12/03/01         00
    0117324682                           03           02/01/02          0
    0117324682                           O            01/01/17
    0

    7583906          U39/U39             F          825,000.00         ZZ
                                         180        819,549.50          1
                                       6.500          7,186.64         70
                                       6.250          7,186.64
    GREENWICH        CT   06830          2            11/30/01         00
    0117393646                           05           02/01/02          0
    0117393646                           O            01/01/17
    0

    7583928          U39/U39             F          360,800.00         ZZ
                                         180        357,254.56          1
1

                                       5.750          2,996.12         62
                                       5.500          2,996.12
    CLOVIS           CA   93611          2            12/21/01         00
    0117452624                           03           02/01/02          0
    0117452624                           O            01/01/17
    0

    7583962          U39/U39             F          450,000.00         ZZ
                                         180        447,058.71          1
                                       6.625          3,950.97         63
                                       6.375          3,950.97
    GROSSE POINTE    MI   48230          1            12/20/01         00
    0117537044                           05           02/01/02          0
    0117537044                           O            01/01/17
    0

    7583966          U39/U39             F          500,000.00         ZZ
                                         180        496,399.50          1
                                       6.250          4,287.11         63
                                       6.000          4,287.11
    RICHMOND HEIGHT  MO   63117          5            12/14/01         00
    0118358572                           05           02/01/02          0
    0118358572                           O            01/01/17
    0

    7583974          U39/U39             F          357,600.00         ZZ
                                         180        355,160.63          1
                                       6.125          3,041.83         36
                                       5.875          3,041.83
    CHESTERFIELD     MO   63005          2            12/13/01         00
    0118403451                           05           02/01/02          0
    0118403451                           O            01/01/17
    0

    7583976          U39/U39             F          375,000.00         ZZ
                                         180        370,675.04          1
                                       6.250          3,215.34         52
                                       6.000          3,215.34
    ESCONDIDO        CA   92029          1            12/21/01         00
    0118466490                           05           02/01/02          0
    0118466490                           O            01/01/17
    0

    7586584          964/G01             F          780,000.00         ZZ
                                         180        780,000.00          1
                                       6.500          6,794.65         65
                                       6.250          6,794.65
    ALAMO            CA   94507          5            02/06/02         00
    0433693850                           05           04/01/02          0
1

    184287                               O            03/01/17
    0

    7586876          964/G01             F          640,000.00         ZZ
                                         180        637,936.58          1
                                       6.750          5,663.42         46
                                       6.500          5,663.42
    GRANITE BAY      CA   95746          5            01/30/02         00
    0433686474                           05           03/01/02          0
    182870                               O            02/01/17
    0

    7588472          E84/G01             F          418,000.00         ZZ
                                         180        416,666.84          1
                                       6.875          3,727.95         70
                                       6.625          3,727.95
    NOVI             MI   48374          5            02/01/02         00
    0433726031                           05           03/01/02          0
    145400350                            O            02/01/17
    0

    7593168          K21/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.625          3,511.98         62
                                       6.375          3,511.98
    SAN JUAN CAPIST  CA   92675          5            02/19/02         00
    0433718236                           05           04/01/02          0
    0117060                              O            03/01/17
    0

    7595956          W68/G01             F          603,600.00         ZZ
                                         180        601,653.94          1
                                       6.750          5,341.31         64
                                       6.500          5,341.31
    SPRING           TX   77381          2            02/01/02         00
    0433696465                           05           03/01/02          0
    22936                                O            02/01/17
    0

    7596636          M24/G01             F          461,000.00         ZZ
                                         180        459,481.28          2
                                       6.500          4,015.80         55
                                       6.250          4,015.80
    SEAL BEACH       CA   90740          2            02/15/02         00
    0433675949                           05           03/01/02          0
    3102002                              O            02/01/17
    0

1

    7599840          B98/G01             F          120,000.00         ZZ
                                         180        120,000.00          1
                                       6.875          1,070.23         28
                                       6.625          1,070.23
    SAN JOSE         CA   95122          5            02/01/02         00
    0433672664                           05           04/01/02          0
    893184                               O            03/01/17
    0

    7604236          E22/G01             F          650,000.00         ZZ
                                         180        647,835.50          1
                                       6.375          5,617.63         35
                                       6.125          5,617.63
    KEY WEST         FL   33040          2            01/17/02         00
    0413312265                           03           03/01/02          0
    0413312265                           O            02/01/17
    0

    7606834          025/025             F          545,000.00         ZZ
                                         180        530,705.40          1
                                       6.875          4,860.61         50
                                       6.625          4,860.61
    SAVANNAH         GA   31401          2            06/27/01         00
    0020297842                           05           08/01/01          0
    0020297842                           O            07/01/16
    0

    7613648          964/G01             F          459,000.00         ZZ
                                         180        459,000.00          1
                                       6.625          4,029.99         71
                                       6.375          4,029.99
    PIEDMONT         CA   94611          2            02/13/02         00
    0433734514                           05           04/01/02          0
    400186455                            O            03/01/17
    0

    7619228          696/G01             F          372,640.00         ZZ
                                         180        371,464.34          1
                                       7.000          3,349.39         80
                                       6.750          3,349.39
    OAKTON           VA   22124          1            01/18/02         00
    0433646148                           05           03/01/02          0
    25301169                             O            02/01/17
    0

    7624168          B57/G01             F          370,000.00         ZZ
                                         180        370,000.00          1
                                       6.750          3,274.17         64
                                       6.500          3,274.17
1

    LOS ANGELES      CA   90068          2            02/11/02         00
    0433711421                           05           04/01/02          0
    2119051                              O            03/01/17
    0

    7624916          E22/G01             F          560,000.00         ZZ
                                         180        558,174.90          1
                                       6.625          4,916.77         59
                                       6.375          4,916.77
    LOS ANGELES      CA   90049          5            01/17/02         00
    0413464017                           05           03/01/02          0
    0413464017                           O            02/01/17
    0

    7624956          E22/G01             F          315,000.00         ZZ
                                         180        313,962.26          1
                                       6.500          2,743.99         51
                                       6.250          2,743.99
    SALEM            OR   97304          2            01/24/02         00
    0413505959                           05           03/01/02          0
    0413505959                           O            02/01/17
    0

    7630590          964/G01             F          511,000.00         ZZ
                                         180        511,000.00          1
                                       6.625          4,486.55         19
                                       6.375          4,486.55
    BERVERLY HILLS   CA   90210          2            02/05/02         00
    0433704814                           05           04/01/02          0
    185107                               O            03/01/17
    0

    7632492          225/G01             F          406,000.00         ZZ
                                         180        403,374.68          1
                                       6.750          3,592.73         48
                                       6.500          3,592.73
    NAGS HEAD        NC   27959          2            11/27/01         00
    0433630910                           05           02/01/02          0
    006206754                            O            01/01/17
    0

    7632494          225/G01             F          400,000.00         ZZ
                                         180        397,212.92          1
                                       5.875          3,348.47         48
                                       5.625          3,348.47
    BRIARCLIFF MA    NY   10510          5            11/27/01         00
    0433660917                           05           02/01/02          0
    006206948                            O            01/01/17
    0
1

    7632498          225/G01             F          329,000.00         ZZ
                                         180        325,834.02          1
                                       6.875          2,934.20         60
                                       6.625          2,934.20
    BRIARCLIFF MA    NY   10510          2            11/26/01         00
    0433628229                           05           01/01/02          0
    006303560                            O            12/01/16
    0

    7632500          225/G01             F          332,000.00         ZZ
                                         180        329,686.73          1
                                       5.875          2,779.23         80
                                       5.625          2,779.23
    CHESTER SPRIN    PA   19425          1            12/06/01         00
    0433630803                           05           02/01/02          0
    006303868                            O            01/01/17
    0

    7632502          225/G01             F          600,000.00         T
                                         180        595,730.24          1
                                       5.625          4,942.39         42
                                       5.375          4,942.39
    AVALON           NJ   08202          2            12/10/01         00
    0433631348                           05           02/01/02          0
    006303904                            O            01/01/17
    0

    7632504          225/G01             F          585,000.00         ZZ
                                         180        569,098.19          1
                                       6.375          5,055.86         42
                                       6.125          5,055.86
    COLTS NECK       NJ   07722          5            11/14/01         00
    0433627254                           05           01/01/02          0
    006553803                            O            12/01/16
    0

    7632506          225/G01             F          650,000.00         ZZ
                                         180        645,841.94          1
                                       6.875          5,797.05         77
                                       6.625          5,797.05
    INDIALANTIC      FL   32903          5            12/10/01         00
    0433631140                           05           02/01/02          0
    006555773                            O            01/01/17
    0

    7632510          225/G01             F          365,000.00         ZZ
                                         180        362,532.46          1
1

                                       6.500          3,179.54         51
                                       6.250          3,179.54
    SHERMAN          CT   06784          5            12/05/01         00
    0433631363                           05           02/01/02          0
    006557164                            O            01/01/17
    0

    7632514          225/G01             F          345,800.00         ZZ
                                         180        343,379.49          1
                                       6.750          3,060.02         73
                                       6.500          3,060.02
    MIDDLETOWN       NJ   07748          5            12/13/01         00
    0433626363                           05           02/01/02          0
    006557790                            O            01/01/17
    0

    7632516          225/G01             F          470,000.00         ZZ
                                         180        461,740.02          1
                                       6.500          4,094.20         38
                                       6.250          4,094.20
    WARREN           NJ   07059          2            12/04/01         00
    0433631082                           05           02/01/02          0
    006558416                            O            01/01/17
    0

    7632518          225/G01             F          750,000.00         ZZ
                                         180        745,150.26          1
                                       6.750          6,636.82         40
                                       6.500          6,636.82
    ENGLEWOOD        NJ   07631          5            12/03/01         00
    0433624954                           05           02/01/02          0
    006558599                            O            01/01/17
    0

    7632520          225/G01             F          700,000.00         ZZ
                                         180        695,424.65          1
                                       6.625          6,145.96         49
                                       6.375          6,145.96
    MIDDLETOWN TO    NJ   07701          5            12/18/01         00
    0433629177                           05           02/01/02          0
    006558611                            O            01/01/17
    0

    7632524          225/G01             F          400,000.00         ZZ
                                         180        397,328.92          1
                                       6.375          3,457.00         50
                                       6.125          3,457.00
    ATLANTA          GA   30327          5            11/27/01         00
    0433625449                           05           02/01/02          0
1

    006559101                            O            01/01/17
    0

    7632526          225/G01             F          359,200.00         ZZ
                                         180        356,852.20          1
                                       6.625          3,153.75         58
                                       6.375          3,153.75
    MANAKIN-SABOT    VA   23103          2            12/07/01         00
    0433622735                           05           02/01/02          0
    006559209                            O            01/01/17
    0

    7632528          225/G01             F          440,000.00         ZZ
                                         180        435,273.47          1
                                       6.625          3,863.17         14
                                       6.375          3,863.17
    SPRING LAKE      NJ   07762          2            11/30/01         00
    0433625696                           05           02/01/02          0
    006559581                            O            01/01/17
    0

    7632530          225/G01             F          420,000.00         ZZ
                                         180        416,823.25          1
                                       6.375          3,629.85         47
                                       6.125          3,629.85
    STATESVILLE      NC   28675          2            12/10/01         00
    0433630993                           05           02/01/02          0
    006559935                            O            01/01/17
    0

    7632534          225/G01             F          309,000.00         ZZ
                                         180        306,980.32          1
                                       6.625          2,713.00         82
                                       6.375          2,713.00
    ATLANTA          GA   30338          2            12/17/01         12
    0433663341                           05           02/01/02          6
    006561342                            O            01/01/17
    0

    7632536          225/G01             F          398,000.00         ZZ
                                         180        395,453.99          1
                                       6.875          3,549.58         58
                                       6.625          3,549.58
    HARRINGTON PA    NJ   07640          2            12/14/01         00
    0433627437                           05           02/01/02          0
    006561437                            O            01/01/17
    0

1

    7632538          225/G01             F          386,000.00         T
                                         180        383,530.75          1
                                       6.875          3,442.56         73
                                       6.625          3,442.56
    BARNEGAT LIGH    NJ   08006          2            12/14/01         00
    0433630092                           05           02/01/02          0
    006561445                            O            01/01/17
    0

    7632540          225/G01             F          830,000.00         ZZ
                                         180        824,089.44          1
                                       6.875          7,402.39         62
                                       6.625          7,402.39
    BERNARDS TWP     NJ   07920          2            12/18/01         00
    0433631405                           05           02/01/02          0
    006561482                            O            01/01/17
    0

    7632542          225/G01             F          455,000.00         ZZ
                                         180        452,089.35          1
                                       6.875          4,057.94         75
                                       6.625          4,057.94
    HOCKESSIN        DE   19707          5            12/06/01         00
    0433630662                           05           02/01/02          0
    006561738                            O            01/01/17
    0

    7632544          225/G01             F          425,000.00         T
                                         180        420,776.80          1
                                       6.500          3,702.21         29
                                       6.250          3,702.21
    LONGPORT         NJ   08403          2            11/29/01         00
    0433623725                           05           01/01/02          0
    006562529                            O            12/01/16
    0

    7632546          225/G01             F          523,000.00         ZZ
                                         180        519,432.34          1
                                       6.125          4,448.77         56
                                       5.875          4,448.77
    CHARLOTTE        NC   28203          2            12/14/01         00
    0433626793                           05           02/01/02          0
    006562530                            O            01/01/17
    0

    7632548          225/G01             F          369,100.00         ZZ
                                         180        366,311.29          1
                                       7.250          3,369.38         54
                                       7.000          3,369.38
1

    PONTE VEDRA B    FL   32082          5            12/07/01         00
    0433625977                           05           02/01/02          0
    006562721                            O            01/01/17
    0

    7632550          225/G01             F          650,000.00         ZZ
                                         180        645,705.66          1
                                       6.500          5,662.20         39
                                       6.250          5,662.20
    RYE              NY   10580          2            12/19/01         00
    0433661915                           05           02/01/02          0
    006563075                            O            01/01/17
    0

    7632552          225/G01             F          320,000.00         ZZ
                                         180        317,952.96          1
                                       6.875          2,853.93         80
                                       6.625          2,853.93
    NEW TRIPOLI      PA   18066          1            12/14/01         00
    0433631074                           05           02/01/02          0
    006563956                            O            01/01/17
    0

    7632554          225/G01             F          507,000.00         T
                                         180        503,650.43          1
                                       6.500          4,416.51         51
                                       6.250          4,416.51
    STONE HARBOR     NJ   08247          2            12/19/01         00
    0433626215                           05           02/01/02          0
    006564520                            O            01/01/17
    0

    7632556          225/G01             F          351,000.00         ZZ
                                         180        347,512.16          1
                                       6.500          3,057.59         90
                                       6.250          3,057.59
    TARPON SPRING    FL   34689          1            11/30/01         14
    0433631231                           05           01/01/02         12
    006565246                            O            12/01/16
    0

    7632562          225/G01             F          630,000.00         ZZ
                                         180        623,739.77          1
                                       6.500          5,487.98         71
                                       6.250          5,487.98
    HEWLETT NECK     NY   11598          2            11/08/01         00
    0433628583                           05           01/01/02          0
    007312334                            O            12/01/16
    0
1

    7632564          225/G01             F          495,030.00         ZZ
                                         180        491,653.14          1
                                       6.125          4,210.85         46
                                       5.875          4,210.85
    PLANO            TX   75093          2            12/07/01         00
    0433631413                           05           02/01/02          0
    007322287                            O            01/01/17
    0

    7632566          225/G01             F        1,000,000.00         ZZ
                                         180        993,393.33          1
                                       6.500          8,711.08         58
                                       6.250          8,711.08
    PARADISE VALL    AZ   85253          2            12/05/01         00
    0433629771                           05           02/01/02          0
    007323101                            O            01/01/17
    0

    7632570          225/G01             F          470,000.00         ZZ
                                         180        466,725.16          1
                                       5.875          3,934.46         60
                                       5.625          3,934.46
    AUSTERLITZ       NY   12017          2            12/11/01         00
    0433662822                           05           02/01/02          0
    007325458                            O            01/01/17
    0

    7632572          225/G01             F          500,000.00         ZZ
                                         180        495,084.30          1
                                       6.625          4,389.97         32
                                       6.375          4,389.97
    RIDGEFIELD       CT   06877          1            11/29/01         00
    0433627635                           05           01/01/02          0
    007327520                            O            12/01/16
    0

    7632574          225/G01             F          450,000.00         ZZ
                                         180        445,432.34          1
                                       6.250          3,858.40         54
                                       6.000          3,858.40
    WHITEHOUSE ST    NJ   08889          5            11/27/01         00
    0433628278                           05           01/01/02          0
    008469421                            O            12/01/16
    0

    7632576          225/G01             F          431,612.00         ZZ
                                         180        427,277.24          1
1

                                       6.375          3,730.21         54
                                       6.125          3,730.21
    KNOXVILLE        TN   37922          2            11/26/01         00
    0433631124                           05           01/01/02          0
    008470034                            O            12/01/16
    0

    7632578          225/G01             F          400,000.00         ZZ
                                         180        395,853.04          1
                                       6.000          3,375.43         73
                                       5.750          3,375.43
    VIRGINIA BEAC    VA   23451          2            11/26/01         00
    0433631017                           08           01/01/02          0
    006559685                            O            12/01/16
    0

    7632580          225/G01             F          400,000.00         T
                                         180        393,268.86          1
                                       6.375          3,457.00         80
                                       6.125          3,457.00
    DESTIN           FL   32541          1            09/19/01         00
    0433626165                           08           11/01/01          0
    007304591                            O            10/01/16
    0

    7632582          225/G01             F          300,000.00         ZZ
                                         180        298,017.99          1
                                       6.500          2,613.33         80
                                       6.250          2,613.33
    TORRANCE         CA   90503          1            12/05/01         00
    0433662525                           01           02/01/02          0
    007328842                            O            01/01/17
    0

    7632584          225/G01             F          575,000.00         T
                                         180        570,918.10          1
                                       6.250          4,930.18         41
                                       6.000          4,930.18
    NAPLES           FL   34105          2            12/10/01         00
    0433660966                           05           02/01/02          0
    006303793                            O            01/01/17
    0

    7632586          225/G01             F          451,200.00         T
                                         180        447,921.03          1
                                       5.375          3,656.82         80
                                       5.125          3,656.82
    WEST END         NC   27376          2            12/06/01         00
    0433663564                           05           02/01/02          0
1

    006556217                            O            01/01/17
    0

    7632590          225/G01             F          560,000.00         T
                                         180        556,220.38          1
                                       6.250          4,801.57         63
                                       6.000          4,801.57
    KIAWAH ISLAND    SC   29455          2            12/06/01         00
    0433627999                           03           02/01/02          0
    006558683                            O            01/01/17
    0

    7632592          225/G01             F          517,000.00         ZZ
                                         180        513,656.92          1
                                       6.750          4,574.98         54
                                       6.500          4,574.98
    MCLEAN           VA   22101          5            12/12/01         00
    0433623238                           03           02/01/02          0
    006560189                            O            01/01/17
    0

    7632594          225/G01             F          505,000.00         ZZ
                                         180        501,663.65          1
                                       6.500          4,399.09         79
                                       6.250          4,399.09
    JACKSONVILLE     FL   32256          2            11/27/01         00
    0433626421                           03           02/01/02          0
    006560650                            O            01/01/17
    0

    7632598          225/G01             F          500,000.00         ZZ
                                         180        493,657.27          1
                                       6.250          4,287.12         42
                                       6.000          4,287.12
    PARADISE VALL    AZ   85253          2            12/12/01         00
    0433663051                           03           02/01/02          0
    007323050                            O            01/01/17
    0

    7632600          225/G01             F          300,000.00         ZZ
                                         180        296,775.19          1
                                       6.375          2,592.76         73
                                       6.125          2,592.76
    SARASOTA         FL   34241          2            11/30/01         00
    0433663010                           05           01/01/02          0
    007324537                            O            12/01/16
    0

1

    7632602          225/G01             F          299,000.00         ZZ
                                         180        295,932.73          1
                                       6.125          2,543.37         71
                                       5.875          2,543.37
    ARVADA           CO   80004          2            11/30/01         00
    0433662996                           03           01/01/02          0
    007324978                            O            12/01/16
    0

    7632604          225/G01             F          650,000.00         T
                                         180        643,541.03          1
                                       6.500          5,662.20         57
                                       6.250          5,662.20
    SUNRISE BEACH    MO   65079          2            11/30/01         00
    0433623527                           03           01/01/02          0
    007325780                            O            12/01/16
    0

    7632606          225/G01             F          335,000.00         ZZ
                                         180        331,599.62          1
                                       6.250          2,872.37         79
                                       6.000          2,872.37
    EL PASO          TX   79912          1            11/12/01         00
    0433662509                           03           01/01/02          0
    008469295                            O            12/01/16
    0

    7632608          225/G01             F          523,000.00         ZZ
                                         180        517,691.35          1
                                       6.250          4,484.32         73
                                       6.000          4,484.32
    MIDLOTHIAN       VA   23113          2            11/26/01         00
    0433623840                           03           01/01/02          0
    008469299                            O            12/01/16
    0

    7632610          225/G01             F          305,700.00         ZZ
                                         180        303,658.63          1
                                       6.375          2,642.01         73
                                       6.125          2,642.01
    CHARLOTTE        NC   28216          2            12/03/01         00
    0433631306                           03           02/01/02          0
    008470056                            O            01/01/17
    0

    7634452          L20/G01             F          491,700.00         ZZ
                                         180        490,114.71          1
                                       6.750          4,351.10         60
                                       6.500          4,351.10
1

    PARK CITY        UT   84060          2            01/28/02         00
    0433632346                           05           03/01/02          0
    283235                               O            02/01/17
    0

    7642776          356/G01             F          360,000.00         ZZ
                                         180        360,000.00          1
                                       6.875          3,210.68         71
                                       6.625          3,210.68
    UNION CITY       CA   94587          5            02/11/02         00
    0433735537                           05           04/01/02          0
    28887370                             O            03/01/17
    0

    7646876          E22/G01             F          748,000.00         ZZ
                                         180        745,509.16          1
                                       6.375          6,464.59         63
                                       6.125          6,464.59
    RIDGELAND        MS   39157          2            01/25/02         00
    0413341348                           03           03/01/02          0
    0413341348                           O            02/01/17
    0

    7647836          E82/G01             F          189,000.00         ZZ
                                         180        189,000.00          1
                                       6.375          1,633.43         65
                                       6.125          1,633.43
    SAUGUS           CA   91350          2            01/28/02         00
    0400559944                           05           04/01/02          0
    0400559944                           O            03/01/17
    0

    7652512          964/G01             F          343,000.00         ZZ
                                         180        343,000.00          1
                                       6.375          2,964.38         59
                                       6.125          2,964.38
    SAN JOSE         CA   95125          2            02/05/02         00
    0433694528                           05           04/01/02          0
    184385                               O            03/01/17
    0

    7654188          893/G01             F          630,000.00         ZZ
                                         180        630,000.00          1
                                       6.750          5,574.93         70
                                       6.500          5,574.93
    PACIFIC GROVE    CA   93950          5            02/01/02         00
    0433678844                           05           04/01/02          0
    A11031011                            O            03/01/17
    0
1

    7655774          964/G01             F          399,900.00         ZZ
                                         180        399,900.00          1
                                       6.250          3,428.84         62
                                       6.000          3,428.84
    LARKSPUR         CA   94939          5            02/06/02         00
    0433699436                           05           04/01/02          0
    400184855                            O            03/01/17
    0

    7657548          964/G01             F          342,400.00         ZZ
                                         180        342,400.00          1
                                       6.375          2,959.19         79
                                       6.125          2,959.19
    TORRANCE         CA   90504          2            02/07/02         00
    0433705852                           05           04/01/02          0
    185192                               O            03/01/17
    0

    7662038          944/G01             F          346,000.00         ZZ
                                         180        346,000.00          1
                                       6.625          3,037.86         80
                                       6.375          3,037.86
    TUCSON           AZ   85743          2            02/05/02         00
    0433671492                           05           04/01/02          0
    W01117745                            O            03/01/17
    0

    7662760          N47/G01             F          590,000.00         ZZ
                                         180        590,000.00          1
                                       6.625          5,180.16         68
                                       6.375          5,180.16
    LAFAYETTE        CA   94549          2            02/05/02         00
    0433719747                           05           04/01/02          0
    20520055                             O            03/01/17
    0

    7665008          H58/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.500          3,484.43         79
                                       6.250          3,484.43
    WEST LINN        OR   97068          1            02/08/02         00
    0433740115                           05           04/01/02          0
    0000088675                           O            03/01/17
    0

    7665608          964/G01             F          419,000.00         ZZ
                                         180        419,000.00          1
1

                                       6.250          3,592.60         64
                                       6.000          3,592.60
    FULLERTON        CA   92835          2            02/04/02         00
    0433694692                           03           04/01/02          0
    170424                               O            03/01/17
    0

    7665690          Q59/G01             F          470,000.00         ZZ
                                         180        470,000.00          1
                                       7.250          4,290.46         58
                                       7.000          4,290.46
    CLAREMONT        CA   91711          5            02/06/02         00
    0433712049                           03           04/01/02          0
    304647                               O            03/01/17
    0

    7668086          E22/G01             F          461,300.00         ZZ
                                         180        459,828.74          1
                                       6.875          4,114.12         62
                                       6.625          4,114.12
    AUSTIN           TX   78703          5            01/24/02         00
    0413490541                           05           03/01/02          0
    0413490541                           O            02/01/17
    0

    7669536          E82/G01             F          640,000.00         ZZ
                                         180        640,000.00          1
                                       6.750          5,663.42         66
                                       6.500          5,663.42
    LAYTON           UT   84040          2            01/30/02         00
    0400575379                           05           04/01/02          0
    0400575379                           O            03/01/17
    0

    7672342          964/G01             F           77,000.00         ZZ
                                         180         76,751.75          1
                                       6.750            681.38         53
                                       6.500            681.38
    COLORADO SPRING  CO   80911          2            01/14/02         00
    0433675295                           05           03/01/02          0
    178215                               O            02/01/17
    0

    7673104          A06/G01             F          301,000.00         ZZ
                                         180        301,000.00          1
                                       6.500          2,622.04         33
                                       6.250          2,622.04
    FARMINGTON HILL  MI   48334          2            02/06/02         00
    0433681467                           05           04/01/02          0
1

    021000020200525                      O            03/01/17
    0

    7678950          964/G01             F          615,000.00         ZZ
                                         180        615,000.00          1
                                       6.750          5,442.19         70
                                       6.500          5,442.19
    LAKE ARROWHEAD   CA   92352          2            02/07/02         00
    0433719432                           05           04/01/02          0
    400182011                            O            03/01/17
    0

    7680568          025/025             F          400,000.00         ZZ
                                         180        384,952.53          1
                                       6.375          3,457.00         52
                                       6.125          3,457.00
    KNOXVILLE        TN   37922          2            03/27/01         00
    0025663113                           05           05/01/01          0
    0025663113                           O            04/01/16
    0

    7680570          025/025             F          507,000.00         ZZ
                                         180        492,263.43          1
                                       7.000          4,557.06         68
                                       6.750          4,557.06
    KNOXVILLE        TN   37919          5            05/09/01         00
    0025663428                           05           07/01/01          0
    0025663428                           O            06/01/16
    0

    7680572          025/025             F          650,000.00         ZZ
                                         180        630,708.99          1
                                       6.750          5,751.92         55
                                       6.500          5,751.92
    WILMINGTON       NC   28405          5            05/31/01         00
    0130293178                           05           07/01/01          0
    0130293178                           O            06/01/16
    0

    7680574          025/025             F          306,000.00         ZZ
                                         180        302,991.56          1
                                       6.625          2,686.67         56
                                       6.375          2,686.67
    WILLIAMSBURG     VA   23185          2            12/05/01         00
    0130534324                           03           01/01/02          0
    0130534324                           O            12/01/16
    0

1

    7680576          025/025             F          500,000.00         ZZ
                                         180        483,465.25          1
                                       6.750          4,424.55         49
                                       6.500          4,424.55
    DENVER           CO   80218          5            04/03/01         00
    0138865423                           05           06/01/01          0
    0138865423                           O            05/01/16
    0

    7680578          025/025             F          400,000.00         ZZ
                                         180        383,445.75          1
                                       7.000          3,595.32         75
                                       6.750          3,595.32
    ORLANDO          FL   32804          5            05/11/01         00
    0139172647                           05           07/01/01          0
    0139172647                           O            06/01/16
    0

    7684484          964/G01             F          505,250.00         ZZ
                                         180        505,250.00          1
                                       6.625          4,436.07         58
                                       6.375          4,436.07
    DANVILLE         CA   94506          2            02/20/02         00
    0433756624                           03           04/01/02          0
    400186222                            O            03/01/17
    0

    7684836          Q59/G01             F          468,000.00         ZZ
                                         180        468,000.00          1
                                       6.125          3,980.92         70
                                       5.875          3,980.92
    RANCH PALOS VER  CA   90275          2            02/11/02         00
    0433728839                           05           04/01/02          0
    400226                               O            03/01/17
    0

    7692350          076/076             F          388,000.00         ZZ
                                         180        385,517.95          1
                                       6.875          3,460.40         61
                                       6.625          3,460.40
    MT HOREB         WI   53572          2            11/29/01         00
    1455100                              05           02/01/02          0
    1455100                              O            01/01/17
    0

    7692352          076/076             F          460,000.00         ZZ
                                         180        453,607.75          1
                                       6.375          3,975.55         74
                                       6.125          3,975.55
1

    PORTAGE          WI   53901          2            12/15/01         00
    2020809                              05           02/01/02          0
    2020809                              O            01/01/17
    0

    7692354          076/076             F          351,000.00         ZZ
                                         180        348,705.79          1
                                       6.625          3,081.76         90
                                       6.375          3,081.76
    HERMITAGE        PA   16148          2            12/13/01         10
    2043629                              05           02/01/02         12
    2043629                              O            01/01/17
    0

    7692356          076/076             F          640,000.00         ZZ
                                         180        633,811.31          1
                                       6.625          5,619.16         64
                                       6.375          5,619.16
    SPRING LAKE      MI   49456          2            12/05/01         00
    2045604                              05           02/01/02          0
    2045604                              O            01/01/17
    0

    7692358          076/076             F          460,000.00         ZZ
                                         180        456,928.26          1
                                       6.375          3,975.55         75
                                       6.125          3,975.55
    GLEN ALLEN       VA   23059          2            12/13/01         00
    2062285                              03           02/01/02          0
    2062285                              O            01/01/17
    0

    7692360          076/076             F          472,000.00         T
                                         180        470,461.70          1
                                       6.625          4,144.13         47
                                       6.375          4,144.13
    MANITOWISH WATE  WI   54545          2            01/04/02         00
    2083112                              05           03/01/02          0
    2083112                              O            02/01/17
    0

    7692362          076/076             F          630,000.00         ZZ
                                         180        625,837.80          1
                                       6.500          5,487.98         69
                                       6.250          5,487.98
    BURR RIDGE       IL   60521          2            12/10/01         00
    2087430                              05           02/01/02          0
    2087430                              O            01/01/17
    0
1

    7692364          076/076             F          291,000.00         ZZ
                                         180        289,077.45          1
                                       6.500          2,534.93         74
                                       6.250          2,534.93
    SHARON           PA   16146          2            12/17/01         00
    2102279                              05           02/01/02          0
    2102279                              O            01/01/17
    0

    7692366          076/076             F          474,300.00         ZZ
                                         180        469,536.52          1
                                       6.375          4,099.14         76
                                       6.125          4,099.14
    BLOWING ROCK     NC   28605          2            11/29/01         00
    2103438                              05           01/01/02          0
    2103438                              O            12/01/16
    0

    7692368          076/076             F          469,000.00         ZZ
                                         180        465,090.83          1
                                       6.375          4,053.34         37
                                       6.125          4,053.34
    WILMETTE         IL   60091          2            12/13/01         00
    2137477                              05           02/01/02          0
    2137477                              O            01/01/17
    0

    7692370          076/076             F          373,000.00         ZZ
                                         180        369,253.90          1
                                       6.375          3,223.65         75
                                       6.125          3,223.65
    MOLINE           IL   61265          2            11/26/01         00
    2152337                              05           01/01/02          0
    2152337                              O            12/01/16
    0

    7692372          076/076             F          367,500.00         ZZ
                                         180        365,045.94          1
                                       6.375          3,176.12         80
                                       6.125          3,176.12
    DENVER           CO   80206          2            12/20/01         00
    2174305                              05           02/01/02          0
    2174305                              O            01/01/17
    0

    7692374          076/076             F          650,000.00         ZZ
                                         180        645,659.50          1
1

                                       6.375          5,617.63         65
                                       6.125          5,617.63
    EDMOND           OK   73003          2            12/14/01         00
    2177448                              05           02/01/02          0
    2177448                              O            01/01/17
    0

    7692376          076/076             F          410,000.00         ZZ
                                         180        407,031.86          1
                                       6.875          3,656.60         67
                                       6.625          3,656.60
    HAWTHORN WOODS   IL   60047          2            12/20/01         00
    2179778                              05           02/01/02          0
    2179778                              O            01/01/17
    0

    7692378          076/076             F          648,000.00         ZZ
                                         180        643,579.65          1
                                       6.125          5,512.05         44
                                       5.875          5,512.05
    WELLESLEY        MA   02481          2            12/21/01         00
    2204910                              05           02/01/02          0
    2204910                              O            01/01/17
    0

    7692380          076/076             F          650,000.00         ZZ
                                         180        645,659.50          1
                                       6.375          5,617.63         55
                                       6.125          5,617.63
    MILLER           MO   65707          2            12/13/01         00
    2212811                              05           02/01/02          0
    2212811                              O            01/01/17
    0

    7692384          076/076             F          316,000.00         ZZ
                                         180        313,839.15          1
                                       6.375          2,731.03         46
                                       6.125          2,731.03
    WILLIAMSBURG     VA   23185          2            12/05/01         00
    2239685                              05           02/01/02          0
    2239685                              O            01/01/17
    0

    7692386          076/076             F          315,000.00         ZZ
                                         120        311,197.73          1
                                       6.250          3,536.82         90
                                       6.000          3,536.82
    BOSSIER CITY     LA   71111          2            12/14/01         10
    2266010                              05           02/01/02         25
1

    2266010                              O            01/01/12
    0

    7692390          076/076             F          379,000.00         ZZ
                                         180        376,469.15          1
                                       6.375          3,275.51         69
                                       6.125          3,275.51
    FARMINGTON       CT   06032          2            12/05/01         00
    2383944                              05           02/01/02          0
    2383944                              O            01/01/17
    0

    7692392          076/076             F          360,000.00         ZZ
                                         180        357,596.01          1
                                       6.375          3,111.31         76
                                       6.125          3,111.31
    WESTON           CT   06883          2            12/19/01         00
    2410372                              05           02/01/02          0
    2410372                              O            01/01/17
    0

    7692394          076/076             F          365,000.00         ZZ
                                         180        362,562.63          1
                                       6.375          3,154.52         73
                                       6.125          3,154.52
    NEW MILFORD      CT   06776          5            12/12/01         00
    2410822                              05           02/01/02          0
    2410822                              O            01/01/17
    0

    7692396          076/076             F          328,000.00         ZZ
                                         180        325,786.21          1
                                       6.250          2,812.35         47
                                       6.000          2,812.35
    WESTPORT         CT   06880          2            12/17/01         00
    2430156                              05           02/01/02          0
    2430156                              O            01/01/17
    0

    7692398          076/076             F          387,000.00         ZZ
                                         180        384,296.41          1
                                       6.750          3,424.60         65
                                       6.500          3,424.60
    LITTLE ROCK      AR   72223          2            12/21/01         00
    2727890                              05           02/01/02          0
    2727890                              O            01/01/17
    0

1

    7692400          076/076             F          397,000.00         ZZ
                                         180        393,011.93          1
                                       6.375          3,431.07         67
                                       6.125          3,431.07
    STONY POINT      NY   10980          2            11/15/01         00
    2808289                              05           01/01/02          0
    2808289                              O            12/01/16
    0

    7692402          076/076             F          380,000.00         ZZ
                                         180        376,183.60          1
                                       6.375          3,284.15         76
                                       6.125          3,284.15
    HACIENDA HEIGHT  CA   91745          2            11/26/01         00
    2844630                              05           01/01/02          0
    2844630                              O            12/01/16
    0

    7694814          477/G01             F          600,000.00         ZZ
                                         180        600,000.00          1
                                       6.750          5,309.46         40
                                       6.500          5,309.46
    HUNTINGTON BEAC  CA   92649          2            02/08/02         00
    0433718202                           05           04/01/02          0
    124609                               O            03/01/17
    0

    7704716          714/G01             F          371,843.02         ZZ
                                         180        370,644.17          1
                                       6.750          3,290.47         48
                                       6.500          3,290.47
    ELM GROVE        WI   53122          2            01/16/02         00
    0433725819                           05           03/01/02          0
    3250                                 O            02/01/17
    0

    7714646          E82/G01             F          396,500.00         ZZ
                                         180        395,179.66          1
                                       6.375          3,426.75         76
                                       6.125          3,426.75
    ELK GROVE        CA   95624          2            01/29/02         00
    0400549630                           05           03/01/02          0
    0400549630                           O            02/01/17
    0

    7714648          E82/G01             F          394,300.00         ZZ
                                         180        394,300.00          1
                                       6.500          3,434.78         53
                                       6.250          3,434.78
1

    BRIGHTWATERS     NY   11718          2            02/01/02         00
    0400520995                           05           04/01/02          0
    1452552                              O            03/01/17
    0

    7714656          E82/G01             F          277,000.00         ZZ
                                         180        276,077.59          1
                                       6.375          2,393.97         72
                                       6.125          2,393.97
    LONG BEACH       CA   90815          2            01/29/02         00
    0400578175                           05           03/01/02          0
    0400578175                           O            02/01/17
    0

    7714668          E82/G01             F          376,000.00         ZZ
                                         180        374,747.92          1
                                       6.375          3,249.58         80
                                       6.125          3,249.58
    LOS ANGELES      CA   91344          2            01/29/02         00
    0400550299                           05           03/01/02          0
    0400550299                           O            02/01/17
    0

    7718290          S11/G01             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.500          5,662.20         61
                                       6.250          5,662.20
    CHINO HILLS      CA   91709          2            02/07/02         00
    0433760576                           05           04/01/02          0
    10206269                             O            03/01/17
    0

    7720280          B57/G01             F          353,000.00         ZZ
                                         180        353,000.00          1
                                       6.500          3,075.01         47
                                       6.250          3,075.01
    LOS ANGELES      CA   90046          2            02/13/02         00
    0433725769                           05           04/01/02          0
    2118968                              O            03/01/17
    0

    7722758          975/G01             F          360,000.00         ZZ
                                         180        360,000.00          1
                                       6.500          3,135.99         37
                                       6.250          3,135.99
    IRVINE           CA   92620          2            02/05/02         00
    0433704368                           03           04/01/02          0
    2020201                              O            03/01/17
    0
1

    7734660          964/G01             F          631,600.00         ZZ
                                         180        631,600.00          1
                                       6.500          5,501.92         38
                                       6.250          5,501.92
    SEBASTOPOL       CA   95472          5            02/08/02         00
    0433702040                           05           04/01/02          0
    400184858                            O            03/01/17
    0

    7736060          E22/G01             F          360,000.00         ZZ
                                         180        358,762.12          1
                                       6.000          3,037.88         39
                                       5.750          3,037.88
    SAN DIEGO        CA   92130          2            01/23/02         00
    0413225509                           05           03/01/02          0
    0413225509                           O            02/01/17
    0

    7736122          E22/G01             F           40,000.00         ZZ
                                         180         39,869.63          1
                                       6.625            351.20         49
                                       6.375            351.20
    CHAMPAIGN        IL   61821          2            01/31/02         00
    0413469180                           05           03/01/02          0
    0413469180                           O            02/01/17
    0

    7736160          E22/G01             F          183,700.00         ZZ
                                         180        183,068.34          4
                                       6.000          1,550.16         45
                                       5.750          1,550.16
    LOS ANGELES      CA   90004          2            01/28/02         00
    0413500885                           05           03/01/02          0
    0413500885                           O            02/01/17
    0

    7747672          964/G01             F          370,000.00         ZZ
                                         180        370,000.00          1
                                       6.625          3,248.58         49
                                       6.375          3,248.58
    NEVADA CITY      CA   95959          2            02/11/02         00
    0433712817                           05           04/01/02          0
    185718                               O            03/01/17
    0

    7749652          W40/G01             F          350,000.00         ZZ
                                         180        350,000.00          1
1

                                       6.625          3,072.98         68
                                       6.375          3,072.98
    OXFORD           MI   48370          2            02/12/02         00
    0433693298                           05           04/01/02          0
    00004412                             O            03/01/17
    0

    7750276          R65/G01             F          462,000.00         ZZ
                                         180        462,000.00          1
                                       6.500          4,024.52         66
                                       6.250          4,024.52
    SOUTH DARTMOUTH  MA   02748          5            02/15/02         00
    0433737509                           05           04/01/02          0
    20016917                             O            03/01/17
    0

    7753830          U87/G01             F          342,000.00         ZZ
                                         180        342,000.00          1
                                       6.375          2,955.74         76
                                       6.125          2,955.74
    PARK CITY        UT   84098          2            02/23/02         00
    0433746195                           05           04/01/02          0
    2936                                 O            03/01/17
    0

    7754546          T53/G01             F          395,000.00         ZZ
                                         180        395,000.00          1
                                       6.625          3,468.08         66
                                       6.375          3,468.08
    RANCHO CUCAMONG  CA   91737          5            02/11/02         00
    0433695814                           03           04/01/02          0
    31001411                             O            03/01/17
    0

    7758616          E22/G01             F          258,000.00         ZZ
                                         180        257,159.15          1
                                       6.625          2,265.22         52
                                       6.375          2,265.22
    SOUTH LAKE TAHO  CA   96150          2            01/28/02         00
    0413386244                           03           03/01/02          0
    0413386244                           O            02/01/17
    0

    7759192          E82/G01             F          320,900.00         ZZ
                                         180        320,900.00          1
                                       6.500          2,795.38         50
                                       6.250          2,795.38
    TOWN AND COUNTR  MO   63017          2            02/04/02         00
    0400578274                           03           04/01/02          0
1

    0400578274                           O            03/01/17
    0

    7759340          W93/G01             F          606,000.00         ZZ
                                         180        599,848.89          1
                                       6.250          5,195.98         68
                                       6.000          5,195.98
    STOCKTON         CA   95212          2            11/28/01         00
    0433700119                           05           01/01/02          0
    46316562                             O            12/01/16
    0

    7762916          964/G01             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.250          3,000.98         44
                                       6.000          3,000.98
    BELMONT          CA   94002          2            02/21/02         00
    0433758398                           05           04/01/02          0
    400183950                            O            03/01/17
    0

    7764662          E85/G01             F          350,000.00         ZZ
                                         180        348,834.50          1
                                       6.375          3,024.88         41
                                       6.125          3,024.88
    OAKLAND          CA   94618          2            01/16/02         00
    0433661576                           05           03/01/02          0
    9612139                              O            02/01/17
    0

    7766362          952/G01             F          550,000.00         ZZ
                                         180        550,000.00          1
                                       6.625          4,828.97         65
                                       6.375          4,828.97
    HASTINGS ON HUD  NY   10706          2            02/07/02         00
    0433656691                           05           04/01/02          0
    20015362                             O            03/01/17
    0

    7776496          E33/G01             F          443,000.00         ZZ
                                         180        441,540.57          1
                                       6.500          3,859.01         57
                                       6.250          3,859.01
    LAKE FOREST      IL   60045          2            01/28/02         00
    0433651064                           05           03/01/02          0
    MSULLIV                              O            02/01/17
    0

1

    7780676          E22/G01             F          811,000.00         ZZ
                                         180        808,299.37          1
                                       6.375          7,009.07         55
                                       6.125          7,009.07
    SANTA MONICA     CA   90046          2            01/28/02         00
    0413340704                           05           03/01/02          0
    0413340704                           O            02/01/17
    0

    7780730          E22/G01             F          400,000.00         ZZ
                                         180        398,710.36          1
                                       6.750          3,539.64         67
                                       6.500          3,539.64
    SANDY            UT   84093          2            01/31/02         00
    0413538281                           05           03/01/02          0
    0413538281                           O            02/01/17
    0

    7781138          E82/G01             F          265,500.00         ZZ
                                         180        264,634.71          1
                                       6.625          2,331.07         62
                                       6.375          2,331.07
    LIVERMORE        CA   94550          2            01/31/02         00
    0400541611                           05           03/01/02          0
    1892563                              O            02/01/17
    0

    7781148          E82/G01             F          360,100.00         ZZ
                                         180        360,100.00          1
                                       6.375          3,112.17         74
                                       6.125          3,112.17
    TRABUCO CANYON   CA   92679          2            02/05/02         00
    0400580890                           03           04/01/02          0
    0400580890                           O            03/01/17
    0

    7781166          E82/G01             F          366,000.00         ZZ
                                         180        366,000.00          1
                                       6.375          3,163.16         53
                                       6.125          3,163.16
    VILLA PARK       CA   92861          2            02/05/02         00
    0400579801                           05           04/01/02          0
    0400579801                           O            03/01/17
    0

    7781174          E82/G01             F          395,600.00         ZZ
                                         180        395,600.00          1
                                       6.500          3,446.10         61
                                       6.250          3,446.10
1

    EDWARDS          CO   81632          2            02/05/02         00
    0400580031                           05           04/01/02          0
    0400580031                           O            03/01/17
    0

    7781452          998/998             F          370,000.00         ZZ
                                         180        368,596.00          1
                                       6.250          3,172.46         68
                                       6.000          3,172.46
    IOWA CITY        IA   52245          2            01/05/02         00
    2139705                              05           03/01/02          0
    2139705                              O            02/01/17
    0

    7781458          998/998             F          408,550.00         ZZ
                                         180        407,204.07          1
                                       6.500          3,558.91         60
                                       6.250          3,558.91
    OVERLAND PARK    KS   66221          2            01/02/02         00
    2204580                              05           03/01/02          0
    2204580                              O            02/01/17
    0

    7781460          998/998             F          365,000.00         ZZ
                                         180        363,797.54          1
                                       6.500          3,179.54         43
                                       6.250          3,179.54
    OMAHA            NE   68130          2            01/04/02         00
    2215580                              05           03/01/02          0
    2215580                              O            02/01/17
    0

    7781462          998/998             F          313,400.00         ZZ
                                         180        312,210.77          1
                                       6.250          2,687.16         76
                                       6.000          2,687.16
    MANHATTAN        KS   66502          2            12/31/01         00
    2233197                              05           03/01/02          0
    2233197                              O            02/01/17
    0

    7781464          998/998             F          429,500.00         ZZ
                                         180        426,631.92          1
                                       6.375          3,711.96         79
                                       6.125          3,711.96
    DAVENPORT        IA   52803          2            12/26/01         00
    2236457                              05           02/01/02          0
    2236457                              O            01/01/17
    0
1

    7781468          998/998             F          453,000.00         ZZ
                                         180        449,001.76          1
                                       6.500          3,946.12         79
                                       6.250          3,946.12
    FORT WORTH       TX   76116          2            12/27/01         00
    2359370                              05           02/01/02          0
    2359370                              O            01/01/17
    0

    7781470          998/998             F          359,973.00         ZZ
                                         180        358,774.29          1
                                       6.375          3,111.07         44
                                       6.125          3,111.07
    FALMOUTH         MA   02574          2            01/18/02         00
    2461142                              05           03/01/02          0
    2461142                              O            02/01/17
    0

    7781474          998/998             F          487,200.00         ZZ
                                         180        484,049.60          1
                                       6.750          4,311.28         80
                                       6.500          4,311.28
    CARMEL           IN   46032          1            12/27/01         00
    2745253                              03           02/01/02          0
    2745253                              O            01/01/17
    0

    7781476          998/998             F          375,000.00         ZZ
                                         180        373,018.21          1
                                       6.750          3,318.41         61
                                       6.500          3,318.41
    INDIANAPOLIS     IN   46278          2            12/28/01         00
    2759503                              05           03/01/02          0
    2759503                              O            02/01/17
    0

    7781478          998/998             F          425,000.00         ZZ
                                         180        423,644.52          1
                                       6.875          3,790.38         53
                                       6.625          3,790.38
    EAST HILLS       NY   11576          5            01/11/02         00
    2760054                              05           03/01/02          0
    2760054                              O            02/01/17
    0

    7781480          998/998             F          429,000.00         ZZ
                                         180        426,255.66          1
1

                                       6.875          3,826.06         62
                                       6.625          3,826.06
    OVERLAND PARK    KS   66221          2            12/13/01         00
    2829659                              03           02/01/02          0
    2829659                              O            01/01/17
    0

    7781482          998/998             F          390,000.00         ZZ
                                         180        388,742.60          1
                                       6.750          3,451.15         75
                                       6.500          3,451.15
    ALTA LOMA        CA   91737          5            01/11/02         00
    2883599                              03           03/01/02          0
    2883599                              O            02/01/17
    0

    7782268          550/550             F          422,000.00         ZZ
                                         180        422,000.00          1
                                       6.250          3,618.33         36
                                       6.000          3,618.33
    SAN FRANCISCO    CA   94121          2            01/28/02         00
    120560532                            05           04/01/02          0
    120560532                            O            03/01/17
    0

    7784690          H29/G01             F          309,000.00         ZZ
                                         180        309,000.00          1
                                       6.500          2,691.73         45
                                       6.250          2,691.73
    CARLISLE         MA   01741          2            01/31/02         00
    0433671781                           05           04/01/02          0
    77001027275                          O            03/01/17
    0

    7786036          550/550             F          485,000.00         ZZ
                                         180        480,118.66          1
                                       6.350          4,184.99         38
                                       6.100          4,184.99
    SAN FRANCISCO    CA   94121          2            11/19/01         00
    120552802                            05           01/01/02          0
    120552802                            O            12/01/16
    0

    7792476          Q59/G01             F          326,000.00         ZZ
                                         180        326,000.00          1
                                       6.625          2,862.26         75
                                       6.375          2,862.26
    FULLERTON        CA   92833          2            02/12/02         00
    0433706660                           05           04/01/02          0
1

    304729                               O            03/01/17
    0

    7792502          964/G01             F          355,000.00         ZZ
                                         180        355,000.00          1
                                       6.500          3,092.43         40
                                       6.250          3,092.43
    PACIFIC PALISAD  CA   90272          2            02/19/02         00
    0433757630                           05           04/01/02          0
    187651                               O            03/01/17
    0

    7792646          964/G01             F          348,450.00         ZZ
                                         180        348,450.00          1
                                       6.250          2,987.69         75
                                       6.000          2,987.69
    FRIANT           CA   93626          5            02/14/02         00
    0433719408                           03           04/01/02          0
    187342                               O            03/01/17
    0

    7796356          B57/G01             F          935,000.00         ZZ
                                         180        935,000.00          1
                                       6.375          8,080.74         50
                                       6.125          8,080.74
    LOS ANGELES      CA   90046          2            02/13/02         00
    0433712619                           05           04/01/02          0
    2118749                              O            03/01/17
    0

    7796546          313/G01             F          600,000.00         ZZ
                                         180        595,950.40          1
                                       6.250          5,144.54         59
                                       6.000          5,144.54
    WHEATON          IL   60187          2            12/06/01         00
    0433649316                           05           02/01/02          0
    8471419                              O            01/01/17
    0

    7796554          313/G01             F          460,000.00         ZZ
                                         180        456,895.31          1
                                       6.250          3,944.14         49
                                       6.000          3,944.14
    OAK BROOK        IL   60523          2            12/03/01         00
    0433673621                           03           02/01/02          0
    8483869                              O            01/01/17
    0

1

    7796570          313/G01             F          825,000.00         ZZ
                                         180        819,490.89          1
                                       6.375          7,130.07         36
                                       6.125          7,130.07
    CALABASAS        CA   91302          2            12/10/01         00
    0433674207                           03           02/01/02          0
    0008478083                           O            01/01/17
    0

    7796578          313/G01             F          374,000.00         ZZ
                                         180        372,741.15          1
                                       6.250          3,206.77         58
                                       6.000          3,206.77
    SHARON           MA   02067          2            01/10/02         00
    0433660453                           05           03/01/02          0
    0008524589                           O            02/01/17
    0

    7796582          313/G01             F          375,000.00         ZZ
                                         180        372,522.49          1
                                       6.500          3,266.66         65
                                       6.250          3,266.66
    ALIPINE          CA   91901          5            12/07/01         00
    0433652302                           05           02/01/02          0
    8472649                              O            01/01/17
    0

    7796584          313/G01             F          335,000.00         ZZ
                                         180        332,833.78          1
                                       6.750          2,964.45         54
                                       6.500          2,964.45
    RADBIR           PA   19087          2            12/19/01         00
    0433669058                           03           02/01/02          0
    8518003                              O            01/01/17
    0

    7796592          313/G01             F          610,000.00         ZZ
                                         180        608,033.30          1
                                       6.750          5,397.95         68
                                       6.500          5,397.95
    NORTHRIDGE AREA  CA   91324          5            01/11/02         00
    0433693769                           03           03/01/02          0
    8482259                              O            02/01/17
    0

    7796600          313/G01             F          400,000.00         ZZ
                                         180        396,025.26          1
                                       6.500          3,484.43         44
                                       6.250          3,484.43
1

    LEXINGTON        MA   02421          2            12/05/01         00
    0433676616                           05           01/01/02          0
    8386963                              O            12/01/16
    0

    7796608          313/G01             F          406,000.00         ZZ
                                         180        403,259.77          1
                                       6.250          3,481.14         63
                                       6.000          3,481.14
    CHEVY CHASE      MD   20815          2            12/05/01         00
    0433670973                           05           02/01/02          0
    8402240                              O            01/01/17
    0

    7796622          313/G01             F          450,000.00         ZZ
                                         180        447,058.70          1
                                       6.625          3,950.98         60
                                       6.375          3,950.98
    LAGUNA NIGUEL    CA   92677          5            11/20/01         00
    0433674124                           03           01/01/02          0
    0008452005                           O            12/01/16
    0

    7796662          313/G01             F          332,500.00         ZZ
                                         180        330,326.71          1
                                       6.625          2,919.33         74
                                       6.375          2,919.33
    CHICAGO          IL   60614          2            12/18/01         00
    0433661618                           01           02/01/02          0
    0008539108                           O            01/01/17
    0

    7796668          313/G01             F          330,000.00         ZZ
                                         180        326,790.14          1
                                       6.750          2,920.21         33
                                       6.500          2,920.21
    COHASSET         MA   02025          2            12/05/01         00
    0433676137                           05           01/01/02          0
    8415077                              O            12/01/16
    0

    7800220          550/550             F          440,000.00         ZZ
                                         180        437,004.88          1
                                       6.150          3,748.73         25
                                       5.900          3,748.73
    ORINDA           CA   94583          2            12/06/01         00
    120558700                            05           02/01/02          0
    120558700                            O            01/01/17
    0
1

    7801360          Q59/G01             F          723,000.00         ZZ
                                         180        723,000.00          1
                                       6.750          6,397.90         66
                                       6.500          6,397.90
    SANTA ANA AREA   CA   92705          2            02/19/02         00
    0433714292                           05           04/01/02          0
    304694                               O            03/01/17
    0

    7803300          E22/G01             F          309,000.00         ZZ
                                         180        307,959.93          1
                                       6.250          2,649.44         72
                                       6.000          2,649.44
    AGOURA HILLS     CA   91301          2            01/29/02         00
    0413374372                           03           03/01/02          0
    0413374372                           O            02/01/17
    0

    7803334          E22/G01             F          650,000.00         ZZ
                                         180        647,881.58          1
                                       6.625          5,706.96         55
                                       6.375          5,706.96
    TOPANGA          CA   90290          2            01/29/02         00
    0413487562                           05           03/01/02          0
    0413487562                           O            02/01/17
    0

    7803370          E22/G01             F          111,200.00         ZZ
                                         180        111,200.00          1
                                       7.500          1,030.84         80
                                       7.250          1,030.84
    CASPER           WY   82609          2            02/04/02         00
    0413523887                           05           04/01/02          0
    0413523887                           O            03/01/17
    0

    7804380          E82/G01             F          256,000.00         ZZ
                                         180        256,000.00          1
                                       6.500          2,230.03         70
                                       6.250          2,230.03
    FT WASHINGTON    MD   20744          2            02/07/02         00
    0400581401                           05           04/01/02          0
    0400581401                           O            03/01/17
    0

    7806886          964/G01             F          294,000.00         ZZ
                                         180        293,062.33          2
1

                                       6.875          2,622.05         48
                                       6.625          2,622.05
    CAPITOLA         CA   95010          2            01/30/02         00
    0433668100                           05           03/01/02          0
    181485                               O            02/01/17
    0

    7807360          952/G01             F          504,000.00         ZZ
                                         180        504,000.00          1
                                       6.375          4,355.83         80
                                       6.125          4,355.83
    MONTCLAIR        NJ   07043          1            02/08/02         00
    0433744406                           05           04/01/02          0
    20014932                             O            03/01/17
    0

    7809810          E23/G01             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.500          3,048.88         75
                                       6.250          3,048.88
    SHINGLE SPRINGS  CA   95682          2            02/22/02         00
    0433766847                           05           04/01/02          0
    61004494                             O            03/01/17
    0

    7814078          Q51/G01             F          485,000.00         ZZ
                                         180        485,000.00          1
                                       6.625          4,258.27         54
                                       6.375          4,258.27
    BRADBURY         CA   91010          5            02/07/02         00
    0433695236                           03           04/01/02          0
    R2011080                             O            03/01/17
    0

    7816802          R65/G01             F          387,000.00         ZZ
                                         180        387,000.00          1
                                       6.500          3,371.19         67
                                       6.250          3,371.19
    SAINT CHARLES    IL   60174          2            02/14/02         00
    0433713955                           05           04/01/02          0
    6611825                              O            03/01/17
    0

    7817348          944/G01             F          392,000.00         ZZ
                                         180        392,000.00          1
                                       6.500          3,414.75         73
                                       6.250          3,414.75
    SAMMAMISH        WA   98075          2            02/14/02         00
    0433708096                           05           04/01/02          0
1

    W01120474                            O            03/01/17
    0

    7819400          696/G01             F          450,000.00         ZZ
                                         180        448,549.16          1
                                       6.750          3,982.09         47
                                       6.500          3,982.09
    MCLEAN           VA   22102          1            02/01/02         00
    0433674892                           03           03/01/02          0
    25101325                             O            02/01/17
    0

    7822734          B49/G01             F          433,000.00         ZZ
                                         180        433,000.00          1
                                       6.500          3,771.90         70
                                       6.250          3,771.90
    SILVERTHORNE     CO   80498          5            02/14/02         00
    0433726502                           05           04/01/02          0
    000229080601                         O            03/01/17
    0

    7824592          893/G01             F          399,999.00         ZZ
                                         180        399,999.00          1
                                       6.375          3,456.99         46
                                       6.125          3,456.99
    BELMONT          CA   94002          5            02/11/02         00
    0433701455                           05           04/01/02          0
    M11114031                            O            03/01/17
    0

    7826100          E22/G01             F           87,750.00         ZZ
                                         180         87,750.00          1
                                       7.375            807.23         82
                                       7.125            807.23
    RIVERTON         WY   82501          2            02/06/02         01
    0413383977                           05           04/01/02         12
    0413383977                           O            03/01/17
    0

    7826214          E22/G01             F          399,000.00         ZZ
                                         180        399,000.00          1
                                       6.750          3,530.79         66
                                       6.500          3,530.79
    GRASS VALLEY     CA   95945          2            01/31/02         00
    0413555335                           05           04/01/02          0
    0413555335                           O            03/01/17
    0

1

    7826216          E22/G01             F          405,000.00         ZZ
                                         180        405,000.00          1
                                       6.750          3,583.88         67
                                       6.500          3,583.88
    MONTCLAIR        NJ   07043          2            02/06/02         00
    0413555343                           05           04/01/02          0
    0413555343                           O            03/01/17
    0

    7834302          964/G01             F          350,000.00         ZZ
                                         180        348,871.57          1
                                       6.750          3,097.18         42
                                       6.500          3,097.18
    SAN JOSE         CA   95118          5            01/23/02         00
    0433682457                           05           03/01/02          0
    181513                               O            02/01/17
    0

    7838146          E33/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.250          3,429.69         64
                                       6.000          3,429.69
    LAKE BLUFF       IL   60044          2            02/07/02         00
    0433673712                           03           04/01/02          0
    MURPHY                               O            03/01/17
    0

    7839128          721/G01             F          380,000.00         ZZ
                                         180        378,720.96          1
                                       6.250          3,258.21         43
                                       6.000          3,258.21
    SUNFISH LAKE     MN   55118          5            01/16/02         00
    0433733847                           05           03/01/02          0
    7890750270                           O            02/01/17
    0

    7839786          721/G01             F          500,000.00         ZZ
                                         180        496,731.90          1
                                       6.625          4,389.97         80
                                       6.375          4,389.97
    MAPLE GROVE      MN   55311          2            12/19/01         00
    0433733961                           05           02/01/02          0
    7890880154                           O            01/01/17
    0

    7843776          Q51/G01             F          485,000.00         ZZ
                                         180        485,000.00          1
                                       6.250          4,158.50         57
                                       6.000          4,158.50
1

    PASADENA         CA   91107          2            02/14/02         00
    0433711512                           05           04/01/02          0
    0541350R2021421                      O            03/01/17
    0

    7844290          E60/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.875          3,567.42         52
                                       6.625          3,567.42
    SAN DIEGO        CA   92130          5            02/15/02         00
    0433759412                           05           04/01/02          0
    525407                               O            03/01/17
    0

    7846260          975/G01             F          340,000.00         ZZ
                                         180        340,000.00          1
                                       6.500          2,961.77         68
                                       6.250          2,961.77
    DIAMOND BAR ARE  CA   91765          5            02/15/02         00
    0433709722                           03           04/01/02          0
    2015924                              O            03/01/17
    0

    7847070          E22/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.375          3,457.00         63
                                       6.125          3,457.00
    BIRMINGHAM       AL   35223          2            02/07/02         00
    0413560780                           05           04/01/02          0
    0413560780                           O            03/01/17
    0

    7847196          E22/G01             F          321,000.00         ZZ
                                         180        321,000.00          1
                                       6.500          2,796.25         54
                                       6.250          2,796.25
    OAKLAND          CA   94611          2            02/05/02         00
    0413670472                           05           04/01/02          0
    0413670472                           O            03/01/17
    0

    7848414          313/G01             F          370,000.00         ZZ
                                         180        367,502.74          1
                                       6.250          3,172.47         41
                                       6.000          3,172.47
    VIRGINIA BEACH   VA   23455          2            12/04/01         00
    0433670510                           05           02/01/02          0
    8458838                              O            01/01/17
    0
1

    7848420          313/G01             F          550,000.00         ZZ
                                         180        544,476.25          1
                                       6.375          4,753.38         67
                                       6.125          4,753.38
    LOS ANGELES      CA   90025          2            11/16/01         00
    0433673969                           05           01/01/02          0
    0008452997                           O            12/01/16
    0

    7848458          313/G01             F          500,000.00         ZZ
                                         180        495,136.59          1
                                       6.750          4,424.55         65
                                       6.500          4,424.55
    LEXINGTON        MA   02421          5            11/29/01         00
    0433674314                           05           01/01/02          0
    8474991                              O            12/01/16
    0

    7848474          313/G01             F          340,000.00         ZZ
                                         180        337,705.22          1
                                       6.250          2,915.24         47
                                       6.000          2,915.24
    SHERMAN OAKS     CA   91423          2            12/20/01         00
    0433671179                           05           02/01/02          0
    8504425                              O            01/01/17
    0

    7851996          E33/G01             F          446,000.00         ZZ
                                         180        446,000.00          1
                                       6.625          3,915.85         67
                                       6.375          3,915.85
    LAKE BLUFF       IL   60044          2            02/06/02         00
    0433669033                           03           04/01/02          0
    RODGERS                              O            03/01/17
    0

    7866476          X31/G01             F          105,100.00         ZZ
                                         180        105,100.00          1
                                       6.375            908.33         36
                                       6.125            908.33
    ONTARIO          CA   91761          2            02/19/02         00
    0433740255                           05           04/01/02          0
    24000193                             O            03/01/17
    0

    7873710          E22/G01             F          483,000.00         ZZ
                                         180        483,000.00          1
1

                                       6.250          4,141.35         70
                                       6.000          4,141.35
    WEST WINDSOR     NJ   08550          5            02/08/02         00
    0413536384                           05           04/01/02          0
    0413536384                           O            03/01/17
    0

    7873762          E22/G01             F          380,000.00         ZZ
                                         180        380,000.00          1
                                       6.500          3,310.21         51
                                       6.250          3,310.21
    AUSTIN           TX   78703          2            02/08/02         00
    0413581851                           05           04/01/02          0
    0413581851                           O            03/01/17
    0

    7873808          E22/G01             F          599,000.00         ZZ
                                         180        599,000.00          1
                                       6.750          5,300.61         48
                                       6.500          5,300.61
    CHARLESTOWN      MA   02110          5            02/08/02         00
    0413606294                           07           04/01/02          0
    0413606294                           O            03/01/17
    0

    7875000          F28/G01             F          702,500.00         ZZ
                                         180        677,254.12          1
                                       6.375          6,071.36         51
                                       6.125          6,071.36
    BELLEVUE         WA   98004          2            01/22/02         00
    0433687449                           05           03/01/02          0
    7953146                              O            02/01/17
    0

    7875002          F28/G01             F          306,500.00         ZZ
                                         180        305,490.27          1
                                       6.500          2,669.94         59
                                       6.250          2,669.94
    PARK RIDGE       IL   60068          2            01/14/02         00
    0433714730                           05           03/01/02          0
    7869724                              O            02/01/17
    0

    7875004          F28/G01             F          450,000.00         ZZ
                                         180        448,469.07          1
                                       6.125          3,827.81         57
                                       5.875          3,827.81
    GAINESVILLE      FL   32653          5            01/11/02         00
    0433697380                           05           03/01/02          0
1

    1060628                              O            02/01/17
    0

    7875006          F28/G01             F          420,000.00         ZZ
                                         180        418,616.35          1
                                       6.500          3,658.65         42
                                       6.250          3,658.65
    ATLANTA          GA   30328          5            01/23/02         00
    0433683992                           03           03/01/02          0
    1077881                              O            02/01/17
    0

    7875008          F28/G01             F          400,000.00         ZZ
                                         180        398,696.35          1
                                       6.625          3,511.98         80
                                       6.375          3,511.98
    SEAFORD          DE   19973          2            01/18/02         00
    0433698172                           05           03/01/02          0
    7349479                              O            02/01/17
    0

    7875010          F28/G01             F          385,000.00         ZZ
                                         180        383,690.19          1
                                       6.125          3,274.91         50
                                       5.875          3,274.91
    SAN DIEGO        CA   92128          5            01/11/02         00
    0433684420                           03           03/01/02          0
    1142097                              O            02/01/17
    0

    7875038          F28/G01             F          405,000.00         ZZ
                                         180        403,694.25          1
                                       6.750          3,583.88         59
                                       6.500          3,583.88
    SEATTLE          WA   98122          2            01/15/02         00
    0433684784                           05           03/01/02          0
    1057832                              O            02/01/17
    0

    7875098          550/550             F          945,000.00         ZZ
                                         180        945,000.00          1
                                       6.600          8,284.01         43
                                       6.350          8,284.01
    SARATOGA         CA   95070          2            01/31/02         00
    120567958                            05           04/01/02          0
    120567958                            O            03/01/17
    0

1

    7876040          E82/G01             F          316,800.00         ZZ
                                         180        316,800.00          1
                                       6.125          2,694.78         48
                                       5.875          2,694.78
    OAKLAND TOWNSHI  MI   48306          2            02/11/02         00
    0400542783                           05           04/01/02          0
    1756019                              O            03/01/17
    0

    7876046          E82/G01             F          240,900.00         ZZ
                                         180        240,900.00          1
                                       6.500          2,098.50         62
                                       6.250          2,098.50
    CERRITOS         CA   90703          2            02/07/02         00
    0400581492                           05           04/01/02          0
    1790267                              O            03/01/17
    0

    7876052          E82/G01             F          645,400.00         ZZ
                                         180        643,296.58          1
                                       6.625          5,666.57         68
                                       6.375          5,666.57
    GROSSE POINTE S  MI   48236          2            02/01/02         00
    0400526216                           05           03/01/02          0
    0400526216                           O            02/01/17
    0

    7891714          E82/G01             F          407,000.00         ZZ
                                         180        407,000.00          1
                                       6.625          3,573.43         59
                                       6.375          3,573.43
    GLENDALE         CA   91207          2            02/11/02         00
    0400584074                           05           04/01/02          0
    1906096                              O            03/01/17
    0

    7907472          624/G01             F          355,000.00         ZZ
                                         180        355,000.00          1
                                       6.000          2,995.69         40
                                       5.750          2,995.69
    CARMICHAEL       CA   95608          2            02/06/02         00
    0433701075                           05           04/01/02          0
    47900120116F                         O            03/01/17
    0

    7910286          E22/G01             F          421,000.00         ZZ
                                         180        421,000.00          1
                                       6.250          3,609.75         59
                                       6.000          3,609.75
1

    FRESNO           CA   93711          2            02/05/02         00
    0413294992                           05           04/01/02          0
    0413294992                           O            03/01/17
    0

    7910426          E22/G01             F          385,000.00         ZZ
                                         180        385,000.00          1
                                       6.375          3,327.36         72
                                       6.125          3,327.36
    BOTHELL          WA   98011          2            02/07/02         00
    0413593781                           03           04/01/02          0
    0413593781                           O            03/01/17
    0

    7911186          E82/G01             F          229,000.00         ZZ
                                         180        229,000.00          1
                                       6.625          2,010.61         53
                                       6.375          2,010.61
    FRANKFORT        IL   60423          2            02/13/02         00
    0400575387                           05           04/01/02          0
    2912103                              O            03/01/17
    0

    7911192          E82/G01             F          354,700.00         ZZ
                                         180        354,700.00          1
                                       6.750          3,138.77         36
                                       6.500          3,138.77
    COTO DE CAZA     CA   92679          2            02/13/02         00
    0400583688                           03           04/01/02          0
    0400583688                           O            03/01/17
    0

    7911208          E82/G01             F          636,400.00         ZZ
                                         180        636,400.00          1
                                       6.500          5,543.73         54
                                       6.250          5,543.73
    SEATTLE          WA   98109          2            02/12/02         00
    0400580098                           05           04/01/02          0
    2851321                              O            03/01/17
    0

    7911220          E82/G01             F          323,700.00         ZZ
                                         180        323,700.00          1
                                       6.250          2,775.48         78
                                       6.000          2,775.48
    NEWARK           CA   94560          2            02/13/02         00
    0400581054                           05           04/01/02          0
    4192282                              O            03/01/17
    0
1

    7911232          E82/G01             F          194,500.00         ZZ
                                         180        194,500.00          1
                                       6.250          1,667.69         60
                                       6.000          1,667.69
    CONCORD          CA   94518          2            02/13/02         00
    0400545067                           03           04/01/02          0
    1668201                              O            03/01/17
    0

    7911236          E82/G01             F          203,400.00         ZZ
                                         180        203,400.00          1
                                       6.375          1,757.89         51
                                       6.125          1,757.89
    DOWNEY           CA   90242          2            02/12/02         00
    0400580221                           05           04/01/02          0
    0400580221                           O            03/01/17
    0

    7912698          L46/L46             F          375,600.00         ZZ
                                         180        375,600.00          1
                                       6.250          3,220.49         77
                                       6.000          3,220.49
    ANN ARBOR        MI   48103          2            02/22/02         00
    2105179                              05           04/01/02          0
    2105179                              O            03/01/17
    0

    7912790          A06/G01             F          469,000.00         ZZ
                                         180        465,800.68          1
                                       6.125          3,989.44         74
                                       5.875          3,989.44
    HUNTINGTON WOOD  MI   48070          2            12/10/01         00
    0433738424                           05           02/01/02          0
    1                                    O            01/01/17
    0

    7916234          624/G01             F          246,400.00         ZZ
                                         180        246,400.00          1
                                       6.500          2,146.41         70
                                       6.250          2,146.41
    SAN DIEGO        CA   92126          1            02/14/02         00
    0433719333                           05           04/01/02          0
    39000410563F                         O            03/01/17
    0

    7944222          313/G01             F          380,000.00         ZZ
                                         180        377,435.25          1
1

                                       6.250          3,258.21         59
                                       6.000          3,258.21
    SANTA BARBARA    CA   93105          5            12/17/01         00
    0433693801                           05           02/01/02          0
    8424137                              O            01/01/17
    0

    7944894          Q30/G01             F          950,000.00         ZZ
                                         180        950,000.00          1
                                       6.625          8,340.94         30
                                       6.375          8,340.94
    SOUTHAMPTON      NY   11968          1            02/28/02         00
    0433733284                           05           04/01/02          0
    20100042                             O            03/01/17
    0

    7947850          W53/G01             F          750,000.00         ZZ
                                         180        750,000.00          1
                                       6.375          6,481.88         63
                                       6.125          6,481.88
    JONESBORO        GA   30236          5            02/22/02         00
    0433764677                           05           04/01/02          0
    1310000059                           O            03/01/17
    0

    7949460          601/G01             F          450,000.00         ZZ
                                         180        445,372.63          1
                                       6.500          3,919.98         53
                                       6.250          3,919.98
    METAIRIE         LA   70005          2            10/31/01         00
    0433699535                           05           01/01/02          0
    1684108                              O            12/01/16
    0

    7950646          601/G01             F          335,000.00         ZZ
                                         180        329,480.39          1
                                       6.625          2,941.28         31
                                       6.375          2,941.28
    CARBONDALE       CO   81623          2            10/25/01         00
    0433701448                           05           12/01/01          0
    00961276                             O            11/01/16
    0

    7951710          601/G01             F          560,000.00         ZZ
                                         180        552,481.14          1
                                       6.375          4,839.80         80
                                       6.125          4,839.80
    BIRMINGHAM       AL   35213          2            10/30/01         00
    0433710167                           05           12/01/01          0
1

    16959751                             O            11/01/16
    0

    7955426          W53/G01             F        1,000,000.00         ZZ
                                         180      1,000,000.00          1
                                       6.375          8,642.51         58
                                       6.125          8,642.51
    SARASOTA         FL   34231          5            02/22/02         00
    0433764768                           05           04/01/02          0
    1301000225                           O            03/01/17
    0

    7955474          964/G01             F          399,950.00         ZZ
                                         180        399,950.00          1
                                       6.500          3,484.00         44
                                       6.250          3,484.00
    FREMONT          CA   94539          2            02/25/02         00
    0433757085                           05           04/01/02          0
    400189125                            O            03/01/17
    0

    7957808          E22/G01             F          810,000.00         ZZ
                                         180        810,000.00          1
                                       6.375          7,000.43         41
                                       6.125          7,000.43
    NEWPORT BEACH    CA   92662          2            02/08/02         00
    0413470865                           05           04/01/02          0
    0413470865                           O            03/01/17
    0

    7957948          E22/G01             F          367,500.00         ZZ
                                         180        367,500.00          1
                                       6.500          3,201.32         49
                                       6.250          3,201.32
    CASTRO VALLEY    CA   94546          2            02/08/02         00
    0413607953                           05           04/01/02          0
    0413607953                           O            03/01/17
    0

    7958808          601/G01             F          388,000.00         ZZ
                                         180        382,953.82          1
                                       6.750          3,433.45         80
                                       6.500          3,433.45
    CHEYENNE         WY   82009          2            11/20/01         00
    0433695491                           05           01/01/02          0
    5100007725                           O            12/01/16
    0

1

    7959996          E82/G01             F          270,000.00         ZZ
                                         180        270,000.00          1
                                       6.375          2,333.48         56
                                       6.125          2,333.48
    CHANHASSEN       MN   55317          2            02/15/02         00
    0400587911                           05           04/01/02          0
    0400587911                           O            03/01/17
    0

    7959998          E82/G01             F          320,400.00         ZZ
                                         180        320,400.00          1
                                       6.625          2,813.09         64
                                       6.375          2,813.09
    AUSTIN           TX   78750          2            02/13/02         00
    0400580932                           03           04/01/02          0
    2860397                              O            03/01/17
    0

    7961936          M27/G01             F          415,500.00         ZZ
                                         180        415,500.00          1
                                       6.625          3,648.06         51
                                       6.375          3,648.06
    RICHMOND         VA   23233          2            02/21/02         00
    0433731577                           05           04/01/02          0
    600737977                            O            03/01/17
    0

    7963422          313/G01             F          570,000.00         ZZ
                                         180        568,101.90          1
                                       6.375          4,926.23         58
                                       6.125          4,926.23
    GLENDALE         CA   91207          2            01/09/02         00
    0433693827                           05           03/01/02          0
    0008502510                           O            02/01/17
    0

    7963862          313/G01             F          365,000.00         ZZ
                                         180        362,614.28          1
                                       6.625          3,204.68         70
                                       6.375          3,204.68
    ALEXANDRIA       VA   22307          5            12/27/01         00
    0433690799                           05           02/01/02          0
    8513236                              O            01/01/17
    0

    7964426          964/G01             F          300,700.00         ZZ
                                         180        300,700.00          1
                                       6.500          2,619.42         49
                                       6.250          2,619.42
1

    TRABUCO CANYON   CA   92679          5            02/06/02         00
    0433691615                           03           04/01/02          0
    184470                               O            03/01/17
    0

    7969602          601/G01             F          369,750.00         ZZ
                                         180        364,941.18          1
                                       6.750          3,271.95         75
                                       6.500          3,271.95
    EDMOND           OK   73013          2            11/29/01         00
    0433693389                           03           01/01/02          0
    0301049                              O            12/01/16
    0

    7969844          E84/G01             F          600,000.00         ZZ
                                         180        598,065.54          1
                                       6.750          5,309.46         67
                                       6.500          5,309.46
    LA CANADA FLINT  CA   91011          2            12/28/01         00
    0433712155                           05           03/01/02          0
    12054110                             O            02/01/17
    0

    7969932          601/G01             F          335,000.00         ZZ
                                         180        332,762.97          1
                                       6.375          2,895.24         74
                                       6.125          2,895.24
    CREVE COEUR      MO   63141          2            12/24/01         00
    0433692928                           03           02/01/02          0
    17467168                             O            01/01/17
    0

    7970824          601/G01             F          403,000.00         ZZ
                                         180        398,418.95          1
                                       6.000          3,400.74         45
                                       5.750          3,400.74
    PHOENIX          AZ   85018          2            12/03/01         00
    0433708179                           05           02/01/02          0
    18111011                             O            01/01/17
    0

    7971248          601/G01             F          410,000.00         ZZ
                                         180        408,663.77          1
                                       6.625          3,599.77         79
                                       6.375          3,599.77
    SIOUX FALLS      SD   57108          1            02/01/02         00
    0433706132                           05           03/01/02          0
    1748481                              O            02/01/17
    0
1

    7971774          601/G01             F          314,000.00         ZZ
                                         180        312,987.63          1
                                       6.750          2,778.62         80
                                       6.500          2,778.62
    DOUGLAS          WY   82633          2            01/07/02         00
    0433694726                           05           03/01/02          0
    MARSG1201                            O            02/01/17
    0

    7971954          601/G01             F          609,100.00         ZZ
                                         180        607,027.79          1
                                       6.125          5,181.16         70
                                       5.875          5,181.16
    CEDAR RAPIDS     IA   52403          5            12/28/01         00
    0433699451                           05           03/01/02          0
    17359621                             O            02/01/17
    0

    7971966          601/G01             F          380,500.00         ZZ
                                         180        379,273.23          1
                                       6.750          3,367.08         87
                                       6.500          3,367.08
    BATON ROUGE      LA   70810          2            01/10/02         11
    0433706264                           05           03/01/02         25
    9830368096                           O            02/01/17
    0

    7980496          E22/G01             F          435,000.00         ZZ
                                         120        435,000.00          1
                                       6.625          4,967.05         54
                                       6.375          4,967.05
    WALL             NJ   07753          2            02/14/02         00
    0413539966                           05           04/01/02          0
    0413539966                           O            03/01/12
    0

    7980530          E22/G01             F          460,000.00         ZZ
                                         180        460,000.00          1
                                       6.500          4,007.09         53
                                       6.250          4,007.09
    BELLEVUE         WA   98004          2            02/12/02         00
    0413585530                           03           04/01/02          0
    0413585530                           O            03/01/17
    0

    7981100          601/G01             F          356,500.00         ZZ
                                         180        349,829.16          1
1

                                       6.625          3,130.05         46
                                       6.375          3,130.05
    BOW              WA   98232          2            11/27/01         00
    0433706595                           05           02/01/02          0
    17163395                             O            01/01/17
    0

    7981130          E82/G01             F          290,300.00         ZZ
                                         180        290,300.00          1
                                       6.375          2,508.92         49
                                       6.125          2,508.92
    SAN JOSE         CA   95129          2            02/18/02         00
    0400592994                           05           04/01/02          0
    0400592994                           O            03/01/17
    0

    7981152          E82/G01             F          233,500.00         ZZ
                                         180        233,500.00          1
                                       6.375          2,018.02         80
                                       6.125          2,018.02
    HERNDON          VA   20171          2            02/15/02         00
    0400587630                           03           04/01/02          0
    2650113                              O            03/01/17
    0

    7981264          601/G01             F          318,000.00         ZZ
                                         180        313,610.39          1
                                       6.750          2,814.01         79
                                       6.500          2,814.01
    CARMEL           IN   46033          2            11/06/01         00
    0433694874                           03           01/01/02          0
    1710883                              O            12/01/16
    0

    7995758          E23/G01             F          468,750.00         ZZ
                                         180        468,750.00          1
                                       6.750          4,148.01         79
                                       6.500          4,148.01
    SEDALIA          CO   80135          1            02/26/02         00
    0433749421                           03           04/01/02          0
    71003134                             O            03/01/17
    0

    7997112          601/G01             F          325,000.00         ZZ
                                         180        321,701.11          1
                                       6.250          2,786.63         58
                                       6.000          2,786.63
    BELLE MEAD       NJ   08502          2            12/21/01         00
    0433706942                           05           02/01/02          0
1

    6097260                              O            01/01/17
    0

    7997120          601/G01             F          576,000.00         T
                                         180        570,091.14          1
                                       6.125          4,899.60         80
                                       5.875          4,899.60
    GOSHEN           CT   06756          1            12/05/01         00
    0433710589                           05           02/01/02          0
    20609277                             O            01/01/17
    0

    7997122          601/G01             F          337,000.00         ZZ
                                         180        335,889.78          1
                                       6.500          2,935.64         67
                                       6.250          2,935.64
    LONG BRANCH      NJ   07740          2            01/07/02         00
    0433707387                           05           03/01/02          0
    6111731                              O            02/01/17
    0

    7997124          601/G01             F          461,500.00         ZZ
                                         180        455,954.49          1
                                       6.625          4,051.95         63
                                       6.375          4,051.95
    OAK PARK         IL   60302          2            11/08/01         00
    0433701737                           05           01/01/02          0
    20612438                             O            12/01/16
    0

    7997126          601/G01             F          480,000.00         ZZ
                                         180        478,349.48          1
                                       6.000          4,050.52         78
                                       5.750          4,050.52
    MAHTOMEDI        MN   55115          1            01/25/02         00
    0433703295                           05           03/01/02          0
    22296859                             O            02/01/17
    0

    7997128          601/G01             F          368,000.00         ZZ
                                         180        366,813.53          1
                                       6.750          3,256.47         80
                                       6.500          3,256.47
    PRINCETON TOWNS  NJ   08540          2            01/11/02         00
    0433710811                           05           03/01/02          0
    6111773                              O            02/01/17
    0

1

    7997130          601/G01             F          426,000.00         ZZ
                                         180        424,535.16          1
                                       6.000          3,594.84         77
                                       5.750          3,594.84
    MIAMI BEACH      FL   33141          2            01/04/02         00
    0433700762                           05           03/01/02          0
    6112220                              O            02/01/17
    0

    7997134          601/G01             F          354,800.00         ZZ
                                         180        351,311.70          1
                                       6.500          3,090.69         77
                                       6.250          3,090.69
    SUGARLAND        TX   77479          2            11/16/01         00
    0433704426                           03           01/01/02          0
    1784479                              O            12/01/16
    0

    7997136          601/G01             F          456,400.00         ZZ
                                         180        454,830.63          1
                                       6.000          3,851.37         70
                                       5.750          3,851.37
    ROCKVILLE        MD   20850          5            01/04/02         00
    0433706033                           03           03/01/02          0
    6111955                              O            02/01/17
    0

    7997138          601/G01             F          303,000.00         ZZ
                                         180        299,017.10          1
                                       6.625          2,660.33         65
                                       6.375          2,660.33
    NAPERVILLE       IL   60563          2            11/15/01         00
    0433703691                           03           01/01/02          0
    20555983                             O            12/01/16
    0

    7997150          601/G01             F          496,000.00         ZZ
                                         180        491,071.31          1
                                       6.500          4,320.70         71
                                       6.250          4,320.70
    DUBLIN           OH   43017          2            11/07/01         00
    0433700408                           01           01/01/02          0
    2057342                              O            12/01/16
    0

    7997164          601/G01             F          639,200.00         ZZ
                                         180        639,200.00          1
                                       6.000          5,393.93         59
                                       5.750          5,393.93
1

    PIKESVILLE       MD   21208          5            02/11/02         00
    0433710720                           05           04/01/02          0
    1761264                              O            03/01/17
    0

    7997166          601/G01             F          525,000.00         T
                                         180        519,557.12          1
                                       6.000          4,430.25         76
                                       5.750          4,430.25
    EARLEVILLE       MD   21919          1            01/03/02         00
    0433711983                           05           02/01/02          0
    6108595                              O            01/01/17
    0

    8002322          E22/G01             F          120,000.00         ZZ
                                         180        120,000.00          1
                                       6.375          1,037.10         40
                                       6.125          1,037.10
    PINOLE           CA   94564          2            02/11/02         00
    0413432733                           05           04/01/02          0
    0413432733                           O            03/01/17
    0

    8002446          E22/G01             F          383,000.00         ZZ
                                         180        383,000.00          1
                                       6.750          3,389.20         59
                                       6.500          3,389.20
    STAMFORD         CT   06902          2            02/15/02         00
    0413618448                           05           04/01/02          0
    0413618448                           O            03/01/17
    0

    8003064          E82/G01             F          630,000.00         ZZ
                                         180        630,000.00          1
                                       6.750          5,574.93         32
                                       6.500          5,574.93
    JUPITER          FL   33458          2            02/20/02         00
    0400583209                           03           04/01/02          0
    1671801                              O            03/01/17
    0

    8003080          E82/G01             F          560,000.00         ZZ
                                         180        560,000.00          1
                                       7.250          5,112.03         71
                                       7.000          5,112.03
    LOS ANGELES      CA   90004          2            02/20/02         00
    0400574992                           05           04/01/02          0
    0400574992                           O            03/01/17
    0
1

    8003082          E82/G01             F          252,200.00         ZZ
                                         180        252,200.00          1
                                       6.375          2,179.64         64
                                       6.125          2,179.64
    BOLINAS          CA   94924          2            02/19/02         00
    0400591400                           05           04/01/02          0
    0400591400                           O            03/01/17
    0

    8003088          E82/G01             F          377,000.00         ZZ
                                         180        377,000.00          1
                                       6.125          3,206.86         64
                                       5.875          3,206.86
    WINDERMERE       FL   34786          2            02/19/02         00
    0400536868                           05           04/01/02          0
    0400536868                           O            03/01/17
    0

    8003090          E82/G01             F          216,400.00         ZZ
                                         180        216,400.00          1
                                       6.375          1,870.24         64
                                       6.125          1,870.24
    HERNDON          VA   20171          2            02/20/02         00
    0400580171                           03           04/01/02          0
    1668144                              O            03/01/17
    0

    8003106          E82/G01             F          315,050.00         ZZ
                                         180        315,050.00          1
                                       6.500          2,744.42         77
                                       6.250          2,744.42
    RICHMOND         VA   23220          2            02/19/02         00
    0400587853                           05           04/01/02          0
    0400587853                           O            03/01/17
    0

    8003128          E82/G01             F          377,000.00         ZZ
                                         180        377,000.00          1
                                       6.250          3,232.48         45
                                       6.000          3,232.48
    LOS ALAMITOS     CA   90720          2            02/20/02         00
    0400579827                           05           04/01/02          0
    1783653                              O            03/01/17
    0

    8003582          M45/G01             F          359,000.00         ZZ
                                         180        359,000.00          1
1

                                       6.375          3,102.66         73
                                       6.125          3,102.66
    DANVILLE         CA   94526          2            02/01/02         00
    0433699782                           05           04/01/02          0
    A0324049                             O            03/01/17
    0

    8003590          M45/G01             F          545,000.00         ZZ
                                         180        545,000.00          1
                                       6.750          4,822.76         64
                                       6.500          4,822.76
    WESTLAKE VILLAG  CA   91361          2            02/02/02         00
    0433707775                           05           04/01/02          0
    A0312421                             O            03/01/17
    0

    8003596          M45/G01             F          455,000.00         ZZ
                                         180        455,000.00          1
                                       6.875          4,057.94         50
                                       6.625          4,057.94
    STAMFORD         CT   06902          1            02/06/02         00
    0433705233                           05           04/01/02          0
    A0325740                             O            03/01/17
    0

    8003620          M45/G01             F          380,000.00         ZZ
                                         180        380,000.00          1
                                       6.250          3,258.21         47
                                       6.000          3,258.21
    LOS GATOS        CA   95032          2            01/30/02         00
    0433703519                           05           04/01/02          0
    A0326016                             O            03/01/17
    0

    8003622          M45/G01             F          620,000.00         ZZ
                                         180        618,022.58          1
                                       6.875          5,529.50         67
                                       6.625          5,529.50
    BEVERLY HILLS    CA   90210          2            01/29/02         00
    0433707163                           05           03/01/02          0
    A0325084                             O            02/01/17
    0

    8003630          M45/G01             F          440,000.00         ZZ
                                         180        440,000.00          1
                                       6.750          3,893.61         61
                                       6.500          3,893.61
    BETHESDA         MD   20816          2            02/01/02         00
    0433701877                           05           04/01/02          0
1

    A0325606                             O            03/01/17
    0

    8009510          601/G01             F          455,300.00         ZZ
                                         120        455,300.00          1
                                       6.625          5,198.85         46
                                       6.375          5,198.85
    DALLAS           TX   75209          2            02/07/02         00
    0433708120                           05           04/01/02          0
    20725651                             O            03/01/12
    0

    8010988          893/G01             F          432,000.00         ZZ
                                         180        432,000.00          1
                                       6.250          3,704.07         34
                                       6.000          3,704.07
    SONOMA           CA   95476          2            02/26/02         00
    0433751435                           05           04/01/02          0
    A20222011                            O            03/01/17
    0

    8012428          E84/G01             F          500,000.00         ZZ
                                         180        495,087.32          1
                                       6.875          4,459.27         60
                                       6.625          4,459.27
    DEERFIELD        IL   60015          1            12/04/01         00
    0433763380                           05           01/01/02          0
    11105874                             O            12/01/16
    0

    8025756          E22/G01             F          346,400.00         ZZ
                                         180        346,400.00          1
                                       6.500          3,017.52         68
                                       6.250          3,017.52
    ROCHESTER HILLS  MI   48309          2            02/18/02         00
    0413416082                           05           04/01/02          0
    0413416082                           O            03/01/17
    0

    8025762          E22/G01             F          414,000.00         ZZ
                                         180        414,000.00          1
                                       6.500          3,606.38         64
                                       6.250          3,606.38
    CARLSBAD         CA   92009          2            02/13/02         00
    0413449711                           05           04/01/02          0
    0413449711                           O            03/01/17
    0

1

    8025768          E22/G01             F          275,000.00         ZZ
                                         180        275,000.00          1
                                       6.625          2,414.48         66
                                       6.375          2,414.48
    ORANGE           CA   92866          2            02/06/02         00
    0413464330                           05           04/01/02          0
    0413464330                           O            03/01/17
    0

    8026418          E82/G01             F          323,000.00         T
                                         180        323,000.00          1
                                       6.750          2,858.26         75
                                       6.500          2,858.26
    LAKE ARROWHEAD   CA   92352          2            02/13/02         00
    0400587226                           03           04/01/02          0
    0400587226                           O            03/01/17
    0

    8026576          E82/G01             F          353,500.00         ZZ
                                         180        353,500.00          1
                                       6.375          3,055.13         53
                                       6.125          3,055.13
    STOCKTON         CA   95207          2            02/20/02         00
    0400581245                           03           04/01/02          0
    1904994                              O            03/01/17
    0

    8033698          956/G01             F          340,000.00         ZZ
                                         180        340,000.00          1
                                       6.625          2,985.18         54
                                       6.375          2,985.18
    BARRINGTON       IL   60010          2            02/14/02         00
    0433714003                           03           04/01/02          0
    4712010043                           O            03/01/17
    0

    8034198          956/G01             F          468,000.00         ZZ
                                         180        466,491.12          1
                                       6.750          4,141.38         80
                                       6.500          4,141.38
    PORTLAND         OR   97229          1            01/25/02         00
    0433713195                           03           03/01/02          0
    30006031                             O            02/01/17
    0

    8036698          956/G01             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.625          3,072.98         73
                                       6.375          3,072.98
1

    SAN BRUNO        CA   94066          5            02/08/02         00
    0433711538                           05           04/01/02          0
    112010270                            O            03/01/17
    0

    8040860          W39/G01             F          360,000.00         ZZ
                                         180        360,000.00          1
                                       6.250          3,086.72         72
                                       6.000          3,086.72
    MANDEVILLE       LA   70471          2            02/13/02         00
    0433714672                           03           04/01/02          0
    MH020340                             O            03/01/17
    0

    8041334          550/550             F          912,000.00         ZZ
                                         180        912,000.00          1
                                       6.800          8,095.68         46
                                       6.550          8,095.68
    SAN FRANCISCO    CA   94123          2            02/14/02         00
    120561811                            05           04/01/02          0
    120561811                            O            03/01/17
    0

    8041342          405/405             F          385,000.00         ZZ
                                         180        378,855.44          1
                                       7.000          3,460.49         70
                                       6.500          3,460.49
    CYPRESS          TX   77429          1            09/15/01         00
    0012317178                           03           11/01/01          0
    0012317178                           O            10/01/16
    0

    8041350          405/405             F          503,000.00         ZZ
                                         180        501,360.67          1
                                       6.625          4,416.31         69
                                       6.125          4,416.31
    SAN FRANCISCO    CA   94131          2            01/18/02         00
    0018095117                           05           03/01/02          0
    0018095117                           O            02/01/17
    0

    8041352          405/405             F          500,000.00         ZZ
                                         180        498,317.05          1
                                       6.250          4,287.12         71
                                       6.000          4,287.12
    BEAVERTON        OR   97007          2            01/25/02         00
    0018098525                           03           03/01/02          0
    0018098525                           O            02/01/17
    0
1

    8041362          405/405             F          560,000.00         ZZ
                                         180        558,213.94          1
                                       6.875          4,994.39         47
                                       6.375          4,994.39
    GLENVIEW         IL   60025          2            01/31/02         00
    0018131805                           05           03/01/02          0
    0018131805                           O            02/01/17
    0

    8041364          405/405             F          510,000.00         ZZ
                                         180        508,301.70          1
                                       6.375          4,407.68         66
                                       6.000          4,407.68
    LOS ANGELES      CA   90293          2            01/28/02         00
    0018139238                           05           03/01/02          0
    0018139238                           O            02/01/17
    0

    8041366          405/405             F          376,500.00         ZZ
                                         180        375,259.66          1
                                       6.500          3,279.72         58
                                       6.000          3,279.72
    BERKELEY         CA   94703          5            01/18/02         00
    0018139287                           05           03/01/02          0
    0018139287                           O            02/01/17
    0

    8041368          405/405             F          508,000.00         ZZ
                                         180        506,308.35          1
                                       6.375          4,390.40         24
                                       6.000          4,390.40
    SARATOGA         CA   95070          2            01/22/02         00
    0018140517                           05           03/01/02          0
    0018140517                           O            02/01/17
    0

    8041370          405/405             F          365,000.00         ZZ
                                         180        363,810.42          1
                                       6.625          3,204.68         39
                                       6.125          3,204.68
    SAN ANSELMO      CA   94960          2            01/24/02         00
    0018156356                           05           03/01/02          0
    0018156356                           O            02/01/17
    0

    8041374          405/405             F          619,800.00         ZZ
                                         180        619,800.00          1
1

                                       6.500          5,399.13         60
                                       6.000          5,399.13
    DIAMOND BAR      CA   91765          1            02/04/02         00
    0018192534                           03           04/01/02          0
    0018192534                           O            03/01/17
    0

    8041376          405/405             F          326,000.00         ZZ
                                         180        324,914.42          1
                                       6.375          2,817.46         56
                                       6.000          2,817.46
    OAKLAND          CA   94611          2            01/14/02         00
    0060011327                           05           03/01/02          0
    0060011327                           O            02/01/17
    0

    8047962          E22/G01             F          513,000.00         ZZ
                                         180        513,000.00          1
                                       6.250          4,398.58         52
                                       6.000          4,398.58
    TAMPA            FL   33629          2            02/19/02         00
    0413682543                           05           04/01/02          0
    0413682543                           O            03/01/17
    0

    8047980          E22/G01             F          320,000.00         ZZ
                                         180        320,000.00          1
                                       7.000          2,876.25         75
                                       6.750          2,876.25
    PIKESVILLE       MD   21208          2            02/20/02         00
    0413689415                           05           04/01/02          0
    0413689415                           O            03/01/17
    0

    8048404          A35/G01             F          412,000.00         ZZ
                                         180        412,000.00          1
                                       6.625          3,617.33         46
                                       6.375          3,617.33
    LAS VEGAS        NV   89117          2            02/14/02         00
    0433720695                           03           04/01/02          0
    00695                                O            03/01/17
    0

    8048858          956/G01             F          450,000.00         ZZ
                                         180        448,517.52          1
                                       6.500          3,919.98         34
                                       6.250          3,919.98
    LOS ALTOS        CA   94022          5            01/30/02         00
    0433724317                           05           03/01/02          0
1

    1112020278                           O            02/01/17
    0

    8049148          E82/G01             F          298,700.00         ZZ
                                         180        298,700.00          1
                                       6.750          2,643.22         80
                                       6.500          2,643.22
    ARLINGTON        VA   22213          2            02/20/02         00
    0400589172                           05           04/01/02          0
    0400589172                           O            03/01/17
    0

    8049512          956/G01             F          360,000.00         ZZ
                                         180        360,000.00          1
                                       6.625          3,160.78         72
                                       6.375          3,160.78
    TAMPA            FL   33613          2            02/05/02         00
    0433707759                           03           04/01/02          0
    4111120089                           O            03/01/17
    0

    8058176          998/998             F          581,000.00         ZZ
                                         180        577,122.46          1
                                       6.500          5,061.13         70
                                       6.250          5,061.13
    LINCOLN          NE   68526          5            12/21/01         00
    2062432                              05           02/01/02          0
    2062432                              O            01/01/17
    0

    8058178          998/998             F          303,000.00         ZZ
                                         180        301,980.13          1
                                       6.250          2,597.99         44
                                       6.000          2,597.99
    AUBURN           AL   36830          2            01/10/02         00
    2137828                              05           03/01/02          0
    2137828                              O            02/01/17
    0

    8058182          998/998             F          431,000.00         ZZ
                                         180        429,549.30          1
                                       6.250          3,695.49         75
                                       6.000          3,695.49
    PARNELL          IA   52325          2            01/10/02         00
    2177479                              05           03/01/02          0
    2177479                              O            02/01/17
    0

1

    8058186          998/998             F          444,000.00         ZZ
                                         180        442,552.95          1
                                       6.625          3,898.30         80
                                       6.375          3,898.30
    SPRINGFIELD      MO   65809          1            01/14/02         00
    2270530                              05           03/01/02          0
    2270530                              O            02/01/17
    0

    8058192          998/998             F          480,000.00         ZZ
                                         180        478,418.68          1
                                       6.500          4,181.32         63
                                       6.250          4,181.32
    SPRINGFIELD      IL   62707          5            01/07/02         00
    2464722                              05           03/01/02          0
    2464722                              O            02/01/17
    0

    8058194          998/998             F          300,700.00         ZZ
                                         180        299,676.99          1
                                       6.125          2,557.83         52
                                       5.875          2,557.83
    LILLIAN          AL   36541          2            01/18/02         00
    2758458                              05           03/01/02          0
    2758458                              O            02/01/17
    0

    8058196          998/998             F          508,000.00         ZZ
                                         180        506,302.48          1
                                       7.000          4,566.05         80
                                       6.750          4,566.05
    SPRINGFIELD      MO   65804          2            01/16/02         00
    2969628                              05           03/01/02          0
    2969628                              O            02/01/17
    0

    8058198          998/998             F          476,700.00         ZZ
                                         180        475,095.48          1
                                       6.250          4,087.33         70
                                       6.000          4,087.33
    MARYSVILLE       WA   98270          5            01/18/02         00
    2994432                              05           03/01/02          0
    2994432                              O            02/01/17
    0

    8058200          998/998             F          400,000.00         ZZ
                                         180        398,738.02          1
                                       7.000          3,595.31         75
                                       6.750          3,595.31
1

    ALTADENA         CA   91001          5            01/10/02         00
    3028479                              05           03/01/02          0
    3028479                              O            02/01/17
    0

    8058202          998/998             F          420,500.00         ZZ
                                         180        419,129.55          1
                                       6.625          3,691.96         74
                                       6.375          3,691.96
    LOVELAND         CO   80538          2            01/24/02         00
    3122307                              03           03/01/02          0
    3122307                              O            02/01/17
    0

    8058204          998/998             F          480,000.00         ZZ
                                         180        478,418.68          1
                                       6.500          4,181.32         77
                                       6.250          4,181.32
    DULUTH           GA   30097          2            01/30/02         00
    3289530                              03           03/01/02          0
    3289530                              O            02/01/17
    0

    8058206          998/998             F          492,000.00         ZZ
                                         180        488,784.19          1
                                       6.625          4,319.73         80
                                       6.375          4,319.73
    GRAYLING         MI   49738          2            11/29/01         00
    3292370                              05           02/01/02          0
    3292370                              O            01/01/17
    0

    8064472          696/G01             F          381,800.00         ZZ
                                         180        381,800.00          1
                                       6.625          3,352.18         63
                                       6.375          3,352.18
    KENSINGTON       MD   20895          2            02/19/02         00
    0433711074                           05           04/01/02          0
    31101214                             O            03/01/17
    0

    8070426          E22/G01             F          790,000.00         ZZ
                                         180        790,000.00          1
                                       6.625          6,936.15         59
                                       6.375          6,936.15
    SARATOGA         CA   95070          2            02/19/02         00
    0413361056                           05           04/01/02          0
    0413361056                           O            03/01/17
    0
1

    8070876          E82/G01             F          209,900.00         ZZ
                                         180        209,900.00          1
                                       6.375          1,814.06         60
                                       6.125          1,814.06
    BELLA VISTA      CA   96008          2            02/20/02         00
    0400591640                           05           04/01/02          0
    0400591640                           O            03/01/17
    0

    8077166          R49/G01             F           42,000.00         ZZ
                                         180         41,733.29          1
                                       6.960            376.57         66
                                       6.710            376.57
    EDGEWATER        FL   32132          2            12/14/01         00
    0433721727                           05           02/01/02          0
    6837153                              O            01/01/17
    0

    8078588          956/G01             F          379,000.00         ZZ
                                         180        379,000.00          1
                                       6.750          3,353.81         68
                                       6.500          3,353.81
    FREMONT          CA   94536          2            02/08/02         00
    0433724242                           03           04/01/02          0
    212010160                            O            03/01/17
    0

    8079410          956/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.375          3,457.00         73
                                       6.125          3,457.00
    SAN JOSE         CA   95125          1            02/08/02         00
    0433712288                           05           04/01/02          0
    712010223                            O            03/01/17
    0

    8081444          356/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.875          3,567.42         43
                                       6.625          3,567.42
    SAN JOSE         CA   95120          5            01/31/02         00
    0433716677                           05           04/01/02          0
    2923316                              O            03/01/17
    0

    8081548          956/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
1

                                       6.375          3,457.00         71
                                       6.125          3,457.00
    GREEN OAKS       IL   60048          2            02/06/02         00
    0433712494                           03           04/01/02          0
    1112010547                           O            03/01/17
    0

    8084662          956/G01             F          320,000.00         ZZ
                                         180        318,957.09          1
                                       6.625          2,809.58         42
                                       6.375          2,809.58
    LIVINGSTON       NJ   07039          2            02/04/02         00
    0433724432                           05           03/01/02          0
    912010076                            O            02/01/17
    0

    8094412          E82/G01             F          376,000.00         ZZ
                                         180        376,000.00          1
                                       6.625          3,301.26         80
                                       6.375          3,301.26
    PEMBROKE PINES   FL   33027          2            02/25/02         00
    0400580809                           03           04/01/02          0
    0400580809                           O            03/01/17
    0

    8103912          998/998             F          500,000.00         ZZ
                                         180        498,387.95          1
                                       6.750          4,424.55         65
                                       6.500          4,424.55
    VIRGINIA BEACH   VA   23454          1            01/25/02         00
    3100318                              05           03/01/02          0
    3100318                              O            02/01/17
    0

    8105792          550/550             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.450          3,039.27         39
                                       6.200          3,039.27
    FOSTER CITY      CA   94404          2            02/19/02         00
    120569145                            05           04/01/02          0
    120569145                            O            03/01/17
    0

    8107060          367/367             F          408,000.00         ZZ
                                         180        408,000.00          1
                                       6.375          3,526.14         53
                                       6.125          3,526.14
    WASHINGTON       DC   20008          2            02/14/02         00
    99035281                             05           04/01/02          0
1

    99035281                             O            03/01/17
    0

    8111532          E22/G01             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.500          5,662.20         25
                                       6.250          5,662.20
    HUNTINGTON BEAC  CA   92649          2            02/12/02         00
    0413651597                           03           04/01/02          0
    0413651597                           O            03/01/17
    0

    8111944          E82/G01             F          427,000.00         ZZ
                                         180        427,000.00          1
                                       6.750          3,778.56         80
                                       6.500          3,778.56
    SUWANEE          GA   30024          2            02/26/02         00
    0400592705                           05           04/01/02          0
    3854931                              O            03/01/17
    0

    8111974          E82/G01             F          249,600.00         ZZ
                                         180        249,600.00          1
                                       6.750          2,208.73         75
                                       6.500          2,208.73
    MILPITAS         CA   95035          2            02/25/02         00
    0400575643                           05           04/01/02          0
    1977346                              O            03/01/17
    0

    8111988          E82/G01             F          522,000.00         ZZ
                                         180        522,000.00          1
                                       6.625          4,583.13         35
                                       6.375          4,583.13
    HIDDEN HILLS     CA   91302          2            02/25/02         00
    0400581302                           05           04/01/02          0
    1805751                              O            03/01/17
    0

    8111990          E82/G01             F          213,600.00         ZZ
                                         180        213,600.00          1
                                       6.625          1,875.39         80
                                       6.375          1,875.39
    FREDERICK        MD   21703          2            02/26/02         00
    0400585576                           03           04/01/02          0
    0400585576                           O            03/01/17
    0

1

    8120062          956/G01             F          525,000.00         ZZ
                                         180        525,000.00          1
                                       6.625          4,609.47         75
                                       6.375          4,609.47
    GALLATIN         TN   37066          2            02/20/02         00
    0433726098                           05           04/01/02          0
    4612010014                           O            03/01/17
    0

    8120422          956/G01             F          365,000.00         ZZ
                                         180        365,000.00          1
                                       6.500          3,179.54         40
                                       6.250          3,179.54
    CAMARILLO        CA   93012          2            02/08/02         00
    0433740719                           03           04/01/02          0
    612010157                            O            03/01/17
    0

    8121686          956/G01             F          398,000.00         ZZ
                                         180        398,000.00          1
                                       6.500          3,467.01         58
                                       6.250          3,467.01
    ST MICHAEL       MN   55376          2            02/13/02         00
    0433725637                           05           04/01/02          0
    1112010756                           O            03/01/17
    0

    8121842          R65/G01             F          460,800.00         ZZ
                                         180        460,800.00          1
                                       6.375          3,982.47         66
                                       6.125          3,982.47
    WELLESLEY        MA   02481          5            02/19/02         00
    0433732633                           05           04/01/02          0
    0228679                              O            03/01/17
    0

    8125142          R65/G01             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.500          5,662.20         65
                                       6.250          5,662.20
    DESTIN           FL   32541          5            02/07/02         00
    0433734753                           05           04/01/02          0
    20016959                             O            03/01/17
    0

    8125822          956/G01             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.625          3,511.98         79
                                       6.375          3,511.98
1

    SANTA CLARA      CA   95051          2            02/19/02         00
    0433737400                           05           04/01/02          0
    112010342                            O            03/01/17
    0

    8128290          956/G01             F          440,000.00         ZZ
                                         180        440,000.00          1
                                       6.500          3,832.87         44
                                       6.250          3,832.87
    BAINBRIDGE ISLA  WA   98110          5            02/19/02         00
    0433728029                           05           04/01/02          0
    1312020056                           O            03/01/17
    0

    8141556          956/G01             F          452,000.00         ZZ
                                         180        452,000.00          1
                                       6.375          3,906.41         80
                                       6.125          3,906.41
    DUNWOODY         GA   30338          1            02/26/02         00
    0433723988                           03           04/01/02          0
    2712020016                           O            03/01/17
    0

    8142022          956/G01             F          401,000.00         ZZ
                                         180        401,000.00          1
                                       6.625          3,520.76         61
                                       6.375          3,520.76
    RANCHO PALOS VE  CA   90275          2            02/21/02         00
    0433761434                           05           04/01/02          0
    2612010104                           O            03/01/17
    0

    8156784          550/550             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.500          5,662.20         29
                                       6.250          5,662.20
    HILLSBOROUGH     CA   94010          2            02/20/02         00
    120561852                            05           04/01/02          0
    120561852                            O            03/01/17
    0

    8156992          624/G01             F          569,700.00         ZZ
                                         180        569,700.00          1
                                       6.625          5,001.93         47
                                       6.375          5,001.93
    MENLO PARK       CA   94025          2            02/19/02         00
    0433732534                           05           04/01/02          0
    36800310716F                         O            03/01/17
    0
1

    8170768          E22/G01             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.125          2,977.19         67
                                       5.875          2,977.19
    SAN FRANCISCO    CA   94121          2            02/20/02         00
    0413348210                           07           04/01/02          0
    0413348210                           O            03/01/17
    0

    8171442          E82/G01             F          365,150.00         ZZ
                                         180        365,150.00          1
                                       6.375          3,155.81         72
                                       6.125          3,155.81
    ALAMEDA          CA   94502          2            02/25/02         00
    0400580882                           03           04/01/02          0
    1776211                              O            03/01/17
    0

    8192344          225/G01             F          401,000.00         T
                                         180        397,231.78          1
                                       6.250          3,438.27         73
                                       6.000          3,438.27
    EAST ROCKAWAY    NY   11518          1            12/14/01         00
    0433745866                           05           02/01/02          0
    006552849                            O            01/01/17
    0

    8192348          225/G01             F          303,200.00         ZZ
                                         180        299,171.94          1
                                       6.500          2,641.20         80
                                       6.250          2,641.20
    GREER            SC   29650          2            10/26/01         00
    0433745775                           05           12/01/01          0
    006556210                            O            11/01/16
    0

    8192372          225/G01             F          450,000.00         ZZ
                                         180        447,027.01          1
                                       6.500          3,919.98         64
                                       6.250          3,919.98
    KEY WEST         FL   33040          2            12/21/01         00
    0433745890                           05           02/01/02          0
    006562588                            O            01/01/17
    0

    8192374          225/G01             F          400,000.00         ZZ
                                         180        398,639.17          1
1

                                       6.125          3,402.50         50
                                       5.875          3,402.50
    OCEAN TWP        NJ   07755          5            01/11/02         00
    0433745726                           05           03/01/02          0
    006562593                            O            02/01/17
    0

    8192382          225/G01             F          474,000.00         ZZ
                                         180        470,800.83          1
                                       6.250          4,064.18         47
                                       6.000          4,064.18
    ASHEVILLE        NC   28804          5            12/28/01         00
    0433745999                           05           02/01/02          0
    006562880                            O            01/01/17
    0

    8192384          225/G01             F          499,300.00         ZZ
                                         180        495,930.07          1
                                       6.250          4,281.11         67
                                       6.000          4,281.11
    COLUMBUS         GA   31904          5            12/20/01         00
    0433745908                           05           02/01/02          0
    006563107                            O            01/01/17
    0

    8192406          225/G01             F          420,000.00         ZZ
                                         180        418,631.18          1
                                       6.625          3,687.57         80
                                       6.375          3,687.57
    CHADDS FORD      PA   19317          1            01/09/02         00
    0433745718                           05           03/01/02          0
    006564552                            O            02/01/17
    0

    8192408          225/G01             F          430,000.00         ZZ
                                         180        428,502.45          1
                                       5.875          3,599.61         58
                                       5.625          3,599.61
    PONTE VEDRA B    FL   32082          5            01/03/02         00
    0433745700                           05           03/01/02          0
    006564561                            O            02/01/17
    0

    8192414          225/G01             F          500,000.00         T
                                         180        498,387.95          1
                                       6.750          4,424.55         58
                                       6.500          4,424.55
    LONG BEACH       NJ   08008          2            01/04/02         00
    0433745668                           05           03/01/02          0
1

    006565258                            O            02/01/17
    0

    8192416          225/G01             F          510,000.00         ZZ
                                         180        506,737.52          1
                                       6.875          4,548.46         27
                                       6.625          4,548.46
    POINT PLEASAN    NJ   08742          5            12/20/01         00
    0433745650                           05           02/01/02          0
    006565334                            O            01/01/17
    0

    8192474          225/G01             F          290,000.00         ZZ
                                         180        287,431.92          1
                                       6.500          2,526.21         63
                                       6.250          2,526.21
    EAST ISLIP       NY   11730          2            12/19/01         00
    0433746039                           05           02/01/02          0
    007323078                            O            01/01/17
    0

    8192478          225/G01             F          418,000.00         ZZ
                                         180        415,267.88          1
                                       6.625          3,670.01         73
                                       6.375          3,670.01
    ELBURN           IL   60119          2            12/19/01         00
    0433746021                           05           02/01/02          0
    007323634                            O            01/01/17
    0

    8192480          225/G01             F          425,000.00         T
                                         180        423,522.97          1
                                       5.875          3,557.76         60
                                       5.625          3,557.76
    MASHPEE          MA   02649          2            01/04/02         00
    0433746013                           05           03/01/02          0
    007324227                            O            02/01/17
    0

    8192494          225/G01             F          400,000.00         ZZ
                                         180        397,328.92          1
                                       6.375          3,457.00         27
                                       6.125          3,457.00
    ATLANTA          GA   30305          2            12/27/01         00
    0433746005                           05           02/01/02          0
    007326623                            O            01/01/17
    0

1

    8192496          225/G01             F          334,000.00         ZZ
                                         180        331,155.77          1
                                       7.000          3,002.09         73
                                       6.750          3,002.09
    HILLARD          OH   43026          2            12/14/01         00
    0433745635                           05           02/01/02          0
    007326771                            O            01/01/17
    0

    8192510          225/G01             F          455,000.00         T
                                         180        451,945.18          1
                                       6.875          4,057.94         55
                                       6.625          4,057.94
    LAKE ARROWHEA    CA   92352          2            01/16/02         00
    0433745627                           05           03/01/02          0
    007328794                            O            02/01/17
    0

    8192520          225/G01             F          390,700.00         ZZ
                                         180        389,440.34          1
                                       6.750          3,457.35         80
                                       6.500          3,457.35
    SCOTTSDALE       AZ   85254          2            01/28/02         00
    0433745619                           05           03/01/02          0
    007329367                            O            02/01/17
    0

    8192534          225/G01             F          400,000.00         ZZ
                                         180        397,385.51          1
                                       6.625          3,511.98         75
                                       6.375          3,511.98
    HUNTINGTON BE    CA   92649          5            12/13/01         00
    0433746187                           05           02/01/02          0
    007331149                            O            01/01/17
    0

    8192536          225/G01             F          308,000.00         ZZ
                                         180        307,006.98          1
                                       6.750          2,725.52         80
                                       6.500          2,725.52
    MOUNT PROSPEC    IL   60056          2            01/22/02         00
    0433746179                           05           03/01/02          0
    007331230                            O            02/01/17
    0

    8192584          225/G01             F          374,000.00         T
                                         180        372,845.47          1
                                       7.250          3,414.11         62
                                       7.000          3,414.11
1

    BOONE            NC   28607          2            01/29/02         00
    0433746146                           05           03/01/02          0
    007337205                            O            02/01/17
    0

    8192586          225/G01             F          395,000.00         ZZ
                                         180        393,780.65          1
                                       7.250          3,605.81         60
                                       7.000          3,605.81
    SOUTH PASADEN    CA   91030          5            01/09/02         00
    0433746120                           05           03/01/02          0
    007337994                            O            02/01/17
    0

    8192610          225/G01             F          354,900.00         ZZ
                                         180        353,657.79          1
                                       6.750          3,140.54         70
                                       6.500          3,140.54
    ALPHARETTA       GA   30005          2            01/14/02         00
    0433745833                           03           03/01/02          0
    006304374                            O            02/01/17
    0

    8192614          225/G01             F          400,010.00         ZZ
                                         180        398,775.19          1
                                       7.250          3,651.54         62
                                       7.000          3,651.54
    ORLANDO          FL   32836          1            01/18/02         00
    0433745858                           03           03/01/02          0
    006520642                            O            02/01/17
    0

    8192618          225/G01             F          336,000.00         ZZ
                                         180        333,440.22          1
                                       6.250          2,880.94         80
                                       6.000          2,880.94
    PALM CITY        FL   34990          2            12/14/01         00
    0433745759                           03           02/01/02          0
    006559921                            O            01/01/17
    0

    8192620          225/G01             F          348,000.00         ZZ
                                         180        346,839.44          1
                                       6.375          3,007.59         80
                                       6.125          3,007.59
    LONGWOOD         FL   32779          2            01/25/02         00
    0433745882                           03           03/01/02          0
    006560971                            O            02/01/17
    0
1

    8192626          225/G01             F          370,400.00         ZZ
                                         180        368,994.49          1
                                       6.250          3,175.89         80
                                       6.000          3,175.89
    GREER            SC   29650          2            01/04/02         00
    0433745940                           03           03/01/02          0
    006563918                            O            02/01/17
    0

    8192628          225/G01             F          400,100.00         ZZ
                                         180        398,810.04          1
                                       6.750          3,540.52         67
                                       6.500          3,540.52
    WEST PALM BEA    FL   33411          2            01/18/02         00
    0433745924                           03           03/01/02          0
    006564068                            O            02/01/17
    0

    8192630          225/G01             F          650,000.00         ZZ
                                         180        647,835.50          1
                                       6.375          5,617.63         73
                                       6.125          5,617.63
    DAVIDSONVILLE    MD   21035          2            01/03/02         00
    0433745916                           03           03/01/02          0
    006564166                            O            02/01/17
    0

    8192632          225/G01             F          650,000.00         ZZ
                                         180        647,904.34          1
                                       6.750          5,751.91         44
                                       6.500          5,751.91
    BONITA SPRING    FL   34134          5            01/03/02         00
    0433745676                           03           03/01/02          0
    006565256                            O            02/01/17
    0

    8192636          225/G01             F          403,000.00         ZZ
                                         180        401,643.55          1
                                       6.250          3,455.41         71
                                       6.000          3,455.41
    RICHMOND         VA   23233          5            01/28/02         00
    0433746088                           03           03/01/02          0
    006566843                            O            02/01/17
    0

    8192638          225/G01             F          400,050.00         ZZ
                                         180        398,732.07          1
1

                                       6.500          3,484.87         74
                                       6.250          3,484.87
    RALEIGH          NC   27617          1            01/18/02         00
    0433746070                           03           03/01/02          0
    006567530                            O            02/01/17
    0

    8192640          225/G01             F          625,500.00         ZZ
                                         180        623,483.33          1
                                       6.750          5,535.11         55
                                       6.500          5,535.11
    JACKSONVILLE     FL   32217          5            01/25/02         00
    0433746062                           03           03/01/02          0
    006567574                            O            02/01/17
    0

    8192674          225/G01             F          520,000.00         ZZ
                                         180        518,305.26          1
                                       6.625          4,565.57         42
                                       6.375          4,565.57
    LITTLETON        CO   80121          2            01/24/02         00
    0433746112                           03           03/01/02          0
    007341543                            O            02/01/17
    0

    8206318          956/G01             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.500          5,662.20         66
                                       6.250          5,662.20
    SAN CARLOS       CA   94070          2            02/22/02         00
    0433753381                           03           04/01/02          0
    112010362                            O            03/01/17
    0

    8213300          E22/G01             F          260,000.00         ZZ
                                         180        260,000.00          1
                                       6.000          2,194.03         59
                                       5.750          2,194.03
    KELSEYVILLE      CA   95451          5            02/21/02         00
    0413576679                           03           04/01/02          0
    0413576679                           O            03/01/17
    0

    8213846          E82/G01             F          278,300.00         ZZ
                                         180        278,300.00          1
                                       6.500          2,424.29         70
                                       6.250          2,424.29
    VISALIA          CA   93277          2            02/27/02         00
    0400595575                           05           04/01/02          0
1

    1610662                              O            03/01/17
    0

    8213862          E82/G01             F          284,800.00         ZZ
                                         180        284,800.00          1
                                       6.500          2,480.91         78
                                       6.250          2,480.91
    FRIENDSWOOD      TX   77546          2            03/01/02         00
    0400586384                           05           04/01/02          0
    0400586384                           O            03/01/17
    0

    8217602          956/G01             F          492,000.00         ZZ
                                         180        492,000.00          1
                                       6.500          4,285.85         25
                                       6.250          4,285.85
    TUCSON           AZ   85750          2            02/12/02         00
    0433753076                           03           04/01/02          0
    020000                               O            03/01/17
    0

    8236934          E82/G01             F          453,500.00         ZZ
                                         180        453,500.00          1
                                       6.750          4,013.06         75
                                       6.500          4,013.06
    JACKSONVILLE     FL   32256          2            02/26/02         00
    0400589370                           03           04/01/02          0
    1978804                              O            03/01/17
    0

    8260810          405/405             F          409,000.00         ZZ
                                         180        409,000.00          1
                                       6.750          3,619.28         65
                                       6.250          3,619.28
    LOS ANGELES      CA   90064          5            02/22/02         00
    0018265926                           05           04/01/02          0
    0018265926                           O            03/01/17
    0

    8260812          405/405             F          347,720.00         ZZ
                                         180        346,598.92          1
                                       6.750          3,077.01         80
                                       6.250          3,077.01
    AUSTIN           TX   78759          1            01/28/02         00
    0012907085                           05           03/01/02          0
    0012907085                           O            02/01/17
    0

1

    8260814          405/405             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.500          3,484.43         67
                                       6.000          3,484.43
    ARCADIA          CA   91006          1            02/15/02         00
    0018259689                           05           04/01/02          0
    0018259689                           O            03/01/17
    0

    8260818          405/405             F          600,000.00         ZZ
                                         180        600,000.00          1
                                       6.625          5,267.97         45
                                       6.125          5,267.97
    PLEASANTON       CA   94588          2            02/14/02         00
    0018001644                           03           04/01/02          0
    0018001644                           O            03/01/17
    0

    8260822          405/405             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.250          5,573.25         79
                                       6.000          5,573.25
    HIGHLANDS RANCH  CO   80126          1            02/13/02         00
    0012664249                           03           04/01/02          0
    0012664249                           O            03/01/17
    0

    8260826          405/405             F          210,000.00         ZZ
                                         180        210,000.00          1
                                       6.750          1,858.31         54
                                       6.250          1,858.31
    LOS ANGELES      CA   90292          1            02/06/02         00
    0018173906                           05           04/01/02          0
    0018173906                           O            03/01/17
    0

    8260828          405/405             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.625          3,072.98         74
                                       6.125          3,072.98
    HACIENDA HEIGHT  CA   91745          5            02/22/02         00
    0018265637                           05           04/01/02          0
    0018265637                           O            03/01/17
    0

    8260830          405/405             F          649,950.00         ZZ
                                         180        649,950.00          1
                                       6.625          5,706.52         36
                                       6.125          5,706.52
1

    DALLAS           TX   75220          2            02/26/02         00
    0018242354                           05           04/01/02          0
    0018242354                           O            03/01/17
    0

    8260832          405/405             F          450,000.00         ZZ
                                         180        448,533.41          1
                                       6.625          3,950.97         48
                                       6.125          3,950.97
    ROWLAND HEIGHTS  CA   91748          1            01/28/02         00
    0012971255                           05           03/01/02          0
    0012971255                           O            02/01/17
    0

    8260834          405/405             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.625          3,511.98         27
                                       6.125          3,511.98
    DANVILLE         CA   94506          2            01/30/02         00
    0012959334                           03           04/01/02          0
    0012959334                           O            03/01/17
    0

    8260838          405/405             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.500          5,662.20         50
                                       6.000          5,662.20
    SANTA MONICA     CA   90402          5            02/19/02         00
    0018171314                           05           04/01/02          0
    0018171314                           O            03/01/17
    0

    8260842          405/405             F          435,000.00         ZZ
                                         180        435,000.00          1
                                       6.250          3,729.79         37
                                       6.000          3,729.79
    SAN CLEMENTE     CA   92673          2            02/06/02         00
    0018058727                           03           04/01/02          0
    0018058727                           O            03/01/17
    0

    8260844          405/405             F          387,000.00         ZZ
                                         180        387,000.00          1
                                       6.750          3,424.60         52
                                       6.250          3,424.60
    ORANGE           CA   92867          2            02/15/02         00
    0018259697                           03           04/01/02          0
    0018259697                           O            03/01/17
    0
1

    8260846          405/405             F          300,000.00         ZZ
                                         180        300,000.00          1
                                       6.375          2,592.76         45
                                       6.000          2,592.76
    LOS ANGELES      CA   91364          2            02/15/02         00
    0018057588                           05           04/01/02          0
    0018057588                           O            03/01/17
    0

    8260848          405/405             F          450,000.00         ZZ
                                         180        450,000.00          1
                                       6.875          4,013.35         50
                                       6.375          4,013.35
    CHEVY CHASE      MD   20815          2            02/19/02         00
    0018231522                           05           04/01/02          0
    0018231522                           O            03/01/17
    0

    8260850          405/405             F          596,000.00         ZZ
                                         180        596,000.00          1
                                       6.625          5,232.85         80
                                       6.125          5,232.85
    SAN JOSE         CA   95129          1            02/08/02         00
    0018245977                           05           04/01/02          0
    0018245977                           O            03/01/17
    0

    8260852          405/405             F          450,000.00         ZZ
                                         180        450,000.00          1
                                       6.500          3,919.99         62
                                       6.000          3,919.99
    SAN JOSE         CA   95129          5            02/12/02         00
    0018029074                           05           04/01/02          0
    0018029074                           O            03/01/17
    0

    8260854          405/405             F          405,000.00         ZZ
                                         180        405,000.00          1
                                       6.500          3,527.99         78
                                       6.000          3,527.99
    NORTHRIDGE       CA   91326          2            02/13/02         00
    0060004876                           05           04/01/02          0
    0060004876                           O            03/01/17
    0

    8275736          405/405             F          650,000.00         ZZ
                                         180        647,812.17          1
1

                                       6.250          5,573.25         62
                                       6.000          5,573.25
    MANHATTAN BEACH  CA   90266          2            01/10/02         00
    0012783874                           05           03/01/02          0
    0012783874                           O            02/01/17
    0

    8275740          405/405             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.875          3,567.42         25
                                       6.375          3,567.42
    PASADENA         CA   91106          5            02/05/02         00
    0017930819                           05           04/01/02          0
    0017930819                           O            03/01/17
    0

    8275742          405/405             F          543,000.00         ZZ
                                         180        543,000.00          1
                                       6.250          4,655.81         44
                                       6.000          4,655.81
    KENTFIELD        CA   94904          2            02/04/02         00
    0018051706                           05           04/01/02          0
    0018051706                           O            03/01/17
    0

    8275748          405/405             F          405,000.00         ZZ
                                         180        403,651.34          1
                                       6.375          3,500.22         30
                                       6.000          3,500.22
    SARATOGA         CA   95070          2            01/25/02         00
    0018104729                           05           03/01/02          0
    0018104729                           O            02/01/17
    0

    8275750          405/405             F          529,000.00         ZZ
                                         180        529,000.00          1
                                       6.250          4,535.77         20
                                       6.000          4,535.77
    BEVERLY HILLS    CA   90210          2            02/05/02         00
    0018112052                           05           04/01/02          0
    0018112052                           O            03/01/17
    0

    8275752          405/405             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.375          5,617.63         68
                                       6.000          5,617.63
    LA CANADA FLINT  CA   91011          5            02/06/02         00
    0018112565                           05           04/01/02          0
1

    0018112565                           O            03/01/17
    0

    8275760          405/405             F          440,000.00         ZZ
                                         180        440,000.00          1
                                       6.375          3,802.71         51
                                       6.000          3,802.71
    RANCHO PALOS VE  CA   90275          2            02/07/02         00
    0018158428                           05           04/01/02          0
    0018158428                           O            03/01/17
    0

    8275764          405/405             F          142,200.00         ZZ
                                         180        142,200.00          1
                                       6.500          1,238.72         50
                                       6.000          1,238.72
    POWAY            CA   92064          2            02/04/02         00
    0018165324                           05           04/01/02          0
    0018165324                           O            03/01/17
    0

    8275768          405/405             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.375          3,024.88         73
                                       6.000          3,024.88
    LOS ANGELES      CA   91344          5            02/04/02         00
    0018169748                           05           04/01/02          0
    0018169748                           O            03/01/17
    0

    8275770          405/405             F          626,000.00         ZZ
                                         180        626,000.00          1
                                       6.625          5,496.24         56
                                       6.125          5,496.24
    MANHATTAN BEACH  CA   90266          2            02/07/02         00
    0018170316                           05           04/01/02          0
    0018170316                           O            03/01/17
    0

    8275776          405/405             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.625          3,511.98         72
                                       6.125          3,511.98
    PACIFICA         CA   94044          5            02/01/02         00
    0018191916                           03           04/01/02          0
    0018191916                           O            03/01/17
    0

1

    8275778          405/405             F          324,000.00         ZZ
                                         180        324,000.00          1
                                       6.625          2,844.70         63
                                       6.125          2,844.70
    LOS ANGELES      CA   91304          2            02/12/02         00
    0018201558                           05           04/01/02          0
    0018201558                           O            03/01/17
    0

    8275780          405/405             F          342,000.00         ZZ
                                         180        342,000.00          1
                                       6.500          2,979.19         68
                                       6.000          2,979.19
    LEWIS CENTER     OH   43035          2            02/06/02         00
    0018201665                           05           04/01/02          0
    0018201665                           O            03/01/17
    0

    8275782          405/405             F          389,000.00         ZZ
                                         180        386,058.94          1
                                       6.875          3,469.32         52
                                       6.375          3,469.32
    VIENNA           VA   22182          2            01/31/02         00
    0018206219                           03           03/01/02          0
    0018206219                           O            02/01/17
    0

    8275784          405/405             F          388,000.00         ZZ
                                         180        388,000.00          1
                                       6.375          3,353.30         52
                                       6.000          3,353.30
    MOUNTAIN VIEW    CA   94040          2            02/01/02         00
    0018208686                           03           04/01/02          0
    0018208686                           O            03/01/17
    0

    8275786          405/405             F          447,000.00         ZZ
                                         180        447,000.00          1
                                       6.375          3,863.20         39
                                       6.000          3,863.20
    CORONA DEL MAR   CA   92625          2            02/14/02         00
    0018209171                           03           04/01/02          0
    0018209171                           O            03/01/17
    0

    8275788          405/405             F          400,000.00         ZZ
                                         180        400,000.00          1
                                       6.250          3,429.70         40
                                       6.000          3,429.70
1

    SAN FRANCISCO    CA   94116          5            02/06/02         00
    0018210799                           05           04/01/02          0
    0018210799                           O            03/01/17
    0

    8275794          405/405             F          470,000.00         ZZ
                                         180        470,000.00          1
                                       6.625          4,126.57         51
                                       6.125          4,126.57
    SAN RAFAEL       CA   94901          2            02/08/02         00
    0018227876                           03           04/01/02          0
    0018227876                           O            03/01/17
    0

    8275798          405/405             F          544,000.00         ZZ
                                         180        542,168.95          1
                                       6.250          4,664.38         63
                                       6.000          4,664.38
    HUNTINGTON BEAC  CA   92648          2            01/26/02         00
    0019992718                           03           03/01/02          0
    0019992718                           O            02/01/17
    0

    8275800          405/405             F          475,000.00         ZZ
                                         180        475,000.00          1
                                       6.375          4,105.19         56
                                       6.000          4,105.19
    LA CANADA FLINT  CA   91011          5            01/31/02         00
    0019993542                           05           04/01/02          0
    0019993542                           O            03/01/17
    0

    8275802          405/405             F          448,000.00         ZZ
                                         180        448,000.00          1
                                       6.375          3,871.85         65
                                       6.000          3,871.85
    GLENDALE         CA   91206          2            02/08/02         00
    0019997253                           05           04/01/02          0
    0019997253                           O            03/01/17
    0

    8275804          405/405             F          350,000.00         ZZ
                                         180        350,000.00          1
                                       6.625          3,072.98         67
                                       6.125          3,072.98
    FAIRFAX          CA   94930          2            02/08/02         00
    0060020914                           05           04/01/02          0
    0060020914                           O            03/01/17
    0
1

    8275868          405/405             F          359,950.00         ZZ
                                         180        358,776.88          1
                                       6.625          3,160.34         66
                                       6.125          3,160.34
    SAN ANTONIO      TX   78258          2            01/18/02         00
    0012754305                           03           03/01/02          0
    0012754305                           O            02/01/17
    0

    8275870          405/405             F          389,000.00         ZZ
                                         180        387,690.67          1
                                       6.250          3,335.37         78
                                       6.000          3,335.37
    ST LOUIS         MO   63131          2            01/17/02         00
    0012779708                           03           03/01/02          0
    0012779708                           O            02/01/17
    0

    8275872          405/405             F          573,000.00         ZZ
                                         180        571,132.53          1
                                       6.625          5,030.91         40
                                       6.125          5,030.91
    ENGLEWOOD        CO   80110          2            01/29/02         00
    0012843652                           03           03/01/02          0
    0012843652                           O            02/01/17
    0

    8275874          405/405             F          450,000.00         ZZ
                                         180        448,517.52          1
                                       6.500          3,919.98         63
                                       6.000          3,919.98
    LOS ANGELES      CA   91304          5            01/23/02         00
    0012905147                           03           03/01/02          0
    0012905147                           O            02/01/17
    0

    8275876          405/405             F          580,000.00         ZZ
                                         180        578,109.72          1
                                       6.625          5,092.36         47
                                       6.125          5,092.36
    RANCHO PALOS VE  CA   90275          2            01/23/02         00
    0012941753                           05           03/01/02          0
    0012941753                           O            02/01/17
    0

    8275878          405/405             F          360,000.00         ZZ
                                         180        358,826.72          1
1

                                       6.625          3,160.78         41
                                       6.125          3,160.78
    WEST COVINA      CA   91791          2            01/25/02         00
    0012942348                           05           03/01/02          0
    0012942348                           O            02/01/17
    0

    8275880          405/405             F          650,000.00         ZZ
                                         180        647,881.58          1
                                       6.625          5,706.96         61
                                       6.125          5,706.96
    HOUSTON          TX   77059          1            01/07/02         00
    0012963195                           03           03/01/02          0
    0012963195                           O            02/01/17
    0

    8275882          405/405             F          541,000.00         ZZ
                                         180        541,000.00          1
                                       6.500          4,712.69         64
                                       6.000          4,712.69
    KANSAS CITY      MO   64113          2            02/07/02         00
    0012974747                           03           04/01/02          0
    0012974747                           O            03/01/17
    0

    8275892          405/405             F          459,000.00         ZZ
                                         180        459,000.00          1
                                       6.625          4,030.00         42
                                       6.125          4,030.00
    LAFAYETTE        CA   94549          5            02/08/02         00
    0018100388                           05           04/01/02          0
    0018100388                           O            03/01/17
    0

    8275896          405/405             F          375,000.00         ZZ
                                         180        375,000.00          1
                                       6.625          3,292.48         58
                                       6.125          3,292.48
    RANCHO PALOS VE  CA   90275          2            02/05/02         00
    0018130666                           05           04/01/02          0
    0018130666                           O            03/01/17
    0

    8275898          405/405             F          620,000.00         ZZ
                                         180        620,000.00          1
                                       6.375          5,358.36         33
                                       6.000          5,358.36
    LOS ANGELES      CA   90020          5            02/05/02         00
    0018135483                           05           04/01/02          0
1

    0018135483                           O            03/01/17
    0

    8275900          405/405             F          405,000.00         ZZ
                                         180        405,000.00          1
                                       6.500          3,527.99         75
                                       6.000          3,527.99
    JOPPA            MD   21085          5            02/08/02         00
    0018204628                           05           04/01/02          0
    0018204628                           O            03/01/17
    0

    8275902          405/405             F          382,000.00         ZZ
                                         180        382,000.00          1
                                       6.750          3,380.36         58
                                       6.250          3,380.36
    ELMHURST         IL   60126          2            02/12/02         00
    0018214791                           05           04/01/02          0
    0018214791                           O            03/01/17
    0

    8275908          405/405             F          650,000.00         ZZ
                                         180        650,000.00          1
                                       6.375          5,617.63         56
                                       6.000          5,617.63
    POTOMAC          MD   20854          2            02/15/02         00
    0018250191                           03           04/01/02          0
    0018250191                           O            03/01/17
    0

    8283308          956/G01             F          357,000.00         ZZ
                                         180        357,000.00          1
                                       6.375          3,085.37         69
                                       6.125          3,085.37
    MUKILTEO         WA   98275          2            02/26/02         00
    0433759222                           05           04/01/02          0
    1312010138                           O            03/01/17
    0
1

   TOTAL NUMBER OF LOANS   :        710

   TOTAL ORIGINAL BALANCE  :   306,840,388.02

   TOTAL PRINCIPAL BALANCE :   305,145,211.67

   TOTAL ORIGINAL P+I      :     2,683,818.91

   TOTAL CURRENT P+I       :     2,683,818.91

                             ***************************
                             *      END OF REPORT      *
                             ***************************

<PAGE>

                                         EXHIBIT TWO
                                SCHEDULE OF DISCOUNT FRACTIONS
                                   (Available Upon Request)

<TABLE>
<CAPTION>
                                         Schedule of Discount Fractions

      Loan Number         Current Balance        Net Mortgage Rate       Discount Fraction      PO Balance
<S>     <C>                 <C>                       <C>                     <C>                <C>
        6252394             $341,678.23               5.970%                  0.5000%            $1,708.39
        6667310             $371,193.59               5.970%                  0.5000%            $1,855.97
        6673308             $514,503.86               5.970%                  0.5000%            $2,572.52
        6718584             $387,339.60               5.845%                  2.5833%           $10,006.27
        6775320             $571,119.12               5.970%                  0.5000%            $2,855.60
        6775330             $417,165.28               5.970%                  0.5000%            $2,085.83
        6810888             $566,152.89               5.970%                  0.5000%            $2,830.76
        6814694             $397,300.28               5.970%                  0.5000%            $1,986.50
        6815148             $377,435.25               5.970%                  0.5000%            $1,887.18
        6831420             $342,671.48               5.970%                  0.5000%            $1,713.36
        6861916             $321,766.23               5.720%                  4.6667%           $15,015.76
        6910890             $347,637.72               5.970%                  0.5000%            $1,738.19
        6948732             $501,591.59               5.970%                  0.5000%            $2,507.96
        6958596             $643,261.20               5.720%                  4.6667%           $30,018.86
        6963606             $346,803.38               5.720%                  4.6667%           $16,184.16
        7073686             $376,441.99               5.970%                  0.5000%            $1,882.21
        7109322             $311,000.00               5.595%                  6.7500%           $20,992.50
        7112872             $378,094.35               5.970%                  0.5000%            $1,890.47
        7128428             $319,421.23               5.970%                  0.5000%            $1,597.11
        7153114             $323,906.09               5.970%                  0.5000%            $1,619.53
        7223082             $311,768.58               5.845%                  2.5833%            $8,054.02
        7224424             $448,401.86               5.970%                  0.5000%            $2,242.01
        7233786             $645,566.01               5.845%                  2.5833%           $16,677.12
        7267812             $732,183.31               5.595%                  6.7500%           $49,422.37
        7276432             $395,536.72               5.970%                  0.5000%            $1,977.68
        7287880             $617,913.15               5.970%                  0.5000%            $3,089.57
        7302798             $341,795.07               5.970%                  0.5000%            $1,708.98
        7348734             $400,000.00               5.845%                  2.5833%           $10,333.33
        7557770             $436,458.61               5.970%                  0.5000%            $2,182.29
        7559058             $382,401.51               5.970%                  0.5000%            $1,912.01
        7559070             $476,760.33               5.970%                  0.5000%            $2,383.80
        7559102             $484,635.57               5.720%                  4.6667%           $22,616.33
        7559106             $303,232.01               5.970%                  0.5000%            $1,516.16
        7559130             $357,570.25               5.970%                  0.5000%            $1,787.85
        7560814             $460,504.23               5.970%                  0.5000%            $2,302.52
        7560826             $372,386.11               5.720%                  4.6667%           $17,378.02
        7560846             $591,004.02               5.970%                  0.5000%            $2,955.02
        7560852             $573,146.15               5.970%                  0.5000%            $2,865.73
        7560878             $108,272.11               5.970%                  0.5000%             $541.36
        7572446             $595,950.40               5.970%                  0.5000%            $2,979.75
        7583882             $347,612.46               5.845%                  2.5833%            $8,979.99
        7583894             $456,657.09               5.095%                 15.0833%           $68,879.11
        7583928             $357,254.56               5.470%                  8.8333%           $31,557.49
        7583966             $496,399.50               5.970%                  0.5000%            $2,482.00
        7583974             $355,160.63               5.845%                  2.5833%            $9,174.98
        7583976             $370,675.04               5.970%                  0.5000%            $1,853.38
        7632494             $397,212.92               5.595%                  6.7500%           $26,811.87
        7632500             $329,686.73               5.595%                  6.7500%           $22,253.85
        7632502             $595,730.24               5.345%                 10.9167%           $65,033.88
        7632546             $519,432.34               5.845%                  2.5833%           $13,418.67
        7632564             $491,653.14               5.845%                  2.5833%           $12,701.04
        7632570             $466,725.16               5.595%                  6.7500%           $31,503.95
        7632574             $445,432.34               5.970%                  0.5000%            $2,227.16

  Wednesday, March 20, 2002                                                                         Page 1 of 3

        7632578             $395,853.04               5.720%                  4.6667%           $18,473.14
        7632584             $570,918.10               5.970%                  0.5000%            $2,854.59
        7632586             $447,921.03               5.095%                 15.0833%           $67,561.42
        7632590             $556,220.38               5.970%                  0.5000%            $2,781.10
        7632598             $493,657.27               5.970%                  0.5000%            $2,468.29
        7632602             $295,932.73               5.845%                  2.5833%            $7,644.93
        7632606             $331,599.62               5.970%                  0.5000%            $1,658.00
        7632608             $517,691.35               5.970%                  0.5000%            $2,588.46
        7655774             $399,900.00               5.970%                  0.5000%            $1,999.50
        7665608             $419,000.00               5.970%                  0.5000%            $2,095.00
        7684836             $468,000.00               5.845%                  2.5833%           $12,090.00
        7692378             $643,579.65               5.845%                  2.5833%           $16,625.81
        7692386             $311,197.73               5.970%                  0.5000%            $1,555.99
        7692396             $325,786.21               5.970%                  0.5000%            $1,628.93
        7736060             $358,762.12               5.720%                  4.6667%           $16,742.23
        7736160             $183,068.34               5.720%                  4.6667%            $8,543.19
        7759340             $599,848.89               5.970%                  0.5000%            $2,999.24
        7762916             $350,000.00               5.970%                  0.5000%            $1,750.00
        7781452             $368,596.00               5.970%                  0.5000%            $1,842.98
        7781462             $312,210.77               5.970%                  0.5000%            $1,561.05
        7782268             $422,000.00               5.970%                  0.5000%            $2,110.00
        7792646             $348,450.00               5.970%                  0.5000%            $1,742.25
        7796546             $595,950.40               5.970%                  0.5000%            $2,979.75
        7796554             $456,895.31               5.970%                  0.5000%            $2,284.48
        7796578             $372,741.15               5.970%                  0.5000%            $1,863.71
        7796608             $403,259.77               5.970%                  0.5000%            $2,016.30
        7800220             $437,004.88               5.870%                  2.1667%            $9,468.44
        7803300             $307,959.93               5.970%                  0.5000%            $1,539.80
        7838146             $400,000.00               5.970%                  0.5000%            $2,000.00
        7839128             $378,720.96               5.970%                  0.5000%            $1,893.60
        7843776             $485,000.00               5.970%                  0.5000%            $2,425.00
        7848414             $367,502.74               5.970%                  0.5000%            $1,837.51
        7848474             $337,705.22               5.970%                  0.5000%            $1,688.53
        7873710             $483,000.00               5.970%                  0.5000%            $2,415.00
        7875004             $448,469.07               5.845%                  2.5833%           $11,585.45
        7875010             $383,690.19               5.845%                  2.5833%            $9,912.00
        7876040             $316,800.00               5.845%                  2.5833%            $8,184.00
        7907472             $355,000.00               5.720%                  4.6667%           $16,566.67
        7910286             $421,000.00               5.970%                  0.5000%            $2,105.00
        7911220             $323,700.00               5.970%                  0.5000%            $1,618.50
        7911232             $194,500.00               5.970%                  0.5000%             $972.50
        7912698             $375,600.00               5.970%                  0.5000%            $1,878.00
        7912790             $465,800.68               5.845%                  2.5833%           $12,033.18
        7944222             $377,435.25               5.970%                  0.5000%            $1,887.18
        7970824             $398,418.95               5.720%                  4.6667%           $18,592.88
        7971954             $607,027.79               5.845%                  2.5833%           $15,681.55
        7997112             $321,701.11               5.970%                  0.5000%            $1,608.51
        7997120             $570,091.14               5.845%                  2.5833%           $14,727.35
        7997126             $478,349.48               5.720%                  4.6667%           $22,322.98
        7997130             $424,535.16               5.720%                  4.6667%           $19,811.64
        7997136             $454,830.63               5.720%                  4.6667%           $21,225.43
        7997164             $639,200.00               5.720%                  4.6667%           $29,829.33
        7997166             $519,557.12               5.720%                  4.6667%           $24,246.00
        8003088             $377,000.00               5.845%                  2.5833%            $9,739.17
        8003128             $377,000.00               5.970%                  0.5000%            $1,885.00
        8003620             $380,000.00               5.970%                  0.5000%            $1,900.00
        8010988             $432,000.00               5.970%                  0.5000%            $2,160.00

  Wednesday, March 20, 2002                                                                         Page 2 of 3

        8040860             $360,000.00               5.970%                  0.5000%            $1,800.00
        8041352             $498,317.05               5.970%                  0.5000%            $2,491.59
        8041364             $508,301.70               5.970%                  0.5000%            $2,541.51
        8041366             $375,259.66               5.970%                  0.5000%            $1,876.30
        8041368             $506,308.35               5.970%                  0.5000%            $2,531.54
        8041374             $619,800.00               5.970%                  0.5000%            $3,099.00
        8041376             $324,914.42               5.970%                  0.5000%            $1,624.57
        8047962             $513,000.00               5.970%                  0.5000%            $2,565.00
        8058178             $301,980.13               5.970%                  0.5000%            $1,509.90
        8058182             $429,549.30               5.970%                  0.5000%            $2,147.75
        8058194             $299,676.99               5.845%                  2.5833%            $7,741.66
        8058198             $475,095.48               5.970%                  0.5000%            $2,375.48
        8170768             $350,000.00               5.845%                  2.5833%            $9,041.67
        8192344             $397,231.78               5.970%                  0.5000%            $1,986.16
        8192374             $398,639.17               5.845%                  2.5833%           $10,298.18
        8192382             $470,800.83               5.970%                  0.5000%            $2,354.00
        8192384             $495,930.07               5.970%                  0.5000%            $2,479.65
        8192408             $428,502.45               5.595%                  6.7500%           $28,923.92
        8192480             $423,522.97               5.595%                  6.7500%           $28,587.80
        8192618             $333,440.22               5.970%                  0.5000%            $1,667.20
        8192626             $368,994.49               5.970%                  0.5000%            $1,844.97
        8192636             $401,643.55               5.970%                  0.5000%            $2,008.22
        8213300             $260,000.00               5.720%                  4.6667%           $12,133.33
        8260814             $400,000.00               5.970%                  0.5000%            $2,000.00
        8260822             $650,000.00               5.970%                  0.5000%            $3,250.00
        8260838             $650,000.00               5.970%                  0.5000%            $3,250.00
        8260842             $435,000.00               5.970%                  0.5000%            $2,175.00
        8260846             $300,000.00               5.970%                  0.5000%            $1,500.00
        8260852             $450,000.00               5.970%                  0.5000%            $2,250.00
        8260854             $405,000.00               5.970%                  0.5000%            $2,025.00
        8275736             $647,812.17               5.970%                  0.5000%            $3,239.06
        8275742             $543,000.00               5.970%                  0.5000%            $2,715.00
        8275748             $403,651.34               5.970%                  0.5000%            $2,018.26
        8275750             $529,000.00               5.970%                  0.5000%            $2,645.00
        8275752             $650,000.00               5.970%                  0.5000%            $3,250.00
        8275760             $440,000.00               5.970%                  0.5000%            $2,200.00
        8275764             $142,200.00               5.970%                  0.5000%             $711.00
        8275768             $350,000.00               5.970%                  0.5000%            $1,750.00
        8275780             $342,000.00               5.970%                  0.5000%            $1,710.00
        8275784             $388,000.00               5.970%                  0.5000%            $1,940.00
        8275786             $447,000.00               5.970%                  0.5000%            $2,235.00
        8275788             $400,000.00               5.970%                  0.5000%            $2,000.00
        8275798             $542,168.95               5.970%                  0.5000%            $2,710.84
        8275800             $475,000.00               5.970%                  0.5000%            $2,375.00
        8275802             $448,000.00               5.970%                  0.5000%            $2,240.00
        8275870             $387,690.67               5.970%                  0.5000%            $1,938.45
        8275874             $448,517.52               5.970%                  0.5000%            $2,242.59
        8275882             $541,000.00               5.970%                  0.5000%            $2,705.00
        8275898             $620,000.00               5.970%                  0.5000%            $3,100.00
        8275900             $405,000.00               5.970%                  0.5000%            $2,025.00
        8275908             $650,000.00               5.970%                  0.5000%            $3,250.00

  Wednesday, March 20, 2002                                                                         Page 3 of 3

</TABLE>

<PAGE>

                                        EXHIBIT THREE

                                INFORMATION TO BE INCLUDED IN
                             MONTHLY DISTRIBUTION DATE STATEMENT

               (i) (a) the amount of such distribution to the Certificateholders
        of such  Class  applied  to reduce  the  Certificate  Principal  Balance
        thereof,  and (b) the aggregate  amount  included  therein  representing
        Principal Prepayments;

               (ii) the amount of such  distribution to Holders of such Class of
          Certificates allocable to interest;

               (iii)  if the  distribution  to the  Holders  of  such  Class  of
        Certificates is less than the full amount that would be distributable to
        such Holders if there were  sufficient  funds  available  therefor,  the
        amount of the shortfall;

               (iv) the amount of any Advance by the Master Servicer pursuant to
          Section 4.04;

               (v) the number and Pool Stated Principal  Balance of the Mortgage
        Loans after  giving  effect to the  distribution  of  principal  on such
        Distribution Date;

               (vi) the aggregate Certificate Principal Balance of each Class of
        Certificates  and the  Senior  Percentage,  after  giving  effect to the
        amounts  distributed on such Distribution Date,  separately  identifying
        any reduction  thereof due to Realized  Losses other than pursuant to an
        actual distribution of principal;

               (vii) the related Subordinate  Principal  Distribution Amount and
          Prepayment Distribution Percentage, if applicable;

               (viii) on the basis of the most recent reports furnished to it by
        Sub-Servicers,  the number and aggregate  principal balances of Mortgage
        Loans that are  Delinquent (A) 30-59 days, (B) 60- 89 days and (C) 90 or
        more days and the number and  aggregate  principal  balance of  Mortgage
        Loans that are in foreclosure;

               (ix) the number,  aggregate  principal  balance and book value of
          any REO Properties;

               (x) the aggregate Accrued Certificate  Interest remaining unpaid,
        if any,  for each  Class of  Certificates,  after  giving  effect to the
        distribution made on such Distribution Date;

               (xi) the Special Hazard Amount,  Fraud Loss Amount and Bankruptcy
        Amount  as of the  close of  business  on such  Distribution  Date and a
        description of any change in the calculation of such amounts;

                                             -1-

<PAGE>

               (xii) the weighted average Pool Strip Rate for such  Distribution
        Date  and  the  Pass-  Through  Rate  with  respect  to  the  Class  A-V
        Certificates and each Subclass, if any, thereof;

               (xiii) the Notional Amount with respect to each class of Interest
        Only Certificates and each Subclass Notional Amount;

               (xiv)  the occurrence of the Credit Support Depletion Date;

               (xv)  the  related  Senior  Accelerated  Distribution  Percentage
          applicable to such distribution;

               (xvi)  the related Senior Percentage for such Distribution Date;

               (xvii)  the  aggregate   amount  of  Realized   Losses  for  such
          Distribution Date;

               (xviii)the  aggregate  amount  of any  recoveries  on  previously
        foreclosed  loans  from  Sellers  due to a breach of  representation  or
        warranty assigned to the Trustee pursuant to Section 2.04;

               (xix) the  weighted  average  remaining  term to  maturity of the
        Mortgage  Loans after giving effect to the amounts  distributed  on such
        Distribution Date;

               (xx) the weighted  average  Mortgage  Rates of the Mortgage Loans
        after  giving  effect to the amounts  distributed  on such  Distribution
        Date;

            (xxi)  the Accrual Distribution Amount for such Distribution Date;

In the case of information furnished pursuant to clauses (i) and (ii) above, the
amounts  shall be expressed  as a dollar  amount per  Certificate  with a $1,000
denomination.

The    Trustee's    internet    website    will    initially   be   located   at
http://www.abs.bankone.com.  To receive  this  statement  via first  class mail,
telephone the Trustee at (800) 524-9472.

                                             -2-

<PAGE>

                                  EXHIBIT FOUR

                     STANDARD TERMS OF POOLING AND SERVICING
                       AGREEMENT DATED AS OF JULY 1, 2001

<PAGE>

                                 EXECUTION COPY

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

                                STANDARD TERMS OF
                         POOLING AND SERVICING AGREEMENT

                            Dated as of July 1, 2001

                 Residential Funding Mortgage Securities I, Inc.

                       Mortgage Pass-Through Certificates

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

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                          PAGE

                                          ARTICLE I

                                         DEFINITIONS
<S>             <C>                                                                         <C>
        Section 1.01  Definitions............................................................1
        Section 1.02  Use of Words and Phrases..............................................29

                                          ARTICLE II

                                CONVEYANCE OF MORTGAGE LOANS;
                              ORIGINAL ISSUANCE OF CERTIFICATES
        Section 2.01  Conveyance of Mortgage Loans..........................................30
        Section 2.02  Acceptance by Trustee.................................................36
        Section 2.03  Representations, Warranties and Covenants of the Master Servicer and the
                      Company...............................................................37
        Section 2.04  Representations and Warranties of Sellers.............................39
        Section 2.05  Execution and Authentication of Certificates/Issuance of Certificates
                      Evidencing Interests in REMIC I.......................................41
        Section 2.06  Conveyance of Uncertificated REMIC I and REMIC II Regular Interests;
                       Acceptance by the Trustee.............................................41
        Section 2.07  Issuance of Certificates Evidencing Interests in REMIC II.............41
       Section 2.08  Purposes and Powers of the Trust......................................41

                                         ARTICLE III

                                 ADMINISTRATION AND SERVICING
                                      OF MORTGAGE LOANS
        Section 3.01  Master Servicer to Act as Servicer....................................41
        Section 3.02  Subservicing Agreements Between Master Servicer and Subservicers;
                      Enforcement of Subservicers' and Sellers' Obligations.................43
        Section 3.03  Successor Subservicers................................................44
        Section 3.04  Liability of the Master Servicer......................................44
        Section 3.05  No Contractual Relationship Between Subservicer and Trustee or
                      Certificateholders....................................................45
        Section 3.06  Assumption or Termination of Subservicing Agreements by Trustee.......45
        Section 3.07  Collection of Certain Mortgage Loan Payments;  Deposits to Custodial
                      Account...............................................................45
        Section 3.08  Subservicing Accounts; Servicing Accounts.............................48
        Section 3.09  Access to Certain Documentation and Information Regarding the Mortgage
                      Loans.................................................................49
        Section 3.10  Permitted Withdrawals from the Custodial Account......................50
        Section 3.11  Maintenance of the Primary Insurance Policies; Collections Thereunder
                       .....................................................................51

                                              i

<PAGE>

        Section 3.12  Maintenance of Fire Insurance and Omissions and Fidelity Coverage.....52
        Section 3.13  Enforcement of Due-on-Sale Clauses; Assumption and Modification
                      Agreements; Certain Assignments.......................................54
        Section 3.14  Realization Upon Defaulted Mortgage Loans.............................56
        Section 3.15  Trustee to Cooperate; Release of Mortgage Files.......................59
        Section 3.16  Servicing and Other Compensation; Compensating Interest...............60
        Section 3.17  Reports to the Trustee and the Company................................61
        Section 3.18  Annual Statement as to Compliance.....................................61
        Section 3.19  Annual Independent Public Accountants' Servicing Report...............62
        Section 3.20  Rights of the Company in Respect of the Master Servicer...............62
        Section 3.21  Administration of Buydown Funds.......................................63

                                          ARTICLE IV

                                PAYMENTS TO CERTIFICATEHOLDERS
        Section 4.01  Certificate Account...................................................63
        Section 4.02  Distributions.........................................................64
        Section 4.03  Statements to Certificateholders......................................64
        Section 4.04  Distribution of Reports to the Trustee and the Company; Advances by the
                      Master Servicer.......................................................65
        Section 4.05  Allocation of Realized Losses.........................................66
        Section 4.06  Reports of Foreclosures and Abandonment of Mortgaged Property.........66
        Section 4.07  Optional Purchase of Defaulted Mortgage Loans.........................67
        Section 4.08  Surety Bond...........................................................67

                                          ARTICLE V

                                       THE CERTIFICATES
        Section 5.01  The Certificates......................................................68
        Section 5.02  Registration of Transfer and Exchange of Certificates.................70
        Section 5.03  Mutilated, Destroyed, Lost or Stolen Certificates.....................75
        Section 5.04  Persons Deemed Owners.................................................76
        Section 5.05  Appointment of Paying Agent...........................................76

                                          ARTICLE VI

                             THE COMPANY AND THE MASTER SERVICER
        Section 6.01  Respective Liabilities of the Company and the Master Servicer.........77
        Section 6.02  Merger or Consolidation of the Company or the Master Servicer; Assignment
                      of Rights and Delegation of Duties by Master Servicer.................77
        Section 6.03  Limitation on Liability of the Company, the Master Servicer and Others
                       .....................................................................78
        Section 6.04  Company and Master Servicer Not to Resign.............................79

                                         ARTICLE VII

                                              ii

<PAGE>

                                           DEFAULT
        Section 7.01  Events of Default.....................................................79
        Section 7.02  Trustee or Company to Act; Appointment of Successor...................81
        Section 7.03  Notification to Certificateholders....................................82
        Section 7.04  Waiver of Events of Default...........................................82

                                         ARTICLE VIII

                                    CONCERNING THE TRUSTEE
        Section 8.01  Duties of Trustee.....................................................83
        Section 8.02  Certain Matters Affecting the Trustee.................................84
        Section 8.03  Trustee Not Liable for Certificates or Mortgage Loans.................86
        Section 8.04  Trustee May Own Certificates..........................................86
        Section 8.05  Master Servicer to Pay Trustee's Fees and Expenses; Indemnification...86
        Section 8.06  Eligibility Requirements for Trustee..................................87
        Section 8.07  Resignation and Removal of the Trustee................................88
        Section 8.08  Successor Trustee.....................................................89
        Section 8.09  Merger or Consolidation of Trustee....................................89
        Section 8.10  Appointment of Co-Trustee or Separate Trustee.........................89
        Section 8.11  Appointment of Custodians.............................................90
        Section 8.12  Appointment of Office or Agency.......................................91

                                          ARTICLE IX

                     TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES
        Section 9.01  Optional Purchase by the Master Servicer of All Certificates; Termination
                      Upon Purchase by the Master Servicer or Liquidation of All Mortgage Loans
                                                                                            91
        Section 9.02  Additional Termination Requirements...................................94
        Section 9.03  Termination of Multiple REMICs........................................95

                                          ARTICLE X

                                       REMIC PROVISIONS
        Section 10.01 REMIC Administration..................................................95
        Section 10.02 Master Servicer, REMIC Administrator and Trustee Indemnification......99
        Section 10.03 Designation of REMIC(s)...............................................99

                                          ARTICLE XI

                                   MISCELLANEOUS PROVISIONS
        Section 11.01 Amendment.............................................................99
        Section 11.02 Recordation of Agreement; Counterparts...............................102
        Section 11.03 Limitation on Rights of Certificateholders...........................102
        Section 11.04 Governing Law........................................................103
        Section 11.05 Notices..............................................................103

                                             iii

<PAGE>

        Section 11.06 Required Notices to Rating Agency and Subservicer....................103
        Section 11.07 Severability of Provisions...........................................104
        Section 11.08 Supplemental Provisions for Resecuritization.........................104
        Section 11.09 Allocation of Voting Rights..........................................105
</TABLE>

EXHIBITS

Exhibit A:     Form of Class A Certificate
Exhibit B:     Form of Class M Certificate
Exhibit C:     Form of Class B Certificate
Exhibit D:     Form of Class R Certificate
Exhibit E:     Form of Seller/Servicer Contract
Exhibit F:     Forms of Request for Release
Exhibit G-1:   Form of Transfer Affidavit and Agreement
Exhibit G-2:   Form of Transferor Certificate
Exhibit H:     Form of Investor Representation Letter
Exhibit I:     Form of Transferor Representation Letter
Exhibit J:     Form of Rule 144A Investment Representation Letter

Exhibit K: Text of  Amendment  to Pooling and  Servicing  Agreement  Pursuant to
     Section 11.01(e) for a Limited Guaranty

Exhibit L:     Form of Limited Guaranty
Exhibit M:     Form of Lender Certification for Assignment of Mortgage Loan
Exhibit N:     Request for Exchange Form

                                              iv

<PAGE>

        This is the Standard Terms of Pooling and Servicing Agreement,  dated as
of July 1, 2001 (the "Standard  Terms",  and as incorporated by reference into a
Series  Supplement  dated as of the Cut-off  Date,  the "Pooling  and  Servicing
Agreement" or "Agreement"),  among  RESIDENTIAL  FUNDING MORTGAGE  SECURITIES I,
INC., as the company  (together with its permitted  successors and assigns,  the
"Company"),  RESIDENTIAL FUNDING CORPORATION,  as master servicer (together with
its permitted  successors and assigns,  the "Master Servicer"),  and the trustee
named  in  the  applicable  Series  Supplement   (together  with  its  permitted
successors and assigns, the "Trustee").

                                    PRELIMINARY STATEMENT:

        The Company intends to sell certain mortgage  pass-through  certificates
(collectively, the "Certificates"), to be issued under the Agreement in multiple
classes,  which in the aggregate will evidence the entire  beneficial  ownership
interest in the Mortgage Loans.

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

                                    ARTICLE I

                                   DEFINITIONS
        Section 1.01  Definitions.

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

        Accretion Termination Date:  As defined in the Series Supplement.

        Accrual Certificates:  As defined in the Series Supplement.

        Accrued Certificate Interest: With respect to each Distribution Date, as
to any  Class  or  Subclass  of  Certificates  (other  than any  Principal  Only
Certificates),  interest  accrued during the related  Interest Accrual Period at
the related  Pass-Through Rate on the Certificate  Principal Balance or Notional
Amount thereof  immediately prior to such Distribution Date. Accrued Certificate
Interest will be calculated on the basis of a 360-day year, consisting of twelve
30-day  months.  In each  case  Accrued  Certificate  Interest  on any  Class or
Subclass of Certificates will be reduced by the amount of:

        (i)    Prepayment  Interest  Shortfalls on all Mortgage Loans or, if the
               Mortgage  Pool is comprised  of two or more Loan  Groups,  on the
               Mortgage  Loans in the  related  Loan  Group (to the  extent  not
               offset by the  Master  Servicer  with a payment  of  Compensating
               Interest as provided in Section 4.01),

        (ii)   the interest  portion  (adjusted to the Net Mortgage Rate (or the
               Modified  Net  Mortgage  Rate in the case of a Modified  Mortgage
               Loan))  of  Realized  Losses  on all  Mortgage  Loans  or, if the
               Mortgage  Pool is comprised  of two or more Loan  Groups,  on the
               Mortgage  Loans  in the  related  Loan  Group  (including  Excess
               Special Hazard

                                              1

<PAGE>

               Losses,   Excess  Fraud  Losses,  Excess  Bankruptcy  Losses  and
               Extraordinary  Losses)  not  allocated  solely  to  one  or  more
               specific Classes of Certificates pursuant to Section 4.05,

        (iii)  the interest  portion of Advances that were (A)  previously  made
               with  respect to a Mortgage  Loan or REO Property on all Mortgage
               Loans or, if the  Mortgage  Pool is comprised of two or more Loan
               Groups,  on the Mortgage  Loans in the related Loan Group,  which
               remained  unreimbursed  following  the  Cash  Liquidation  or REO
               Disposition  of such  Mortgage  Loan or REO  Property or (B) made
               with respect to delinquencies that were ultimately  determined to
               be Excess  Special  Hazard  Losses,  Excess Fraud Losses,  Excess
               Bankruptcy Losses or Extraordinary Losses, and

        (iv)   any other interest  shortfalls  not covered by the  subordination
               provided by the Class M  Certificates  and Class B  Certificates,
               including  interest  that is not  collectible  from the Mortgagor
               pursuant to the Soldiers' and Sailors'  Civil Relief Act of 1940,
               as amended,  or similar  legislation  or regulations as in effect
               from time to time,

with  all  such  reductions  allocated  (A)  among  all of the  Certificates  in
proportion to their respective amounts of Accrued  Certificate  Interest payable
on such  Distribution Date absent such reductions or (B) if the Mortgage Pool is
comprised  of two or more Loan Groups,  the related  Senior  Percentage  of such
reductions among the related Senior Certificates in proportion to the amounts of
Accrued  Certificate  Interest  payable  from  the  related  Loan  Group on such
Distribution Date absent such reductions,  with the remainder of such reductions
allocated among the holders of the Class M Certificates and Class B Certificates
in  proportion  to their  respective  amounts  of Accrued  Certificate  Interest
payable on such  Distribution  Date absent such reductions.  In addition to that
portion of the reductions described in the preceding sentence that are allocated
to any  Class  of Class B  Certificates  or any  Class of Class M  Certificates,
Accrued Certificate Interest on such Class of Class B Certificates or such Class
of Class M Certificates will be reduced by the interest portion (adjusted to the
Net Mortgage Rate) of Realized Losses that are allocated solely to such Class of
Class B Certificates  or such Class of Class M Certificates  pursuant to Section
4.05.

     Addendum and Assignment  Agreement:  The Addendum and Assignment Agreement,
dated as of January 31, 1995, between MLCC and the Master Servicer.

        Additional  Collateral:  Any of the  following  held, in addition to the
related  Mortgaged  Property,  as security for a Mortgage  Loan:  (i) all money,
securities,  security  entitlements,   accounts,  general  intangibles,  payment
rights,  instruments,  documents,  deposit  accounts,  certificates  of deposit,
commodities  contracts  and other  investment  property  and other  property  of
whatever kind or description now existing or hereafter acquired which is pledged
as  security  for  the  repayment  of  such  Mortgage  Loan,  (ii)   third-party
guarantees,  and (A) all money,  securities,  security  entitlements,  accounts,
general intangibles,  payment rights, instruments,  documents, deposit accounts,
certificates of deposit, commodities contracts and other investment property and
other  property of  whatever  kind or  description  now  existing  or  hereafter
acquired  which is pledged as collateral for such guarantee or (B) any mortgaged
property  securing  the  performance  of such  guarantee,  or (iii)  such  other
collateral as may be set forth in the Series Supplement.

                                              2

<PAGE>

     Additional  Collateral  Loan:  Each  Mortgage  Loan  that is  supported  by
Additional Collateral.

        Adjusted  Mortgage Rate:  With respect to any Mortgage Loan and any date
of determination, the Mortgage Rate borne by the related Mortgage Note, less the
rate at which the related Subservicing Fee accrues.

     Advance:  As to any Mortgage Loan, any advance made by the Master Servicer,
pursuant to Section 4.04.

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

        Ambac: Ambac Assurance Corporation (formerly known as AMBAC Indemnity
 Corporation).

        Amount Held for Future  Distribution:  As to any Distribution  Date and,
with respect to any Mortgage  Pool that is comprised of two or more Loan Groups,
each Loan Group,  the total of the amounts held in the Custodial  Account at the
close  of  business  on the  preceding  Determination  Date  on  account  of (i)
Liquidation Proceeds, Insurance Proceeds, Curtailments,  Mortgage Loan purchases
made  pursuant  to  Section  2.02,   2.03,   2.04  or  4.07  and  Mortgage  Loan
substitutions  made  pursuant  to Section  2.03 or 2.04  received or made in the
month of such Distribution Date (other than such Liquidation Proceeds, Insurance
Proceeds and purchases of Mortgage Loans that the Master  Servicer has deemed to
have been received in the preceding month in accordance  with Section  3.07(b)),
and Principal  Prepayments in Full made after the related Prepayment Period, and
(ii) payments which represent  early receipt of scheduled  payments of principal
and interest due on a date or dates subsequent to the related Due Date.

        Appraised  Value:  As to any Mortgaged  Property,  the lesser of (i) the
appraised value of such Mortgaged  Property based upon the appraisal made at the
time of the  origination of the related  Mortgage Loan, and (ii) the sales price
of the Mortgaged  Property at such time of origination,  except in the case of a
Mortgaged  Property  securing a refinanced or modified Mortgage Loan as to which
it is  either  the  appraised  value  determined  above or the  appraised  value
determined in an appraisal at the time of  refinancing or  modification,  as the
case may be.

        Assigned  Contracts:  With respect to any Pledged Asset Loan: the Credit
Support Pledge Agreement; the Funding and Pledge Agreement,  among GMAC Mortgage
Corporation,  National Financial Services Corporation and the Mortgagor or other
person pledging the related Pledged Assets; the Additional Collateral Agreement,
between GMAC Mortgage Corporation and the Mortgagor or other person pledging the
related  Pledged  Assets;  or such  other  contracts  as may be set forth in the
Series Supplement.

     Assignment: An assignment of the Mortgage, notice of transfer or equivalent
instrument,  in recordable  form,  sufficient under the laws of the jurisdiction
wherein the related Mortgaged Property

                                              3

<PAGE>

is located to reflect of record the sale of the Mortgage Loan to the Trustee for
the  benefit of  Certificateholders,  which  assignment,  notice of  transfer or
equivalent  instrument  may be in the  form of one or more  blanket  assignments
covering  Mortgages secured by Mortgaged  Properties located in the same county,
if permitted by law and accompanied by an Opinion of Counsel to that effect.

        Assignment Agreement: The Assignment and Assumption Agreement, dated the
Closing  Date,  between  Residential  Funding  and the  Company  relating to the
transfer and assignment of the Mortgage Loans.

        Assignment of Proprietary Lease: With respect to a Cooperative Loan, the
assignment of the related Cooperative Lease from the Mortgagor to the originator
of the Cooperative Loan.

        Available  Distribution  Amount:  As to any Distribution  Date and, with
respect to any Mortgage  Pool  comprised  of two or more Loan Groups,  each Loan
Group, an amount equal to (a) the sum of (i) the amount relating to the Mortgage
Loans on deposit in the  Custodial  Account as of the close of  business  on the
immediately preceding  Determination Date and amounts deposited in the Custodial
Account in connection  with the  substitution of Qualified  Substitute  Mortgage
Loans,  (ii)  the  amount  of any  Advance  made  on the  immediately  preceding
Certificate  Account Deposit Date, (iii) any amount deposited in the Certificate
Account on the related  Certificate  Account Deposit Date pursuant to the second
paragraph  of Section  3.12(a),  (iv) any amount  deposited  in the  Certificate
Account pursuant to Section 4.07, (v) any amount that the Master Servicer is not
permitted to withdraw  from the  Custodial  Account or the  Certificate  Account
pursuant to Section 3.16(e), (vi) any amount received by the Trustee pursuant to
the Surety Bond in respect of such  Distribution  Date and (vii) the proceeds of
any Pledged Assets received by the Master Servicer, reduced by (b) the sum as of
the close of business on the immediately preceding Determination Date of (x) the
Amount Held for Future  Distribution,  and (y) amounts permitted to be withdrawn
by the Master  Servicer  from the  Custodial  Account in respect of the Mortgage
Loans pursuant to clauses (ii)-(x),  inclusive,  of Section 3.10(a). Such amount
shall be determined separately for each Loan Group.  Additionally,  with respect
to any Mortgage  Pool that is  comprised  of two or more Loan Groups,  if on any
Distribution Date Compensating  Interest provided pursuant to Section 3.16(e) is
less than  Prepayment  Interest  Shortfalls  incurred on the  Mortgage  Loans in
connection  with  Principal  Prepayments  in Full  received  during the  related
Prepayment  Period  and  Curtailments  made in the prior  calendar  month,  such
Compensating  Interest  shall  be  allocated  on such  Distribution  Date to the
Available  Distribution  Amount  for each  Loan  Group  on a pro  rata  basis in
accordance with the respective  amounts of such Prepayment  Interest  Shortfalls
incurred  on  the  Mortgage  Loans  in  such  Loan  Group  in  respect  of  such
Distribution Date.

        Bankruptcy Code:  The Bankruptcy Code of 1978, as amended.

        Bankruptcy  Loss:  With  respect  to  any  Mortgage  Loan,  a  Deficient
Valuation or Debt Service Reduction; provided, however, that neither a Deficient
Valuation  nor a Debt  Service  Reduction  shall  be  deemed a  Bankruptcy  Loss
hereunder  so long as the Master  Servicer  has  notified the Trustee in writing
that the Master  Servicer is diligently  pursuing any remedies that may exist in
connection  with the  representations  and warranties made regarding the related
Mortgage  Loan and either (A) the related  Mortgage  Loan is not in default with
regard to payments due  thereunder or (B)  delinquent  payments of principal and
interest under the related Mortgage Loan and any premiums on any

                                              4

<PAGE>

applicable  primary hazard  insurance  policy and any related escrow payments in
respect  of such  Mortgage  Loan are being  advanced  on a current  basis by the
Master  Servicer or a  Subservicer,  in either case without giving effect to any
Debt Service Reduction.

        Book-Entry  Certificate:  Any Certificate  registered in the name of the
Depository or its nominee,  and designated as such in the Preliminary  Statement
to the Series Supplement.

        Business  Day:  Any day other than (i) a Saturday  or a Sunday or (ii) a
day on which  banking  institutions  in the  State  of New  York,  the  State of
Michigan, the State of California or the State of Illinois (and such other state
or states in which the Custodial  Account or the Certificate  Account are at the
time located) are required or authorized by law or executive order to be closed.

        Buydown  Funds:  Any amount  contributed  by the  seller of a  Mortgaged
Property, the Company or other source in order to enable the Mortgagor to reduce
the payments  required to be made from the Mortgagor's  funds in the early years
of a  Mortgage  Loan.  Buydown  Funds  are not part of the Trust  Fund  prior to
deposit into the Custodial or Certificate Account.

        Buydown  Mortgage Loan: Any Mortgage Loan as to which a specified amount
of interest is paid out of related  Buydown Funds in  accordance  with a related
buydown agreement.

        Cash  Liquidation:  As to  any  defaulted  Mortgage  Loan  other  than a
Mortgage Loan as to which an REO Acquisition  occurred,  a determination  by the
Master  Servicer  that  it has  received  all  Insurance  Proceeds,  Liquidation
Proceeds  and  other  payments  or cash  recoveries  which the  Master  Servicer
reasonably and in good faith expects to be finally  recoverable  with respect to
such Mortgage Loan.

     Certificate Account Deposit Date: As to any Distribution Date, the Business
Day prior thereto.

        Certificateholder  or Holder:  The Person in whose name a Certificate is
registered  in  the  Certificate  Register,  and,  in  respect  of  any  Insured
Certificates,  the  Certificate  Insurer to the extent of  Cumulative  Insurance
Payments,  except that  neither a  Disqualified  Organization  nor a  Non-United
States  Person shall be a holder of a Class R  Certificate  for purposes  hereof
and, solely for the purpose of giving any consent or direction  pursuant to this
Agreement, any Certificate, other than a Class R Certificate,  registered in the
name of the Company,  the Master  Servicer or any  Subservicer  or any Affiliate
thereof shall be deemed not to be  outstanding  and the  Percentage  Interest or
Voting Rights  evidenced  thereby shall not be taken into account in determining
whether the requisite amount of Percentage  Interests or Voting Rights necessary
to effect any such consent or direction has been obtained. All references herein
to "Holders" or  "Certificateholders"  shall  reflect the rights of  Certificate
Owners as they may  indirectly  exercise such rights  through the Depository and
participating members thereof,  except as otherwise specified herein;  provided,
however,  that the  Trustee  shall be  required  to  recognize  as a "Holder" or
"Certificateholder" only the Person in whose name a Certificate is registered in
the Certificate Register.

        Certificate Insurer: As defined in the Series Supplement.

                                              5

<PAGE>

        Certificate Owner: With respect to a Book-Entry Certificate,  the Person
who is the beneficial owner of such Certificate, as reflected on the books of an
indirect participating brokerage firm for which a Depository Participant acts as
agent, if any, and otherwise on the books of a Depository  Participant,  if any,
and otherwise on the books of the Depository.

     Certificate Principal Balance: With respect to each Certificate (other than
any Interest Only  Certificate),  on any date of determination,  an amount equal
to:

          (i)  the Initial Certificate  Principal Balance of such Certificate as
               specified on the face thereof, plus

        (ii)   in the case of each Accrual  Certificate,  an amount equal to the
               aggregate Accrued  Certificate  Interest added to the Certificate
               Principal  Balance  thereof prior to such date of  determination,
               minus

        (iii)  the  sum  of  (x)  the   aggregate  of  all  amounts   previously
               distributed  with respect to such Certificate (or any predecessor
               Certificate)  and  applied  to reduce the  Certificate  Principal
               Balance thereof pursuant to Section 4.02(a) and (y) the aggregate
               of all reductions in Certificate Principal Balance deemed to have
               occurred in connection with Realized Losses which were previously
               allocated to such  Certificate (or any  predecessor  Certificate)
               pursuant to Section 4.05;

provided,  that the  Certificate  Principal  Balance of the Class of Subordinate
Certificates  with the Lowest  Priority at any given time shall be calculated to
equal the Percentage Interest evidenced by such Certificate times the excess, if
any, of (A) the then aggregate  Stated  Principal  Balance of the Mortgage Loans
over (B) the then aggregate  Certificate  Principal Balance of all other Classes
of Certificates then outstanding.

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

        Class:   Collectively,   all  of  the  Certificates   bearing  the  same
designation.  The initial Class A-V Certificates and any Subclass thereof issued
pursuant  to  Section  5.01(c)  shall be a single  Class  for  purposes  of this
Agreement.

     Class A-P Certificate:  Any one of the  Certificates  designated as a Class
A-P Certificate.

        Class A-P Collection Shortfall:  With respect to the Cash Liquidation or
REO  Disposition  of a Discount  Mortgage Loan and any  Distribution  Date,  the
excess of the  amount  described  in  Section  4.02(b)(i)(C)(1)  over the amount
described in Section 4.02(b)(i)(C)(2).

        Class A-P Principal Distribution Amount:  As defined in Section 4.02.

     Class A-V Certificate:  Any one of the  Certificates  designated as a Class
A-V Certificate, including any Subclass thereof.

                                              6

<PAGE>

        Class B Certificate:  Any one of the Certificates  designated as a Class
B-1 Certificate, Class B-2 Certificate or Class B-3 Certificate.

        Class M Certificate:  Any one of the Certificates  designated as a Class
M-1 Certificate, Class M-2 Certificate or Class M-3 Certificate.

        Closing Date:  As defined in the Series Supplement.

        Code:  The Internal Revenue Code of 1986.

     Combined  Collateral  LLC:  Combined  Collateral  LLC, a  Delaware  limited
liability company.

        Compensating Interest:  With respect to any Distribution Date, an amount
equal to Prepayment Interest Shortfalls resulting from Principal  Prepayments in
Full  during the related  Prepayment  Period and  Curtailments  during the prior
calendar  month and  included  in the  Available  Distribution  Amount  for such
Distribution  Date, but not more than the lesser of (a) one-twelfth of 0.125% of
the Stated Principal  Balance of the Mortgage Loans  immediately  preceding such
Distribution  Date and (b) the sum of the  Servicing Fee and all income and gain
on amounts held in the Custodial Account and the Certificate Account and payable
to the Certificateholders  with respect to such Distribution Date; provided that
for  purposes of this  definition  the amount of the  Servicing  Fee will not be
reduced pursuant to Section 7.02 except as may be required  pursuant to the last
sentence of such Section.

        Cooperative:  A private,  cooperative  housing corporation which owns or
leases land and all or part of a building or  buildings,  including  apartments,
spaces used for commercial  purposes and common areas therein and whose board of
directors authorizes, among other things, the sale of Cooperative Stock.

        Cooperative  Apartment:  A dwelling  unit in a  multi-dwelling  building
owned or leased by a  Cooperative,  which unit the  Mortgagor  has an  exclusive
right to  occupy  pursuant  to the  terms of a  proprietary  lease or  occupancy
agreement.

        Cooperative  Lease:  With respect to a Cooperative Loan, the proprietary
lease or occupancy agreement with respect to the Cooperative  Apartment occupied
by the Mortgagor and relating to the related  Cooperative  Stock, which lease or
agreement  confers an exclusive right to the holder of such Cooperative Stock to
occupy such apartment.

        Cooperative  Loans:  Any of the  Mortgage  Loans  made in  respect  of a
Cooperative  Apartment,  evidenced  by a  Mortgage  Note  and  secured  by (i) a
Security  Agreement,  (ii) the related  Cooperative Stock Certificate,  (iii) an
assignment of the Cooperative  Lease, (iv) financing  statements and (v) a stock
power (or other  similar  instrument),  and  ancillary  thereto,  a  recognition
agreement  between the Cooperative  and the originator of the Cooperative  Loan,
each of which was  transferred  and assigned to the Trustee  pursuant to Section
2.01 and are from time to time held as part of the Trust Fund.

                                              7

<PAGE>

     Cooperative   Stock:  With  respect  to  a  Cooperative  Loan,  the  single
outstanding class of stock,  partnership  interest or other ownership instrument
in the related Cooperative.

     Cooperative  Stock  Certificate:  With respect to a Cooperative  Loan,  the
stock certificate or other instrument evidencing the related Cooperative Stock.

        Credit Support Depletion Date: The first  Distribution Date on which the
Certificate Principal Balances of the Subordinate Certificates have been reduced
to zero.

        Credit Support Pledge  Agreement:  The Credit Support Pledge  Agreement,
dated as of  November  24,  1998,  among  the  Master  Servicer,  GMAC  Mortgage
Corporation, Combined Collateral LLC and The First National Bank of Chicago (now
known as Bank One, National Association), as custodian.

        Cumulative Insurance Payments:  As defined in the Series Supplement.

     Curtailment:  Any Principal  Prepayment  made by a Mortgagor which is not a
Principal Prepayment in Full.

        Custodial  Account:  The  custodial  account  or  accounts  created  and
maintained pursuant to Section 3.07 in the name of a depository institution,  as
custodian for the holders of the Certificates,  for the holders of certain other
interests in mortgage loans serviced or sold by the Master  Servicer and for the
Master  Servicer,  into which the  amounts  set forth in  Section  3.07 shall be
deposited directly. Any such account or accounts shall be an Eligible Account.

        Custodial  Agreement:  An  agreement  that may be entered into among the
Company, the Master Servicer,  the Trustee and a Custodian pursuant to which the
Custodian will hold certain  documents  relating to the Mortgage Loans on behalf
of the Trustee.

        Custodian:  A custodian appointed pursuant to a Custodial Agreement.

        Cut-off Date  Principal  Balance:  As to any Mortgage  Loan,  the unpaid
principal  balance  thereof  at the  Cut-off  Date  after  giving  effect to all
installments of principal due on or prior thereto, whether or not received.

        Debt Service  Reduction:  With respect to any Mortgage Loan, a reduction
in the scheduled  Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code,  except such a reduction
constituting a Deficient  Valuation or any reduction that results in a permanent
forgiveness of principal.

        Deficient Valuation: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then outstanding  indebtedness  under the Mortgage Loan, or any reduction in
the amount of  principal to be paid in  connection  with any  scheduled  Monthly
Payment that constitutes a permanent  forgiveness of principal,  which valuation
or reduction results from a proceeding under the Bankruptcy Code.

                                              8

<PAGE>

     Definitive   Certificate:   Any   Certificate   other  than  a   Book-Entry
Certificate.

     Deleted  Mortgage  Loan: A Mortgage  Loan replaced or to be replaced with a
Qualified Substitute Mortgage Loan.

        Delinquent:  As used herein, a Mortgage Loan is considered to be: "30 to
59 days" or "30 or more days" delinquent when a payment due on any scheduled due
date  remains  unpaid  as of the  close of  business  on the last  business  day
immediately  prior to the next following  monthly  scheduled due date; "60 to 89
days" or "60 or more days"  delinquent  when a payment due on any  scheduled due
date  remains  unpaid  as of the  close of  business  on the last  business  day
immediately prior to the second following monthly scheduled due date; and so on.
The  determination  as to whether a Mortgage Loan falls into these categories is
made as of the close of business  on the last  business  day of each month.  For
example, a Mortgage Loan with a payment due on July 1 that remained unpaid as of
the close of  business on July 31 would then be  considered  to be 30 to 59 days
delinquent.  Delinquency  information  as of the Cut-off Date is determined  and
prepared as of the close of business on the last business day immediately  prior
to the Cut-off Date.

        Depository:  The Depository Trust Company,  or any successor  Depository
hereafter  named.  The  nominee  of  the  initial  Depository  for  purposes  of
registering those Certificates that are to be Book-Entry  Certificates is Cede &
Co. The Depository shall at all times be a "clearing  corporation" as defined in
Section  8-102(a)(5) of the Uniform Commercial Code of the State of New York and
a "clearing agency" registered  pursuant to the provisions of Section 17A of the
Securities Exchange Act of 1934, as amended.

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

     Destroyed  Mortgage  Note:  A  Mortgage  Note the  original  of  which  was
permanently lost or destroyed and has not been replaced.

        Determination Date:  As defined in the Series Supplement.

        Discount  Fraction:  With respect to each Discount  Mortgage  Loan,  the
fraction  expressed as a percentage,  the numerator of which is the Discount Net
Mortgage Rate minus the Net Mortgage Rate (or the initial Net Mortgage Rate with
respect to any Discount Mortgage Loans as to which the Mortgage Rate is modified
pursuant to 3.07(a)) for such Mortgage Loan and the  denominator of which is the
Discount Net Mortgage Rate. The Discount  Fraction with respect to each Discount
Mortgage Loan is set forth as an exhibit attached to the Series Supplement.

        Discount Mortgage Loan: Any Mortgage Loan having a Net Mortgage Rate (or
the initial Net Mortgage  Rate) of less than the Discount Net Mortgage  Rate per
annum and any Mortgage  Loan deemed to be a Discount  Mortgage  Loan pursuant to
the definition of Qualified Substitute Mortgage Loan.

        Discount Net Mortgage Rate:  As defined in the Series Supplement.

                                              9

<PAGE>

        Disqualified  Organization:  Any organization defined as a "disqualified
organization"  under  Section  860E(e)(5)  of the  Code,  and  if not  otherwise
included,  any of the following:  (i) the United States,  any State or political
subdivision  thereof,  any  possession  of the United  States,  or any agency or
instrumentality of any of the foregoing (other than an instrumentality  which is
a  corporation  if all of its  activities  are  subject  to tax and,  except for
Freddie  Mac, a  majority  of its board of  directors  is not  selected  by such
governmental unit), (ii) a foreign government,  any international  organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives  described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated  business taxable income),  (iv)
rural electric and telephone  cooperatives described in Section 1381(a)(2)(C) of
the Code, (v) any "electing large  partnership," as defined in Section 775(a) of
the Code and (vi) any other Person so  designated  by the Trustee  based upon an
Opinion  of  Counsel  that the  holding of an  Ownership  Interest  in a Class R
Certificate  by such  Person may cause the Trust  Fund or any  Person  having an
Ownership  Interest in any Class of  Certificates  (other  than such  Person) to
incur a liability  for any  federal  tax  imposed  under the Code that would not
otherwise be imposed but for the Transfer of an Ownership  Interest in a Class R
Certificate   to  such  Person.   The  terms   "United   States",   "State"  and
"international  organization"  shall have the meanings set forth in Section 7701
of the Code or successor provisions.

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

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

     Due Period: With respect to any Distribution Date, the one-month period set
forth in the Series Supplement.

        Eligible  Account:  An  account  that  is  any  of  the  following:  (i)
maintained with a depository institution the debt obligations of which have been
rated by each Rating Agency in its highest rating available,  or (ii) an account
or accounts in a depository institution in which such accounts are fully insured
to the limits established by the FDIC, provided that any deposits not so insured
shall, to the extent  acceptable to each Rating Agency, as evidenced in writing,
be maintained such that (as evidenced by an Opinion of Counsel  delivered to the
Trustee and each Rating Agency) the registered  Holders of  Certificates  have a
claim with  respect to the funds in such account or 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 (iii) in the case of the Custodial  Account,  a trust account or
accounts  maintained in the  corporate  trust  department of Bank One,  National
Association,  or (iv) in the case of the Certificate Account, a trust account or
accounts  maintained in the corporate  trust division of the Trustee,  or (v) an
account or accounts of a depository institution acceptable to each Rating Agency
(as  evidenced in writing by each Rating  Agency that use of any such account as
the  Custodial  Account or the  Certificate  Account  will not reduce the rating
assigned to any Class of  Certificates  by such Rating Agency below the lower of
the  then-current  rating or the rating assigned to such  Certificates as of the
Closing Date by such Rating Agency).

                                              10

<PAGE>

        Event of Default:  As defined in Section 7.01.

     Excess  Bankruptcy  Loss: Any Bankruptcy  Loss, or portion  thereof,  which
exceeds the then applicable Bankruptcy Amount.

     Excess Fraud Loss:  Any Fraud Loss, or portion  thereof,  which exceeds the
then applicable Fraud Loss Amount.

     Excess Special  Hazard Loss:  Any Special Hazard Loss, or portion  thereof,
that exceeds the then applicable Special Hazard Amount.

        Excess  Subordinate  Principal Amount:  With respect to any Distribution
Date on which  the  aggregate  Certificate  Principal  Balance  of the  Class of
Subordinate  Certificates  then  outstanding  with the Lowest  Priority is to be
reduced to zero and on which  Realized  Losses are to be allocated to such class
or classes,  the  excess,  if any,  of (i) the amount  that would  otherwise  be
distributable  in respect of principal on such class or classes of  Certificates
on such  Distribution  Date  over  (ii) the  excess,  if any,  of the  aggregate
Certificate   Principal  Balance  of  such  class  or  classes  of  Certificates
immediately  prior to such  Distribution  Date  over  the  aggregate  amount  of
Realized  Losses  to be  allocated  to  such  classes  of  Certificates  on such
Distribution  Date as  reduced  by any  amount  calculated  pursuant  to Section
4.02(b)(i)(E).  With  respect to any  Mortgage  Pool that is comprised of two or
more Loan  Groups,  the Excess  Subordinate  Principal  Amount will be allocated
between  each Loan  Group on a pro rata basis in  accordance  with the amount of
Realized   Losses   attributable  to  each  Loan  Group  and  allocated  to  the
Certificates on such Distribution Date.

        Extraordinary  Events: Any of the following conditions with respect to a
Mortgaged  Property  (or, with respect to a Cooperative  Loan,  the  Cooperative
Apartment)  or Mortgage  Loan  causing or  resulting  in a loss which causes the
liquidation of such Mortgage Loan:

        (a) losses  that are of the type that  would be covered by the  fidelity
bond and the errors and  omissions  insurance  policy  required to be maintained
pursuant  to  Section  3.12(b)  but are in  excess  of the  coverage  maintained
thereunder;

        (b) nuclear reaction or nuclear radiation or radioactive  contamination,
all whether  controlled  or  uncontrolled,  and  whether  such loss be direct or
indirect,  proximate or remote or be in whole or in part caused by,  contributed
to or  aggravated  by a peril  covered by the  definition  of the term  "Special
Hazard Loss";

        (c) hostile or warlike action in time of peace or war,  including action
in hindering,  combating or defending  against an actual,  impending or expected
attack:

               1.   by any government or sovereign  power,  de jure or de facto,
                    or by any authority maintaining or using military,  naval or
                    air forces; or

               2.     by military, naval or air forces; or

               3.   by an agent  of any such  government,  power,  authority  or
                    forces;

                                              11

<PAGE>

     (d) any weapon of war employing atomic fission or radioactive force whether
in time of peace or war; or

        (e)  insurrection,  rebellion,  revolution,  civil war, usurped power or
action  taken by  governmental  authority in  hindering,  combating or defending
against such an occurrence,  seizure or destruction  under quarantine or customs
regulations,  confiscation  by order of any government or public  authority;  or
risks of contraband or illegal transportation or trade.

     Extraordinary  Losses:  Any loss  incurred on a Mortgage  Loan caused by or
resulting from an Extraordinary Event.

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

     FASIT:  A "financial  asset  securitization  investment  trust"  within the
meaning of Section 860L of the Code.

        FDIC:  Federal Deposit Insurance Corporation or any successor thereto.

        Final  Distribution  Date:  The  Distribution  Date on which  the  final
distribution  in respect of the  Certificates  will be made  pursuant to Section
9.01, which Final  Distribution  Date shall in no event be later than the end of
the 90-day liquidation period described in Section 9.02.

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

        Foreclosure   Profits:   As  to  any   Distribution   Date  or   related
Determination  Date and any Mortgage  Loan,  the excess,  if any, of Liquidation
Proceeds,  Insurance Proceeds and REO Proceeds (net of all amounts  reimbursable
therefrom  pursuant to Section  3.10(a)(ii)) in respect of each Mortgage Loan or
REO Property for which a Cash  Liquidation  or REO  Disposition  occurred in the
related  Prepayment  Period over the sum of the unpaid principal balance of such
Mortgage Loan or REO Property (determined, in the case of an REO Disposition, in
accordance  with Section 3.14) plus accrued and unpaid  interest at the Mortgage
Rate on such unpaid  principal  balance from the Due Date to which  interest was
last paid by the Mortgagor to the first day of the month  following the month in
which such Cash Liquidation or REO Disposition occurred.

     Fraud Losses:  Losses on Mortgage  Loans as to which there was fraud in the
origination of such Mortgage Loan.

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

        Highest  Priority:  As of  any  date  of  determination,  the  Class  of
Subordinate  Certificates  then  outstanding  with  the  earliest  priority  for
payments pursuant to Section 4.02(a),  in the following order:  Class M-1, Class
M-2, Class M-3, Class B-1, Class B-2 and Class B-3 Certificates.

                                              12

<PAGE>

        Independent:  When used with respect to any specified Person, means such
a Person who (i) is in fact independent of the Company,  the Master Servicer and
the Trustee,  or any Affiliate thereof,  (ii) does not have any direct financial
interest or any material indirect financial interest in the Company,  the Master
Servicer or the Trustee or in an Affiliate  thereof,  and (iii) is not connected
with the Company,  the Master  Servicer or the Trustee as an officer,  employee,
promoter,  underwriter,  trustee, partner, director or person performing similar
functions.

        Initial  Certificate  Principal  Balance:  With respect to each Class of
Certificates, the Certificate Principal Balance of such Class of Certificates as
of the Cut-off Date, as set forth in the Series Supplement.

        Initial Monthly Payment Fund: An amount representing scheduled principal
amortization and interest at the Net Mortgage Rate for the Due Date in the first
Due Period  commencing  subsequent to the Cut-off Date for those  Mortgage Loans
for which the Trustee will not be entitled to receive such payment,  and as more
specifically defined in the Series Supplement.

        Initial  Notional  Amount:  With  respect  to any Class or  Subclass  of
Interest Only Certificates, the amount initially used as the principal basis for
the calculation of any interest payment amount, as more specifically  defined in
the Series Supplement.

     Initial Subordinate Class Percentage: As defined in the Series Supplement.

        Insurance  Proceeds:  Proceeds  paid in  respect of the  Mortgage  Loans
pursuant to any Primary  Insurance Policy or any other related  insurance policy
covering a Mortgage Loan  (excluding any  Certificate  Policy (as defined in the
Series  Supplement)),  to the extent such  proceeds are payable to the mortgagee
under the Mortgage, any Subservicer,  the Master Servicer or the Trustee and are
not applied to the  restoration  of the related  Mortgaged  Property  (or,  with
respect to a Cooperative Loan, the related Cooperative Apartment) or released to
the Mortgagor in accordance  with the procedures  that the Master Servicer would
follow in servicing mortgage loans held for its own account.

     Insurer:  Any named  insurer  under  any  Primary  Insurance  Policy or any
successor thereto or the named insurer in any replacement policy.

        Interest Accrual Period: As defined in the Series Supplement.

     Interest  Only  Certificates:  A Class  or  Subclass  of  Certificates  not
entitled  to  payments  of  principal,  and  designated  as such  in the  Series
Supplement.  The Interest Only Certificates  will have no Certificate  Principal
Balance.

        Interim Certification:  As defined in Section 2.02.

     Junior Certificateholder: The Holder of not less than 95% of the Percentage
Interests of the Junior Class of Certificates.

        Junior  Class of  Certificates:  The Class of  Subordinate  Certificates
outstanding  as of the date of the  repurchase  of a Mortgage  Loan  pursuant to
Section 4.07 herein that has the Lowest Priority.

                                              13

<PAGE>

        Late  Collections:  With  respect  to any  Mortgage  Loan,  all  amounts
received during any Due Period,  whether as late payments of Monthly Payments or
as Insurance Proceeds,  Liquidation Proceeds or otherwise,  which represent late
payments or  collections  of Monthly  Payments due but delinquent for a previous
Due Period and not previously recovered.

        Liquidation  Proceeds:  Amounts (other than Insurance Proceeds) received
by the Master  Servicer  in  connection  with the taking of an entire  Mortgaged
Property  by  exercise  of the power of  eminent  domain or  condemnation  or in
connection with the liquidation of a defaulted  Mortgage Loan through  trustee's
sale, foreclosure sale or otherwise, other than REO Proceeds.

        Loan Group:  Any group of Mortgage  Loans  designated as a separate loan
group in the Series  Supplement.  The  Certificates  relating to each Loan Group
will be designated in the Series Supplement.

        Loan-to-Value  Ratio:  As of any  date,  the  fraction,  expressed  as a
percentage,  the  numerator  of which is the  current  principal  balance of the
related Mortgage Loan at the date of determination  and the denominator of which
is the Appraised Value of the related Mortgaged Property.

        Lower  Priority:  As of any  date  of  determination  and any  Class  of
Subordinate  Certificates,  any other  Class of  Subordinate  Certificates  then
outstanding with a later priority for payments pursuant to Section 4.02(a).

        Lowest  Priority:  As  of  any  date  of  determination,  the  Class  of
Subordinate  Certificates then outstanding with the latest priority for payments
pursuant to Section 4.02(a), in the following order: Class B-3, Class B-2, Class
B-1, Class M-3, Class M-2 and Class M-1 Certificates.

        Maturity Date: The latest possible maturity date, solely for purposes of
Section   1.860G-1(a)(4)(iii)   of  the  Treasury  regulations,   by  which  the
Certificate  Principal  Balance of each Class of  Certificates  (other  than the
Interest Only Certificates which have no Certificate Principal Balance) and each
Uncertificated REMIC Regular Interest would be reduced to zero, as designated in
the Series Supplement.

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

        MERS(R)  System:   The  system  of  recording   transfers  of  Mortgages
electronically maintained by MERS.

     MIN: The Mortgage  Identification Number for Mortgage Loans registered with
MERS on the MERS(R)System.

     MLCC: Merrill Lynch Credit Corporation, or its successor in interest.

     Modified  Mortgage  Loan:  Any Mortgage Loan that has been the subject of a
Servicing Modification.

                                              14

<PAGE>

        Modified Net Mortgage  Rate: As to any Mortgage Loan that is the subject
of a Servicing  Modification,  the Net Mortgage Rate minus the rate per annum by
which the Mortgage Rate on such Mortgage Loan was reduced.

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

        Monthly  Payment:  With respect to any Mortgage Loan  (including any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization  schedule at the time applicable thereto (after
adjustment,  if any, for  Curtailments  and for Deficient  Valuations  occurring
prior to such Due Date but before any adjustment to such  amortization  schedule
by reason of any  bankruptcy,  other  than a  Deficient  Valuation,  or  similar
proceeding or any  moratorium  or similar  waiver or grace period and before any
Servicing Modification that constitutes a reduction of the interest rate on such
Mortgage Loan).

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

        Mortgage:  With respect to each Mortgage Note related to a Mortgage Loan
which is not a Cooperative Loan, the mortgage, deed of trust or other comparable
instrument  creating  a first  lien on an  estate  in fee  simple  or  leasehold
interest in real property securing a Mortgage Note.

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

        Mortgage Loans:  Such of the mortgage loans  transferred and assigned to
the Trustee  pursuant to Section 2.01 as from time to time are held or deemed to
be held as a part of the Trust Fund, the Mortgage Loans originally so held being
identified in the initial  Mortgage  Loan  Schedule,  and  Qualified  Substitute
Mortgage Loans held or deemed held as part of the Trust Fund including,  without
limitation,  (i) with respect to each  Cooperative  Loan,  the related  Mortgage
Note,  Security  Agreement,  Assignment of Proprietary Lease,  Cooperative Stock
Certificate,  Cooperative  Lease and Mortgage  File and all rights  appertaining
thereto,  and (ii) with respect to each  Mortgage  Loan other than a Cooperative
Loan,  each related  Mortgage  Note,  Mortgage and Mortgage  File and all rights
appertaining thereto.

        Mortgage Loan Schedule:  As defined in the Series Supplement.

        Mortgage  Note:  The  originally  executed  note or  other  evidence  of
indebtedness  evidencing the  indebtedness of a Mortgagor under a Mortgage Loan,
together with any modification thereto.

     Mortgage Pool: The pool of mortgage  loans,  including all Loan Groups,  if
any, consisting of the Mortgage Loans.

     Mortgage  Rate:  As to any Mortgage  Loan,  the interest  rate borne by the
related  Mortgage  Note,  or any  modification  thereto  other than a  Servicing
Modification.

                                              15

<PAGE>

        Mortgaged  Property:  The underlying  real property  securing a Mortgage
Loan or, with respect to a Cooperative  Loan, the related  Cooperative Lease and
Cooperative Stock.

        Mortgagor:  The obligor on a Mortgage Note.

        Net  Mortgage  Rate:  As to each  Mortgage  Loan,  a per  annum  rate of
interest  equal to the Adjusted  Mortgage  Rate less the per annum rate at which
the Servicing Fee is calculated.

     Non-Discount Mortgage Loan: A Mortgage Loan that is not a Discount Mortgage
Loan.

        Non-Primary Residence Loans: The Mortgage Loans designated as secured by
second or vacation  residences,  or by  non-owner  occupied  residences,  on the
Mortgage Loan Schedule.

        Non-United States Person:  Any Person other than a United States Person.

        Nonrecoverable  Advance:  Any Advance  previously made or proposed to be
made by the Master  Servicer in respect of a Mortgage Loan (other than a Deleted
Mortgage Loan) which,  in the good faith judgment of the Master  Servicer,  will
not, or, in the case of a proposed Advance, would not, be ultimately recoverable
by the Master  Servicer  from  related  Late  Collections,  Insurance  Proceeds,
Liquidation  Proceeds,  REO  Proceeds  or  amounts  reimbursable  to the  Master
Servicer  pursuant to Section 4.02(a) hereof.  The  determination  by the Master
Servicer that it has made a Nonrecoverable  Advance or that any proposed Advance
would  constitute a Nonrecoverable  Advance,  shall be evidenced by an Officers'
Certificate delivered to the Company, the Trustee and any Certificate Insurer.

     Nonsubserviced  Mortgage  Loan:  Any  Mortgage  Loan  that,  at the time of
reference thereto, is not subject to a Subservicing Agreement.

        Notional Amount:  With respect to any Class or Subclass of Interest Only
Certificates,  an amount used as the principal  basis for the calculation of any
interest payment amount, as more specifically defined in the Series Supplement.

        Officers'  Certificate:  A  certificate  signed by the  Chairman  of the
Board,  the  President or a Vice  President or Assistant  Vice  President,  or a
Director or Managing Director,  and by the Treasurer,  the Secretary,  or one of
the Assistant  Treasurers or Assistant  Secretaries of the Company or the Master
Servicer,  as the case may be, and delivered to the Trustee, as required by this
Agreement.

        Opinion of  Counsel:  A written  opinion of  counsel  acceptable  to the
Trustee  and the  Master  Servicer,  who may be counsel  for the  Company or the
Master  Servicer,  provided  that any opinion of counsel (i)  referred to in the
definition of "Disqualified  Organization" or (ii) relating to the qualification
of any REMIC formed under the Series  Supplement  or  compliance  with the REMIC
Provisions  must,  unless  otherwise  specified,  be an opinion  of  Independent
counsel.

     Outstanding  Mortgage Loan: As to any Due Date, a Mortgage Loan  (including
an REO  Property)  which was not the subject of a Principal  Prepayment in Full,
Cash Liquidation or REO

                                              16

<PAGE>

Disposition  and which was not purchased,  deleted or  substituted  for prior to
such Due Date pursuant to Section 2.02, 2.03, 2.04 or 4.07.

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

        Pass-Through Rate:  As defined in the Series Supplement.

     Paying Agent:  The Trustee or any successor  Paying Agent  appointed by the
Trustee.

        Percentage Interest: With respect to any Certificate (other than a Class
R Certificate), the undivided percentage ownership interest in the related Class
evidenced by such  Certificate,  which  percentage  ownership  interest shall be
equal to the Initial  Certificate  Principal Balance thereof or Initial Notional
Amount (in the case of any Interest  Only  Certificate)  thereof  divided by the
aggregate Initial Certificate  Principal Balance or the aggregate of the Initial
Notional Amounts, as applicable, of all the Certificates of the same Class. With
respect to a Class R Certificate,  the interest in distributions to be made with
respect to such Class evidenced thereby, expressed as a percentage, as stated on
the face of each such Certificate.

        Permitted Investments:  One or more of the following:

               (i)  obligations of or guaranteed as to principal and interest by
        the United  States or any agency or  instrumentality  thereof  when such
        obligations  are  backed  by the full  faith and  credit  of the  United
        States;

               (ii) repurchase agreements on obligations specified in clause (i)
        maturing not more than one month from the date of  acquisition  thereof,
        provided  that  the  unsecured  obligations  of the  party  agreeing  to
        repurchase such  obligations are at the time rated by each Rating Agency
        in its highest short-term rating available;

               (iii) federal funds,  certificates of deposit,  demand  deposits,
        time  deposits  and  bankers'  acceptances  (which  shall  each  have an
        original  maturity of not more than 90 days and, in the case of bankers'
        acceptances,  shall in no event have an  original  maturity of more than
        365 days or a remaining  maturity of more than 30 days)  denominated  in
        United  States  dollars  of any  U.S.  depository  institution  or trust
        company  incorporated  under the laws of the United  States or any state
        thereof or of any domestic branch of a foreign depository institution or
        trust company;  provided that the debt  obligations  of such  depository
        institution  or trust company (or, if the only Rating Agency is Standard
        &  Poor's,  in the case of the  principal  depository  institution  in a
        depository   institution  holding  company,   debt  obligations  of  the
        depository  institution  holding  company)  at the  date of  acquisition
        thereof have been rated by each Rating Agency in its highest  short-term
        rating  available;  and provided further that, if the only Rating Agency
        is  Standard  &  Poor's  and if the  depository  or trust  company  is a
        principal  subsidiary of a bank holding company and the debt obligations
        of such subsidiary are not separately rated, the applicable rating shall
        be that of the bank holding company;  and, provided further that, if the
        original maturity of such short-term obligations

                                              17

<PAGE>

        of a  domestic  branch  of a  foreign  depository  institution  or trust
        company shall exceed 30 days, the short-term  rating of such institution
        shall be A-1+ in the case of  Standard & Poor's if  Standard & Poor's is
        the Rating Agency;

               (iv)   commercial   paper  and  demand  notes  (having   original
        maturities  of not more than 365 days) of any  corporation  incorporated
        under the laws of the United  States or any state  thereof  which on the
        date of acquisition  has been rated by each Rating Agency in its highest
        short-term rating  available;  provided that such commercial paper shall
        have a remaining maturity of not more than 30 days;

               (v) a money market fund or a qualified  investment  fund rated by
        each Rating Agency in its highest long-term rating available; and

               (vi) other  obligations or securities that are acceptable to each
        Rating  Agency as a Permitted  Investment  hereunder and will not reduce
        the rating  assigned to any Class of  Certificates by such Rating Agency
        below the lower of the  then-current  rating or the rating  assigned  to
        such  Certificates  as of the  Closing  Date by such Rating  Agency,  as
        evidenced in writing;

provided,  however,  no  instrument  shall  be  a  Permitted  Investment  if  it
represents,  either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest  payments derived from  obligations  underlying such instrument and the
principal and interest payments with respect to such instrument  provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.  References  herein to the highest  rating  available  on unsecured
long-term debt shall mean AAA in the case of Standard & Poor's and Fitch and Aaa
in the case of Moody's, and references herein to the highest rating available on
unsecured commercial paper and short-term debt obligations shall mean A-1 in the
case of Standard & Poor's, P-1 in the case of Moody's and either A-1 by Standard
& Poor's, P-1 by Moody's or F-1 by Fitch in the case of Fitch.

     Permitted Transferee: Any Transferee of a Class R Certificate, other than a
Disqualified Organization or Non-United States Person.

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

     Pledged Amount: With respect to any Pledged Asset Loan, the amount of money
remitted to Combined  Collateral  LLC, at the direction of or for the benefit of
the related Mortgagor.

        Pledged  Asset Loan:  Any Mortgage Loan  supported by Pledged  Assets or
such other collateral,  other than the related Mortgaged Property,  set forth in
the Series Supplement.

        Pledged   Assets:   With  respect  to  any  Mortgage  Loan,  all  money,
securities, security entitlements,  accounts, general intangibles,  instruments,
documents,  certificates of deposit,  commodities contracts and other investment
property and other property of whatever kind or

                                              18

<PAGE>

description  pledged by  Combined  Collateral  LLC as security in respect of any
Realized  Losses in connection  with such Mortgage Loan up to the Pledged Amount
for such Mortgage Loan, and any related collateral,  or such other collateral as
may be set forth in the Series Supplement.

        Pledged Asset Mortgage Servicing  Agreement:  The Pledged Asset Mortgage
Servicing  Agreement,  dated as of February 28, 1996 between MLCC and the Master
Servicer.

        Pooling  and  Servicing  Agreement  or  Agreement:  With  respect to any
Series, this Standard Terms together with the related Series Supplement.

     Pool Stated Principal  Balance:  As to any Distribution Date, the aggregate
of the Stated Principal Balances of each Mortgage Loan.

        Pool Strip Rate:  With respect to each  Mortgage  Loan, a per annum rate
equal to the excess of (a) the Net Mortgage  Rate of such Mortgage Loan over (b)
the Discount Net Mortgage Rate (but not less than 0.00%) per annum.

        Prepayment  Distribution  Trigger: With respect to any Distribution Date
and  any  Class  of   Subordinate   Certificates   (other  than  the  Class  M-1
Certificates),  a test that shall be satisfied if the fraction  (expressed  as a
percentage) equal to the sum of the Certificate Principal Balances of such Class
and each Class of Subordinate Certificates with a Lower Priority than such Class
immediately  prior to such  Distribution  Date divided by the  aggregate  Stated
Principal  Balance of all of the  Mortgage  Loans (or  related  REO  Properties)
immediately  prior to such Distribution Date is greater than or equal to the sum
of the  related  Initial  Subordinate  Class  Percentages  of  such  Classes  of
Subordinate Certificates.

        Prepayment  Interest  Shortfall:  As to any  Distribution  Date  and any
Mortgage Loan (other than a Mortgage Loan relating to an REO Property)  that was
the  subject of (a) a  Principal  Prepayment  in Full  during the portion of the
related  Prepayment Period that falls during the prior calendar month, an amount
equal  to the  excess  of one  month's  interest  at the Net  Mortgage  Rate (or
Modified  Net  Mortgage  Rate in the case of a  Modified  Mortgage  Loan) on the
Stated  Principal  Balance of such  Mortgage  Loan over the  amount of  interest
(adjusted to the Net Mortgage Rate (or Modified Net Mortgage Rate in the case of
a Modified  Mortgage  Loan)) paid by the Mortgagor for such month to the date of
such Principal Prepayment in Full or (b) a Curtailment during the prior calendar
month,  an amount  equal to one month's  interest at the Net  Mortgage  Rate (or
Modified  Net  Mortgage  Rate in the case of a  Modified  Mortgage  Loan) on the
amount of such Curtailment.

        Prepayment Period: As to any Distribution Date and Principal  Prepayment
in Full,  the period  commencing on the 16th day of the month prior to the month
prior to the month in which that Distribution Date occurs and ending on the 15th
day of the month in which such Distribution Date occurs.

     Primary  Insurance  Policy:   Each  primary  policy  of  mortgage  guaranty
insurance or any replacement policy therefor referred to in Section  2.03(b)(iv)
and (v).

                                              19

<PAGE>

     Principal  Only  Certificates:  A Class of  Certificates  not  entitled  to
payments of interest,  and more  specifically  designated  as such in the Series
Supplement.

        Principal  Prepayment:  Any payment of principal or other  recovery on a
Mortgage Loan,  including a recovery that takes the form of Liquidation Proceeds
or Insurance  Proceeds,  which is received in advance of its  scheduled Due Date
and is not  accompanied  by an  amount  as to  interest  representing  scheduled
interest  on such  payment  due on any  date or dates  in any  month  or  months
subsequent to the month of prepayment.

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

        Program Guide: Collectively, the Client Guide and the Servicer Guide for
Residential  Funding's  mortgage loan purchase and conduit servicing program and
all supplements  and amendments  thereto  published by Residential  Funding from
time to time.

        Purchase  Price:  With  respect to any Mortgage  Loan (or REO  Property)
required to be or  otherwise  purchased  on any date  pursuant to Section  2.02,
2.03,  2.04 or  4.07,  an  amount  equal  to the sum of (i)  100% of the  Stated
Principal Balance thereof plus the principal portion of any related unreimbursed
Advances  and (ii) unpaid  accrued  interest at the Adjusted  Mortgage  Rate (or
Modified Net Mortgage Rate plus the rate per annum at which the Servicing Fee is
calculated in the case of a Modified Mortgage Loan) (or at the Net Mortgage Rate
(or Modified Net Mortgage Rate in the case of a Modified  Mortgage  Loan) in the
case of a purchase made by the Master Servicer) on the Stated Principal  Balance
thereof  to the Due Date in the Due  Period  related  to the  Distribution  Date
occurring  in the month  following  the month of  purchase  from the Due Date to
which interest was last paid by the Mortgagor.

        Qualified  Substitute  Mortgage  Loan: A Mortgage  Loan  substituted  by
Residential  Funding or the Company for a Deleted  Mortgage  Loan which must, on
the  date  of  such  substitution,  as  confirmed  in an  Officers'  Certificate
delivered to the Trustee, with a copy to the Custodian,

        (i)    have an outstanding  principal  balance,  after  deduction of the
               principal  portion  of the  monthly  payment  due in the month of
               substitution  (or in the case of a substitution  of more than one
               Mortgage  Loan  for  a  Deleted   Mortgage   Loan,  an  aggregate
               outstanding  principal  balance,  after such  deduction),  not in
               excess of the Stated  Principal  Balance of the Deleted  Mortgage
               Loan (the amount of any shortfall to be deposited by  Residential
               Funding in the Custodial Account in the month of substitution);

        (ii)   have a Mortgage  Rate and a Net  Mortgage  Rate no lower than and
               not more than 1% per annum higher than the Mortgage  Rate and Net
               Mortgage Rate,  respectively,  of the Deleted Mortgage Loan as of
               the date of substitution;

        (iii)  have a Loan-to-Value  Ratio at the time of substitution no higher
               than  that  of  the  Deleted   Mortgage   Loan  at  the  time  of
               substitution;

                                              20

<PAGE>

        (iv)   have a remaining  term to stated  maturity  not greater than (and
               not more than one year less  than) that of the  Deleted  Mortgage
               Loan;

        (v)    comply  with  each  representation  and  warranty  set  forth  in
               Sections  2.03 and 2.04  hereof and  Section 4 of the  Assignment
               Agreement; and

        (vi) have a Pool Strip Rate equal to or greater than that of the Deleted
Mortgage Loan.

Notwithstanding  any other provisions  herein, (x) with respect to any Qualified
Substitute  Mortgage Loan  substituted  for a Deleted  Mortgage Loan which was a
Discount Mortgage Loan, such Qualified  Substitute Mortgage Loan shall be deemed
to be a  Discount  Mortgage  Loan and to have a Discount  Fraction  equal to the
Discount  Fraction  of the Deleted  Mortgage  Loan and (y) in the event that the
"Pool  Strip  Rate" of any  Qualified  Substitute  Mortgage  Loan as  calculated
pursuant to the  definition  of "Pool Strip Rate" is greater than the Pool Strip
Rate of the related Deleted Mortgage Loan

        (i)    the Pool Strip Rate of such  Qualified  Substitute  Mortgage Loan
               shall  be equal to the Pool  Strip  Rate of the  related  Deleted
               Mortgage Loan for purposes of calculating the  Pass-Through  Rate
               on the Class A-V Certificates and

        (ii)   the excess of the Pool Strip  Rate on such  Qualified  Substitute
               Mortgage Loan as calculated  pursuant to the  definition of "Pool
               Strip  Rate"  over the Pool  Strip  Rate on the  related  Deleted
               Mortgage  Loan  shall  be  payable  to the  Class R  Certificates
               pursuant to Section 4.02 hereof.

        Rating Agency:  Each of the statistical credit rating agencies specified
in the  Preliminary  Statement  of the  Series  Supplement.  If any  agency or a
successor is no longer in existence,  "Rating Agency" shall be such  statistical
credit rating agency,  or other  comparable  Person,  designated by the Company,
notice  of  which  designation  shall be given  to the  Trustee  and the  Master
Servicer.

        Realized Loss:  With respect to each Mortgage Loan (or REO Property):

               (a)  as to  which  a  Cash  Liquidation  or REO  Disposition  has
                    occurred,  an amount  (not less than zero)  equal to (i) the
                    Stated  Principal  Balance  of the  Mortgage  Loan  (or  REO
                    Property)  as  of  the  date  of  Cash  Liquidation  or  REO
                    Disposition,  plus (ii) interest (and REO Imputed  Interest,
                    if any) at the Net  Mortgage  Rate  from  the Due Date as to
                    which    interest    was   last   paid   or    advanced   to
                    Certificateholders  up to the Due  Date  in the  Due  Period
                    related to the Distribution Date on which such Realized Loss
                    will be  allocated  pursuant  to Section  4.05 on the Stated
                    Principal  Balance of such  Mortgage  Loan (or REO Property)
                    outstanding  during each Due Period that such  interest  was
                    not paid or  advanced,  minus  (iii) the  proceeds,  if any,
                    received during the month in which such Cash Liquidation (or
                    REO  Disposition)   occurred,   to  the  extent  applied  as
                    recoveries  of  interest  at the Net  Mortgage  Rate  and to
                    principal of the Mortgage Loan,  net of the portion  thereof
                    reimbursable to the Master Servicer or any Subservicer  with
                    respect  to related  Advances  or  expenses  as to which the
                    Master Servicer or Subservicer is entitled to  reimbursement
                    thereunder but which have not been previously reimbursed,

                                              21

<PAGE>

        (b)    which is the subject of a Servicing Modification,  (i) the amount
               by  which  the  interest  portion  of a  Monthly  Payment  or the
               principal balance of such Mortgage Loan was reduced, and (ii) any
               such amount with  respect to a Monthly  Payment that was or would
               have been due in the  month  immediately  following  the month in
               which  a  Principal  Prepayment  or the  Purchase  Price  of such
               Mortgage Loan is received or is deemed to have been received,

        (c)    which has  become  the  subject  of a  Deficient  Valuation,  the
               difference  between the  principal  balance of the Mortgage  Loan
               outstanding immediately prior to such Deficient Valuation and the
               principal  balance  of  the  Mortgage  Loan  as  reduced  by  the
               Deficient Valuation, or

        (d)    which has  become  the object of a Debt  Service  Reduction,  the
               amount of such Debt Service Reduction.

Notwithstanding  the above,  neither a Deficient  Valuation  nor a Debt  Service
Reduction  shall be  deemed a  Realized  Loss  hereunder  so long as the  Master
Servicer  has  notified  the  Trustee in writing  that the  Master  Servicer  is
diligently  pursuing  any  remedies  that  may  exist  in  connection  with  the
representations  and  warranties  made  regarding the related  Mortgage Loan and
either (A) the related  Mortgage  Loan is not in default with regard to payments
due  thereunder or (B)  delinquent  payments of principal and interest under the
related  Mortgage  Loan  and  any  premiums  on any  applicable  primary  hazard
insurance  policy and any related  escrow  payments in respect of such  Mortgage
Loan  are  being  advanced  on a  current  basis  by the  Master  Servicer  or a
Subservicer, in either case without giving effect to any Debt Service Reduction.

        Record  Date:  With  respect  to each  Distribution  Date,  the close of
business on the last Business Day of the month next preceding the month in which
the related Distribution Date occurs.

     Regular  Certificate:  Any  of  the  Certificates  other  than  a  Class  R
Certificate.

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

        REMIC  Administrator:  Residential Funding  Corporation.  If Residential
Funding  Corporation is found by a court of competent  jurisdiction to no longer
be able to fulfill its obligations as REMIC  Administrator  under this Agreement
the  Master  Servicer  or  Trustee  acting as Master  Servicer  shall  appoint a
successor REMIC Administrator,  subject to assumption of the REMIC Administrator
obligations under this Agreement.

        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
temporary and final  regulations (or, to the extent not  inconsistent  with such
temporary or final  regulations,  proposed  regulations) and published  rulings,
notices and  announcements  promulgated  thereunder,  as the foregoing may be in
effect from time to time.

                                              22

<PAGE>

        REO Acquisition: The acquisition by the Master Servicer on behalf of the
Trustee for the benefit of the  Certificateholders  of any REO Property pursuant
to Section 3.14.

        REO Disposition:  As to any REO Property,  a determination by the Master
Servicer that it has received all Insurance Proceeds,  Liquidation Proceeds, REO
Proceeds and other payments and recoveries  (including proceeds of a final sale)
which the Master  Servicer  expects to be finally  recoverable  from the sale or
other disposition of the REO Property.

        REO Imputed Interest: As to any REO Property,  for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related  Mortgage Loan had it been  outstanding) on the unpaid  principal
balance of the  Mortgage  Loan as of the date of  acquisition  thereof  for such
period.

        REO Proceeds:  Proceeds, net of expenses, received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged  Property  or,  with  respect  to  a  Cooperative  Loan,  the  related
Cooperative  Apartment)  which  proceeds are  required to be deposited  into the
Custodial Account only upon the related REO Disposition.

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

        Request  for  Release:  A request  for  release,  the forms of which are
attached as Exhibit F hereto,  or an electronic  request in a form acceptable to
the Custodian.

        Required  Insurance  Policy:  With  respect to any  Mortgage  Loan,  any
insurance policy which is required to be maintained from time to time under this
Agreement, the Program Guide or the related Subservicing Agreement in respect of
such Mortgage Loan.

        Required Surety Payment:  With respect to any Additional Collateral Loan
that becomes a Liquidated Mortgage Loan, the lesser of (i) the principal portion
of the Realized Loss with respect to such Mortgage Loan and (ii) the excess,  if
any, of (a) the amount of Additional  Collateral  required at  origination  with
respect  to  such  Mortgage  Loan  over  (b) the net  proceeds  realized  by the
Subservicer from the related Additional Collateral.

     Residential   Funding:   Residential   Funding   Corporation,   a  Delaware
corporation,  in its capacity as seller of the Mortgage Loans to the Company and
any successor thereto.

        Responsible Officer:  When used with respect to the Trustee, any officer
of the  Corporate  Trust  Department  of the Trustee,  including any Senior Vice
President,  any Vice  President,  any Assistant  Vice  President,  any Assistant
Secretary, any Trust Officer or Assistant Trust Officer, or any other officer of
the Trustee customarily  performing  functions similar to those performed by any
of the above designated  officers to whom, with respect to a particular  matter,
such matter is referred.

        Retail  Certificates:  A Senior Certificate,  if any, offered in smaller
minimum denominations than other Senior Certificates,  and designated as such in
the Series Supplement.

                                              23

<PAGE>

        Schedule of Discount Fractions:  The schedule setting forth the Discount
Fractions with respect to the Discount Mortgage Loans, attached as an exhibit to
the Series Supplement.

     Security  Agreement:  With respect to a  Cooperative  Loan,  the  agreement
creating  a  security  interest  in  favor  of the  originator  in  the  related
Cooperative Stock.

     Seller: As to any Mortgage Loan, a Person, including any Subservicer,  that
executed a Seller's Agreement applicable to such Mortgage Loan.

        Seller's  Agreement:  An  agreement  for  the  origination  and  sale of
Mortgage  Loans  generally  in the form of the Seller  Contract  referred  to or
contained in the Program  Guide,  or in such other form as has been  approved by
the  Master  Servicer  and the  Company,  each  containing  representations  and
warranties in respect of one or more Mortgage  Loans  consistent in all material
respects with those set forth in the Program Guide.

        Senior  Accelerated  Distribution   Percentage:   With  respect  to  any
Distribution  Date occurring on or prior to the 60th Distribution Date and, with
respect to any Mortgage  Pool  comprised  of two or more Loan  Groups,  any Loan
Group,  100%. With respect to any Distribution Date thereafter and any such Loan
Group, if applicable, as follows:

        (i)    for any Distribution Date after the 60th Distribution Date but on
               or  prior to the  72nd  Distribution  Date,  the  related  Senior
               Percentage  for such  Distribution  Date plus 70% of the  related
               Subordinate Percentage for such Distribution Date;

        (ii)   for any Distribution Date after the 72nd Distribution Date but on
               or  prior to the  84th  Distribution  Date,  the  related  Senior
               Percentage  for such  Distribution  Date plus 60% of the  related
               Subordinate Percentage for such Distribution Date;

        (iii)  for any Distribution Date after the 84th Distribution Date but on
               or  prior to the  96th  Distribution  Date,  the  related  Senior
               Percentage  for such  Distribution  Date plus 40% of the  related
               Subordinate Percentage for such Distribution Date;

        (iv)   for any Distribution Date after the 96th Distribution Date but on
               or prior to the  108th  Distribution  Date,  the  related  Senior
               Percentage  for such  Distribution  Date plus 20% of the  related
               Subordinate Percentage for such Distribution Date; and

          (v)  for any Distribution  Date thereafter,  the Senior Percentage for
               such Distribution Date;

provided, however,

        (i)    that  any   scheduled   reduction   to  the  Senior   Accelerated
               Distribution Percentage described above shall not occur as of any
               Distribution Date unless either

               (a)(1)(X) the outstanding principal balance of the Mortgage Loans
        delinquent  60 days or more  averaged  over the last  six  months,  as a
        percentage of the aggregate outstanding Certificate Principal Balance of
        the Subordinate Certificates, is less than 50%

                                              24

<PAGE>

        or (Y) the outstanding principal balance of Mortgage Loans delinquent 60
        days or more averaged  over the last six months,  as a percentage of the
        aggregate  outstanding  principal balance of all Mortgage Loans averaged
        over the last six months,  does not exceed 2% and (2) Realized Losses on
        the  Mortgage  Loans  to date for such  Distribution  Date if  occurring
        during  the  sixth,  seventh,  eighth,  ninth or tenth year (or any year
        thereafter)  after the Closing Date are less than 30%,  35%, 40%, 45% or
        50%,  respectively,  of the  sum of the  Initial  Certificate  Principal
        Balances of the Subordinate Certificates or

               (b)(1)  the  outstanding  principal  balance  of  Mortgage  Loans
        delinquent  60 days or more  averaged  over the last  six  months,  as a
        percentage  of  the  aggregate  outstanding  principal  balance  of  all
        Mortgage Loans averaged over the last six months, does not exceed 4% and
        (2) Realized Losses on the Mortgage Loans to date for such  Distribution
        Date, if occurring  during the sixth,  seventh,  eighth,  ninth or tenth
        year (or any year thereafter)  after the Closing Date are less than 10%,
        15%,  20%,  25%  or  30%,  respectively,  of  the  sum  of  the  Initial
        Certificate Principal Balances of the Subordinate Certificates, and

          (ii) that for any Distribution  Date on which the Senior Percentage is
               greater than the  Percentage as of the Closing  Date,  the Senior
               Accelerated  Distribution  Percentage for such  Distribution Date
               shall be 100%,  or, if the  Mortgage  Pool is comprised of two or
               more Loan Groups, for any Distribution Date on which the weighted
               average of the Senior  Percentages for each Loan Group,  weighted
               on the basis of the Stated  Principal  Balances  of the  Mortgage
               Loans in the related Loan Group,  exceeds the weighted average of
               the initial  Senior  Percentages  (calculated  on such basis) for
               each Loan  Group,  each of the  Senior  Accelerated  Distribution
               Percentages for such Distribution Date will equal 100%.

Notwithstanding the foregoing,  upon the reduction of the Certificate  Principal
Balances  of  the  related  Senior   Certificates  (other  than  the  Class  A-P
Certificates,  if any) to zero,  the  related  Senior  Accelerated  Distribution
Percentage shall thereafter be 0%.

        Senior Certificate:  As defined in the Series Supplement.

        Senior Percentage:  As defined in the Series Supplement.

        Senior  Support   Certificate:   A  Senior   Certificate  that  provides
additional  credit  enhancement to certain other classes of Senior  Certificates
and designated as such in the Preliminary Statement of the Series Supplement.

     Series: All of the Certificates  issued pursuant to a Pooling and Servicing
Agreement and bearing the same series designation.

        Series  Supplement:  The  agreement  into which this  Standard  Terms is
incorporated and pursuant to which,  together with this Standard Terms, a Series
of Certificates is issued.

     Servicing Accounts: The account or accounts created and maintained pursuant
to Section 3.08.

                                              25

<PAGE>

        Servicing  Advances:  All  customary,  reasonable  and necessary "out of
pocket" costs and expenses incurred in connection with a default, delinquency or
other  unanticipated  event by the Master  Servicer  in the  performance  of its
servicing  obligations,  including,  but not  limited  to,  the  cost of (i) the
preservation,  restoration  and  protection  of a  Mortgaged  Property  or, with
respect to a  Cooperative  Loan,  the related  Cooperative  Apartment,  (ii) any
enforcement  or judicial  proceedings,  including  foreclosures,  including  any
expenses  incurred  in  relation  to any such  proceedings  that result from the
Mortgage Loan being  registered  on the MERS System,  (iii) the  management  and
liquidation of any REO Property and (iv) compliance  with the obligations  under
Sections 3.01, 3.08, 3.12(a) and 3.14, including,  if the Master Servicer or any
Affiliate  of the Master  Servicer  provides  services  such as  appraisals  and
brokerage services that are customarily provided by Persons other than servicers
of mortgage loans, reasonable compensation for such services.

        Servicing Fee: With respect to any Mortgage Loan and Distribution  Date,
the fee payable  monthly to the Master  Servicer in respect of master  servicing
compensation  that accrues at an annual rate  designated  on the  Mortgage  Loan
Schedule as the "MSTR SERV FEE" for such Mortgage  Loan, as may be adjusted with
respect to successor Master Servicers as provided in Section 7.02.

        Servicing  Modification:  Any  reduction of the interest  rate on or the
outstanding  principal  balance of a Mortgage  Loan that is in  default,  or for
which,  in  the  judgment  of  the  Master   Servicer,   default  is  reasonably
foreseeable, pursuant to a modification of such Mortgage Loan in accordance with
Section 3.07(a).

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

        Special  Hazard Loss: Any Realized Loss not in excess of the cost of the
lesser of repair or replacement  of a Mortgaged  Property (or, with respect to a
Cooperative Loan, the related Cooperative  Apartment) suffered by such Mortgaged
Property  (or  Cooperative  Apartment)  on  account  of  direct  physical  loss,
exclusive  of (i) any  loss of a type  covered  by a  hazard  policy  or a flood
insurance policy required to be maintained in respect of such Mortgaged Property
pursuant  to Section  3.12(a),  except to the extent of the portion of such loss
not covered as a result of any coinsurance  provision and (ii) any Extraordinary
Loss.

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

        Stated Principal  Balance:  With respect to any Mortgage Loan or related
REO Property,  at any given time, (i) the Cut-off Date Principal  Balance of the
Mortgage  Loan,  minus (ii) the sum of (a) the principal  portion of the Monthly
Payments due with respect to such Mortgage Loan or REO Property  during each Due
Period ending prior to the most recent  Distribution Date which were received or
with  respect to which an Advance was made,  and (b) all  Principal  Prepayments
with respect to such Mortgage Loan or REO Property,  and all Insurance Proceeds,
Liquidation  Proceeds  and REO  Proceeds,  to the  extent  applied by the Master
Servicer as recoveries of principal in accordance with Section 3.14 with respect
to such Mortgage Loan or REO Property, in each case

                                              26

<PAGE>

which were  distributed  pursuant to Section 4.02 on any  previous  Distribution
Date,  and (c) any Realized Loss  allocated to  Certificateholders  with respect
thereto for any previous Distribution Date.

        Subclass:  With  respect  to the Class A-V  Certificates,  any  Subclass
thereof issued pursuant to Section 5.01(c). Any such Subclass will represent the
Uncertificated  Class A-V REMIC Regular  Interest or Interests  specified by the
initial Holder of the Class A-V Certificates pursuant to Section 5.01(c).

        Subordinate Certificate:  Any one of the Class M Certificates or Class B
Certificates,  executed  by the  Trustee and  authenticated  by the  Certificate
Registrar  substantially  in the form annexed hereto as Exhibit B and Exhibit C,
respectively.

        Subordinate Class Percentage:  With respect to any Distribution Date and
any Class of Subordinate  Certificates,  a fraction,  expressed as a percentage,
the numerator of which is the aggregate  Certificate  Principal  Balance of such
Class  of  Subordinate  Certificates  immediately  prior  to such  date  and the
denominator  of which is the aggregate  Stated  Principal  Balance of all of the
Mortgage  Loans (or related  REO  Properties)  (other than the related  Discount
Fraction of each Discount  Mortgage Loan) immediately prior to such Distribution
Date.

        Subordinate Percentage: As of any Distribution Date and, with respect to
any Mortgage  Pool  comprised of two or more Loan Groups,  any Loan Group,  100%
minus the related Senior Percentage as of such Distribution Date.

     Subserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference
thereto, is subject to a Subservicing Agreement.

        Subservicer: Any Person with whom the Master Servicer has entered into a
Subservicing Agreement and who generally satisfied the requirements set forth in
the Program Guide in respect of the  qualification  of a  Subservicer  as of the
date of its approval as a Subservicer by the Master Servicer.

        Subservicer  Advance:  Any  delinquent   installment  of  principal  and
interest on a Mortgage Loan which is advanced by the related Subservicer (net of
its Subservicing Fee) pursuant to the Subservicing Agreement.

     Subservicing Account: An account established by a Subservicer in accordance
with Section 3.08.

        Subservicing Agreement: The written contract between the Master Servicer
and any Subservicer relating to servicing and administration of certain Mortgage
Loans as  provided  in  Section  3.02,  generally  in the  form of the  servicer
contract  referred to or contained in the Program Guide or in such other form as
has been  approved  by the Master  Servicer  and the  Company.  With  respect to
Additional  Collateral  Loans  subserviced by MLCC, the  Subservicing  Agreement
shall also include the Addendum and  Assignment  Agreement and the Pledged Asset
Mortgage Servicing Agreement. With respect to any Pledged Asset Loan subserviced
by GMAC Mortgage Corporation,

                                              27

<PAGE>

the Addendum and Assignment  Agreement,  dated as of November 24, 1998,  between
the Master  Servicer and GMAC  Mortgage  Corporation,  as such  agreement may be
amended from time to time.

        Subservicing  Fee: As to any Mortgage Loan,  the fee payable  monthly to
the related  Subservicer (or, in the case of a Nonsubserviced  Mortgage Loan, to
the Master  Servicer) in respect of  subservicing  and other  compensation  that
accrues at an annual rate equal to the excess of the Mortgage  Rate borne by the
related  Mortgage  Note over the rate per annum  designated on the Mortgage Loan
Schedule as the "CURR NET" for such Mortgage Loan.

     Surety:  Ambac, or its successors in interest,  or such other surety as may
be identified in the Series Supplement.

        Surety Bond:  The Limited  Purpose  Surety Bond  (Policy No.  AB0039BE),
dated February 28, 1996 in respect to Mortgage Loans  originated by MLCC, or the
Surety Bond (Policy No.  AB0240BE),  dated March 17, 1999 in respect to Mortgage
Loans  originated by Novus Financial  Corporation,  in each case issued by Ambac
for the benefit of certain beneficiaries,  including the Trustee for the benefit
of the Holders of the Certificates, but only to the extent that such Surety Bond
covers any  Additional  Collateral  Loans,  or such other  Surety Bond as may be
identified in the Series Supplement.

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

     Transfer: Any direct or indirect transfer,  sale, pledge,  hypothecation or
other form of assignment of any Ownership Interest in a Certificate.

     Transferee:  Any Person who is acquiring by Transfer any Ownership Interest
in a Certificate.

     Transferor:  Any Person  who is  disposing  by  Transfer  of any  Ownership
Interest in a Certificate.

        Trust Fund:  The  segregated  pool of assets  related to a Series,  with
respect to which one or more REMIC  elections  are to be made  pursuant  to this
Agreement, consisting of:

          (i)  the Mortgage Loans and the related  Mortgage Files and collateral
               securing such Mortgage Loans,

        (ii)   all payments on and  collections in respect of the Mortgage Loans
               due  after  the  Cut-off  Date  as  shall  be on  deposit  in the
               Custodial Account or in the Certificate Account and identified as
               belonging to the Trust Fund, including the proceeds from

                                              28

<PAGE>

               the  liquidation  of  Additional  Collateral  for any  Additional
               Collateral Loan or Pledged Assets for any Pledged Asset Loan, but
               not including  amounts on deposit in the Initial  Monthly Payment
               Fund,

        (iii)  property  that secured a Mortgage Loan and that has been acquired
               for the benefit of the  Certificateholders by foreclosure or deed
               in lieu of foreclosure,

        (iv)   the hazard insurance policies and Primary Insurance Policies,  if
               any, the Pledged  Assets with respect to each Pledged Asset Loan,
               and the  interest in the Surety Bond  transferred  to the Trustee
               pursuant to Section 2.01, and

        (v)    all proceeds of clauses (i) through (iv) above.

        Uniform Single  Attestation  Program for Mortgage  Bankers:  The Uniform
Single  Attestation  Program for Mortgage Bankers,  as published by the Mortgage
Bankers  Association  of America and  effective  with respect to fiscal  periods
ending on or after December 15, 1995.

        Uninsured  Cause:  Any cause of damage to property subject to a Mortgage
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies.

        United  States  Person:  A citizen or resident of the United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws  of,  the  United  States,  provided  that,  for  purposes  solely  of  the
restrictions  on the transfer of residual  interests,  no  partnership  or other
entity  treated as a partnership  for United States  federal income tax purposes
shall be treated  as a United  States  Person  unless  all  persons  that own an
interest in such partnership either directly or through any entity that is not a
corporation  for United States  federal  income tax purposes are required by the
applicable  operating agreement to be United States Persons,  any state thereof,
or the District of Columbia (except in the case of a partnership,  to the extent
provided in Treasury  regulations) or any political  subdivision  thereof, or an
estate that is described in Section  7701(a)(30)(D) of the Code, or a trust that
is described in Section 7701(a)(30)(E) of the Code.

     Voting Rights:  The portion of the voting rights of all of the Certificates
which is allocated  to any  Certificate,  and more  specifically  designated  in
Article XI of the Series Supplement.

        Section 1.02  Use of Words and Phrases.

        "Herein," "hereby," "hereunder," 'hereof," "hereinbefore," "hereinafter"
and other  equivalent  words refer to the Pooling and  Servicing  Agreement as a
whole. All references herein to Articles, Sections or Subsections shall mean the
corresponding  Articles,  Sections and  Subsections in the Pooling and Servicing
Agreement.  The  definition  set forth herein  include both the singular and the
plural.

                                              29

<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

        Section 2.01  Conveyance of Mortgage Loans.

        (a) The Company,  concurrently  with the execution and delivery  hereof,
does hereby  assign to the Trustee  without  recourse  all the right,  title and
interest of the Company in and to the Mortgage Loans, including all interest and
principal  received on or with respect to the  Mortgage  Loans after the Cut-off
Date (other than payments of principal and interest due on the Mortgage Loans on
or before the Cut-off Date).  In connection  with such transfer and  assignment,
the Company  does  hereby  deliver to the  Trustee  the  Certificate  Policy (as
defined in the Series Supplement), if any.

        (b) In connection with such  assignment,  except as set forth in Section
2.01(c) and subject to Section  2.01(d)  below,  the Company does hereby deliver
to, and deposit with, the Trustee, or to and with one or more Custodians, as the
duly  appointed  agent or agents of the Trustee for such purpose,  the following
documents or  instruments  (or copies  thereof as permitted by this Section) (I)
with respect to each Mortgage Loan so assigned (other than a Cooperative Loan):

                      (i) The original Mortgage Note,  endorsed without recourse
               to the order of the  Trustee  and  showing an  unbroken  chain of
               endorsements from the originator  thereof to the Person endorsing
               it to the  Trustee,  or with  respect to any  Destroyed  Mortgage
               Note, an original lost note  affidavit from the related Seller or
               Residential  Funding stating that the original  Mortgage Note was
               lost, misplaced or destroyed, together with a copy of the related
               Mortgage Note;

                      (ii) The original Mortgage, noting the presence of the MIN
               of the Mortgage  Loan and language  indicating  that the Mortgage
               Loan is a MOM  Loan if the  Mortgage  Loan  is a MOM  Loan,  with
               evidence of recording indicated thereon or a copy of the Mortgage
               with evidence of recording indicated thereon;

                      (iii)  Unless  the  Mortgage  Loan  is  registered  on the
               MERS(R)  System,  an original  Assignment  of the Mortgage to the
               Trustee with evidence of recording indicated thereon or a copy of
               such assignment with evidence of recording indicated thereon;

                      (iv) The original  recorded  assignment or  assignments of
               the  Mortgage  showing  an  unbroken  chain  of  title  from  the
               originator  thereof to the Person assigning it to the Trustee (or
               to MERS, if the Mortgage Loan is registered on the MERS(R) System
               and noting the  presence of a MIN) with  evidence of  recordation
               noted thereon or attached  thereto,  or a copy of such assignment
               or  assignments  of  the  Mortgage  with  evidence  of  recording
               indicated thereon; and

                                              30

<PAGE>

                      (v)  The   original  of  each   modification,   assumption
               agreement or preferred loan agreement,  if any,  relating to such
               Mortgage  Loan  or  a  copy  of  each  modification,   assumption
               agreement or preferred loan agreement.

               and (II) with respect to each Cooperative Loan so assigned:

                      (i) The original Mortgage Note,  endorsed without recourse
               to the order of the  Trustee  and  showing an  unbroken  chain of
               endorsements from the originator  thereof to the Person endorsing
               it to the  Trustee,  or with  respect to any  Destroyed  Mortgage
               Note, an original lost note  affidavit from the related Seller or
               Residential  Funding stating that the original  Mortgage Note was
               lost, misplaced or destroyed, together with a copy of the related
               Mortgage Note;

                      (ii)  A  counterpart  of the  Cooperative  Lease  and  the
               Assignment  of  Proprietary   Lease  to  the  originator  of  the
               Cooperative Loan with intervening assignments showing an unbroken
               chain of title from such originator to the Trustee;

                      (iii)   The   related   Cooperative   Stock   Certificate,
               representing the related  Cooperative  Stock pledged with respect
               to such  Cooperative  Loan,  together with an undated stock power
               (or other similar instrument) executed in blank;

                    (iv) The original  recognition  agreement by the Cooperative
               of the  interests  of the  mortgagee  with respect to the related
               Cooperative Loan;

                      (v)    The Security Agreement;

                      (vi) Copies of the original UCC-1 financing statement, and
               any  continuation  statements,  filed by the  originator  of such
               Cooperative  Loan  as  secured  party,   each  with  evidence  of
               recording  thereof,  evidencing  the  interest of the  originator
               under the Security  Agreement and the  Assignment of  Proprietary
               Lease;

                      (vii)  Copies  of  the  filed  UCC-3  assignments  of  the
               security  interest  referenced  in clause  (vi) above  showing an
               unbroken chain of title from the originator to the Trustee,  each
               with evidence of recording  thereof,  evidencing  the interest of
               the originator under the Security Agreement and the Assignment of
               Proprietary Lease;

                      (viii)  An  executed  assignment  of the  interest  of the
               originator in the Security  Agreement,  Assignment of Proprietary
               Lease and the  recognition  agreement  referenced  in clause (iv)
               above,  showing an unbroken chain of title from the originator to
               the Trustee;

                      (ix)  The  original  of  each   modification,   assumption
               agreement or preferred loan agreement,  if any,  relating to such
               Cooperative Loan; and

                      (x) A duly completed UCC-1 financing statement showing the
               Master  Servicer as debtor,  the Company as secured party and the
               Trustee as assignee and a

                                              31

<PAGE>

               duly completed UCC-1 financing  statement  showing the Company as
               debtor  and  the  Trustee  as  secured  party,  each  in  a  form
               sufficient for filing, evidencing the interest of such debtors in
               the Cooperative Loans.

        (c) The Company may, in lieu of delivering the original of the documents
set  forth  in  Section   2.01(b)(I)(ii),   (iii),  (iv)  and  (v)  and  Section
(b)(II)(ii),  (iv),  (vii),  (ix) and (x) (or  copies  thereof as  permitted  by
Section  2.01(b)) to the Trustee or the  Custodian or  Custodians,  deliver such
documents  to the  Master  Servicer,  and the  Master  Servicer  shall hold such
documents  in  trust  for  the  use  and  benefit  of  all  present  and  future
Certificateholders until such time as is set forth in the next sentence.  Within
thirty Business Days following the earlier of (i) the receipt of the original of
all of the documents or instruments set forth in Section 2.01(b)(I)(ii),  (iii),
(iv) and (v) and  Section  (b)(II)(ii),  (iv),  (vii),  (ix) and (x) (or  copies
thereof as permitted by such  Section) for any Mortgage  Loan and (ii) a written
request by the Trustee to deliver those  documents with respect to any or all of
the Mortgage Loans then being held by the Master  Servicer,  the Master Servicer
shall  deliver a complete set of such  documents to the Trustee or the Custodian
or Custodians that are the duly appointed agent or agents of the Trustee.

        (d)  Notwithstanding  the provisions of Section  2.01(c),  in connection
with any  Mortgage  Loan,  if the Company  cannot  deliver  the  original of the
Mortgage, any assignment,  modification,  assumption agreement or preferred loan
agreement  (or copy thereof as permitted by Section  2.01(b))  with  evidence of
recording thereon concurrently with the execution and delivery of this Agreement
because  of (i) a  delay  caused  by the  public  recording  office  where  such
Mortgage,  assignment,  modification,  assumption  agreement or  preferred  loan
agreement  as the case may be, has been  delivered  for  recordation,  or (ii) a
delay in the  receipt of certain  information  necessary  to prepare the related
assignments,  the Company  shall deliver or cause to be delivered to the Trustee
or the respective Custodian a copy of such Mortgage,  assignment,  modification,
assumption agreement or preferred loan agreement.

        The Company  shall  promptly  cause to be  recorded  in the  appropriate
public office for real  property  records the  Assignment  referred to in clause
(I)(iii)  of Section  2.01(b),  except (a) in states  where,  in the  opinion of
counsel acceptable to the Trustee and the Master Servicer, such recording is not
required to protect the  Trustee's  interests in the  Mortgage  Loan against the
claim of any  subsequent  transferee  or any  successor  to or  creditor  of the
Company or the  originator of such Mortgage Loan or (b) if MERS is identified on
the  Mortgage  or on a  properly  recorded  assignment  of the  Mortgage  as the
mortgagee  of record  solely as nominee  for the Seller and its  successors  and
assigns,  and shall  promptly  cause to be filed the Form UCC-3  assignment  and
UCC-1 financing statement referred to in clause (II)(vii) and (x), respectively,
of Section 2.01(b). If any Assignment,  Form UCC-3 or Form UCC-1, as applicable,
is lost or returned unrecorded to the Company because of any defect therein, the
Company  shall  prepare a substitute  Assignment,  Form UCC-3 or Form UCC-1,  as
applicable,  or cure such defect,  as the case may be, and cause such Assignment
to be recorded in accordance  with this  paragraph.  The Company shall  promptly
deliver or cause to be delivered to the Trustee or the respective Custodian such
Mortgage or  Assignment  or Form UCC-3 or Form UCC-1,  as  applicable,  (or copy
thereof as permitted by Section  2.01(b)) with  evidence of recording  indicated
thereon  at the time  specified  in  Section  2.01(c).  In  connection  with its
servicing of Cooperative Loans, the Master Servicer will use its best efforts to
file timely continuation

                                              32

<PAGE>

statements  with regard to each financing  statement and assignment  relating to
Cooperative  Loans as to which the  related  Cooperative  Apartment  is  located
outside of the State of New York.

        If the Company delivers to the Trustee or Custodian any Mortgage Note or
Assignment of Mortgage in blank, the Company shall, or shall cause the Custodian
to, complete the endorsement of the Mortgage Note and the Assignment of Mortgage
in the name of the Trustee in conjunction with the Interim  Certification issued
by the Custodian, as contemplated by Section 2.02.

        Any of the items set forth in Sections  2.01(b)(I)(ii),  (iii), (iv) and
(v) and  (II)(vi)  and (vii) and that may be delivered as a copy rather than the
original may be delivered to the Trustee or the Custodian.

        In connection with the assignment of any Mortgage Loan registered on the
MERS(R) System,  the Company further agrees that it will cause, at the Company's
own expense,  within 30 Business Days after the Closing Date, the MERS(R) System
to indicate  that such  Mortgage  Loans have been assigned by the Company to the
Trustee   in   accordance   with  this   Agreement   for  the   benefit  of  the
Certificateholders  by including  (or  deleting,  in the case of Mortgage  Loans
which are  repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection with such Mortgage Loans.  The Company further agrees that it will
not, and will not permit the Master  Servicer to, and the Master Servicer agrees
that it will not,  alter the codes  referenced in this paragraph with respect to
any  Mortgage  Loan  during  the term of this  Agreement  unless  and until such
Mortgage Loan is repurchased in accordance with the terms of this Agreement.

        (e)  Residential  Funding  hereby  assigns to the Trustee  its  security
interest in and to any  Additional  Collateral or Pledged  Assets,  its right to
receive amounts due or to become due in respect of any Additional  Collateral or
Pledged Assets pursuant to the related Subservicing  Agreement and its rights as
beneficiary under the Surety Bond in respect of any Additional Collateral Loans.
With  respect  to  any  Additional   Collateral  Loan  or  Pledged  Asset  Loan,
Residential Funding shall cause to be filed in the appropriate  recording office
a UCC-3  statement  giving  notice of the  assignment  of the  related  security
interest to the Trust Fund and shall  thereafter  cause the timely filing of all
necessary continuation statements with regard to such financing statements.

        (f) It is intended that the  conveyance by the Company to the Trustee of
the   Mortgage   Loans  as  provided  for  in  this  Section  2.01  be  and  the
Uncertificated  REMIC  Regular  Interests,  if any (as  provided  for in Section
2.06),  be  construed  as a sale by the Company to the  Trustee of the  Mortgage
Loans and any  Uncertificated  REMIC  Regular  Interests  for the benefit of the
Certificateholders.  Further,  it is not intended that such conveyance be deemed
to be a pledge  of the  Mortgage  Loans  and any  Uncertificated  REMIC  Regular
Interests by the Company to the Trustee to secure a debt or other  obligation of
the Company. However, if the Mortgage Loans and any Uncertificated REMIC Regular
Interests are held to be property of the Company or of Residential  Funding,  or
if for any reason this Agreement is held or deemed to create a security interest
in the Mortgage Loans and any Uncertificated REMIC Regular Interests, then it is
intended  that (a) this  Agreement  shall be a  security  agreement  within  the
meaning of  Articles  8 and 9 of the New York  Uniform  Commercial  Code and the
Uniform Commercial Code of any other applicable jurisdiction;

                                              33

<PAGE>

(b) the  conveyance  provided  for in  Section  2.01  shall be deemed to be, and
hereby is, (1) a grant by the Company to the  Trustee of a security  interest in
all of the Company's right (including the power to convey title thereto),  title
and  interest,  whether now owned or hereafter  acquired,  in and to any and all
general intangibles, payment intangibles,  accounts, chattel paper, instruments,
documents,  money, deposit accounts,  certificates of deposit, goods, letters of
credit, advices of credit and investment property and other property of whatever
kind or description  now existing or hereafter  acquired  consisting of, arising
from or relating to any of the following:  (A) the Mortgage Loans, including (i)
with respect to each  Cooperative  Loan,  the related  Mortgage  Note,  Security
Agreement,  Assignment of Proprietary  Lease,  Cooperative Stock Certificate and
Cooperative  Lease,  (ii)  with  respect  to each  Mortgage  Loan  other  than a
Cooperative  Loan,  the  related  Mortgage  Note and  Mortgage,  and  (iii)  any
insurance policies and all other documents in the related Mortgage File, (B) all
amounts  payable  pursuant to the Mortgage  Loans in  accordance  with the terms
thereof,  (C) any Uncertificated REMIC Regular Interests and (D) all proceeds of
the  conversion,   voluntary  or  involuntary,   of  the  foregoing  into  cash,
instruments,  securities or other  property,  including  without  limitation all
amounts  from time to time held or  invested in the  Certificate  Account or the
Custodial Account, whether in the form of cash, instruments, securities or other
property  and (2) an  assignment  by the Company to the Trustee of any  security
interest in any and all of Residential  Funding's right  (including the power to
convey  title  thereto),  title and  interest,  whether  now owned or  hereafter
acquired, in and to the property described in the foregoing clauses (1)(A), (B),
(C) and (D)  granted by  Residential  Funding  to the  Company  pursuant  to the
Assignment  Agreement;  (c) the possession by the Trustee,  the Custodian or any
other agent of the Trustee of Mortgage  Notes or such other items of property as
constitute instruments, money, payment intangibles, negotiable documents, goods,
deposit accounts,  letters of credit,  advices of credit,  investment  property,
certificated  securities or chattel paper shall be deemed to be  "possession  by
the secured party," or possession by a purchaser or a person  designated by such
secured party, for purposes of perfecting the security  interest pursuant to the
Minnesota Uniform  Commercial Code and the Uniform  Commercial Code of any other
applicable  jurisdiction as in effect (including,  without limitation,  Sections
8-106,  9-313 and 9-106 thereof);  and (d) notifications to persons holding such
property,  and  acknowledgments,  receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, securities intermediaries,  bailees or agents of, or persons
holding for (as  applicable)  the Trustee  for the  purpose of  perfecting  such
security interest under applicable law.

        The Company and, at the Company's direction, Residential Funding and the
Trustee  shall,  to  the  extent  consistent  with  this  Agreement,  take  such
reasonable  actions as may be necessary to ensure that, if this  Agreement  were
determined  to  create  a  security   interest  in  the  Mortgage   Loans,   any
Uncertificated  REMIC Regular Interests and the other property  described above,
such security  interest would be determined to be a perfected  security interest
of first priority under applicable law and will be maintained as such throughout
the term of this  Agreement.  Without  limiting the generality of the foregoing,
the Company shall prepare and deliver to the Trustee not less than 15 days prior
to any filing date and, the Trustee shall forward for filing,  or shall cause to
be forwarded for filing, at the expense of the Company, all filings necessary to
maintain the  effectiveness of any original filings  necessary under the Uniform
Commercial  Code as in effect  in any  jurisdiction  to  perfect  the  Trustee's
security interest in or lien on the Mortgage Loans and any Uncertificated  REMIC
Regular  Interests,  as evidenced by an  Officers'  Certificate  of the Company,
including  without  limitation (x) continuation  statements,  and (y) such other
statements as may be occasioned

                                              34

<PAGE>

by (1) any change of name of  Residential  Funding,  the  Company or the Trustee
(such  preparation  and  filing  shall  be at the  expense  of the  Trustee,  if
occasioned by a change in the Trustee's name), (2) any change of location of the
place of business or the chief  executive  office of Residential  Funding or the
Company,  (3) any transfer of any interest of Residential Funding or the Company
in any Mortgage Loan or (4) any transfer of any interest of Residential  Funding
or the Company in any Uncertificated REMIC Regular Interest.

        (g) The Master  Servicer  hereby  acknowledges  the receipt by it of the
Initial  Monthly  Payment  Fund.  The Master  Servicer  shall hold such  Initial
Monthly  Payment Fund in the  Custodial  Account and shall  include such Initial
Monthly  Payment  Fund in the  Available  Distribution  Amount  for the  initial
Distribution Date.  Notwithstanding anything herein to the contrary, the Initial
Monthly  Payment Fund shall not be an asset of any REMIC. To the extent that the
Initial Monthly  Payment Fund  constitutes a reserve fund for federal income tax
purposes, (1) it shall be an outside reserve fund and not an asset of any REMIC,
(2) it shall be owned by the Seller and (3) amounts  transferred by any REMIC to
the Initial  Monthly  Payment Fund shall be treated as transferred to the Seller
or any successor,  all within the meaning of Section 1.860G-2(h) of the Treasury
Regulations.

        (h) The Company agrees that the sale of each Pledged Asset Loan pursuant
to this  Agreement  will also  constitute the  assignment,  sale,  setting-over,
transfer and  conveyance  to the Trustee,  without  recourse (but subject to the
Company's  covenants,   representations  and  warranties  specifically  provided
herein),  of all of the Company's  obligations  and all of the Company's  right,
title and interest in, to and under,  whether now existing or hereafter acquired
as owner of the Mortgage  Loan with respect to all money,  securities,  security
entitlements,    accounts,   general   intangibles,    instruments,   documents,
certificates of deposit,  commodities  contracts,  and other investment property
and other property of whatever kind or  description  consisting of, arising from
or related to (i) the Assigned Contracts,  (ii) all rights,  powers and remedies
of the Company as owner of such Mortgage  Loan under or in  connection  with the
Assigned Contracts,  whether arising under the terms of such Assigned Contracts,
by statute,  at law or in equity, or otherwise arising out of any default by the
Mortgagor  under or in  connection  with the Assigned  Contracts,  including all
rights  to  exercise  any  election  or  option  or  to  make  any  decision  or
determination  or to give or receive  any  notice,  consent,  approval or waiver
thereunder,  (iii) all security interests in and lien of the Company as owner of
such Mortgage Loan in the Pledged  Amounts and all money,  securities,  security
entitlements,    accounts,   general   intangibles,    instruments,   documents,
certificates of deposit,  commodities  contracts,  and other investment property
and other  property of whatever  kind or  description  and all cash and non-cash
proceeds of the sale,  exchange,  or redemption  of, and all stock or conversion
rights,  rights  to  subscribe,  liquidation  dividends  or  preferences,  stock
dividends,  rights to interest,  dividends,  earnings,  income,  rents,  issues,
profits, interest payments or other distributions of cash or other property that
is credited to the  Custodial  Account,  (iv) all  documents,  books and records
concerning the foregoing  (including  all computer  programs,  tapes,  disks and
related items containing any such  information)  and (v) all insurance  proceeds
(including  proceeds  from the  Federal  Deposit  Insurance  Corporation  or the
Securities  Investor  Protection  Corporation or any other insurance company) of
any of the foregoing or replacements thereof or substitutions therefor, proceeds
of proceeds and the conversion,  voluntary or involuntary,  of any thereof.  The
foregoing transfer,  sale,  assignment and conveyance does not constitute and is
not intended to result in the creation,  or an assumption by the Trustee, of any
obligation of the Company, or any other person in

                                              35

<PAGE>

connection with the Pledged Assets or under any agreement or instrument relating
thereto,  including any obligation to the Mortgagor,  other than as owner of the
Mortgage Loan.

        Section 2.02  Acceptance by Trustee.

        The Trustee  acknowledges  receipt (or,  with respect to Mortgage  Loans
subject  to  a  Custodial  Agreement,   and  based  solely  upon  a  receipt  or
certification executed by the Custodian,  receipt by the respective Custodian as
the duly appointed agent of the Trustee) of the documents referred to in Section
2.01(b)(I)(i)  and Section  2.01(b)(II)(i),  (iii),  (v),  (vi) and (viii) above
(except that for purposes of such  acknowledgment  only, a Mortgage  Note may be
endorsed in blank) and declares that it, or a Custodian as its agent,  holds and
will hold such  documents  and the other  documents  constituting  a part of the
Mortgage Files  delivered to it, or a Custodian as its agent,  and the rights of
Residential  Funding with respect to any Pledged Assets,  Additional  Collateral
and the Surety Bond  assigned to the Trustee  pursuant to Section 2.01, in trust
for the use and  benefit  of all  present  and  future  Certificateholders.  The
Trustee or  Custodian  (such  Custodian  being so  obligated  under a  Custodial
Agreement)  agrees,  for the  benefit  of  Certificateholders,  to  review  each
Mortgage File  delivered to it pursuant to Section  2.01(b) within 45 days after
the Closing Date to ascertain that all required  documents  (specifically as set
forth in  Section  2.01(b)),  have been  executed  and  received,  and that such
documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
as supplemented,  that have been conveyed to it, and to deliver to the Trustee a
certificate  (the  "Interim  Certification")  to the effect  that all  documents
required to be delivered  pursuant to Section  2.01(b)  above have been executed
and received and that such documents  relate to the Mortgage Loans identified on
the  Mortgage  Loan  Schedule,  except for any  exceptions  listed on Schedule A
attached to such Interim  Certification.  Upon delivery of the Mortgage Files by
the Company or the Master Servicer,  the Trustee shall acknowledge  receipt (or,
with  respect to  Mortgage  Loans  subject to a Custodial  Agreement,  and based
solely upon a receipt or certification executed by the Custodian, receipt by the
respective  Custodian  as  the  duly  appointed  agent  of the  Trustee)  of the
documents referred to in Section 2.01(c) above.

        If  the  Custodian,  as the  Trustee's  agent,  finds  any  document  or
documents constituting a part of a Mortgage File to be missing or defective, the
Trustee shall promptly so notify the Master  Servicer and the Company.  Pursuant
to Section 2.3 of the Custodial Agreement,  the Custodian will notify the Master
Servicer, the Company and the Trustee of any such omission or defect found by it
in respect of any Mortgage  File held by it in respect of the items  reviewed by
it pursuant to the Custodial  Agreement.  If such omission or defect  materially
and  adversely  affects  the  interests  of the  Certificateholders,  the Master
Servicer  shall  promptly  notify  the  related  Subservicer  or  Seller of such
omission or defect and request that such  Subservicer  or Seller correct or cure
such  omission or defect  within 60 days from the date the Master  Servicer  was
notified of such omission or defect and, if such  Subservicer or Seller does not
correct  or  cure  such  omission  or  defect  within  such  period,  that  such
Subservicer  or Seller  purchase  such  Mortgage Loan from the Trust Fund at its
Purchase  Price, in either case within 90 days from the date the Master Servicer
was notified of such omission or defect; provided that if the omission or defect
would cause the Mortgage Loan to be other than a "qualified mortgage" as defined
in Section 860G(a)(3) of the Code, any such cure or repurchase must occur within
90 days from the date such breach was  discovered.  The  Purchase  Price for any
such Mortgage Loan, whether purchased by the Seller or the Subservicer, shall be
deposited  or caused to be  deposited  by the Master  Servicer in the  Custodial
Account maintained by it pursuant to Section 3.07

                                              36

<PAGE>

and, upon receipt by the Trustee of written  notification of such deposit signed
by a Servicing Officer, the Trustee or any Custodian,  as the case may be, shall
release to the Master  Servicer the related  Mortgage File and the Trustee shall
execute and deliver such  instruments of transfer or assignment  prepared by the
Master Servicer, in each case without recourse, as shall be necessary to vest in
the Seller or its designee or the  Subservicer or its designee,  as the case may
be, any Mortgage Loan released pursuant hereto and thereafter such Mortgage Loan
shall not be part of the Trust Fund. In  furtherance  of the  foregoing,  if the
Subservicer or Seller that repurchases the Mortgage Loan is not a member of MERS
and the Mortgage is registered on the MERS(R) System,  the Master  Servicer,  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 such  Subservicer  or Seller  and shall  cause  such
Mortgage to be removed from  registration  on the MERS(R)  System in  accordance
with  MERS'  rules  and  regulations.  It is  understood  and  agreed  that  the
obligation of the Seller or the  Subservicer,  as the case may be, to so cure or
purchase  any  Mortgage  Loan as to which a material  and  adverse  defect in or
omission of a  constituent  document  exists  shall  constitute  the sole remedy
respecting  such  defect or  omission  available  to  Certificateholders  or the
Trustee on behalf of the Certificateholders.

          Section 2.03  Representations,  Warranties and Covenants of the Master
               Servicer and the Company.

        (a) The Master  Servicer  hereby  represents and warrants to the Trustee
for the benefit of the Certificateholders that:

                      (i) The Master  Servicer is a corporation  duly organized,
               validly  existing and in good standing  under the laws  governing
               its creation and existence  and is or will be in compliance  with
               the laws of each state in which any Mortgaged Property is located
               to the  extent  necessary  to ensure the  enforceability  of each
               Mortgage Loan in accordance with the terms of this Agreement;

                      (ii) The execution  and delivery of this  Agreement by the
               Master Servicer and its performance and compliance with the terms
               of  this  Agreement  will  not  violate  the  Master   Servicer's
               Certificate of  Incorporation  or Bylaws or constitute a material
               default  (or an event  which,  with  notice or lapse of time,  or
               both,  would  constitute a material  default) under, or result in
               the material breach of, any material contract, agreement or other
               instrument  to which the Master  Servicer is a party or which may
               be applicable to the Master Servicer or any of its assets;

                      (iii)  This   Agreement,   assuming   due   authorization,
               execution   and   delivery  by  the  Trustee  and  the   Company,
               constitutes a valid,  legal and binding  obligation of the Master
               Servicer,  enforceable  against it in  accordance  with the terms
               hereof    subject   to   applicable    bankruptcy,    insolvency,
               reorganization,   moratorium   and  other  laws   affecting   the
               enforcement  of  creditors'   rights  generally  and  to  general
               principles of equity,  regardless of whether such  enforcement is
               considered in a proceeding in equity or at law;

                                              37

<PAGE>

                      (iv) The Master 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 might have  consequences  that would materially and
               adversely affect the condition (financial or other) or operations
               of  the  Master   Servicer  or  its   properties  or  might  have
               consequences   that  would   materially   adversely   affect  its
               performance hereunder;

                      (v) No litigation is pending or, to the best of the Master
               Servicer's  knowledge,  threatened  against  the Master  Servicer
               which  would   prohibit  its  entering  into  this  Agreement  or
               performing its obligations under this Agreement;

                      (vi) The  Master  Servicer  will  comply  in all  material
               respects in the performance of this Agreement with all reasonable
               rules  and  requirements  of each  insurer  under  each  Required
               Insurance Policy;

                      (vii) No information, certificate of an officer, statement
               furnished  in writing or report  delivered  to the  Company,  any
               Affiliate  of the Company or the  Trustee by the Master  Servicer
               will, to the knowledge of the Master Servicer, contain any untrue
               statement of a material fact or omit a material fact necessary to
               make  the  information,  certificate,  statement  or  report  not
               misleading;

                      (viii) The Master Servicer has examined each existing, and
               will examine each new,  Subservicing  Agreement and is or will be
               familiar  with the  terms  thereof.  The  terms of each  existing
               Subservicing   Agreement  and  each  designated  Subservicer  are
               acceptable  to the  Master  Servicer  and  any  new  Subservicing
               Agreements will comply with the provisions of Section 3.02; and

                      (ix)  The  Master  Servicer  is a  member  of MERS in good
               standing, and will comply in all material respects with the rules
               and  procedures of MERS in  connection  with the servicing of the
               Mortgage Loans that are registered with MERS.

               It  is  understood  and  agreed  that  the   representations  and
               warranties  set  forth  in this  Section  2.03(a)  shall  survive
               delivery of the  respective  Mortgage Files to the Trustee or any
               Custodian.

        Upon discovery by either the Company,  the Master Servicer,  the Trustee
or any Custodian of a breach of any representation or warranty set forth in this
Section  2.03(a) which  materially  and  adversely  affects the interests of the
Certificateholders in any Mortgage Loan, the party discovering such breach shall
give  prompt  written  notice  to the  other  parties  (any  Custodian  being so
obligated under a Custodial  Agreement).  Within 90 days of its discovery or its
receipt of notice of such breach, the Master Servicer shall either (i) cure such
breach in all  material  respects or (ii) to the extent that such breach is with
respect to a Mortgage  Loan or a related  document,  purchase such Mortgage Loan
from the Trust Fund at the Purchase Price and in the manner set forth in Section
2.02;  provided  that if the omission or defect would cause the Mortgage Loan to
be other than a  "qualified  mortgage" as defined in Section  860G(a)(3)  of the
Code,  any such cure or repurchase  must occur within 90 days from the date such
breach was discovered. The obligation of the Master

                                              38

<PAGE>

Servicer  to cure  such  breach  or to so  purchase  such  Mortgage  Loan  shall
constitute  the sole  remedy  in  respect  of a breach of a  representation  and
warranty set forth in this Section 2.03(a)  available to the  Certificateholders
or the Trustee on behalf of the Certificateholders.

        (b)  Representations  and warranties  relating to the Mortgage Loans are
set forth in Section 2.03(b) of the Series Supplement.

        Section 2.04  Representations and Warranties of Sellers.

        The Company,  as assignee of  Residential  Funding under the  Assignment
Agreement,  hereby assigns to the Trustee for the benefit of  Certificateholders
all of its right, title and interest in respect of the Assignment  Agreement and
each Seller's  Agreement (to the extent assigned to the Company  pursuant to the
Assignment  Agreement)  applicable to a Mortgage Loan. Insofar as the Assignment
Agreement or the Company's  rights under such Seller's  Agreement  relate to the
representations and warranties made by Residential Funding or the related Seller
in respect of such Mortgage Loan and any remedies  provided  thereunder  for any
breach of such  representations  and warranties,  such right, title and interest
may be  enforced  by the  Master  Servicer  on  behalf  of the  Trustee  and the
Certificateholders.  Upon the discovery by the Company, the Master Servicer, the
Trustee  or  any  Custodian  of a  breach  of any  of  the  representations  and
warranties  made in a Seller's  Agreement that have been assigned to the Trustee
pursuant to this Section 2.04 or of a breach of any of the  representations  and
warranties made in the Assignment Agreement (which, for purposes hereof, will be
deemed to include any other cause giving rise to a repurchase  obligation  under
the Assignment  Agreement) in respect of any Mortgage Loan which  materially and
adversely affects the interests of the Certificateholders in such Mortgage Loan,
the party  discovering such breach shall give prompt written notice to the other
parties (any  Custodian  being so obligated  under a Custodial  Agreement).  The
Master Servicer shall promptly notify the related Seller or Residential Funding,
as the case may be, of such breach and request  that such Seller or  Residential
Funding,  as the case  may be,  either  (i) cure  such  breach  in all  material
respects  within 90 days from the date the Master  Servicer was notified of such
breach or (ii)  purchase  such Mortgage Loan from the Trust Fund at the Purchase
Price and in the manner set forth in Section 2.02;  provided that in the case of
a breach  under the  Assignment  Agreement  Residential  Funding  shall have the
option to  substitute  a Qualified  Substitute  Mortgage  Loan or Loans for such
Mortgage Loan if such substitution occurs within two years following the Closing
Date; provided that if the breach would cause the Mortgage Loan to be other than
a "qualified  mortgage" as defined in Section  860G(a)(3) of the Code,  any such
cure,  repurchase  or  substitution  must occur within 90 days from the date the
breach  was  discovered.  In  the  event  that  Residential  Funding  elects  to
substitute a Qualified  Substitute Mortgage Loan or Loans for a Deleted Mortgage
Loan  pursuant to this Section  2.04,  Residential  Funding shall deliver to the
Trustee for the benefit of the Certificateholders with respect to such Qualified
Substitute Mortgage Loan or Loans, the original Mortgage Note, the Mortgage,  an
Assignment  of the Mortgage in recordable  form if required  pursuant to Section
2.01,  and such other  documents and agreements as are required by Section 2.01,
with the Mortgage Note  endorsed as required by Section  2.01.  No  substitution
will be made in any calendar month after the Determination  Date for such month.
Monthly Payments due with respect to Qualified  Substitute Mortgage Loans in the
month of  substitution  shall not be part of the Trust Fund and will be retained
by the Master  Servicer  and  remitted  by the Master  Servicer  to  Residential
Funding on the next succeeding Distribution Date. For the month of substitution,
distributions to the Certificateholders  will include the Monthly Payment due on
a Deleted Mortgage

                                              39

<PAGE>

Loan for such month and  thereafter  Residential  Funding  shall be  entitled to
retain all amounts received in respect of such Deleted Mortgage Loan. The Master
Servicer shall amend or cause to be amended the Mortgage Loan Schedule,  and, if
the Deleted Mortgage Loan was a Discount Mortgage Loan, the Schedule of Discount
Fractions,  for the benefit of the  Certificateholders to reflect the removal of
such Deleted  Mortgage Loan and the  substitution  of the  Qualified  Substitute
Mortgage  Loan or Loans  and the  Master  Servicer  shall  deliver  the  amended
Mortgage  Loan  Schedule,  and,  if the  Deleted  Mortgage  Loan was a  Discount
Mortgage Loan, the amended Schedule of Discount Fractions,  to the Trustee. Upon
such  substitution,  the  Qualified  Substitute  Mortgage Loan or Loans shall be
subject to the terms of this Agreement and the related Subservicing Agreement in
all   respects,   the  related   Seller   shall  be  deemed  to  have  made  the
representations and warranties with respect to the Qualified Substitute Mortgage
Loan contained in the related Seller's Agreement as of the date of substitution,
insofar as Residential  Funding's rights in respect of such  representations and
warranties are assigned to the Company pursuant to the Assignment Agreement, and
the Company and the Master Servicer shall be deemed to have made with respect to
any Qualified Substitute Mortgage Loan or Loans, as of the date of substitution,
the covenants, representations and warranties set forth in this Section 2.04, in
Section 2.03 hereof and in Section 4 of the Assignment Agreement, and the Master
Servicer  shall be obligated  to  repurchase  or  substitute  for any  Qualified
Substitute  Mortgage  Loan as to which a  Repurchase  Event (as  defined  in the
Assignment  Agreement)  has  occurred  pursuant  to Section 4 of the  Assignment
Agreement.

        In connection with the substitution of one or more Qualified  Substitute
Mortgage Loans for one or more Deleted  Mortgage Loans, the Master Servicer will
determine  the amount (if any) by which the aggregate  principal  balance of all
such Qualified  Substitute Mortgage Loans as of the date of substitution is less
than the aggregate Stated  Principal  Balance of all such Deleted Mortgage Loans
(in each case after application of the principal portion of the Monthly Payments
due  in  the  month  of   substitution   that  are  to  be  distributed  to  the
Certificateholders  in the month of  substitution).  Residential  Funding  shall
deposit the amount of such  shortfall  into the Custodial  Account on the day of
substitution, without any reimbursement therefor. Residential Funding shall give
notice  in  writing  to the  Trustee  of  such  event,  which  notice  shall  be
accompanied by an Officers'  Certificate as to the calculation of such shortfall
and  (subject to Section  10.01(f))  by an Opinion of Counsel to the effect that
such  substitution will not cause (a) any federal tax to be imposed on the Trust
Fund,  including  without  limitation,  any federal  tax imposed on  "prohibited
transactions"  under Section  860F(a)(1) of the Code or on "contributions  after
the startup date" under Section 860G(d)(1) of the Code or (b) any portion of any
REMIC  to  fail  to  qualify  as  such  at any  time  that  any  Certificate  is
outstanding.

        It is  understood  and  agreed  that the  obligation  of the  Seller  or
Residential  Funding, as the case may be, to cure such breach or purchase (or in
the case of  Residential  Funding to  substitute  for) such  Mortgage Loan as to
which such a breach has occurred and is  continuing  shall  constitute  the sole
remedy respecting such breach available to the Certificateholders or the Trustee
on behalf of Certificateholders.  If the Master Servicer is Residential Funding,
then the Trustee shall also have the right to give the  notification and require
the purchase or substitution  provided for in the second preceding  paragraph in
the event of such a breach of a  representation  or warranty made by Residential
Funding in the  Assignment  Agreement.  In  connection  with the  purchase of or
substitution  for any such Mortgage  Loan by  Residential  Funding,  the Trustee
shall  assign to  Residential  Funding  all of the  Trustee's  right,  title and
interest  in respect of the  Seller's  Agreement  and the  Assignment  Agreement
applicable to such Mortgage Loan.

                                              40

<PAGE>

        Section       2.05 Execution and Authentication of Certificates/Issuance
                      of Certificates Evidencing Interests in REMIC I.

               As provided in Section 2.05 of the Series Supplement.

        Section       2.06  Conveyance  of  Uncertificated  REMIC I and REMIC II
                      Regular Interests; Acceptance by the Trustee.

               As provided in Section 2.06 of the Series Supplement.

        Section 2.07 Issuance of Certificates Evidencing Interests in REMIC II.

               As provided in Section 2.07 of the Series Supplement.

        Section 2.08 Purposes and Powers of the Trust.

        The  purpose of the trust,  as  created  hereunder,  is to engage in the
following activities:

     (a) to sell the  Certificates  to the Company in exchange  for the Mortgage
Loans;

        (b)    to enter into and perform its obligations under this Agreement;

     (c)  to  engage  in  those  activities  that  are  necessary,  suitable  or
convenient to accomplish  the foregoing or are  incidental  thereto or connected
therewith; and

        (d) subject to compliance with this  Agreement,  to engage in such other
activities as may be required in connection with  conservation of the Trust Fund
and the making of distributions to the Certificateholders.

        The trust is hereby  authorized to engage in the  foregoing  activities.
Notwithstanding  the provisions of Section 11.01,  the trust shall not engage in
any  activity  other  than in  connection  with the  foregoing  or other than as
required or authorized by the terms of this Agreement  while any  Certificate is
outstanding,  and this Section  2.08 may not be amended,  without the consent of
the  Certificateholders  evidencing a majority of the aggregate Voting Rights of
the Certificates.

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

        Section 3.01  Master Servicer to Act as Servicer.

        (a) The Master  Servicer shall service and administer the Mortgage Loans
in accordance with the terms of this Agreement and the respective Mortgage Loans
and shall have full power and

                                              41

<PAGE>

authority,  acting alone or through Subservicers as provided in Section 3.02, to
do any and all things which it may deem  necessary  or  desirable in  connection
with such servicing and  administration.  Without limiting the generality of the
foregoing,  the Master  Servicer in its own name or in the name of a Subservicer
is hereby  authorized  and empowered by the Trustee when the Master  Servicer or
the  Subservicer,  as the  case  may be,  believes  it  appropriate  in its best
judgment,  to execute and deliver, on behalf of the  Certificateholders  and the
Trustee or any of them, any and all instruments of satisfaction or cancellation,
or of  partial or full  release or  discharge,  or of consent to  assumption  or
modification in connection with a proposed  conveyance,  or of assignment of any
Mortgage and Mortgage Note in connection  with the repurchase of a Mortgage Loan
and all other  comparable  instruments,  or with respect to the  modification or
re-recording  of a Mortgage  for the purpose of  correcting  the  Mortgage,  the
subordination  of the lien of the Mortgage in favor of a public utility  company
or government agency or unit with powers of eminent domain, the taking of a deed
in lieu of foreclosure, the commencement,  prosecution or completion of judicial
or  non-judicial  foreclosure,  the  conveyance  of a Mortgaged  Property to the
related Insurer, the acquisition of any property acquired by foreclosure or deed
in lieu of  foreclosure,  or the  management,  marketing  and  conveyance of any
property  acquired by foreclosure or deed in lieu of foreclosure with respect to
the Mortgage  Loans and with  respect to the  Mortgaged  Properties.  The Master
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
Subservicer,  when the Master Servicer or the  Subservicer,  as the case may be,
believes it is appropriate in its best judgment to register any Mortgage Loan on
the MERS(R) System,  or cause the removal from the  registration of any Mortgage
Loan on the MERS(R) System, to execute and deliver, on behalf of the Trustee and
the Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re- recording of
a  Mortgage  in the name of MERS,  solely as  nominee  for the  Trustee  and its
successors  and assigns.  Any expenses  incurred in connection  with the actions
described in the  preceding  sentence  shall be borne by the Master  Servicer in
accordance with Section 3.16(c), with no right of reimbursement;  provided, that
if, as a result of MERS discontinuing or becoming unable to continue  operations
in connection with the MERS System,  it becomes necessary to remove any Mortgage
Loan from  registration  on the MERS System and to arrange for the assignment of
the  related  Mortgages  to the  Trustee,  then any  related  expenses  shall be
reimbursable to the Master Servicer.  Notwithstanding the foregoing,  subject to
Section  3.07(a),  the Master  Servicer shall not permit any  modification  with
respect to any  Mortgage  Loan that would both  constitute a sale or exchange of
such  Mortgage  Loan  within the  meaning  of  Section  1001 of the Code and any
proposed,  temporary or final regulations  promulgated thereunder (other than in
connection  with a proposed  conveyance or assumption of such Mortgage Loan that
is treated as a Principal Prepayment in Full pursuant to Section 3.13(d) hereof)
and cause any REMIC formed under the Series  Supplement  to fail to qualify as a
REMIC under the Code.  The Trustee  shall  furnish the Master  Servicer with any
powers of attorney and other  documents  necessary or  appropriate to enable the
Master Servicer to service and administer the Mortgage Loans.  The Trustee shall
not be liable for any action  taken by the Master  Servicer  or any  Subservicer
pursuant  to such  powers  of  attorney.  In  servicing  and  administering  any
Nonsubserviced  Mortgage  Loan,  the Master  Servicer  shall,  to the extent not
inconsistent  with this  Agreement,  comply with the Program Guide as if it were
the  originator of such Mortgage Loan and had retained the servicing  rights and
obligations in respect thereof.  In connection with servicing and  administering
the Mortgage Loans, the Master Servicer and any Affiliate of the Master Servicer
(i) may perform services such as appraisals and brokerage  services that are not
customarily  provided by servicers of mortgage  loans,  and shall be entitled to
reasonable compensation therefor in

                                              42

<PAGE>

accordance  with Section 3.10 and (ii) may, at its own  discretion and on behalf
of the Trustee, obtain credit information in the form of a "credit score" from a
credit repository.

        (b) All costs  incurred  by the Master  Servicer or by  Subservicers  in
effecting the timely payment of taxes and assessments on the properties  subject
to the  Mortgage  Loans  shall  not,  for the  purpose  of  calculating  monthly
distributions to the Certificateholders,  be added to the amount owing under the
related Mortgage Loans,  notwithstanding that the terms of such Mortgage Loan so
permit,  and such costs shall be recoverable to the extent  permitted by Section
3.10(a)(ii).

        (c) The  Master  Servicer  may  enter  into  one or more  agreements  in
connection with the offering of pass-through  certificates  evidencing interests
in one or more of the  Certificates  providing  for the  payment  by the  Master
Servicer of amounts  received by the Master  Servicer as servicing  compensation
hereunder and required to cover certain  Prepayment  Interest  Shortfalls on the
Mortgage Loans, which payment obligation will thereafter be an obligation of the
Master Servicer hereunder.

          Section 3.02  Subservicing  Agreements  Between  Master  Servicer  and
               Subservicers;   Enforcement   of   Subservicers'   and   Sellers'
               Obligations.

        (a) The Master Servicer may continue in effect  Subservicing  Agreements
entered into by Residential  Funding and Subservicers prior to the execution and
delivery of this Agreement,  and may enter into new Subservicing Agreements with
Subservicers,  for  the  servicing  and  administration  of all or  some  of the
Mortgage Loans. Each Subservicer of a Mortgage Loan shall be entitled to receive
and retain,  as provided in the related  Subservicing  Agreement  and in Section
3.07, the related  Subservicing  Fee from payments of interest  received on such
Mortgage Loan after payment of all amounts required to be remitted to the Master
Servicer  in respect of such  Mortgage  Loan.  For any  Mortgage  Loan that is a
Nonsubserviced  Mortgage Loan, the Master  Servicer shall be entitled to receive
and retain an amount equal to the  Subservicing  Fee from  payments of interest.
Unless the context otherwise  requires,  references in this Agreement to actions
taken or to be taken by the Master  Servicer in  servicing  the  Mortgage  Loans
include  actions taken or to be taken by a  Subservicer  on behalf of the Master
Servicer.  Each Subservicing Agreement will be upon such terms and conditions as
are  generally   required  or  permitted  by  the  Program  Guide  and  are  not
inconsistent  with this Agreement and as the Master Servicer and the Subservicer
have agreed. A representative form of Subservicing Agreement is attached to this
Agreement as Exhibit E. With the approval of the Master Servicer,  a Subservicer
may  delegate its  servicing  obligations  to  third-party  servicers,  but such
Subservicer will remain obligated under the related Subservicing Agreement.  The
Master  Servicer  and a  Subservicer  may enter  into  amendments  thereto  or a
different form of Subservicing  Agreement,  and the form referred to or included
in the Program Guide is merely  provided for information and shall not be deemed
to limit in any respect the discretion of the Master Servicer to modify or enter
into  different  Subservicing  Agreements;  provided,  however,  that  any  such
amendments  or  different  forms  shall be  consistent  with and not violate the
provisions of either this Agreement or the Program Guide in a manner which would
materially and adversely affect the interests of the Certificateholders.

        (b) As part of its servicing activities hereunder,  the Master Servicer,
for the benefit of the Trustee  and the  Certificateholders,  shall use its best
reasonable efforts to enforce the obligations of

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<PAGE>

each  Subservicer  under the related  Subservicing  Agreement and of each Seller
under the  related  Seller's  Agreement  insofar as the  Company's  rights  with
respect to such  obligation has been assigned to the Trustee  hereunder,  to the
extent that the  non-performance  of any such Seller's  obligation  would have a
material and adverse effect on a Mortgage Loan,  including,  without limitation,
the   obligation   to  purchase  a  Mortgage   Loan  on  account  of   defective
documentation,  as  described  in Section  2.02,  or on account of a breach of a
representation  or warranty,  as described in Section  2.04.  Such  enforcement,
including,  without limitation,  the legal prosecution of claims, termination of
Subservicing Agreements or Seller's Agreements, as appropriate,  and the pursuit
of other appropriate remedies,  shall be in such form and carried out to such an
extent and at such time as the Master  Servicer  would  employ in its good faith
business  judgment  and  which are  normal  and  usual in its  general  mortgage
servicing  activities.   The  Master  Servicer  shall  pay  the  costs  of  such
enforcement at its own expense, and shall be reimbursed therefor only (i) from a
general  recovery  resulting from such  enforcement to the extent,  if any, that
such recovery exceeds all amounts due in respect of the related Mortgage Loan or
(ii) from a specific  recovery of costs,  expenses or attorneys fees against the
party against whom such  enforcement is directed.  For purposes of clarification
only,  the parties  agree that the  foregoing  is not intended to, and does not,
limit the ability of the Master  Servicer to be reimbursed for expenses that are
incurred in connection with the enforcement of a Seller's  obligations  (insofar
as the  Company's  rights with respect to such  Seller's  obligations  have been
assigned  to the Trustee  hereunder)  and are  reimbursable  pursuant to Section
3.10(a)(viii).

        Section 3.03  Successor Subservicers.

        The Master  Servicer  shall be entitled to  terminate  any  Subservicing
Agreement  that may exist in  accordance  with the terms and  conditions of such
Subservicing  Agreement and without any limitation by virtue of this  Agreement;
provided,  however,  that  in the  event  of  termination  of  any  Subservicing
Agreement by the Master Servicer or the  Subservicer,  the Master Servicer shall
either act as servicer of the related Mortgage Loan or enter into a Subservicing
Agreement with a successor  Subservicer  which will be bound by the terms of the
related  Subservicing  Agreement.  If the Master  Servicer or any  Affiliate  of
Residential  Funding  acts as  servicer,  it will not assume  liability  for the
representations  and  warranties of the  Subservicer  which it replaces.  If the
Master  Servicer   enters  into  a  Subservicing   Agreement  with  a  successor
Subservicer,  the  Master  Servicer  shall use  reasonable  efforts  to have the
successor  Subservicer assume liability for the  representations  and warranties
made by the terminated Subservicer in respect of the related Mortgage Loans and,
in the event of any such  assumption  by the successor  Subservicer,  the Master
Servicer may, in the exercise of its business  judgment,  release the terminated
Subservicer from liability for such representations and warranties.

        Section 3.04  Liability of the Master Servicer.

        Notwithstanding  any  Subservicing  Agreement,  any of the provisions of
this  Agreement  relating  to  agreements  or  arrangements  between  the Master
Servicer or a Subservicer or reference to actions taken through a Subservicer or
otherwise,  the Master Servicer shall remain obligated and liable to the Trustee
and the  Certificateholders  for the servicing and administering of the Mortgage
Loans in accordance  with the  provisions of Section 3.01 without  diminution of
such  obligation  or  liability  by virtue of such  Subservicing  Agreements  or
arrangements or by virtue of indemnification from the Subservicer or the Company
and to the same extent and under the same terms and

                                              44

<PAGE>

conditions as if the Master Servicer alone were servicing and  administering the
Mortgage  Loans.  The  Master  Servicer  shall be  entitled  to  enter  into any
agreement  with a  Subservicer  or  Seller  for  indemnification  of the  Master
Servicer  and nothing  contained in this  Agreement  shall be deemed to limit or
modify such indemnification.

          Section 3.05  No  Contractual  Relationship  Between  Subservicer  and
               Trustee or Certificateholders.

        Any  Subservicing  Agreement  that may be  entered  into  and any  other
transactions or services  relating to the Mortgage Loans involving a Subservicer
in its capacity as such and not as an  originator  shall be deemed to be between
the  Subservicer  and  the  Master  Servicer  alone  and  the  Trustee  and  the
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights,  obligations,  duties or liabilities  with respect to the Subservicer in
its  capacity  as such  except  as set  forth in  Section  3.06.  The  foregoing
provision  shall  not in any way  limit a  Subservicer's  obligation  to cure an
omission or defect or to  repurchase  a Mortgage  Loan as referred to in Section
2.02 hereof.

          Section 3.06 Assumption or Termination of  Subservicing  Agreements by
               Trustee.

        (a) If the Master  Servicer shall for any reason no longer be the master
servicer (including by reason of an Event of Default), the Trustee, its designee
or its successor shall thereupon assume all of the rights and obligations of the
Master  Servicer  under each  Subservicing  Agreement that may have been entered
into. The Trustee,  its designee or the successor servicer for the Trustee shall
be deemed to have assumed all of the Master  Servicer's  interest therein and to
have replaced the Master  Servicer as a party to the  Subservicing  Agreement to
the same  extent  as if the  Subservicing  Agreement  had been  assigned  to the
assuming party except that the Master  Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreement.

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

          Section 3.07 Collection of Certain Mortgage Loan Payments; Deposits to
               Custodial Account.

        (a) The Master  Servicer  shall make  reasonable  efforts to collect all
payments  called for under the terms and provisions of the Mortgage  Loans,  and
shall, to the extent such procedures shall be consistent with this Agreement and
the terms and provisions of any related Primary  Insurance  Policy,  follow such
collection procedures as it would employ in its good faith business judgment and
which  are  normal  and  usual in its  general  mortgage  servicing  activities.
Consistent  with the  foregoing,  the Master  Servicer may in its discretion (i)
waive any late payment  charge or any prepayment  charge or penalty  interest in
connection  with the  prepayment of a Mortgage Loan and (ii) extend the Due Date
for  payments  due on a Mortgage  Loan in  accordance  with the  Program  Guide;
provided,  however, that the Master Servicer shall first determine that any such
waiver or

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<PAGE>

extension will not impair the coverage of any related Primary  Insurance  Policy
or materially adversely affect the lien of the related Mortgage. In the event of
any such  arrangement,  the Master  Servicer  shall make timely  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  unless  otherwise  agreed to by the Holders of the
Classes  of  Certificates  affected  thereby;  provided,  however,  that no such
extension shall be made if any such advance would be a  Nonrecoverable  Advance.
Consistent with the terms of this Agreement, the Master Servicer may also waive,
modify or vary any term of any Mortgage Loan or consent to the  postponement  of
strict  compliance  with any such term or in any manner grant  indulgence to any
Mortgagor if in the Master Servicer's  determination such waiver,  modification,
postponement  or  indulgence is not  materially  adverse to the interests of the
Certificateholders  (taking into account any estimated  Realized Loss that might
result absent such action); provided,  however, that the Master Servicer may not
modify  materially  or permit  any  Subservicer  to modify  any  Mortgage  Loan,
including  without  limitation any  modification  that would change the Mortgage
Rate,  forgive the payment of any  principal or interest  (unless in  connection
with the  liquidation of the related  Mortgage Loan or except in connection with
prepayments to the extent that such  reamortization is not inconsistent with the
terms of the Mortgage  Loan), or extend the final maturity date of such Mortgage
Loan,  unless such Mortgage Loan is in default or, in the judgment of the Master
Servicer, such default is reasonably foreseeable; and provided, further, that no
such  modification  shall reduce the interest  rate on a Mortgage Loan below the
sum of the Pool Strip Rate and the sum of the rates at which the  Servicing  Fee
and the  Subservicing  Fee  with  respect  to such  Mortgage  Loan  accrues.  In
connection with any Curtailment of a Mortgage Loan, the Master Servicer,  to the
extent not  inconsistent  with the terms of the Mortgage  Note and local law and
practice,  may permit the Mortgage Loan to be reamortized  such that the Monthly
Payment is  recalculated  as an amount that will fully  amortize  the  remaining
Stated  Principal  Balance  thereof by the original  Maturity  Date based on the
original  Mortgage  Rate;  provided,  that  such  re-amortization  shall  not be
permitted if it would  constitute a reissuance  of the Mortgage Loan for federal
income  tax  purposes,  except  if such  reissuance  is  described  in  Treasury
Regulation Section 1.860G-2(b)(3).

        (b) The Master Servicer shall establish and maintain a Custodial Account
in which the Master  Servicer  shall deposit or cause to be deposited on a daily
basis, except as otherwise  specifically provided herein, the following payments
and  collections  remitted by  Subservicers  or received by it in respect of the
Mortgage  Loans  subsequent  to the  Cut-off  Date  (other  than in  respect  of
principal and interest on the Mortgage Loans due on or before the Cut-off Date):

                      (i)  All  payments  on  account  of  principal,  including
               Principal  Prepayments  made by Mortgagors on the Mortgage  Loans
               and the principal  component of any Subservicer Advance or of any
               REO  Proceeds  received in  connection  with an REO  Property for
               which an REO Disposition has occurred;

                      (ii) All  payments on account of interest at the  Adjusted
               Mortgage Rate on the Mortgage Loans,  including Buydown Funds, if
               any, and the interest component of any Subservicer  Advance or of
               any REO Proceeds  received in connection with an REO Property for
               which an REO Disposition has occurred;

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<PAGE>

                    (iii) Insurance  Proceeds and  Liquidation  Proceeds (net of
               any related expenses of the Subservicer);

                      (iv) All proceeds of any Mortgage Loans purchased pursuant
               to Section 2.02,  2.03, 2.04 or 4.07 and all amounts  required to
               be deposited in connection  with the  substitution of a Qualified
               Substitute Mortgage Loan pursuant to Section 2.03 or 2.04;

                    (v) Any amounts required to be deposited pursuant to Section
               3.07(c) or 3.21;

                    (vi) All amounts transferred from the Certificate Account to
               the Custodial Account in accordance with Section 4.02(a);

                    (vii) Any amounts  realized by the  Subservicer and received
               by the Master  Servicer in respect of any Additional  Collateral;
               and

                    (viii)  Any  amounts  received  by the  Master  Servicer  in
               respect of Pledged Assets.

        The foregoing requirements for deposit in the Custodial Account shall be
exclusive,  it being understood and agreed that, without limiting the generality
of the foregoing, payments on the Mortgage Loans which are not part of the Trust
Fund  (consisting  of  payments  in respect of  principal  and  interest  on the
Mortgage Loans due on or before the Cut-off Date) and payments or collections in
the nature of prepayment  charges or late payment charges or assumption fees may
but need not be deposited by the Master  Servicer in the Custodial  Account.  In
the event any amount not required to be deposited in the Custodial Account is so
deposited,  the Master  Servicer may at any time  withdraw  such amount from the
Custodial  Account,  any provision herein to the contrary  notwithstanding.  The
Custodial  Account  may  contain  funds that  belong to one or more trust  funds
created for mortgage  pass-through  certificates of other series and may contain
other  funds  respecting  payments  on mortgage  loans  belonging  to the Master
Servicer  or   serviced   or  master   serviced  by  it  on  behalf  of  others.
Notwithstanding  such  commingling  of funds,  the  Master  Servicer  shall keep
records that  accurately  reflect the funds on deposit in the Custodial  Account
that have been identified by it as being attributable to the Mortgage Loans.

        With respect to Insurance Proceeds,  Liquidation Proceeds,  REO Proceeds
and the proceeds of the purchase of any Mortgage Loan pursuant to Sections 2.02,
2.03,  2.04 and 4.07  received in any calendar  month,  the Master  Servicer may
elect to treat such amounts as included in the Available Distribution Amount for
the Distribution Date in the month of receipt, but is not obligated to do so. If
the Master Servicer so elects, such amounts will be deemed to have been received
(and any related Realized Loss shall be deemed to have occurred) on the last day
of the month prior to the receipt thereof.

        (c) The  Master  Servicer  shall  use its  best  efforts  to  cause  the
institution  maintaining  the  Custodial  Account  to  invest  the  funds in the
Custodial  Account  attributable to the Mortgage Loans in Permitted  Investments
which shall mature not later than the Certificate Account Deposit Date next

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<PAGE>

following the date of such investment (with the exception of the Amount Held for
Future  Distribution)  and which shall not be sold or disposed of prior to their
maturities.  All income and gain realized from any such investment  shall be for
the benefit of the Master  Servicer as  additional  servicing  compensation  and
shall be subject to its withdrawal or order from time to time. The amount of any
losses  incurred  in  respect  of  any  such  investments  attributable  to  the
investment of amounts in respect of the Mortgage Loans shall be deposited in the
Custodial  Account by the Master  Servicer out of its own funds  immediately  as
realized without any right of reimbursement.

        (d) The Master Servicer shall give notice to the Trustee and the Company
of any change in the location of the  Custodial  Account and the location of the
Certificate Account prior to the use thereof.

        Section 3.08  Subservicing Accounts; Servicing Accounts.

        (a) In those  cases where a  Subservicer  is  servicing a Mortgage  Loan
pursuant  to a  Subservicing  Agreement,  the Master  Servicer  shall  cause the
Subservicer,  pursuant to the Subservicing  Agreement, to establish and maintain
one or more Subservicing Accounts which shall be an Eligible Account or, if such
account is not an Eligible Account,  shall generally satisfy the requirements of
the Program Guide and be otherwise  acceptable  to the Master  Servicer and each
Rating  Agency.  The  Subservicer  will be required  thereby to deposit into the
Subservicing Account on a daily basis all proceeds of Mortgage Loans received by
the  Subservicer,  less its  Subservicing  Fees and  unreimbursed  advances  and
expenses,  to  the  extent  permitted  by  the  Subservicing  Agreement.  If the
Subservicing  Account is not an Eligible  Account,  the Master Servicer shall be
deemed to have received such monies upon receipt thereof by the Subservicer. The
Subservicer  shall  not be  required  to  deposit  in the  Subservicing  Account
payments or collections  in the nature of prepayment  charges or late charges or
assumption fees. On or before the date specified in the Program Guide, but in no
event later than the  Determination  Date,  the Master  Servicer shall cause the
Subservicer,  pursuant  to the  Subservicing  Agreement,  to remit to the Master
Servicer for deposit in the Custodial Account all funds held in the Subservicing
Account with respect to each Mortgage Loan serviced by such Subservicer that are
required to be remitted to the Master  Servicer.  The  Subservicer  will also be
required,  pursuant to the Subservicing  Agreement, to advance on such scheduled
date of  remittance  amounts  equal to any  scheduled  monthly  installments  of
principal  and interest  less its  Subservicing  Fees on any Mortgage  Loans for
which payment was not received by the  Subservicer.  This  obligation to advance
with respect to each  Mortgage  Loan will continue up to and including the first
of the month following the date on which the related Mortgaged  Property is sold
at a  foreclosure  sale  or is  acquired  by the  Trust  Fund by deed in lieu of
foreclosure  or  otherwise.  All such advances  received by the Master  Servicer
shall be deposited promptly by it in the Custodial Account.

        (b) The Subservicer may also be required,  pursuant to the  Subservicing
Agreement,  to remit to the Master Servicer for deposit in the Custodial Account
interest at the Adjusted  Mortgage  Rate (or Modified Net Mortgage Rate plus the
rate per annum at which the  Servicing  Fee  accrues  in the case of a  Modified
Mortgage Loan) on any Curtailment  received by such  Subservicer in respect of a
Mortgage Loan from the related  Mortgagor during any month that is to be applied
by the  Subservicer  to reduce  the  unpaid  principal  balance  of the  related
Mortgage Loan as of the first day of such month, from the date of application of
such Curtailment to the first day of the following

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<PAGE>

month.  Any amounts paid by a  Subservicer  pursuant to the  preceding  sentence
shall  be for  the  benefit  of the  Master  Servicer  as  additional  servicing
compensation  and shall be subject to its  withdrawal or order from time to time
pursuant to Sections 3.10(a)(iv) and (v).

        (c) In addition to the Custodial  Account and the  Certificate  Account,
the Master Servicer shall for any Nonsubserviced  Mortgage Loan, and shall cause
the Subservicers  for Subserviced  Mortgage Loans to, establish and maintain one
or more Servicing  Accounts and deposit and retain therein all collections  from
the  Mortgagors  (or  advances  from  Subservicers)  for the  payment  of taxes,
assessments,  hazard insurance premiums,  Primary Insurance Policy premiums,  if
applicable,  or  comparable  items  for  the  account  of the  Mortgagors.  Each
Servicing Account shall satisfy the requirements for a Subservicing Account and,
to the extent  permitted by the Program  Guide or as is otherwise  acceptable to
the Master Servicer, may also function as a Subservicing Account. Withdrawals of
amounts  related to the Mortgage  Loans from the Servicing  Accounts may be made
only to effect timely payment of taxes, assessments,  hazard insurance premiums,
Primary  Insurance  Policy  premiums,  if applicable,  or comparable  items,  to
reimburse the Master Servicer or Subservicer out of related  collections for any
payments made  pursuant to Sections 3.11 (with respect to the Primary  Insurance
Policy)  and  3.12(a)  (with  respect  to  hazard  insurance),  to refund to any
Mortgagors  any sums as may be  determined to be overages,  to pay interest,  if
required,  to Mortgagors  on balances in the  Servicing  Account or to clear and
terminate  the  Servicing  Account  at the  termination  of  this  Agreement  in
accordance with Section 9.01 or in accordance with the Program Guide. As part of
its servicing  duties,  the Master Servicer shall,  and the  Subservicers  will,
pursuant to the  Subservicing  Agreements,  be required to pay to the Mortgagors
interest on funds in this account to the extent required by law.

        (d) The Master  Servicer  shall advance the payments  referred to in the
preceding  subsection  that are not timely paid by the Mortgagors or advanced by
the  Subservicers on the date when the tax, premium or other cost for which such
payment is  intended  is due,  but the Master  Servicer  shall be required so to
advance only to the extent that such advances, in the good faith judgment of the
Master  Servicer,  will be recoverable  by the Master  Servicer out of Insurance
Proceeds, Liquidation Proceeds or otherwise.

          Section 3.09 Access to Certain Documentation and Information Regarding
               the Mortgage Loans.

        If   compliance   with  this  Section  3.09  shall  make  any  Class  of
Certificates  legal  for  investment  by  federally  insured  savings  and  loan
associations,  the Master Servicer shall provide,  or cause the  Subservicers to
provide,  to the Trustee,  the Office of Thrift  Supervision or the FDIC and the
supervisory  agents and examiners thereof access to the documentation  regarding
the Mortgage  Loans  required by applicable  regulations of the Office of Thrift
Supervision,  such access being afforded without charge but only upon reasonable
request and during normal business hours at the offices designated by the Master
Servicer. The Master Servicer shall permit such representatives to photocopy any
such  documentation  and shall  provide  equipment  for that purpose at a charge
reasonably approximating the cost of such photocopying to the Master Servicer.

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<PAGE>

        Section 3.10  Permitted Withdrawals from the Custodial Account.

        (a) The Master Servicer may, from time to time as provided herein,  make
withdrawals from the Custodial Account of amounts on deposit therein pursuant to
Section  3.07 that are  attributable  to the  Mortgage  Loans for the  following
purposes:

                    (i) to make  deposits  into the  Certificate  Account in the
               amounts and in the manner provided for in Section 4.01;

                      (ii) to reimburse  itself or the related  Subservicer  for
               previously  unreimbursed  advances or expenses  made  pursuant to
               Sections 3.01,  3.07(a),  3.08, 3.11,  3.12(a),  3.14 and 4.04 or
               otherwise  reimbursable  pursuant to the terms of this Agreement,
               such  withdrawal  right  being  limited  to amounts  received  on
               particular  Mortgage  Loans  (including,  for this  purpose,  REO
               Proceeds,  Insurance Proceeds,  Liquidation Proceeds and proceeds
               from the purchase of a Mortgage  Loan  pursuant to Section  2.02,
               2.03,  2.04 or 4.07)  which  represent  (A) Late  Collections  of
               Monthly  Payments for which any such advance was made in the case
               of Subservicer  Advances or Advances pursuant to Section 4.04 and
               (B)  recoveries of amounts in respect of which such advances were
               made in the case of Servicing Advances;

                      (iii) to pay to itself or the related  Subservicer (if not
               previously  retained  by such  Subservicer)  out of each  payment
               received  by the Master  Servicer  on account  of  interest  on a
               Mortgage  Loan as  contemplated  by  Sections  3.14 and 3.16,  an
               amount equal to that remaining  portion of any such payment as to
               interest  (but  not  in  excess  of the  Servicing  Fee  and  the
               Subservicing  Fee,  if  not  previously   retained)  which,  when
               deducted,  will result in the  remaining  amount of such interest
               being interest at the Net Mortgage Rate (or Modified Net Mortgage
               Rate in the  case of a  Modified  Mortgage  Loan)  on the  amount
               specified in the  amortization  schedule of the related  Mortgage
               Loan as the  principal  balance  thereof at the  beginning of the
               period  respecting  which such  interest  was paid  after  giving
               effect to any previous Curtailments;

                      (iv) to pay to itself as additional servicing compensation
               any  interest  or  investment  income  earned  on funds and other
               property  deposited in or credited to the Custodial  Account that
               it is entitled to withdraw pursuant to Section 3.07(c);

                      (v) to pay to itself as additional servicing  compensation
               any Foreclosure  Profits, any amounts remitted by Subservicers as
               interest in respect of Curtailments  pursuant to Section 3.08(b),
               and  any  amounts  paid  by a  Mortgagor  in  connection  with  a
               Principal  Prepayment  in Full in  respect  of  interest  for any
               period  during  the  calendar   month  in  which  such  Principal
               Prepayment    in   Full   is   to   be    distributed    to   the
               Certificateholders;

                      (vi)  to  pay  to  itself,   a   Subservicer,   a  Seller,
               Residential Funding, the Company or any other appropriate Person,
               as the  case  may  be,  with  respect  to each  Mortgage  Loan or
               property acquired in respect thereof that has been purchased or

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<PAGE>

               otherwise  transferred pursuant to Section 2.02, 2.03, 2.04, 4.07
               or 9.01,  all amounts  received  thereon  and not  required to be
               distributed to the Certificateholders as of the date on which the
               related Stated Principal Balance or Purchase Price is determined;

                      (vii) to reimburse  itself or the related  Subservicer for
               any  Nonrecoverable  Advance or Advances in the manner and to the
               extent  provided in  subsection  (c) below,  any Advance  made in
               connection  with a  modification  of a  Mortgage  Loan that is in
               default or, in the  judgment of the Master  Servicer,  default is
               reasonably foreseeable pursuant to Section 3.07(a), to the extent
               the  amount  of the  Advance  has been  added to the  outstanding
               principal   balance  of  the  Mortgage   Loan,   or  any  Advance
               reimbursable to the Master Servicer pursuant to Section 4.02(a);

                      (viii) to  reimburse  itself or the Company  for  expenses
               incurred by and  reimbursable  to it or the  Company  pursuant to
               Sections 3.01(a),  3.11, 3.13, 3.14(c), 6.03, 10.01 or otherwise,
               or  in  connection  with  enforcing,   in  accordance  with  this
               Agreement,   any  repurchase,   substitution  or  indemnification
               obligation of any Seller (other than an Affiliate of the Company)
               pursuant to the related Seller's Agreement;

                      (ix) to reimburse itself for Servicing  Advances  expended
               by it (a)  pursuant to Section  3.14 in good faith in  connection
               with the restoration of property  damaged by an Uninsured  Cause,
               and (b) in connection  with the liquidation of a Mortgage Loan or
               disposition  of an REO  Property  to  the  extent  not  otherwise
               reimbursed pursuant to clause (ii) or (viii) above; and

                      (x) to  withdraw  any amount  deposited  in the  Custodial
               Account that was not required to be deposited therein pursuant to
               Section 3.07.

        (b) Since,  in  connection  with  withdrawals  pursuant to clauses (ii),
(iii),  (v) and (vi), the Master  Servicer's  entitlement  thereto is limited to
collections  or other  recoveries  on the  related  Mortgage  Loan,  the  Master
Servicer  shall keep and maintain  separate  accounting,  on a Mortgage  Loan by
Mortgage  Loan basis,  for the purpose of  justifying  any  withdrawal  from the
Custodial Account pursuant to such clauses.

        (c) The Master  Servicer  shall be entitled to  reimburse  itself or the
related  Subservicer for any advance made in respect of a Mortgage Loan that the
Master Servicer determines to be a Nonrecoverable Advance by withdrawal from the
Custodial  Account of amounts on deposit  therein  attributable  to the Mortgage
Loans  on any  Certificate  Account  Deposit  Date  succeeding  the date of such
determination.  Such  right of  reimbursement  in  respect  of a  Nonrecoverable
Advance  on any such  Certificate  Account  Deposit  Date shall be limited to an
amount  not   exceeding  the  portion  of  such  advance   previously   paid  to
Certificateholders (and not theretofore reimbursed to the Master Servicer or the
related Subservicer).

          Section  3.11   Maintenance   of  the  Primary   Insurance   Policies;
               Collections Thereunder.

        (a) The Master  Servicer  shall not take, or permit any  Subservicer  to
take, any action which would result in non-coverage under any applicable Primary
Insurance Policy of any loss

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<PAGE>

which,  but for the actions of the Master  Servicer or  Subservicer,  would have
been  covered  thereunder.  To the  extent  coverage  is  available,  the Master
Servicer  shall  keep or cause to be kept in full  force  and  effect  each such
Primary  Insurance  Policy until the principal  balance of the related  Mortgage
Loan secured by a Mortgaged  Property is reduced to 80% or less of the Appraised
Value in the  case of such a  Mortgage  Loan  having  a  Loan-to-Value  Ratio at
origination in excess of 80%, provided that such Primary Insurance Policy was in
place as of the  Cut-off  Date and the  Company had  knowledge  of such  Primary
Insurance Policy.  The Master Servicer shall be entitled to cancel or permit the
discontinuation  of any Primary Insurance Policy as to any Mortgage Loan, if the
Stated  Principal  Balance of the Mortgage Loan is reduced below an amount equal
to 80% of the appraised value of the related Mortgaged Property as determined in
any appraisal thereof after the Closing Date, or if the  Loan-to-Value  Ratio is
reduced  below 80% as a result of principal  payments on the Mortgage Loan after
the Closing Date. In the event that the Company gains  knowledge  that as of the
Closing Date, a Mortgage Loan had a Loan-to-Value Ratio at origination in excess
of 80% and is not  the  subject  of a  Primary  Insurance  Policy  (and  was not
included in any exception to the representation in Section 2.03(b)(iv)) and that
such Mortgage Loan has a current  Loan-to-Value  Ratio in excess of 80% then the
Master  Servicer  shall use its  reasonable  efforts  to obtain  and  maintain a
Primary  Insurance  Policy to the extent that such a policy is  obtainable  at a
reasonable  price.  The Master  Servicer shall not cancel or refuse to renew any
such Primary Insurance Policy  applicable to a Nonsubserviced  Mortgage Loan, or
consent to any  Subservicer  canceling  or  refusing  to renew any such  Primary
Insurance  Policy  applicable to a Mortgage Loan  subserviced  by it, that is in
effect at the date of the initial  issuance of the  Certificates and is required
to be kept in force hereunder  unless the replacement  Primary  Insurance Policy
for such  canceled or  non-renewed  policy is  maintained  with an insurer whose
claims-paying   ability  is  acceptable  to  each  Rating  Agency  for  mortgage
pass-through  certificates  having a rating equal to or better than the lower of
the  then-current  rating or the rating  assigned to the  Certificates as of the
Closing Date by such Rating Agency.

        (b) In connection with its activities as  administrator  and servicer of
the  Mortgage  Loans,  the  Master  Servicer  agrees to  present or to cause the
related  Subservicer  to  present,  on  behalf  of  the  Master  Servicer,   the
Subservicer,  if any, the Trustee and Certificateholders,  claims to the related
Insurer under any Primary Insurance  Policies,  in a timely manner in accordance
with such  policies,  and,  in this  regard,  to take or cause to be taken  such
reasonable  action as shall be  necessary to permit  recovery  under any Primary
Insurance  Policies  respecting  defaulted  Mortgage Loans.  Pursuant to Section
3.07,  any Insurance  Proceeds  collected by or remitted to the Master  Servicer
under  any  Primary  Insurance  Policies  shall be  deposited  in the  Custodial
Account, subject to withdrawal pursuant to Section 3.10.

          Section 3.12  Maintenance of Fire Insurance and Omissions and Fidelity
               Coverage.

        (a) The Master  Servicer  shall cause to be maintained for each Mortgage
Loan (other than a Cooperative Loan) fire insurance with extended coverage in an
amount  which is equal to the  lesser  of the  principal  balance  owing on such
Mortgage  Loan  or 100  percent  of the  insurable  value  of the  improvements;
provided,  however,  that such coverage may not be less than the minimum  amount
required to fully compensate for any loss or damage on a replacement cost basis.
To the extent it may do so without breaching the related Subservicing Agreement,
the Master  Servicer  shall  replace  any  Subservicer  that does not cause such
insurance, to the extent it is available, to be maintained.

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<PAGE>

The Master Servicer shall also cause to be maintained on property  acquired upon
foreclosure,  or deed in lieu of foreclosure, of any Mortgage Loan (other than a
Cooperative  Loan),  fire insurance with extended coverage in an amount which is
at  least  equal  to the  amount  necessary  to  avoid  the  application  of any
co-insurance  clause contained in the related hazard insurance policy.  Pursuant
to Section 3.07,  any amounts  collected by the Master  Servicer  under any such
policies  (other than amounts to be applied to the  restoration or repair of the
related Mortgaged  Property or property thus acquired or amounts released to the
Mortgagor in accordance with the Master Servicer's normal servicing  procedures)
shall be deposited in the Custodial Account,  subject to withdrawal  pursuant to
Section 3.10. Any cost incurred by the Master  Servicer in maintaining  any such
insurance shall not, for the purpose of calculating monthly distributions to the
Certificateholders,  be added to the  amount  owing  under  the  Mortgage  Loan,
notwithstanding  that the terms of the Mortgage Loan so permit. Such costs shall
be  recoverable  by the Master  Servicer  out of related  late  payments  by the
Mortgagor or out of Insurance  Proceeds and  Liquidation  Proceeds to the extent
permitted by Section  3.10.  It is  understood  and agreed that no earthquake or
other  additional  insurance is to be required of any Mortgagor or maintained on
property  acquired  in respect of a Mortgage  Loan other than  pursuant  to such
applicable  laws and  regulations  as shall at any time be in force and as shall
require such additional insurance. Whenever the improvements securing a Mortgage
Loan (other than a Cooperative  Loan) are located at the time of  origination of
such Mortgage  Loan in a federally  designated  special  flood hazard area,  the
Master  Servicer  shall cause flood  insurance  (to the extent  available) to be
maintained in respect thereof.  Such flood insurance shall be in an amount equal
to the lesser of (i) the amount required to compensate for any loss or damage to
the Mortgaged  Property on a replacement  cost basis and (ii) the maximum amount
of such  insurance  available  for the  related  Mortgaged  Property  under  the
national flood insurance program (assuming that the area in which such Mortgaged
Property is located is participating in such program).

        If the  Master  Servicer  shall  obtain  and  maintain  a  blanket  fire
insurance policy with extended coverage insuring against hazard losses on all of
the  Mortgage  Loans,  it shall  conclusively  be deemed to have  satisfied  its
obligations as set forth in the first sentence of this Section 3.12(a), it being
understood and agreed that such policy may contain a deductible clause, in which
case the Master  Servicer  shall,  in the event  that there  shall not have been
maintained on the related  Mortgaged  Property a policy complying with the first
sentence  of this  Section  3.12(a) and there shall have been a loss which would
have been covered by such policy,  deposit in the Certificate Account the amount
not  otherwise  payable  under the  blanket  policy  because of such  deductible
clause. Any such deposit by the Master Servicer shall be made on the Certificate
Account  Deposit Date next preceding the  Distribution  Date which occurs in the
month  following  the month in which  payments  under any such policy would have
been deposited in the Custodial  Account.  In connection  with its activities as
administrator  and servicer of the Mortgage Loans, the Master Servicer agrees to
present,  on behalf of itself,  the Trustee and the  Certificateholders,  claims
under any such blanket policy.

        (b) The Master Servicer shall obtain and maintain at its own expense and
keep in full force and effect  throughout  the term of this  Agreement a blanket
fidelity bond and an errors and omissions  insurance  policy covering the Master
Servicer's  officers and  employees  and other  persons  acting on behalf of the
Master  Servicer in connection  with its activities  under this  Agreement.  The
amount  of  coverage  shall be at  least  equal to the  coverage  that  would be
required by Fannie Mae or Freddie Mac, whichever is greater, with respect to the
Master  Servicer if the Master  Servicer were  servicing and  administering  the
Mortgage Loans for Fannie Mae or Freddie Mac. In the event that

                                              53

<PAGE>

any such bond or policy ceases to be in effect, the Master Servicer shall obtain
a comparable  replacement bond or policy from an issuer or insurer,  as the case
may be, meeting the requirements, if any, of the Program Guide and acceptable to
the Company.  Coverage of the Master Servicer under a policy or bond obtained by
an Affiliate of the Master Servicer and providing the coverage  required by this
Section 3.12(b) shall satisfy the requirements of this Section 3.12(b).

          Section  3.13  Enforcement  of  Due-on-Sale  Clauses;  Assumption  and
               Modification Agreements; Certain Assignments.

        (a) When any Mortgaged Property is conveyed by the Mortgagor, the Master
Servicer or  Subservicer,  to the extent it has  knowledge  of such  conveyance,
shall enforce any due-on-sale clause contained in any Mortgage Note or Mortgage,
to the extent permitted under applicable law and governmental  regulations,  but
only to the extent that such enforcement will not adversely affect or jeopardize
coverage under any Required Insurance Policy. Notwithstanding the foregoing:

                      (i) the  Master  Servicer  shall  not be  deemed  to be in
               default  under this Section  3.13(a) by reason of any transfer or
               assumption  which the Master  Servicer is  restricted by law from
               preventing; and

                      (ii)  if  the  Master  Servicer   determines  that  it  is
               reasonably  likely  that  any  Mortgagor  will  bring,  or if any
               Mortgagor  does  bring,   legal  action  to  declare  invalid  or
               otherwise avoid enforcement of a due-on-sale  clause contained in
               any Mortgage Note or Mortgage,  the Master  Servicer shall not be
               required to enforce  the  due-on-sale  clause or to contest  such
               action.

        (b) Subject to the Master  Servicer's  duty to enforce  any  due-on-sale
clause  to the  extent  set  forth in  Section  3.13(a),  in any case in which a
Mortgaged Property is to be conveyed to a Person by a Mortgagor, and such Person
is to enter into an  assumption or  modification  agreement or supplement to the
Mortgage Note or Mortgage which requires the signature of the Trustee,  or if an
instrument of release signed by the Trustee is required  releasing the Mortgagor
from liability on the Mortgage Loan, the Master Servicer is authorized,  subject
to the requirements of the sentence next following,  to execute and deliver,  on
behalf of the  Trustee,  the  assumption  agreement  with the Person to whom the
Mortgaged  Property  is  to be  conveyed  and  such  modification  agreement  or
supplement  to the  Mortgage  Note  or  Mortgage  or  other  instruments  as are
reasonable  or necessary to carry out the terms of the Mortgage Note or Mortgage
or otherwise to comply with any  applicable  laws  regarding  assumptions or the
transfer of the Mortgaged Property to such Person;  provided,  however,  none of
such terms and requirements  shall either (i) both (A) constitute a "significant
modification"  effecting an exchange or  reissuance  of such Mortgage Loan under
the REMIC  Provisions  and (B) cause any portion of any REMIC  formed  under the
Series  Supplement  to fail to qualify as a REMIC  under the Code or (subject to
Section  10.01(f)),   result  in  the  imposition  of  any  tax  on  "prohibited
transactions" or (ii) constitute  "contributions"  after the start-up date under
the REMIC  Provisions.  The Master  Servicer  shall  execute  and  deliver  such
documents only if it reasonably  determines  that (i) its execution and delivery
thereof will not conflict  with or violate any terms of this  Agreement or cause
the unpaid  balance and interest on the  Mortgage  Loan to be  uncollectible  in
whole or in part,  (ii) any  required  consents of insurers  under any  Required
Insurance Policies have been obtained and (iii) subsequent to the closing of the
transaction involving the

                                              54

<PAGE>

assumption  or transfer (A) the Mortgage  Loan will  continue to be secured by a
first mortgage lien pursuant to the terms of the Mortgage,  (B) such transaction
will not adversely  affect the coverage under any Required  Insurance  Policies,
(C) the Mortgage Loan will fully amortize over the remaining  term thereof,  (D)
no material  term of the  Mortgage  Loan  (including  the  interest  rate on the
Mortgage Loan) will be altered nor will the term of the Mortgage Loan be changed
and (E) if the  seller/transferor  of the  Mortgaged  Property is to be released
from liability on the Mortgage Loan,  such release will not (based on the Master
Servicer's  or  Subservicer's  good faith  determination)  adversely  affect the
collectability  of the Mortgage Loan.  Upon receipt of appropriate  instructions
from the Master  Servicer in accordance  with the  foregoing,  the Trustee shall
execute  any  necessary  instruments  for such  assumption  or  substitution  of
liability as directed in writing by the Master Servicer. Upon the closing of the
transactions contemplated by such documents, the Master Servicer shall cause the
originals or true and correct  copies of the assumption  agreement,  the release
(if any), or the  modification or supplement to the Mortgage Note or Mortgage to
be delivered to the Trustee or the  Custodian  and  deposited  with the Mortgage
File for such Mortgage  Loan.  Any fee collected by the Master  Servicer or such
related Subservicer for entering into an assumption or substitution of liability
agreement  will be  retained  by the  Master  Servicer  or such  Subservicer  as
additional servicing compensation.

        (c) The Master Servicer or the related Subservicer,  as the case may be,
shall be entitled to approve a request from a Mortgagor for a partial release of
the related Mortgaged Property,  the granting of an easement thereon in favor of
another Person,  any alteration or demolition of the related Mortgaged  Property
(or,  with respect to a Cooperative  Loan,  the related  Cooperative  Apartment)
without  any  right  of  reimbursement  or  other  similar  matters  if  it  has
determined, exercising its good faith business judgment in the same manner as it
would if it were the owner of the related  Mortgage Loan, that the security for,
and the timely  and full  collectability  of,  such  Mortgage  Loan would not be
adversely  affected  thereby and that any portion of any REMIC  formed under the
Series  Supplement  would not fail to  continue  to qualify as a REMIC under the
Code as a result  thereof  and  (subject  to  Section  10.01(f))  that no tax on
"prohibited  transactions"  or  "contributions"  after the  startup day would be
imposed on any such REMIC as a result  thereof.  Any fee collected by the Master
Servicer  or the  related  Subservicer  for  processing  such a request  will be
retained by the Master  Servicer or such  Subservicer  as  additional  servicing
compensation.

        (d)  Subject  to any  other  applicable  terms  and  conditions  of this
Agreement,  the  Trustee  and Master  Servicer  shall be  entitled to approve an
assignment in lieu of satisfaction  with respect to any Mortgage Loan,  provided
the  obligee  with  respect  to  such  Mortgage  Loan  following  such  proposed
assignment provides the Trustee and Master Servicer with a "Lender Certification
for  Assignment of Mortgage  Loan" in the form attached  hereto as Exhibit M, in
form and substance  satisfactory to the Trustee and Master  Servicer,  providing
the  following:  (i) that the substance of the assignment is, and is intended to
be, a refinancing  of such  Mortgage;  (ii) that the Mortgage Loan following the
proposed  assignment will have a rate of interest at least 0.25 percent below or
above  the  rate of  interest  on such  Mortgage  Loan  prior  to such  proposed
assignment;  and (iii) that such  assignment  is at the request of the  borrower
under the related  Mortgage  Loan.  Upon  approval of an  assignment  in lieu of
satisfaction  with  respect to any  Mortgage  Loan,  the Master  Servicer  shall
receive cash in an amount equal to the unpaid  principal  balance of and accrued
interest on such Mortgage Loan and the Master  Servicer  shall treat such amount
as a Principal  Prepayment  in Full with respect to such  Mortgage  Loan for all
purposes hereof.

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<PAGE>

        Section 3.14  Realization Upon Defaulted Mortgage Loans.

        (a) The Master  Servicer shall  foreclose  upon or otherwise  comparably
convert  (which may include an REO  Acquisition)  the  ownership  of  properties
securing such of the Mortgage  Loans as come into and continue in default and as
to which no satisfactory  arrangements  can be made for collection of delinquent
payments  pursuant to Section 3.07. In connection with such foreclosure or other
conversion, the Master Servicer shall, consistent with Section 3.11, follow such
practices and  procedures as it shall deem  necessary or advisable,  as shall be
normal and usual in its general  mortgage  servicing  activities and as shall be
required or permitted by the Program  Guide;  provided that the Master  Servicer
shall not be liable in any respect hereunder if the Master Servicer is acting in
connection  with any such  foreclosure  or other  conversion in a manner that is
consistent with the provisions of this Agreement. The Master Servicer,  however,
shall not be  required  to  expend  its own  funds or incur  other  reimbursable
charges in connection with any foreclosure,  or attempted  foreclosure  which is
not  completed,  or towards  the  restoration  of any  property  unless it shall
determine  (i) that  such  restoration  and/or  foreclosure  will  increase  the
proceeds of liquidation of the Mortgage Loan to Holders of  Certificates  of one
or more Classes after  reimbursement  to itself for such expenses or charges and
(ii) that such expenses or charges will be recoverable to it through Liquidation
Proceeds,  Insurance Proceeds,  or REO Proceeds  (respecting which it shall have
priority for purposes of  withdrawals  from the  Custodial  Account  pursuant to
Section 3.10, whether or not such expenses and charges are actually  recoverable
from related Liquidation Proceeds,  Insurance Proceeds or REO Proceeds).  In the
event of such a determination  by the Master  Servicer  pursuant to this Section
3.14(a),  the Master Servicer shall be entitled to reimbursement of such amounts
pursuant to Section 3.10.

        In addition to the  foregoing,  the Master  Servicer  shall use its best
reasonable  efforts to realize upon any  Additional  Collateral  for such of the
Additional Collateral Loans as come into and continue in default and as to which
no satisfactory  arrangements can be made for collection of delinquent  payments
pursuant to Section 3.07; provided that the Master Servicer shall not, on behalf
of the Trustee, obtain title to any such Additional Collateral as a result of or
in lieu of the disposition  thereof or otherwise;  and provided further that (i)
the Master Servicer shall not proceed with respect to such Additional Collateral
in any manner  that would  impair the  ability to recover  against  the  related
Mortgaged  Property,  and (ii) the Master  Servicer  shall  proceed with any REO
Acquisition in a manner that preserves the ability to apply the proceeds of such
Additional  Collateral  against amounts owed under the defaulted  Mortgage Loan.
Any proceeds realized from such Additional  Collateral (other than amounts to be
released to the Mortgagor or the related guarantor in accordance with procedures
that the  Master  Servicer  would  follow in  servicing  loans  held for its own
account,  subject  to the terms  and  conditions  of the  related  Mortgage  and
Mortgage  Note  and to the  terms  and  conditions  of any  security  agreement,
guarantee  agreement,  mortgage or other agreement  governing the disposition of
the proceeds of such Additional  Collateral) shall be deposited in the Custodial
Account,  subject to  withdrawal  pursuant to Section  3.10.  Any other  payment
received by the Master Servicer in respect of such Additional  Collateral  shall
be deposited in the Custodial Account subject to withdrawal  pursuant to Section
3.10.

        For so long as the  Master  Servicer  is the Master  Servicer  under the
Credit  Support  Pledge  Agreement,   the  Master  Servicer  shall  perform  its
obligations under the Credit Support Pledge

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<PAGE>

Agreement in accordance  with such Agreement and in a manner that is in the best
interests of the Certificateholders.  Further, the Master Servicer shall use its
best  reasonable  efforts to  realize  upon any  Pledged  Assets for such of the
Pledged  Asset  Loans as come into and  continue  in default  and as to which no
satisfactory  arrangements  can be made for  collection of  delinquent  payments
pursuant to Section 3.07; provided that the Master Servicer shall not, on behalf
of the Trustee,  obtain  title to any such  Pledged  Assets as a result of or in
lieu of the disposition thereof or otherwise;  and provided further that (i) the
Master  Servicer  shall not proceed with  respect to such Pledged  Assets in any
manner that would  impair the ability to recover  against the related  Mortgaged
Property, and (ii) the Master Servicer shall proceed with any REO Acquisition in
a manner that preserves the ability to apply the proceeds of such Pledged Assets
against  amounts owed under the defaulted  Mortgage Loan. Any proceeds  realized
from such Pledged  Assets (other than amounts to be released to the Mortgagor or
the related  guarantor in accordance  with  procedures  that the Master Servicer
would follow in servicing  loans held for its own account,  subject to the terms
and  conditions  of the related  Mortgage and Mortgage Note and to the terms and
conditions of any security  agreement,  guarantee  agreement,  mortgage or other
agreement  governing  the  disposition  of the proceeds of such Pledged  Assets)
shall be deposited in the Custodial Account,  subject to withdrawal  pursuant to
Section 3.10.  Any other payment  received by the Master  Servicer in respect of
such  Pledged  Assets shall be deposited  in the  Custodial  Account  subject to
withdrawal pursuant to Section 3.10.

        Concurrently  with the  foregoing,  the Master  Servicer  may pursue any
remedies that may be available in connection  with a breach of a  representation
and warranty with respect to any such Mortgage Loan in accordance  with Sections
2.03 and 2.04.  However,  the Master  Servicer  is not  required  to continue to
pursue both foreclosure (or similar remedies) with respect to the Mortgage Loans
and remedies in connection with a breach of a representation and warranty if the
Master Servicer determines in its reasonable  discretion that one such remedy is
more likely to result in a greater  recovery as to the Mortgage  Loan.  Upon the
occurrence of a Cash  Liquidation or REO  Disposition,  following the deposit in
the Custodial Account of all Insurance Proceeds,  Liquidation Proceeds and other
payments and recoveries  referred to in the definition of "Cash  Liquidation" or
"REO  Disposition,"  as  applicable,  upon  receipt  by the  Trustee  of written
notification of such deposit signed by a Servicing  Officer,  the Trustee or any
Custodian,  as the case may be, shall release to the Master Servicer the related
Mortgage  File and the Trustee  shall  execute and deliver such  instruments  of
transfer or  assignment  prepared by the Master  Servicer,  in each case without
recourse,  as shall be necessary to vest in the Master Servicer or its designee,
as the case may be, the related Mortgage Loan, and thereafter such Mortgage Loan
shall not be part of the Trust Fund.  Notwithstanding the foregoing or any other
provision of this  Agreement,  in the Master  Servicer's  sole  discretion  with
respect  to any  defaulted  Mortgage  Loan or REO  Property  as to either of the
following provisions, (i) a Cash Liquidation or REO Disposition may be deemed to
have occurred if substantially all amounts expected by the Master Servicer to be
received in connection with the related defaulted  Mortgage Loan or REO Property
have been  received,  and (ii) for  purposes  of  determining  the amount of any
Liquidation Proceeds,  Insurance Proceeds, REO Proceeds or any other unscheduled
collections  or the amount of any Realized  Loss,  the Master  Servicer may take
into account minimal amounts of additional  receipts  expected to be received or
any  estimated  additional  liquidation  expenses  expected  to be  incurred  in
connection with the related defaulted Mortgage Loan or REO Property.

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        (b) If title to any Mortgaged  Property is acquired by the Trust Fund as
an REO Property by  foreclosure or by deed in lieu of  foreclosure,  the deed or
certificate  of sale shall be issued to the  Trustee or to its nominee on behalf
of  Certificateholders.  Notwithstanding  any  such  acquisition  of  title  and
cancellation  of the related  Mortgage Loan,  such REO Property shall (except as
otherwise expressly provided herein) be considered to be an Outstanding Mortgage
Loan held in the Trust Fund until such time as the REO  Property  shall be sold.
Consistent with the foregoing for purposes of all calculations hereunder so long
as such REO Property shall be considered to be an  Outstanding  Mortgage Loan it
shall be assumed that,  notwithstanding  that the indebtedness  evidenced by the
related  Mortgage  Note shall have been  discharged,  such Mortgage Note and the
related  amortization  schedule in effect at the time of any such acquisition of
title  (after  giving  effect  to  any  previous  Curtailments  and  before  any
adjustment  thereto by reason of any  bankruptcy  or similar  proceeding  or any
moratorium or similar waiver or grace period) remain in effect.

        (c) If the  Trust  Fund  acquires  any  REO  Property  as  aforesaid  or
otherwise in connection  with a default or imminent  default on a Mortgage Loan,
the  Master  Servicer  on behalf of the Trust  Fund  shall  dispose  of such REO
Property as soon as practicable,  giving due  consideration  to the interests of
the  Certificateholders,  but in all cases  within  three full  years  after the
taxable  year of its  acquisition  by the Trust  Fund for  purposes  of  Section
860G(a)(8)  of the  Code (or  such  shorter  period  as may be  necessary  under
applicable  state (including any state in which such property is located) law to
maintain  the  status of any  portion  of any  REMIC  formed  under  the  Series
Supplement as a REMIC under  applicable state law and avoid taxes resulting from
such property failing to be foreclosure property under applicable state law) or,
at the expense of the Trust Fund,  request,  more than 60 days before the day on
which such grace  period  would  otherwise  expire,  an  extension of such grace
period unless the Master Servicer  (subject to Section 10.01(f)) obtains for the
Trustee an Opinion of Counsel, addressed to the Trustee and the Master Servicer,
to the effect that the holding by the Trust Fund of such REO Property subsequent
to such  period  will not  result  in the  imposition  of  taxes on  "prohibited
transactions"  as defined in Section  860F of the Code or cause any REMIC formed
under the Series  Supplement  to fail to qualify as a REMIC (for federal (or any
applicable   State  or  local)  income  tax  purposes)  at  any  time  that  any
Certificates are outstanding,  in which case the Trust Fund may continue to hold
such REO  Property  (subject  to any  conditions  contained  in such  Opinion of
Counsel).  The Master  Servicer  shall be  entitled  to be  reimbursed  from the
Custodial  Account for any costs  incurred in obtaining such Opinion of Counsel,
as  provided  in  Section  3.10.  Notwithstanding  any other  provision  of this
Agreement,  no REO  Property  acquired  by the Trust  Fund  shall be rented  (or
allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund in such a manner or  pursuant  to any terms  that  would (i) cause such REO
Property  to fail to qualify as  "foreclosure  property"  within the  meaning of
Section  860G(a)(8) of the Code or (ii) subject the Trust Fund to the imposition
of any  federal  income  taxes on the  income  earned  from  such REO  Property,
including any taxes imposed by reason of Section 860G(c) of the Code, unless the
Master  Servicer has agreed to indemnify  and hold  harmless the Trust Fund with
respect to the imposition of any such taxes.

        (d) The proceeds of any Cash Liquidation, REO Disposition or purchase or
repurchase of any Mortgage Loan pursuant to the terms of this Agreement, as well
as any recovery resulting from a collection of Liquidation  Proceeds,  Insurance
Proceeds or REO Proceeds,  will be applied in the  following  order of priority:
first, to reimburse the Master Servicer or the related Subservicer in accordance
with Section  3.10(a)(ii);  second, to the  Certificateholders  to the extent of
accrued and

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unpaid interest on the Mortgage Loan, and any related REO Imputed  Interest,  at
the Net  Mortgage  Rate  (or the  Modified  Net  Mortgage  Rate in the case of a
Modified  Mortgage Loan) to the Due Date prior to the Distribution Date on which
such  amounts  are to be  distributed;  third,  to the  Certificateholders  as a
recovery of principal on the Mortgage Loan (or REO  Property)(provided  that, if
such  recovery is of an amount  previously  allocated  to one or more Classes of
Certificates  as a Realized Loss,  such recovery  shall be allocated  among such
Classes in the same  proportions as the allocation of such Realized  Losses and,
if any such Class of  Certificates  to which such Realized Loss was allocated is
no longer  outstanding,  such  subsequent  recovery  shall be distributed to the
persons who were the Holders of such Class of Certificates when it was retired);
fourth,  to all Servicing Fees and Subservicing  Fees payable therefrom (and the
Master  Servicer and the Subservicer  shall have no claims for any  deficiencies
with  respect to such fees which  result  from the  foregoing  allocation);  and
fifth, to Foreclosure Profits.

        (e) In the event of a default  on a  Mortgage  Loan one or more of whose
obligors is not a United States Person,  in connection  with any  foreclosure or
acquisition  of a deed in  lieu  of  foreclosure  (together,  "foreclosure")  in
respect of such Mortgage Loan, the Master  Servicer will cause  compliance  with
the provisions of Treasury  Regulation Section  1.1445-2(d)(3) (or any successor
thereto)  necessary to assure that no  withholding  tax  obligation  arises with
respect to the proceeds of such foreclosure  except to the extent,  if any, that
proceeds of such foreclosure are required to be remitted to the obligors on such
Mortgage Loan.

        Section 3.15  Trustee to Cooperate; Release of Mortgage Files.

        (a) Upon becoming  aware of the payment in full of any Mortgage Loan, or
upon the receipt by the Master  Servicer of a notification  that payment in full
will be escrowed in a manner  customary for such purposes,  the Master  Servicer
will  immediately  notify the Trustee (if it holds the related Mortgage File) or
the Custodian by a  certification  of a Servicing  Officer (which  certification
shall  include a  statement  to the effect  that all  amounts  received or to be
received in  connection  with such payment which are required to be deposited in
the  Custodial  Account  pursuant  to  Section  3.07  have  been  or  will be so
deposited),  substantially in one of the forms attached hereto as Exhibit F, or,
in the case of the Custodian,  an electronic request in a form acceptable to the
Custodian,  requesting  delivery to it of the Mortgage File. Within two Business
Days of receipt of such certification and request, the Trustee shall release, or
cause  the  Custodian  to  release,  the  related  Mortgage  File to the  Master
Servicer.  The Master  Servicer  is  authorized  to execute  and  deliver to the
Mortgagor  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,  as  appropriate,  written  evidence of
cancellation  thereon  and to cause the  removal  from the  registration  on the
MERS(R)  System of such  Mortgage and to execute and  deliver,  on behalf of the
Trustee and the  Certificateholders  or any of them, any and all  instruments of
satisfaction or cancellation or of partial or full release. No expenses incurred
in connection with any instrument of satisfaction or deed of reconveyance  shall
be chargeable to the Custodial Account or the Certificate Account.

        (b) From time to time as is appropriate for the servicing or foreclosure
of any Mortgage Loan, the Master Servicer shall deliver to the Custodian, with a
copy to the Trustee,  a certificate of a Servicing Officer  substantially in one
of the forms attached as Exhibit F hereto, or, in the case of the Custodian,  an
electronic  request  in a form  acceptable  to the  Custodian,  requesting  that
possession

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of all, or any document  constituting  part of, the Mortgage File be released to
the Master  Servicer and  certifying  as to the reason for such release and that
such release will not invalidate any insurance  coverage  provided in respect of
the  Mortgage  Loan under any  Required  Insurance  Policy.  Upon receipt of the
foregoing,  the Trustee shall  deliver,  or cause the Custodian to deliver,  the
Mortgage  File or any  document  therein  to the  Master  Servicer.  The  Master
Servicer  shall cause each Mortgage File or any document  therein so released to
be returned to the Trustee,  or the  Custodian as agent for the Trustee when the
need therefor by the Master  Servicer no longer exists,  unless (i) the Mortgage
Loan has been liquidated and the Liquidation  Proceeds  relating to the Mortgage
Loan have been  deposited in the Custodial  Account or (ii) the Mortgage File or
such  document  has been  delivered  directly  or  through a  Subservicer  to an
attorney,  or to a public  trustee or other public  official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property either judicially or  non-judicially,  and
the Master  Servicer  has  delivered  directly or through a  Subservicer  to the
Trustee a  certificate  of a  Servicing  Officer  certifying  as to the name and
address of the Person to which such Mortgage File or such document was delivered
and the purpose or purposes of such delivery. In the event of the liquidation of
a Mortgage  Loan, the Trustee shall deliver the Request for Release with respect
thereto to the Master Servicer upon deposit of the related Liquidation  Proceeds
in the Custodial Account.

        (c) The Trustee or the Master  Servicer on the  Trustee's  behalf  shall
execute and deliver to the Master Servicer,  if necessary,  any court pleadings,
requests for trustee's sale or other  documents  necessary to the foreclosure or
trustee's sale in respect of a Mortgaged Property or to any legal action brought
to obtain judgment  against any Mortgagor on the Mortgage Note or Mortgage or to
obtain a  deficiency  judgment,  or to  enforce  any  other  remedies  or rights
provided by the Mortgage  Note or Mortgage or  otherwise  available at law or in
equity.  Together  with such  documents or pleadings (if signed by the Trustee),
the Master  Servicer  shall deliver to the Trustee a certificate  of a Servicing
Officer  requesting  that such pleadings or documents be executed by the Trustee
and  certifying  as to the reason such  documents or pleadings  are required and
that the execution and delivery  thereof by the Trustee will not  invalidate any
insurance  coverage  under  any  Required  Insurance  Policy  or  invalidate  or
otherwise affect the lien of the Mortgage,  except for the termination of such a
lien upon completion of the foreclosure or trustee's sale.

        Section 3.16  Servicing and Other Compensation; Compensating Interest.

        (a) The Master Servicer,  as compensation for its activities  hereunder,
shall be entitled to receive on each  Distribution Date the amounts provided for
by clauses (iii),  (iv), (v) and (vi) of Section 3.10(a),  subject to clause (e)
below. The amount of servicing  compensation  provided for in such clauses shall
be accounted for on a Mortgage  Loan-by-Mortgage  Loan basis.  In the event that
Liquidation  Proceeds,  Insurance  Proceeds  and REO  Proceeds  (net of  amounts
reimbursable  therefrom  pursuant to Section  3.10(a)(ii))  in respect of a Cash
Liquidation  or REO  Disposition  exceed  the unpaid  principal  balance of such
Mortgage  Loan plus  unpaid  interest  accrued  thereon  (including  REO Imputed
Interest)  at a per annum rate equal to the  related Net  Mortgage  Rate (or the
Modified Net Mortgage Rate in the case of a Modified  Mortgage Loan), the Master
Servicer  shall be entitled to retain  therefrom and to pay to itself and/or the
related   Subservicer,   any  Foreclosure  Profits  and  any  Servicing  Fee  or
Subservicing Fee considered to be accrued but unpaid.

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        (b) Additional servicing compensation in the form of prepayment charges,
assumption  fees,  late  payment  charges,  investment  income on amounts in the
Custodial  Account or the Certificate  Account or otherwise shall be retained by
the Master Servicer or the Subservicer to the extent provided herein, subject to
clause (e) below.

        (c) The Master  Servicer  shall be required to pay, or cause to be paid,
all  expenses  incurred  by it  in  connection  with  its  servicing  activities
hereunder (including payment of premiums for the Primary Insurance Policies,  if
any,  to the extent  such  premiums  are not  required to be paid by the related
Mortgagors,  and the fees and  expenses of the Trustee  and any  Custodian)  and
shall not be entitled to reimbursement  therefor except as specifically provided
in Sections 3.10 and 3.14.

        (d) The Master  Servicer's right to receive  servicing  compensation may
not be transferred in whole or in part except in connection with the transfer of
all of its  responsibilities  and  obligations of the Master Servicer under this
Agreement.

        (e)  Notwithstanding any other provision herein, the amount of servicing
compensation  that the Master  Servicer  shall be  entitled  to receive  for its
activities  hereunder for the period ending on each  Distribution  Date shall be
reduced  (but not below zero) by an amount  equal to  Compensating  Interest (if
any) for such  Distribution  Date.  Such reduction  shall be applied during such
period as follows:  first, to any Servicing Fee or Subservicing Fee to which the
Master Servicer is entitled pursuant to Section  3.10(a)(iii) and second, to any
income or gain  realized  from any  investment  of funds  held in the  Custodial
Account or the  Certificate  Account to which the Master  Servicer  is  entitled
pursuant to Sections 3.07(c) or 4.01(b), respectively. In making such reduction,
the Master  Servicer (i) will not withdraw from the  Custodial  Account any such
amount  representing  all or a  portion  of the  Servicing  Fee to  which  it is
entitled  pursuant to Section  3.10(a)(iii)  and (ii) will not withdraw from the
Custodial Account or Certificate Account any such amount to which it is entitled
pursuant to Section 3.07(c) or 4.01(b).

        Section 3.17 Reports to the Trustee and the Company.

        Not later than fifteen  days after each  Distribution  Date,  the Master
Servicer shall forward to the Trustee and the Company a statement,  certified by
a Servicing Officer, setting forth the status of the Custodial Account as of the
close of business on such  Distribution Date as it relates to the Mortgage Loans
and showing, for the period covered by such statement, the aggregate of deposits
in or  withdrawals  from the Custodial  Account in respect of the Mortgage Loans
for each  category of deposit  specified  in Section  3.07 and each  category of
withdrawal specified in Section 3.10.

        Section 3.18  Annual Statement as to Compliance.

        The Master  Servicer  will deliver to the  Company,  the Trustee and any
Certificate Insurer on or before March 31 of each year, beginning with the first
March 31 that occurs at least six months  after the Cut-off  Date,  an Officers'
Certificate  stating,  as to each  signer  thereof,  that  (i) a  review  of the
activities of the Master Servicer during the preceding  calendar year related to
its servicing of mortgage loans and its performance  under pooling and servicing
agreements,  including  this  Agreement,  has been  made  under  such  officers'
supervision, (ii) to the best of such officers' knowledge, based on such review,
the Master Servicer has complied in all material respects with the

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minimum servicing  standards set forth in the Uniform Single Attestation Program
for Mortgage Bankers and has fulfilled all of its material  obligations relating
to this Agreement in all material  respects  throughout  such year, or, if there
has been material  noncompliance  with such servicing  standards or a default in
the fulfillment in all material respects of any such obligation relating to this
Agreement,  such statement shall include a description of such  noncompliance or
specify  each such  default,  as the case may be,  known to such officer and the
nature and status  thereof  and (iii) to the best of such  officers'  knowledge,
each  Subservicer  has  complied  in all  material  respects  with  the  minimum
servicing  standards  set forth in the Uniform  Single  Attestation  Program for
Mortgage  Bankers and has  fulfilled all of its material  obligations  under its
Subservicing  Agreement in all material  respects  throughout  such year, or, if
there  has been  material  noncompliance  with  such  servicing  standards  or a
material  default  in the  fulfillment  of  such  obligations  relating  to this
Agreement,  such statement shall include a description of such  noncompliance or
specify  each such  default,  as the case may be,  known to such officer and the
nature and status thereof.

        Section 3.19  Annual Independent Public Accountants' Servicing Report.

        On or before  March 31 of each year,  beginning  with the first March 31
that occurs at least six months after the Cut-off Date,  the Master  Servicer at
its expense shall cause a firm of independent public accountants, which shall be
members of the American Institute of Certified Public Accountants,  to furnish a
report to the Company and the Trustee  stating its opinion that, on the basis of
an examination conducted by such firm substantially in accordance with standards
established  by the  American  Institute of Certified  Public  Accountants,  the
assertions  made pursuant to Section 3.18 regarding  compliance with the minimum
servicing  standards  set forth in the Uniform  Single  Attestation  Program for
Mortgage  Bankers  during the  preceding  calendar year are fairly stated in all
material respects,  subject to such exceptions and other qualifications that, in
the opinion of such firm, such  accounting  standards  require it to report.  In
rendering  such  statement,  such firm may rely,  as to matters  relating to the
direct servicing of mortgage loans by Subservicers,  upon comparable  statements
for examinations  conducted by independent public  accountants  substantially in
accordance  with standards  established  by the American  Institute of Certified
Public Accountants  (rendered within one year of such statement) with respect to
such Subservicers.

        Section 3.20 Rights of the Company in Respect of the Master Servicer.

        The Master Servicer shall afford the Company,  upon  reasonable  notice,
during  normal  business  hours access to all records  maintained  by the Master
Servicer  in  respect  of its rights  and  obligations  hereunder  and access to
officers of the Master Servicer responsible for such obligations.  Upon request,
the Master  Servicer  shall  furnish the Company with its most recent  financial
statements and such other information as the Master Servicer possesses regarding
its business,  affairs,  property and  condition,  financial or  otherwise.  The
Master   Servicer  shall  also  cooperate  with  all  reasonable   requests  for
information  including,  but not limited to, notices, tapes and copies of files,
regarding  itself,  the Mortgage  Loans or the  Certificates  from any Person or
Persons identified by the Company or Residential  Funding.  The Company may, but
is not obligated to, enforce the  obligations of the Master  Servicer  hereunder
and may, but is not obligated to, perform,  or cause a designee to perform,  any
defaulted  obligation of the Master Servicer hereunder or exercise the rights of
the Master  Servicer  hereunder;  provided that the Master Servicer shall not be
relieved of any of its  obligations  hereunder by virtue of such  performance by
the Company or its designee. The

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Company shall not have any responsibility or liability for any action or failure
to act by the Master  Servicer and is not obligated to supervise the performance
of the Master Servicer under this Agreement or otherwise.

        Section 3.21  Administration of Buydown Funds.

        (a) With  respect to any Buydown  Mortgage  Loan,  the  Subservicer  has
deposited  Buydown  Funds in an account that  satisfies the  requirements  for a
Subservicing  Account (the "Buydown  Account").  The Master Servicer shall cause
the  Subservicing  Agreement to require that upon receipt from the  Mortgagor of
the amount due on a Due Date for each Buydown  Mortgage  Loan,  the  Subservicer
will withdraw from the Buydown Account the predetermined amount that, when added
to the  amount  due on such date from the  Mortgagor,  equals  the full  Monthly
Payment  and  transmit  that  amount  in  accordance   with  the  terms  of  the
Subservicing  Agreement to the Master Servicer together with the related payment
made by the Mortgagor or advanced by the Subservicer.

        (b) If the Mortgagor on a Buydown Mortgage Loan prepays such loan in its
entirety  during  the period  (the  "Buydown  Period")  when  Buydown  Funds are
required to be applied to such Buydown  Mortgage Loan, the Subservicer  shall be
required to  withdraw  from the  Buydown  Account  and remit any  Buydown  Funds
remaining  in the  Buydown  Account  in  accordance  with  the  related  buydown
agreement.  The amount of Buydown Funds which may be remitted in accordance with
the related  buydown  agreement may reduce the amount required to be paid by the
Mortgagor  to fully  prepay the related  Mortgage  Loan.  If the  Mortgagor on a
Buydown  Mortgage Loan defaults on such Mortgage Loan during the Buydown  Period
and the property  securing such Buydown Mortgage Loan is sold in the liquidation
thereof  (either by the Master Servicer or the insurer under any related Primary
Insurance  Policy),  the  Subservicer  shall be required  to  withdraw  from the
Buydown  Account the Buydown Funds for such Buydown  Mortgage Loan still held in
the Buydown Account and remit the same to the Master Servicer in accordance with
the terms of the Subservicing Agreement for deposit in the Custodial Account or,
if  instructed  by the Master  Servicer,  pay to the  insurer  under any related
Primary  Insurance  Policy if the  Mortgaged  Property  is  transferred  to such
insurer  and such  insurer  pays all of the loss  incurred  in  respect  of such
default.  Any amount so remitted  pursuant  to the  preceding  sentence  will be
deemed to reduce the amount owed on the Mortgage Loan.

                                          ARTICLE IV

                                PAYMENTS TO CERTIFICATEHOLDERS

        Section 4.01  Certificate Account.

        (a) The Master  Servicer on behalf of the Trustee  shall  establish  and
maintain a Certificate  Account in which the Master  Servicer  shall cause to be
deposited  on behalf of the Trustee on or before 2:00 P.M. New York time on each
Certificate Account Deposit Date by wire transfer of immediately available funds
an amount  equal to the sum of (i) any  Advance for the  immediately  succeeding
Distribution  Date,  (ii) any amount required to be deposited in the Certificate
Account pursuant to Section  3.12(a),  (iii) any amount required to be deposited
in the Certificate Account pursuant to Section 3.16(e) or Section 4.07, (iv) any
amount required to be paid pursuant to Section

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9.01 and (v) all other amounts  constituting the Available  Distribution  Amount
for the immediately succeeding Distribution Date.

        (b) The Trustee shall,  upon written  request from the Master  Servicer,
invest or cause the institution  maintaining  the Certificate  Account to invest
the funds in the Certificate Account in Permitted Investments  designated in the
name of the  Trustee  for the  benefit of the  Certificateholders,  which  shall
mature or be payable on demand not later than the  Business  Day next  preceding
the  Distribution  Date next following the date of such investment  (except that
(i) any  investment in the  institution  with which the  Certificate  Account is
maintained may mature or be payable on demand on such Distribution Date and (ii)
any other  investment  may mature or be  payable on demand on such  Distribution
Date  if the  Trustee  shall  advance  funds  on such  Distribution  Date to the
Certificate   Account  in  the  amount  payable  on  such   investment  on  such
Distribution  Date,  pending  receipt  thereof to the extent  necessary  to make
distributions on the Certificates) and shall not be sold or disposed of prior to
maturity. Subject to Section 3.16(e), all income and gain realized from any such
investment  shall be for the benefit of the Master Servicer and shall be subject
to its withdrawal or order from time to time. The amount of any losses  incurred
in respect of any such investments shall be deposited in the Certificate Account
by the Master Servicer out of its own funds  immediately as realized without any
right of reimbursement.

        Section 4.02  Distributions.

        As provided in Section 4.02 of the Series Supplement.

        Section 4.03  Statements to Certificateholders.

        (a)  Concurrently  with each  distribution  charged  to the  Certificate
Account and with respect to each  Distribution  Date the Master  Servicer  shall
forward to the  Trustee  and the Trustee  shall  either  forward by mail or make
available to each Holder and the Company,  via the Trustee's internet website, a
statement  (and  at  its  option,  any  additional  files  containing  the  same
information in an alternative format) setting forth information as to each Class
of Certificates, the Mortgage Pool and, if the Mortgage Pool is comprised of two
or more Loan Groups,  each Loan Group, to the extent applicable.  This statement
will include the information  set forth in an exhibit to the Series  Supplement.
Such exhibit shall set forth the Trustee's  internet  website  address  together
with a phone number. The Trustee shall mail to each Holder that requests a paper
copy by telephone a paper copy via first class mail.  The Trustee may modify the
distribution  procedures set forth in this Section provided that such procedures
are no less  convenient  for the  Certificateholders.  The Trustee shall provide
prior   notification   to   the   Company,   the   Master   Servicer   and   the
Certificateholders  regarding  any such  modification.  In addition,  the Master
Servicer shall provide to any manager of a trust fund  consisting of some or all
of the Certificates,  upon reasonable request, such additional information as is
reasonably  obtainable by the Master  Servicer at no  additional  expense to the
Master Servicer.

        (b) Within a  reasonable  period of time after the end of each  calendar
year,  the Master  Servicer shall  prepare,  or cause to be prepared,  and shall
forward,  or cause to be  forwarded,  to each  Person who at any time during the
calendar year was the Holder of a Certificate, other than a Class R Certificate,
a statement  containing the information set forth in clauses (i) and (ii) of the
exhibit to the Series Supplement  referred to in subsection (a) above aggregated
for such calendar year or

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<PAGE>

applicable  portion  thereof  during which such Person was a  Certificateholder.
Such obligation of the Master Servicer shall be deemed to have been satisfied to
the extent that  substantially  comparable  information shall be provided by the
Master Servicer pursuant to any requirements of the Code.

        (c) Within a  reasonable  period of time after the end of each  calendar
year,  the Master  Servicer shall  prepare,  or cause to be prepared,  and shall
forward,  or cause to be  forwarded,  to each  Person who at any time during the
calendar year was the Holder of a Class R  Certificate,  a statement  containing
the applicable  distribution  information provided pursuant to this Section 4.03
aggregated  for such calendar year or applicable  portion  thereof  during which
such  Person was the Holder of a Class R  Certificate.  Such  obligation  of the
Master  Servicer  shall be deemed  to have been  satisfied  to the  extent  that
substantially  comparable  information  shall be provided by the Master Servicer
pursuant to any requirements of the Code.

        (d)  Upon the  written  request  of any  Certificateholder,  the  Master
Servicer,  as soon as  reasonably  practicable,  shall  provide  the  requesting
Certificateholder with such information as is necessary and appropriate,  in the
Master  Servicer's  sole  discretion,  for  purposes  of  satisfying  applicable
reporting requirements under Rule 144A.

        Section       4.04  Distribution  of  Reports  to the  Trustee  and  the
                      Company; Advances by the Master Servicer.

        (a) Prior to the close of business on the Determination Date, the Master
Servicer  shall  furnish a written  statement  to the Trustee,  any  Certificate
Insurer,  any Paying Agent and the Company (the information in such statement to
be made  available  to  Certificateholders  by the Master  Servicer  on request)
setting  forth  (i) the  Available  Distribution  Amount  and (ii)  the  amounts
required to be  withdrawn  from the  Custodial  Account and  deposited  into the
Certificate  Account on the immediately  succeeding  Certificate Account Deposit
Date  pursuant to clause  (iii) of Section  4.01(a).  The  determination  by the
Master  Servicer of such  amounts  shall,  in the absence of obvious  error,  be
presumptively  deemed to be correct for all purposes  hereunder  and the Trustee
shall be protected in relying  upon the same  without any  independent  check or
verification.

        (b) On or before  2:00 P.M.  New York time on each  Certificate  Account
Deposit Date, the Master  Servicer  shall either (i) deposit in the  Certificate
Account from its own funds, or funds received therefor from the Subservicers, an
amount equal to the Advances to be made by the Master Servicer in respect of the
related  Distribution  Date,  which shall be in an aggregate amount equal to the
aggregate  amount of  Monthly  Payments  (with  each  interest  portion  thereof
adjusted to the Net  Mortgage  Rate),  less the amount of any related  Servicing
Modifications,  Debt Service  Reductions or reductions in the amount of interest
collectable  from the Mortgagor  pursuant to the  Soldiers'  and Sailors'  Civil
Relief Act of 1940, as amended,  or similar  legislation or regulations  then in
effect,  on the  Outstanding  Mortgage  Loans as of the related Due Date,  which
Monthly  Payments were  delinquent as of the close of business as of the related
Determination  Date;  provided  that no  Advance  shall be made if it would be a
Nonrecoverable  Advance,  (ii) withdraw from amounts on deposit in the Custodial
Account  and deposit in the  Certificate  Account all or a portion of the Amount
Held for Future  Distribution  in discharge of any such  Advance,  or (iii) make
advances in the form of any  combination of (i) and (ii)  aggregating the amount
of such Advance.  Any portion of the Amount Held for Future Distribution so used
shall be replaced by the Master Servicer by deposit in the

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Certificate  Account  on or  before  11:00  A.M.  New  York  time on any  future
Certificate  Account  Deposit Date to the extent that funds  attributable to the
Mortgage  Loans that are available in the  Custodial  Account for deposit in the
Certificate  Account on such Certificate Account Deposit Date shall be less than
payments to Certificateholders required to be made on the following Distribution
Date.  The  Master  Servicer  shall be  entitled  to use any  Advance  made by a
Subservicer  as  described  in Section  3.07(b)  that has been  deposited in the
Custodial  Account on or before  such  Distribution  Date as part of the Advance
made by the Master  Servicer  pursuant to this Section  4.04.  The amount of any
reimbursement  pursuant to Section 4.02(a) in respect of outstanding Advances on
any  Distribution  Date shall be allocated to specific  Monthly Payments due but
delinquent  for previous Due Periods,  which  allocation  shall be made,  to the
extent  practicable,  to Monthly  Payments  which have been  delinquent  for the
longest  period of time.  Such  allocations  shall be conclusive for purposes of
reimbursement  to the Master Servicer from recoveries on related  Mortgage Loans
pursuant to Section 3.10.

        The   determination   by  the  Master   Servicer  that  it  has  made  a
Nonrecoverable Advance or that any proposed Advance, if made, would constitute a
Nonrecoverable  Advance,  shall be evidenced by an Officers'  Certificate of the
Master Servicer delivered to the Company and the Trustee.

        If the Master  Servicer  determines as of the Business Day preceding any
Certificate  Account  Deposit  Date  that it will be unable  to  deposit  in the
Certificate  Account an amount equal to the Advance  required to be made for the
immediately succeeding Distribution Date, it shall give notice to the Trustee of
its inability to advance (such notice may be given by telecopy),  not later than
3:00 P.M.,  New York time, on such Business Day,  specifying the portion of such
amount  that it will be unable to  deposit.  Not later than 3:00 P.M.,  New York
time, on the Certificate Account Deposit Date the Trustee shall, unless by 12:00
Noon, New York time, on such day the Trustee shall have been notified in writing
(by  telecopy)  that the Master  Servicer  shall  have  directly  or  indirectly
deposited in the  Certificate  Account such portion of the amount of the Advance
as to which  the  Master  Servicer  shall  have  given  notice  pursuant  to the
preceding  sentence,  pursuant to Section 7.01,  (a) terminate all of the rights
and  obligations of the Master  Servicer under this Agreement in accordance with
Section 7.01 and (b) assume the rights and  obligations  of the Master  Servicer
hereunder,  including the  obligation to deposit in the  Certificate  Account an
amount equal to the Advance for the immediately succeeding Distribution Date.

        The Trustee shall deposit all funds it receives pursuant to this Section
4.04 into the Certificate Account.

        Section 4.05  Allocation of Realized Losses.

        As provided in Section 4.05 of the Series Supplement.

          Section 4.06  Reports of  Foreclosures  and  Abandonment  of Mortgaged
               Property.

        The Master Servicer or the Subservicers  shall file information  returns
with  respect  to the  receipt  of  mortgage  interests  received  in a trade or
business, the reports of foreclosures and abandonments of any Mortgaged Property
and the information returns relating to cancellation of indebtedness income with
respect to any Mortgaged Property required by Sections 6050H, 6050J and

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<PAGE>

6050P,  respectively,  of the Code,  and  deliver to the  Trustee  an  Officers'
Certificate  on or before  March 31 of each year  stating that such reports have
been filed.  Such reports shall be in form and substance  sufficient to meet the
reporting requirements imposed by Sections 6050H, 6050J and 6050P of the Code.

        Section 4.07  Optional Purchase of Defaulted Mortgage Loans.

        As to any  Mortgage  Loan which is  delinquent  in payment by 90 days or
more, the Master  Servicer may, at its option,  purchase such Mortgage Loan from
the Trustee at the Purchase Price  therefor.  If at any time the Master Servicer
makes a payment to the Certificate  Account  covering the amount of the Purchase
Price for such a Mortgage Loan, and the Master Servicer  provides to the Trustee
a  certification  signed by a Servicing  Officer stating that the amount of such
payment has been deposited in the  Certificate  Account,  then the Trustee shall
execute  the  assignment  of such  Mortgage  Loan at the  request  of the Master
Servicer without recourse to the Master Servicer, which shall succeed to all the
Trustee's  right,  title and  interest  in and to such  Mortgage  Loan,  and all
security and documents relative thereto.  Such assignment shall be an assignment
outright and not for  security.  The Master  Servicer  will  thereupon  own such
Mortgage, and all such security and documents, free of any further obligation to
the Trustee or the Certificateholders with respect thereto.

        If,  however  the  Master  Servicer  shall have  exercised  its right to
repurchase  a Mortgage  Loan  pursuant  to this  Section  4.07 upon the  written
request of and with funds provided by the Junior Certificateholder and thereupon
transferred  such  Mortgage  Loan to the  Junior  Certificateholder,  the Master
Servicer shall so notify the Trustee in writing.

        Section 4.08  Surety Bond.

        (a) If a Required Surety Payment is payable  pursuant to the Surety Bond
with respect to any Additional  Collateral  Loan,  the Master  Servicer shall so
notify the  Trustee as soon as  reasonably  practicable  and the  Trustee  shall
promptly  complete the notice in the form of Attachment 1 to the Surety Bond and
shall  promptly  submit  such  notice to the  Surety  as a claim for a  Required
Surety.  The Master Servicer shall upon request assist the Trustee in completing
such  notice and shall  provide  any  information  requested  by the  Trustee in
connection therewith.

        (b) Upon receipt of a Required  Surety Payment from the Surety on behalf
of the Holders of  Certificates,  the Trustee shall deposit such Required Surety
Payment in the  Certificate  Account and shall  distribute  such Required Surety
Payment,  or the proceeds thereof,  in accordance with the provisions of Section
4.02.

        (c) The Trustee shall (i) receive as  attorney-in-fact of each Holder of
a Certificate  any Required Surety Payment from the Surety and (ii) disburse the
same to the Holders of such Certificates as set forth in Section 4.02.

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<PAGE>

                                    ARTICLE V

                                THE CERTIFICATES

        Section 5.01  The Certificates.

        (a) The  Senior,  Class M,  Class B and  Class R  Certificates  shall be
substantially  in the forms set forth in Exhibits  A, B, C and D,  respectively,
and shall,  on original  issue,  be executed and delivered by the Trustee to the
Certificate  Registrar for  authentication  and delivery to or upon the order of
the  Company  upon  receipt  by the  Trustee  or one or more  Custodians  of the
documents  specified in Section 2.01. The Certificates  shall be issuable in the
minimum  denominations  designated  in the  Preliminary  Statement to the Series
Supplement.

        The Certificates  shall be executed by manual or facsimile  signature on
behalf of an authorized officer of the Trustee.  Certificates bearing the manual
or facsimile  signatures of individuals who were at any time the proper officers
of the Trustee shall bind the Trustee,  notwithstanding that such individuals or
any of them have ceased to hold such  offices  prior to the  authentication  and
delivery of such  Certificate  or did not hold such  offices at the date of such
Certificates.  No  Certificate  shall be  entitled  to any  benefit  under  this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of  authentication  substantially  in the form provided for herein
executed by the Certificate Registrar by manual signature,  and such certificate
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.

        (b) Except as provided below,  registration  of Book-Entry  Certificates
may not be transferred by the Trustee except to another  Depository  that agrees
to hold such Certificates for the respective  Certificate  Owners with Ownership
Interests therein.  The Holders of the Book-Entry  Certificates shall hold their
respective  Ownership Interests in and to each of such Certificates  through the
book-entry facilities of the Depository and, except as provided below, shall not
be entitled to Definitive  Certificates in respect of such Ownership  Interests.
All transfers by Certificate Owners of their respective  Ownership  Interests in
the  Book-Entry  Certificates  shall be made in accordance  with the  procedures
established by the Depository  Participant or brokerage firm  representing  such
Certificate  Owner.  Each  Depository  Participant  shall transfer the Ownership
Interests  only  in  the  Book-Entry   Certificates  of  Certificate  Owners  it
represents or of brokerage  firms for which it acts as agent in accordance  with
the Depository's normal procedures.

        The  Trustee,  the Master  Servicer and the Company may for all purposes
(including  the making of payments due on the  respective  Classes of Book-Entry
Certificates)  deal with the Depository as the authorized  representative of the
Certificate  Owners  with  respect  to  the  respective  Classes  of  Book-Entry
Certificates  for the purposes of  exercising  the rights of  Certificateholders
hereunder.  The rights of  Certificate  Owners  with  respect to the  respective
Classes of Book-Entry  Certificates shall be limited to those established by law
and agreements between such Certificate  Owners and the Depository  Participants
and brokerage firms representing such Certificate Owners.  Multiple requests and
directions  from,  and  votes  of,  the  Depository  as  Holder  of any Class of
Book-Entry  Certificates  with  respect to any  particular  matter  shall not be
deemed inconsistent if they

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<PAGE>

are made with respect to different Certificate Owners. The Trustee may establish
a reasonable  record date in connection with  solicitations  of consents from or
voting by  Certificateholders  and shall give notice to the  Depository  of such
record date.

        If (i)(A) the Company advises the Trustee in writing that the Depository
is no longer  willing or able to  properly  discharge  its  responsibilities  as
Depository and (B) the Company is unable to locate a qualified successor or (ii)
the  Company  at its option  advises  the  Trustee in writing  that it elects to
terminate the book-entry system through the Depository, the Trustee shall notify
all Certificate  Owners,  through the Depository,  of the occurrence of any such
event and of the availability of Definitive  Certificates to Certificate  Owners
requesting   the  same.   Upon  surrender  to  the  Trustee  of  the  Book-Entry
Certificates by the Depository,  accompanied by registration  instructions  from
the  Depository  for  registration  of  transfer,  the  Trustee  shall issue the
Definitive  Certificates.  Neither  the  Company,  the Master  Servicer  nor the
Trustee shall be liable for any actions taken by the  Depository or its nominee,
including,  without  limitation,  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 all references herein
to obligations imposed upon or to be performed by the Company in connection with
the issuance of the Definitive  Certificates pursuant to this Section 5.01 shall
be deemed to be imposed upon and  performed by the Trustee,  and the Trustee and
the Master Servicer shall  recognize the Holders of the Definitive  Certificates
as Certificateholders hereunder.

        (c) From time to time Residential  Funding, as the initial Holder of the
Class A-V  Certificates,  may exchange such Holder's Class A-V  Certificates for
Subclasses  of Class A-V  Certificates  to be issued  under  this  Agreement  by
delivering a "Request for Exchange" substantially in the form attached hereto as
Exhibit N executed by an authorized officer, which Subclasses, in the aggregate,
will   represent  the   Uncertificated   Class  A-V  REMIC   Regular   Interests
corresponding  to the Class A-V  Certificates so surrendered  for exchange.  Any
Subclass so issued  shall bear a  numerical  designation  commencing  with Class
A-V-1 and continuing sequentially thereafter, and will evidence ownership of the
Uncertificated  REMIC Regular Interest or Interests specified in writing by such
initial  Holder to the  Trustee.  The  Trustee  may  conclusively,  without  any
independent  verification,  rely on,  and  shall be  protected  in  relying  on,
Residential  Funding's  determinations  of the  Uncertificated  Class  A-V REMIC
Regular Interests corresponding to any Subclass, the Initial Notional Amount and
the initial  Pass-Through  Rate on a Subclass  as set forth in such  Request for
Exchange and the Trustee  shall have no duty to determine if any  Uncertificated
Class  A-V  REMIC  Regular  Interest   designated  on  a  Request  for  Exchange
corresponds  to a Subclass which has  previously  been issued.  Each Subclass so
issued shall be  substantially  in the form set forth in Exhibit A and shall, on
original  issue,  be executed and  delivered  by the Trustee to the  Certificate
Registrar for  authentication  and delivery in accordance with Section  5.01(a).
Every  Certificate  presented or surrendered  for exchange by the initial Holder
shall (if so  required  by the  Trustee or the  Certificate  Registrar)  be duly
endorsed by, or be accompanied by a written  instrument of transfer  attached to
such  Certificate and shall be completed to the  satisfaction of the Trustee and
the  Certificate  Registrar  duly executed by, the initial Holder thereof or his
attorney duly authorized in writing.  The  Certificates of any Subclass of Class
A-V  Certificates  may be transferred  in whole,  but not in part, in accordance
with the provisions of Section 5.02.

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<PAGE>

        Section 5.02  Registration of Transfer and Exchange of Certificates.

        (a) The Trustee shall cause to be kept at one of the offices or agencies
to be appointed by the Trustee in accordance with the provisions of Section 8.12
a Certificate  Register in which,  subject to such reasonable  regulations as it
may prescribe,  the Trustee shall provide for the  registration  of Certificates
and of transfers and exchanges of Certificates as herein  provided.  The Trustee
is initially  appointed  Certificate  Registrar  for the purpose of  registering
Certificates and transfers and exchanges of Certificates as herein provided. The
Certificate Registrar,  or the Trustee, shall provide the Master Servicer with a
certified list of Certificateholders as of each Record Date prior to the related
Determination Date.

        (b) Upon surrender for  registration  of transfer of any  Certificate at
any office or agency of the  Trustee  maintained  for such  purpose  pursuant to
Section  8.12 and,  in the case of any Class M, Class B or Class R  Certificate,
upon  satisfaction of the conditions set forth below,  the Trustee shall execute
and the Certificate Registrar shall authenticate and deliver, in the name of the
designated  transferee or  transferees,  one or more new  Certificates of a like
Class (or Subclass) and aggregate Percentage Interest.

        (c)  At  the  option  of  the  Certificateholders,  Certificates  may be
exchanged for other Certificates of authorized denominations of a like Class (or
Subclass) and aggregate Percentage Interest,  upon surrender of the Certificates
to be exchanged at any such office or agency.  Whenever any  Certificates are so
surrendered for exchange the Trustee shall execute and the Certificate Registrar
shall  authenticate  and  deliver  the  Certificates  of such  Class  which  the
Certificateholder  making the exchange is entitled to receive. Every Certificate
presented or  surrendered  for transfer or exchange shall (if so required by the
Trustee or the Certificate  Registrar) be duly endorsed by, or be 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 attorney duly
authorized in writing.

        (d) No  transfer,  sale,  pledge  or  other  disposition  of a  Class  B
Certificate  shall  be  made  unless  such  transfer,   sale,  pledge  or  other
disposition is exempt from the  registration  requirements of the Securities Act
of 1933, as amended,  and any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that a  transfer  of a Class B
Certificate  is to be made  either  (i)(A) the Trustee  shall  require a written
Opinion of Counsel  acceptable to and in form and substance  satisfactory to the
Trustee and the Company that such transfer may be made pursuant to an exemption,
describing the applicable  exemption and the basis  therefor,  from said Act and
laws or is being made  pursuant to said Act and laws,  which  Opinion of Counsel
shall not be an  expense of the  Trustee,  the  Company  or the Master  Servicer
(except that, if such transfer is made by the Company or the Master  Servicer or
any Affiliate  thereof,  the Company or the Master  Servicer  shall provide such
Opinion of Counsel at their own expense);  provided that such Opinion of Counsel
will not be  required  in  connection  with  the  initial  transfer  of any such
Certificate  by the  Company  or any  Affiliate  thereof  to the  Company  or an
Affiliate of the Company and (B) the Trustee  shall  require the  transferee  to
execute a representation letter,  substantially in the form of Exhibit H hereto,
and the Trustee shall require the transferor to execute a representation letter,
substantially  in the form of Exhibit I hereto,  each  acceptable to and in form
and  substance  satisfactory  to the Company and the Trustee  certifying  to the
Company  and  the   Trustee  the  facts   surrounding   such   transfer,   which
representation  letters  shall not be an expense of the Trustee,  the Company or
the Master Servicer;

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<PAGE>

provided,  however,  that such  representation  letters  will not be required in
connection  with any  transfer  of any such  Certificate  by the  Company or any
Affiliate thereof to the Company or an Affiliate of the Company, and the Trustee
shall be entitled to conclusively  rely upon a representation  (which,  upon the
request of the Trustee, shall be a written  representation) from the Company, of
the  status  of such  transferee  as an  Affiliate  of the  Company  or (ii) the
prospective  transferee of such a  Certificate  shall be required to provide the
Trustee,  the  Company  and  the  Master  Servicer  with  an  investment  letter
substantially  in the form of Exhibit J  attached  hereto (or such other form as
the Company in its sole discretion deems  acceptable),  which investment  letter
shall not be an expense of the Trustee, the Company or the Master Servicer,  and
which investment letter states that, among other things,  such transferee (A) is
a "qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the  accounts of other  "qualified  institutional  buyers" as defined
under Rule 144A, and (B) is aware that the proposed  transferor  intends to rely
on the exemption  from  registration  requirements  under the  Securities Act of
1933,  as  amended,  provided by Rule 144A.  The Holder of any such  Certificate
desiring to effect any such transfer,  sale, pledge or other disposition  shall,
and does  hereby  agree to,  indemnify  the  Trustee,  the  Company,  the Master
Servicer and the Certificate  Registrar against any liability that may result if
the transfer,  sale, pledge or other disposition is not so exempt or is not made
in accordance with such federal and state laws.

        (e) (i) In the case of any Class B or Class R Certificate  presented for
registration in the name of any Person,  either (A) the Trustee shall require an
Opinion of Counsel  acceptable to and in form and substance  satisfactory to the
Trustee,  the Company and the Master Servicer to the effect that the purchase or
holding of such Class B or Class R Certificate is permissible  under  applicable
law, will not  constitute  or result in any  non-exempt  prohibited  transaction
under  Section 406 of the Employee  Retirement  Income  Security Act of 1974, as
amended ("ERISA"),  or Section 4975 of the Code (or comparable provisions of any
subsequent  enactments),  and will not subject the  Trustee,  the Company or the
Master  Servicer  to any  obligation  or  liability  (including  obligations  or
liabilities  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken in this  Agreement,  which Opinion of Counsel shall not be an expense
of the  Trustee,  the  Company or the  Master  Servicer  or (B) the  prospective
Transferee shall be required to provide the Trustee,  the Company and the Master
Servicer  with a  certification  to the  effect  set forth in  paragraph  six of
Exhibit H (with  respect to any Class B  Certificate)  or paragraph  fourteen of
Exhibit  G-1 (with  respect to any Class R  Certificate),  which the Trustee may
rely upon without further inquiry or investigation, or such other certifications
as the Trustee may deem  desirable or necessary in order to establish  that such
Transferee or the Person in whose name such registration is requested either (a)
is not an  employee  benefit  plan  or  other  plan  subject  to the  prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  Person
(including an  investment  manager,  a named  fiduciary or a trustee of any such
plan) who is using  "plan  assets" of any such plan to effect  such  acquisition
(each,  a "Plan  Investor") or (b) in the case of any Class B  Certificate,  the
following conditions are satisfied: (i) such Transferee is an insurance company,
(ii) the source of funds used to purchase or hold such  Certificate (or interest
therein)  is  an  "insurance  company  general  account"  (as  defined  in  U.S.
Department of Labor Prohibited  Transaction Class Exemption  ("PTCE") 95-60, and
(iii) the  conditions  set forth in  Sections  I and III of PTCE 95-60 have been
satisfied  (each entity that satisfies  this clause (b), a "Complying  Insurance
Company").

                      (ii)  Any  Transferee  of a  Class M  Certificate  will be
               deemed to have  represented  by virtue of its purchase or holding
               of such Certificate (or interest

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<PAGE>

               therein) that either (a) such  Transferee is not a Plan Investor,
               (b) it has acquired and is holding such  Certificate  in reliance
               on Prohibited  Transaction  Exemption ("PTE") 94-29, 59 Fed. Reg.
               14674 (March 29,  1994),  as amended by PTE 97-34,  62 Fed.  Reg.
               39021  (July 21,  1997),  and PTE  2000-58,  65 Fed.  Reg.  67765
               (November   13,  2000)  (the  "RFC   Exemption"),   and  that  it
               understands that there are certain conditions to the availability
               of the RFC  Exemption  including  that such  Certificate  must be
               rated,  at the time of  purchase,  not lower than  "BBB-" (or its
               equivalent)  by  Standard & Poor's,  Fitch or Moody's or (c) such
               Transferee is a Complying Insurance Company.

                      (iii)  (A) If any  Class M  Certificate  (or any  interest
               therein)  is acquired or held by any Person that does not satisfy
               the conditions  described in paragraph (ii) above,  then the last
               preceding Transferee that either (i) is not a Plan Investor, (ii)
               acquired such  Certificate in compliance  with the RFC Exemption,
               or (iii) is a Complying  Insurance Company shall be restored,  to
               the extent  permitted  by law, to all rights and  obligations  as
               Certificate  Owner  thereof  retroactive  to  the  date  of  such
               Transfer of such Class M Certificate.  The Trustee shall be under
               no  liability  to any Person for making any  payments due on such
               Certificate to such preceding Transferee.

                             (B)   Any   purported   Certificate   Owner   whose
                      acquisition  or  holding  of any Class M  Certificate  (or
                      interest   therein)  was  effected  in  violation  of  the
                      restrictions  in this Section  5.02(e) shall indemnify and
                      hold  harmless  the  Company,   the  Trustee,  the  Master
                      Servicer,  any  Subservicer,  and the Trust  Fund from and
                      against any and all liabilities, claims, costs or expenses
                      incurred by such  parties as a result of such  acquisition
                      or holding.

        (f) (i) 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  authorized the Trustee or its designee under clause  (iii)(A)
below to deliver  payments to a Person  other than such Person and to  negotiate
the terms of any mandatory  sale under clause  (iii)(B) below and to execute all
instruments of transfer and to do all other things  necessary in connection with
any such sale. The rights of each Person  acquiring any Ownership  Interest in a
Class R Certificate are expressly subject to the following provisions:

                             (A) 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.

                             (B) In connection with any proposed Transfer of any
                      Ownership  Interest in a Class R Certificate,  the Trustee
                      shall  require  delivery to it, and shall not register the
                      Transfer of any Class R Certificate  until its receipt of,
                      (I) an affidavit and agreement (a "Transfer  Affidavit and
                      Agreement,"  in the form  attached  hereto as Exhibit G-1)
                      from the proposed Transferee, in form

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                      and  substance   satisfactory  to  the  Master   Servicer,
                      representing and warranting,  among other things,  that it
                      is a Permitted  Transferee,  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,
                      that for so long as it retains its Ownership Interest in a
                      Class  R  Certificate,   it  will  endeavor  to  remain  a
                      Permitted  Transferee,   and  that  it  has  reviewed  the
                      provisions of this Section  5.02(f) and agrees to be bound
                      by them,  and  (II) a  certificate,  in the form  attached
                      hereto as Exhibit G-2, from the Holder wishing to transfer
                      the   Class  R   Certificate,   in  form   and   substance
                      satisfactory  to the  Master  Servicer,  representing  and
                      warranting,  among  other  things,  that no purpose of the
                      proposed   Transfer  is  to  impede  the   assessment   or
                      collection of tax.

                             (C)  Notwithstanding  the  delivery  of a  Transfer
                      Affidavit  and  Agreement by a proposed  Transferee  under
                      clause (B) above, if a Responsible  Officer of the Trustee
                      who is assigned  to this  Agreement  has actual  knowledge
                      that  the   proposed   Transferee   is  not  a   Permitted
                      Transferee,  no  Transfer  of an  Ownership  Interest in a
                      Class R Certificate to such proposed  Transferee  shall be
                      effected.

                             (D) Each Person  holding or acquiring any Ownership
                      Interest  in a  Class R  Certificate  shall  agree  (x) to
                      require a Transfer  Affidavit and Agreement from any other
                      Person  to whom  such  Person  attempts  to  transfer  its
                      Ownership Interest in a Class R Certificate and (y) not to
                      transfer  its  Ownership  Interest  unless it  provides  a
                      certificate to the Trustee in the form attached  hereto as
                      Exhibit G-2.

                             (E) Each Person  holding or  acquiring an Ownership
                      Interest  in a  Class  R  Certificate,  by  purchasing  an
                      Ownership Interest in such Certificate, agrees to give the
                      Trustee written notice that it is a "pass-through interest
                      holder"   within  the   meaning  of   Temporary   Treasury
                      Regulations Section  1.67-3T(a)(2)(i)(A)  immediately upon
                      acquiring an Ownership  Interest in a Class R Certificate,
                      if it is, or is holding an Ownership Interest in a Class R
                      Certificate  on  behalf  of,  a   "pass-through   interest
                      holder."

                      (ii) The Trustee will register the Transfer of any Class R
               Certificate only if it shall have received the Transfer Affidavit
               and  Agreement,  a  certificate  of the  Holder  requesting  such
               transfer  in the form  attached  hereto as Exhibit G-2 and all of
               such other  documents as shall have been  reasonably  required by
               the Trustee as a condition to such registration. Transfers of the
               Class  R   Certificates   to   Non-United   States   Persons  and
               Disqualified  Organizations (as defined in Section  860E(e)(5) of
               the Code) are prohibited.

                      (iii) (A) If any Disqualified  Organization shall become a
               holder  of  a  Class  R  Certificate,  then  the  last  preceding
               Permitted  Transferee shall be restored,  to the extent permitted
               by  law,  to  all  rights  and   obligations  as  Holder  thereof
               retroactive

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<PAGE>

               to the date of  registration  of such  Transfer  of such  Class R
               Certificate.  If a Non-United States Person shall become a holder
               of a Class R Certificate,  then the last preceding  United States
               Person shall be restored,  to the extent permitted by law, to all
               rights and obligations as Holder thereof  retroactive to the date
               of registration of such Transfer of such Class R Certificate.  If
               a transfer of a Class R Certificate  is  disregarded  pursuant to
               the  provisions  of  Treasury  Regulations  Section  1.860E-1  or
               Section 1.860G-3,  then the last preceding  Permitted  Transferee
               shall be restored,  to the extent permitted by law, to all rights
               and  obligations  as Holder  thereof  retroactive  to the date of
               registration  of such 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  5.02(f) or for making any payments
               due on such  Certificate  to the holder thereof or for taking any
               other action with respect to such holder under the  provisions of
               this Agreement.

                             (B) If any  purported  Transferee  shall  become  a
                      Holder  of a  Class  R  Certificate  in  violation  of the
                      restrictions  in this  Section  5.02(f)  and to the extent
                      that the  retroactive  restoration  of the  rights  of the
                      Holder of such Class R Certificate  as described in clause
                      (iii)(A) above shall be invalid, illegal or unenforceable,
                      then the Master  Servicer  shall  have the right,  without
                      notice to the  holder or any prior  holder of such Class R
                      Certificate,  to  sell  such  Class  R  Certificate  to  a
                      purchaser selected by the Master Servicer on such terms as
                      the Master Servicer may choose. Such purported  Transferee
                      shall   promptly   endorse  and   deliver   each  Class  R
                      Certificate  in accordance  with the  instructions  of the
                      Master Servicer. Such purchaser may be the Master Servicer
                      itself  or any  Affiliate  of  the  Master  Servicer.  The
                      proceeds of such sale, net of the  commissions  (which may
                      include  commissions payable to the Master Servicer or its
                      Affiliates),  expenses  and  taxes  due,  if any,  will be
                      remitted  by  the  Master   Servicer  to  such   purported
                      Transferee.  The terms and  conditions  of any sale  under
                      this  clause  (iii)(B)  shall  be  determined  in the sole
                      discretion of the Master Servicer, and the Master Servicer
                      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.

                      (iv) The Master Servicer, on behalf of the Trustee,  shall
               make  available,  upon  written  request  from the  Trustee,  all
               information  necessary to compute any tax imposed (A) as a result
               of the Transfer of an Ownership Interest in a Class R Certificate
               to any Person who is a Disqualified  Organization,  including the
               information   regarding  "excess  inclusions"  of  such  Class  R
               Certificates  required  to be provided  to the  Internal  Revenue
               Service and certain Persons as described in Treasury  Regulations
               Sections  1.860D-1(b)(5) and 1.860E-2(a)(5),  and (B) as a result
               of any  regulated  investment  company,  real  estate  investment
               trust,   common  trust  fund,   partnership,   trust,  estate  or
               organization  described in Section 1381 of the Code that holds an
               Ownership  Interest in a Class R Certificate  having as among its
               record  holders  at any time  any  Person  who is a  Disqualified
               Organization.   Reasonable   compensation   for  providing   such
               information  may be  required  by the Master  Servicer  from such
               Person.

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                      (v) The provisions of this Section 5.02(f) set forth prior
               to this  clause  (v) may be  modified,  added  to or  eliminated,
               provided that there shall have been  delivered to the Trustee the
               following:

                             (A) written notification from each Rating Agency to
                      the  effect   that  the   modification,   addition  to  or
                      elimination of such  provisions will not cause such Rating
                      Agency to downgrade its then-current  ratings,  if any, of
                      any Class of the Senior,  Class M or Class B  Certificates
                      below the lower of the  then-current  rating or the rating
                      assigned to such  Certificates  as of the Closing  Date by
                      such Rating Agency; and

                             (B)  subject  to  Section  10.01(f),  an  Officers'
                      Certificate of the Master Servicer stating that the Master
                      Servicer has  received an Opinion of Counsel,  in form and
                      substance  satisfactory  to the  Master  Servicer,  to the
                      effect that such  modification,  addition to or absence of
                      such  provisions  will not cause any  portion of any REMIC
                      formed under the Series  Supplement to cease to qualify as
                      a REMIC and will not cause  (x) any  portion  of any REMIC
                      formed  under the  Series  Supplement  to be subject to an
                      entity-level  tax  caused by the  Transfer  of any Class R
                      Certificate   to  a   Person   that   is  a   Disqualified
                      Organization or (y) a Certificateholder  or another Person
                      to  be  subject  to a  REMIC-related  tax  caused  by  the
                      Transfer of a Class R Certificate  to a Person that is not
                      a Permitted Transferee.

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

     (h) All  Certificates  surrendered  for  transfer  and  exchange  shall  be
destroyed by the Certificate Registrar.

        Section 5.03  Mutilated, Destroyed, Lost or Stolen Certificates.

        If (i) any  mutilated  Certificate  is  surrendered  to the  Certificate
Registrar,  or the Trustee and the  Certificate  Registrar  receive  evidence to
their  satisfaction of the destruction,  loss or theft of any  Certificate,  and
(ii) there is  delivered  to the  Trustee  and the  Certificate  Registrar  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 or the Certificate  Registrar that
such  Certificate has been acquired by a bona fide purchaser,  the Trustee shall
execute  and the  Certificate  Registrar  shall  authenticate  and  deliver,  in
exchange  for or in lieu  of any  such  mutilated,  destroyed,  lost  or  stolen
Certificate,  a new Certificate of like tenor, Class and Percentage Interest but
bearing a number not contemporaneously outstanding. Upon the issuance of any new
Certificate  under this  Section,  the  Trustee may require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation thereto and any other expenses  (including the fees and expenses of the
Trustee  and the  Certificate  Registrar)  connected  therewith.  Any  duplicate
Certificate issued pursuant to this Section

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<PAGE>

shall constitute  complete and  indefeasible  evidence of ownership in the Trust
Fund,  as if  originally  issued,  whether or not the lost,  stolen or destroyed
Certificate shall be found at any time.

        Section 5.04  Persons Deemed Owners.

        Prior to due presentation of a Certificate for registration of transfer,
the Company,  the Master Servicer,  the Trustee,  any Certificate  Insurer,  the
Certificate  Registrar and any agent of the Company,  the Master  Servicer,  the
Trustee,  any  Certificate  Insurer or 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  distributions pursuant to Section 4.02
and for all other purposes  whatsoever,  except as and to the extent provided in
the  definition  of  "Certificateholder,"  and neither the  Company,  the Master
Servicer,  the Trustee, any Certificate  Insurer, the Certificate  Registrar nor
any agent of the Company,  the Master  Servicer,  the Trustee,  any  Certificate
Insurer or the Certificate Registrar shall be affected by notice to the contrary
except as provided in Section 5.02(f).

        Section 5.05  Appointment of Paying Agent.

        The  Trustee  may  appoint  a Paying  Agent  for the  purpose  of making
distributions to the  Certificateholders  pursuant to Section 4.02. In the event
of any  such  appointment,  on or  prior to each  Distribution  Date the  Master
Servicer on behalf of the Trustee  shall  deposit or cause to be deposited  with
the Paying Agent a sum sufficient to make the payments to the Certificateholders
in the amounts and in the manner  provided for in Section  4.02,  such sum to be
held in trust for the benefit of the Certificateholders.

        The Trustee  shall cause each Paying Agent to execute and deliver to the
Trustee an  instrument  in which such Paying  Agent shall agree with the Trustee
that such  Paying  Agent  will hold all sums held by it for the  payment  to the
Certificateholders in trust for the benefit of the  Certificateholders  entitled
thereto  until such sums shall be paid to such  Certificateholders.  Any sums so
held by such Paying Agent shall be held only in Eligible  Accounts to the extent
such sums are not distributed to the  Certificateholders  on the date of receipt
by such Paying Agent.

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                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER

          Section 6.01  Respective  Liabilities  of the  Company  and the Master
               Servicer.

        The Company and the Master  Servicer  shall each be liable in accordance
herewith only to the extent of the  obligations  specifically  and  respectively
imposed upon and undertaken by the Company and the Master  Servicer  herein.  By
way of  illustration  and not  limitation,  the  Company  is not  liable for the
servicing  and  administration  of the  Mortgage  Loans,  nor is it obligated by
Section 7.01 or Section 10.01 to assume any  obligations of the Master  Servicer
or to appoint a designee  to assume such  obligations,  nor is it liable for any
other  obligation  hereunder that it may, but is not obligated to, assume unless
it elects to assume such obligation in accordance herewith.

          Section 6.02  Merger or  Consolidation  of the  Company  or the Master
               Servicer; Assignment of Rights and Delegation of Duties by Master
               Servicer.

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

        (b) Any Person  into which the  Company  or the Master  Servicer  may be
merged  or  consolidated,  or any  corporation  resulting  from  any  merger  or
consolidation  to which the Company or the Master  Servicer shall be a party, or
any Person  succeeding  to the  business of the Company or the Master  Servicer,
shall be the  successor of the Company or the Master  Servicer,  as the case may
be,  hereunder,  without the execution or filing of any paper or any further act
on the  part of any of the  parties  hereto,  anything  herein  to the  contrary
notwithstanding;  provided,  however,  that the successor or surviving Person to
the Master  Servicer  shall be qualified to service  mortgage loans on behalf of
Fannie Mae or Freddie  Mac;  and  provided  further  that each  Rating  Agency's
ratings,  if any,  of the  Senior,  Class M or Class B  Certificates  in  effect
immediately prior to such merger or consolidation will not be qualified, reduced
or withdrawn as a result  thereof (as  evidenced by a letter to such effect from
each Rating Agency).

        (c) Notwithstanding  anything else in this Section 6.02 and Section 6.04
to the  contrary,  the Master  Servicer  may assign its rights and  delegate its
duties and obligations under this Agreement;  provided that the Person accepting
such  assignment or  delegation  shall be a Person which is qualified to service
mortgage   loans  on  behalf  of  Fannie  Mae  or  Freddie  Mac,  is  reasonably
satisfactory to the Trustee and the Company,  is willing to service the Mortgage
Loans and executes and delivers to the Company and the Trustee an agreement,  in
form and substance reasonably satisfactory to the Company and the Trustee, which
contains an  assumption by such Person of the due and punctual  performance  and
observance  of each  covenant  and  condition to be performed or observed by the
Master Servicer under this Agreement; provided further that each Rating Agency's

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rating of the Classes of Certificates that have been rated in effect immediately
prior to such  assignment  and  delegation  will not be  qualified,  reduced  or
withdrawn  as a result of such  assignment  and  delegation  (as  evidenced by a
letter  to such  effect  from  each  Rating  Agency).  In the  case of any  such
assignment  and  delegation,  the Master  Servicer  shall be  released  from its
obligations  under this Agreement,  except that the Master Servicer shall remain
liable for all  liabilities  and  obligations  incurred by it as Master Servicer
hereunder  prior to the  satisfaction  of the conditions to such  assignment and
delegation set forth in the next preceding sentence.

          Section 6.03  Limitation  on  Liability  of the  Company,  the  Master
               Servicer and Others.

        Neither  the  Company,  the Master  Servicer  nor any of the  directors,
officers,  employees  or agents of the Company or the Master  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 Company,  the Master Servicer or any such Person
against any breach of warranties or representations made herein or any liability
which would otherwise be imposed by reason of willful misfeasance,  bad faith or
gross negligence in the performance of duties or by reason of reckless disregard
of obligations and duties  hereunder.  The Company,  the Master Servicer and any
director,  officer,  employee or agent of the Company or the Master Servicer may
rely in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising  hereunder.  The Company,
the Master Servicer and any director,  officer, employee or agent of the Company
or the Master  Servicer shall be indemnified by the Trust Fund 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  Mortgage  Loan or Mortgage  Loans
(except as any such loss,  liability or expense shall be otherwise  reimbursable
pursuant  to this  Agreement)  and any loss,  liability  or expense  incurred by
reason of willful misfeasance,  bad faith or gross negligence in the performance
of duties hereunder or by reason of reckless disregard of obligations and duties
hereunder.

        Neither  the  Company  nor  the  Master  Servicer  shall  be  under  any
obligation to appear in, prosecute or defend any legal or administrative action,
proceeding,  hearing or  examination  that is not  incidental to its  respective
duties  under this  Agreement  and which in its  opinion  may  involve it in any
expense or liability; provided, however, that the Company or the Master Servicer
may  in its  discretion  undertake  any  such  action,  proceeding,  hearing  or
examination that it may deem necessary or desirable in respect to this Agreement
and the  rights  and  duties of the  parties  hereto  and the  interests  of the
Certificateholders  hereunder.  In such event,  the legal  expenses and costs of
such action,  proceeding,  hearing or  examination  and any liability  resulting
therefrom  shall be expenses,  costs and  liabilities of the Trust Fund, and the
Company and the Master Servicer shall be entitled to be reimbursed  therefor out
of amounts  attributable  to the  Mortgage  Loans on  deposit  in the  Custodial
Account as provided by Section 3.10 and, on the Distribution  Date(s)  following
such reimbursement,  the aggregate of such expenses and costs shall be allocated
in reduction of the Accrued Certificate  Interest on each Class entitled thereto
in the same  manner as if such  expenses  and  costs  constituted  a  Prepayment
Interest Shortfall.

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        Section 6.04  Company and Master Servicer Not to Resign.

        Subject to the  provisions of Section 6.02,  neither the Company nor the
Master  Servicer shall resign from its respective  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  Company or the Master  Servicer  shall be  evidenced  by an
Opinion of Counsel to such effect delivered to the Trustee.  No such resignation
by the Master  Servicer shall become  effective until the Trustee or a successor
servicer  shall  have  assumed  the  Master  Servicer's   responsibilities   and
obligations in accordance with Section 7.02.

                                   ARTICLE VII

                                     DEFAULT

        Section 7.01  Events of Default.

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

                      (i) the Master  Servicer shall fail to distribute or cause
               to be distributed to the Holders of Certificates of any Class any
               distribution   required  to  be  made  under  the  terms  of  the
               Certificates  of such  Class and this  Agreement  and,  in either
               case,  such failure shall  continue  unremedied for a period of 5
               days after the date upon which  written  notice of such  failure,
               requiring  such failure to be remedied,  shall have been given to
               the  Master  Servicer  by the  Trustee  or the  Company or to the
               Master  Servicer,  the  Company and the Trustee by the Holders of
               Certificates  of  such  Class  evidencing   Percentage  Interests
               aggregating not less than 25%; or

                      (ii) the Master  Servicer shall fail to observe or perform
               in any material  respect any other of the covenants or agreements
               on the part of the Master Servicer  contained in the Certificates
               of any Class or in this Agreement and such failure shall continue
               unremedied  for a period of 30 days  (except  that such number of
               days shall be 15 in the case of a failure to pay the  premium for
               any Required  Insurance  Policy)  after the date on which written
               notice of such failure,  requiring the same to be remedied, shall
               have been  given to the  Master  Servicer  by the  Trustee or the
               Company,  or to the Master Servicer,  the Company and the Trustee
               by the Holders of  Certificates of any Class  evidencing,  in the
               case of any such Class, Percentage Interests aggregating not less
               than 25%; or

                      (iii)  a  decree   or  order  of  a  court  or  agency  or
               supervisory  authority having  jurisdiction in the premises in an
               involuntary  case under any  present  or future  federal or state
               bankruptcy, insolvency or similar law or appointing a conservator
               or receiver or  liquidator  in any  insolvency,  readjustment  of
               debt,   marshalling   of  assets  and   liabilities   or  similar
               proceedings, or for the winding-up or liquidation of its affairs,

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<PAGE>

               shall have been  entered  against  the Master  Servicer  and such
               decree or order  shall have  remained  in force  undischarged  or
               unstayed for a period of 60 days; or

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

                      (v)  the  Master  Servicer  shall  admit  in  writing  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; or

                      (vi) the Master Servicer shall notify the Trustee pursuant
               to  Section   4.04(b)  that  it  is  unable  to  deposit  in  the
               Certificate Account an amount equal to the Advance.

        If an Event of  Default  described  in clauses  (i)-(v) of this  Section
shall  occur,  then,  and in each and every such case,  so long as such Event of
Default shall not have been remedied, either the Company or the Trustee may, and
at the  direction  of Holders of  Certificates  entitled  to at least 51% of the
Voting Rights,  the Trustee shall,  by notice in writing to the Master  Servicer
(and to the  Company if given by the  Trustee or to the  Trustee if given by the
Company),  terminate all of the rights and  obligations  of the Master  Servicer
under this Agreement and in and to the Mortgage Loans and the proceeds  thereof,
other than its rights as a Certificateholder  hereunder.  If an Event of Default
described in clause (vi) hereof shall occur, the Trustee shall, by notice to the
Master  Servicer and the Company,  immediately  terminate  all of the rights and
obligations  of the  Master  Servicer  under  this  Agreement  and in and to the
Mortgage  Loans  and  the  proceeds   thereof,   other  than  its  rights  as  a
Certificateholder  hereunder  as  provided in Section  4.04(b).  On or after the
receipt by the Master Servicer of such written  notice,  all authority and power
of the  Master  Servicer  under  this  Agreement,  whether  with  respect to the
Certificates  (other  than  as a  Holder  thereof)  or  the  Mortgage  Loans  or
otherwise, shall subject to Section 7.02 pass to and be vested in the Trustee or
the  Trustee's  designee  appointed  pursuant  to  Section  7.02;  and,  without
limitation,  the  Trustee is hereby  authorized  and  empowered  to execute  and
deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, any
and all documents and other instruments,  and to do or accomplish all other acts
or things  necessary  or  appropriate  to effect the  purposes of such notice of
termination,  whether to complete the transfer and  endorsement or assignment of
the Mortgage  Loans and related  documents,  or otherwise.  The Master  Servicer
agrees to cooperate with the Trustee in effecting the  termination of the Master
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to the Trustee or its designee for administration by it of all cash
amounts  which  shall at the time be credited  to the  Custodial  Account or the
Certificate  Account or  thereafter  be received  with  respect to the  Mortgage
Loans. No such  termination  shall release the Master Servicer for any liability
that it would  otherwise  have  hereunder  for any act or omission  prior to the
effective time of such termination.

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        Notwithstanding any termination of the activities of Residential Funding
in its  capacity as Master  Servicer  hereunder,  Residential  Funding  shall be
entitled  to  receive,  out of any late  collection  of a Monthly  Payment  on a
Mortgage  Loan  which  was  due  prior  to the  notice  terminating  Residential
Funding's rights and obligations as Master Servicer hereunder and received after
such notice,  that portion to which Residential Funding would have been entitled
pursuant to Sections 3.10(a)(ii), (vi) and (vii) as well as its Servicing Fee in
respect thereof,  and any other amounts payable to Residential Funding hereunder
the  entitlement  to which  arose  prior to the  termination  of its  activities
hereunder.  Upon the  termination  of  Residential  Funding  as Master  Servicer
hereunder the Company shall deliver to the Trustee a copy of the Program Guide.

        Section 7.02  Trustee or Company to Act; Appointment of Successor.

        (a) On and  after  the time the  Master  Servicer  receives  a notice of
termination pursuant to Section 7.01 or resigns in accordance with Section 6.04,
the Trustee or, upon notice to the Company and with the Company's consent (which
shall not be  unreasonably  withheld) a designee  (which meets the standards set
forth  below) of the  Trustee,  shall be the  successor  in all  respects to the
Master  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 Master
Servicer (except for the  responsibilities,  duties and liabilities contained in
Sections 2.02 and 2.03(a),  excluding the duty to notify related Subservicers or
Sellers as set forth in such Sections, and its obligations to deposit amounts in
respect of losses incurred prior to such notice or termination on the investment
of funds  in the  Custodial  Account  or the  Certificate  Account  pursuant  to
Sections  3.07(c) and  4.01(b) by the terms and  provisions  hereof);  provided,
however,  that any failure to perform such duties or responsibilities  caused by
the  preceding  Master  Servicer's  failure to provide  information  required by
Section  4.04 shall not be  considered  a default by the Trustee  hereunder.  As
compensation  therefor,  the Trustee shall be entitled to all funds  relating to
the Mortgage Loans which the Master  Servicer would have been entitled to charge
to the Custodial  Account or the Certificate  Account if the Master Servicer had
continued to act  hereunder  and, in  addition,  shall be entitled to the income
from any Permitted  Investments  made with amounts  attributable to the Mortgage
Loans held in the Custodial Account or the Certificate  Account.  If the Trustee
has become the successor to the Master  Servicer in accordance with Section 6.04
or Section 7.01, then notwithstanding the above, the Trustee may, if it shall be
unwilling to so act, or shall, if it is unable to so act, appoint, or petition a
court of competent  jurisdiction to appoint,  any  established  housing and home
finance  institution,  which  is  also a  Fannie  Mae- or  Freddie  Mac-approved
mortgage servicing institution,  having a net worth of not less than $10,000,000
as the successor to the Master  Servicer  hereunder in the  assumption of all or
any part of the  responsibilities,  duties or liabilities of the Master Servicer
hereunder.  Pending appointment of a successor to the Master Servicer hereunder,
the Trustee shall become  successor to the Master Servicer and shall act in such
capacity as  hereinabove  provided.  In  connection  with such  appointment  and
assumption,  the Trustee may make such arrangements for the compensation of such
successor  out of  payments  on Mortgage  Loans as it and such  successor  shall
agree;  provided,  however, that no such compensation shall be in excess of that
permitted the initial Master Servicer hereunder.  The Company,  the Trustee, the
Custodian  and such  successor  shall  take such  action,  consistent  with this
Agreement,  as  shall be  necessary  to  effectuate  any  such  succession.  The
Servicing  Fee for any  successor  Master  Servicer  appointed  pursuant to this
Section 7.02 will be lowered with respect to those Mortgage Loans, if any, where
the Subservicing Fee accrues at a rate of less than 0.20% per annum in the event
that the

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successor  Master  Servicer is not servicing such Mortgage Loans directly and it
is necessary to raise the related  Subservicing Fee to a rate of 0.20% per annum
in order to hire a Subservicer with respect to such Mortgage Loans.

        (b) In connection  with the  termination  or  resignation  of the Master
Servicer  hereunder,  either (i) the successor  Master  Servicer,  including the
Trustee if the Trustee is acting as successor Master  Servicer,  shall represent
and  warrant  that it is a member of MERS in good  standing  and shall  agree to
comply  in all  material  respects  with the  rules  and  procedures  of MERS in
connection  with the servicing of the Mortgage  Loans that are  registered  with
MERS, in which case the  predecessor  Master  Servicer shall  cooperate with the
successor  Master  Servicer in causing MERS to revise its records to reflect the
transfer of servicing to the successor  Master Servicer as necessary under MERS'
rules and regulations,  or (ii) the predecessor  Master Servicer shall cooperate
with the  successor  Master  Servicer in causing  MERS to execute and deliver an
assignment of Mortgage in recordable  form to transfer the Mortgage from MERS to
the Trustee and to execute and deliver such other  notices,  documents and other
instruments  as may be  necessary  or  desirable  to effect a  transfer  of such
Mortgage Loan or servicing of such  Mortgage  Loan on the MERS(R)  System to the
successor Master Servicer.  The predecessor  Master Servicer shall file or cause
to be  filed  any such  assignment  in the  appropriate  recording  office.  The
predecessor  Master  Servicer  shall  bear any and all  fees of  MERS,  costs of
preparing  any  assignments  of  Mortgage,  and fees and  costs  of  filing  any
assignments  of Mortgage  that may be required  under this  subsection  (b). The
successor  Master  Servicer  shall cause such  assignment to be delivered to the
Trustee or the Custodian  promptly upon receipt of the original with evidence of
recording  thereon or a copy certified by the public  recording  office in which
such assignment was recorded.

        Section 7.03  Notification to Certificateholders.

        (a) Upon any such  termination  or  appointment  of a  successor  to the
Master  Servicer,  the Trustee shall give prompt  written  notice thereof to the
Certificateholders  at their respective  addresses  appearing in the Certificate
Register.

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

        Section 7.04  Waiver of Events of Default.

        The Holders representing at least 66% of the Voting Rights affected by a
default  or Event of  Default  hereunder  may  waive  such  default  or Event of
Default; provided,  however, that (a) a default or Event of Default under clause
(i) of Section  7.01 may be waived  only by all of the  Holders of  Certificates
affected by such default or Event of Default and (b) no waiver  pursuant to this
Section 7.04 shall affect the Holders of Certificates in the manner set forth in
Section  11.01(b)(i)  or (ii).  Upon any such  waiver of a  default  or Event of
Default by the Holders  representing  the requisite  percentage of Voting Rights
affected by such  default or Event of Default,  such default or Event of Default
shall cease to exist and shall be deemed to have been remedied for every purpose
hereunder.  No such waiver shall extend to any  subsequent  or other  default or
Event of  Default or impair any right  consequent  thereon  except to the extent
expressly so waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

        Section 8.01  Duties of Trustee.

        (a) The  Trustee,  prior to the  occurrence  of an Event of Default  and
after the  curing or waiver of all Events of  Default  which may have  occurred,
undertakes to perform such duties and only such duties as are  specifically  set
forth in this Agreement. In case an Event of Default 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   investor  would  exercise  or  use  under  the
circumstances in the conduct of such investor's own affairs.

        (b)  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 to the  requirements  of this  Agreement.  The Trustee  shall notify the
Certificateholders  of any such documents which do not materially conform to the
requirements  of  this  Agreement  in the  event  that  the  Trustee,  after  so
requesting, does not receive satisfactorily corrected documents.

        The Trustee shall  forward or cause to be forwarded in a timely  fashion
the  notices,  reports and  statements  required to be  forwarded by the Trustee
pursuant to Sections 4.03,  4.06, 7.03 and 10.01. The Trustee shall furnish in a
timely fashion to the Master  Servicer such  information as the Master  Servicer
may reasonably  request from time to time for the Master Servicer to fulfill its
duties as set forth in this Agreement.  The Trustee covenants and agrees that it
shall perform its obligations hereunder in a manner so as to maintain the status
of any portion of any REMIC formed under the Series  Supplement as a REMIC under
the REMIC Provisions and (subject to Section 10.01(f)) to prevent the imposition
of any federal, state or local income,  prohibited transaction,  contribution or
other tax on the Trust  Fund to the  extent  that  maintaining  such  status and
avoiding  such taxes are  reasonably  within the  control of the Trustee and are
reasonably within the scope of its duties under this Agreement.

        (c) No  provision  of this  Agreement  shall be construed to relieve the
Trustee from liability for its own negligent  action,  its own negligent failure
to act or its own willful misconduct; provided, however, that:

                      (i) Prior to the  occurrence  of an Event of Default,  and
               after the curing or waiver of all such  Events of  Default  which
               may have  occurred,  the duties and  obligations  of the  Trustee
               shall be  determined  solely by the  express  provisions  of this
               Agreement,  the  Trustee  shall  not be  liable  except  for  the
               performance of 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 by the Company
               or the

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               Master  Servicer and which on their face, do not  contradict  the
               requirements of this Agreement;

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

                      (iii) The  Trustee  shall not be  personally  liable  with
               respect to any action  taken,  suffered or omitted to be taken by
               it  in  good  faith  in   accordance   with  the   direction   of
               Certificateholders   of  any  Class  holding  Certificates  which
               evidence, as to such Class,  Percentage Interests aggregating not
               less than 25% as 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;

                      (iv) The Trustee  shall not be charged  with  knowledge of
               any  default  (other  than a default in  payment to the  Trustee)
               specified  in clauses (i) and (ii) of Section 7.01 or an Event of
               Default under clauses (iii),  (iv) and (v) of Section 7.01 unless
               a Responsible  Officer of the Trustee  assigned to and working in
               the  Corporate  Trust  Office  obtains  actual  knowledge of such
               failure or event or the Trustee  receives  written notice of such
               failure or event at its  Corporate  Trust  Office from the Master
               Servicer, the Company or any Certificateholder; and

                      (v) Except to the extent  provided  in  Section  7.02,  no
               provision in this  Agreement  shall require the Trustee to expend
               or risk its own funds (including,  without limitation, the making
               of  any  Advance)  or  otherwise  incur  any  personal  financial
               liability  in the  performance  of any of its  duties as  Trustee
               hereunder,  or in the exercise of any of its rights or powers, if
               the Trustee  shall have  reasonable  grounds for  believing  that
               repayment  of funds or adequate  indemnity  against  such risk or
               liability is not reasonably assured to it.

        (d) The Trustee shall timely pay, from its own funds,  the amount of any
and all federal,  state and local taxes  imposed on the Trust Fund or its assets
or transactions  including,  without  limitation,  (A) "prohibited  transaction"
penalty  taxes as defined in Section 860F of the Code,  if, when and as the same
shall be due and  payable,  (B) any tax on  contributions  to a REMIC  after the
Closing  Date  imposed  by  Section  860G(d) of the Code and (C) any tax on "net
income from foreclosure property" as defined in Section 860G(c) of the Code, but
only if such  taxes  arise out of a breach  by the  Trustee  of its  obligations
hereunder,  which breach  constitutes  negligence  or willful  misconduct of the
Trustee.

        Section 8.02  Certain Matters Affecting the Trustee.

        (a)    Except as otherwise provided in Section 8.01:

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                      (i) The Trustee may rely and shall be  protected in acting
               or  refraining  from  acting  upon  any   resolution,   Officers'
               Certificate,  certificate  of auditors or any other  certificate,
               statement, instrument, opinion, report, notice, request, consent,
               order, appraisal,  bond or other paper or document believed by it
               to be genuine and to have been signed or  presented by the proper
               party or parties;

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

                      (iii) The Trustee shall be under no obligation to exercise
               any of the trusts or powers vested in it by this  Agreement or to
               institute,  conduct  or defend  any  litigation  hereunder  or in
               relation hereto at the request,  order or direction of any of the
               Certificateholders, pursuant to the provisions of this Agreement,
               unless such Certificateholders  shall have offered to the Trustee
               reasonable security or indemnity against the costs,  expenses and
               liabilities  which may be incurred  therein or  thereby;  nothing
               contained  herein  shall,  however,  relieve  the  Trustee of the
               obligation, upon the occurrence of an Event of Default (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  investor would
               exercise  or use under the  circumstances  in the conduct of such
               investor's own affairs;

                      (iv) The Trustee  shall not be  personally  liable for any
               action  taken,  suffered  or  omitted  by it in  good  faith  and
               believed  by it to be  authorized  or within  the  discretion  or
               rights or powers conferred upon it by this Agreement;

                      (v)  Prior  to  the  occurrence  of an  Event  of  Default
               hereunder and after the curing or waiver of all Events of Default
               which may have  occurred,  the Trustee shall not be 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  of  any  Class   evidencing,   as  to  such  Class,
               Percentage  Interests,  aggregating not less than 50%;  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 expense or
               liability as a condition to so proceeding. The reasonable expense
               of every such  examination  shall be paid by the Master Servicer,
               if an Event of Default shall have occurred and is continuing, and
               otherwise by the Certificateholder requesting the investigation;

                      (vi) The  Trustee  may execute any of the trusts or powers
               hereunder or perform any duties  hereunder  either directly or by
               or through agents or attorneys; and

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                      (vii)  To the  extent  authorized  under  the Code and the
               regulations  promulgated  thereunder,  each  Holder  of a Class R
               Certificate  hereby  irrevocably   appoints  and  authorizes  the
               Trustee to be its  attorney-in-fact  for  purposes of signing any
               Tax Returns required to be filed on behalf of the Trust Fund. The
               Trustee shall sign on behalf of the Trust Fund and deliver to the
               Master Servicer in a timely manner any Tax Returns prepared by or
               on behalf of the Master  Servicer that the Trustee is required to
               sign as determined by the Master Servicer  pursuant to applicable
               federal,  state or  local  tax  laws,  provided  that the  Master
               Servicer  shall  indemnify  the  Trustee for signing any such Tax
               Returns that contain errors or omissions.

        (b)  Following the issuance of the  Certificates,  the Trustee shall not
accept any  contribution  of assets to the Trust Fund unless (subject to Section
10.01(f)) it shall have obtained or been furnished with an Opinion of Counsel to
the effect  that such  contribution  will not (i) cause any portion of any REMIC
formed  under the  Series  Supplement  to fail to qualify as a REMIC at any time
that any Certificates are outstanding or (ii) cause the Trust Fund to be subject
to any federal tax as a result of such contribution (including the imposition of
any federal tax on "prohibited  transactions"  imposed under Section  860F(a) of
the Code).

        Section 8.03  Trustee Not Liable for Certificates or Mortgage Loans.

        The recitals  contained herein and in the  Certificates  (other than the
execution of the  Certificates and relating to the acceptance and receipt of the
Mortgage  Loans) shall be taken as the  statements  of the Company or the Master
Servicer as the case may be, and the Trustee assumes no responsibility for their
correctness.  The  Trustee  makes  no  representations  as to  the  validity  or
sufficiency  of  this  Agreement  or  of  the  Certificates   (except  that  the
Certificates  shall be duly and  validly  executed  and  authenticated  by it as
Certificate  Registrar) or of any Mortgage Loan or related document,  or of MERS
or the MERS(R) System.  Except as otherwise  provided herein,  the Trustee shall
not be  accountable  for the use or  application  by the  Company  or the Master
Servicer of any of the Certificates or of the proceeds of such Certificates,  or
for the use or  application  of any  funds  paid to the  Company  or the  Master
Servicer in respect of the Mortgage  Loans or deposited in or withdrawn from the
Custodial  Account  or the  Certificate  Account  by the  Company  or the Master
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 it would have if it were not
Trustee.

          Section 8.05  Master  Servicer  to Pay  Trustee's  Fees and  Expenses;
               Indemnification.

        (a) The Master  Servicer  covenants and agrees to pay to the Trustee and
any co-trustee  from time to time,  and the Trustee and any co-trustee  shall be
entitled  to,  reasonable  compensation  (which  shall  not  be  limited  by any
provision of law in regard to the compensation of a trustee of an express trust)
for all services  rendered by each of them in the execution of the trusts hereby
created  and in the  exercise  and  performance  of any of the powers and duties
hereunder of the Trustee and

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any  co-trustee,  and the Master  Servicer will pay or reimburse the Trustee and
any  co-trustee  upon request for all  reasonable  expenses,  disbursements  and
advances  incurred or made by the Trustee or any  co-trustee in accordance  with
any of the provisions of this Agreement  (including the reasonable  compensation
and the  expenses  and  disbursements  of its  counsel  and of all  persons  not
regularly  in its  employ,  and the  expenses  incurred  by the  Trustee  or any
co-trustee in connection with the appointment of an office or agency pursuant to
Section 8.12) except any such expense, disbursement or advance as may arise from
its negligence or bad faith.

        (b) The Master Servicer agrees to indemnify the Trustee for, and to hold
the Trustee harmless  against,  any loss,  liability or expense incurred without
negligence or willful  misconduct on the Trustee's  part,  arising out of, or in
connection with, the acceptance and administration of the Trust Fund,  including
the costs  and  expenses  (including  reasonable  legal  fees and  expenses)  of
defending   itself  against  any  claim  in  connection  with  the  exercise  or
performance  of any of its  powers  or  duties  under  this  Agreement  and  the
Custodial Agreement, provided that:

                      (i) with respect to any such claim, the Trustee shall have
               given the Master Servicer  written notice thereof  promptly after
               the Trustee shall have actual knowledge thereof;

                      (ii) while maintaining  control over its own defense,  the
               Trustee  shall  cooperate  and  consult  fully  with  the  Master
               Servicer in preparing such defense; and

                      (iii)  notwithstanding  anything in this  Agreement to the
               contrary,  the Master Servicer shall not be liable for settlement
               of any  claim by the  Trustee  entered  into  without  the  prior
               consent  of  the  Master  Servicer  which  consent  shall  not be
               unreasonably withheld.

        No termination of this Agreement shall affect the obligations created by
this Section  8.05(b) of the Master  Servicer to indemnify the Trustee under the
conditions and to the extent set forth herein.

        Notwithstanding  the  foregoing,  the  indemnification  provided  by the
Master Servicer in this Section 8.05(b) shall not pertain to any loss, liability
or expense of the Trustee,  including the costs and expenses of defending itself
against any claim,  incurred in connection with any actions taken by the Trustee
at the  direction  of the  Certificateholders  pursuant  to the  terms  of  this
Agreement.

        Section 8.06  Eligibility Requirements for Trustee.

        The Trustee  hereunder shall at all times be a corporation or a national
banking  association  having its principal office in a state and city acceptable
to the Company and organized and doing  business under the laws of such state or
the United States of America,  authorized under such laws to exercise  corporate
trust powers,  having a combined capital and surplus of at least $50,000,000 and
subject to supervision or  examination  by federal or state  authority.  If such
corporation or national banking  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 the
combined  capital  and  surplus  of such  corporation  shall be deemed to be its
combined

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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,  the  Trustee  shall  resign
immediately in the manner and with the effect specified in Section 8.07.

        Section 8.07 Resignation and Removal of the Trustee.

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

        (b) If at any time the Trustee  shall cease to be eligible in accordance
with the  provisions  of  Section  8.06 and shall fail to resign  after  written
request  therefor by the  Company,  or if at any time the Trustee  shall  become
incapable of acting, or shall be adjudged  bankrupt or insolvent,  or a receiver
of the Trustee or of its  property  shall be  appointed,  or any public  officer
shall take  charge or control of the  Trustee or of its  property or affairs for
the purpose of rehabilitation, conservation or liquidation, then the Company may
remove the Trustee and 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.  In addition,  in the event that
the Company determines that the Trustee has failed (i) to distribute or cause to
be distributed to the  Certificateholders  any amount required to be distributed
hereunder, if such amount is held by the Trustee or its Paying Agent (other than
the Master  Servicer  or the  Company)  for  distribution  or (ii) to  otherwise
observe or perform in any material  respect any of its covenants,  agreements or
obligations  hereunder,  and such failure shall continue unremedied for a period
of 5 days (in respect of clause (i) above) or 30 days (in respect of clause (ii)
above) after the date on which written  notice of such failure,  requiring  that
the same be remedied,  shall have been given to the Trustee by the Company, then
the Company  may remove the  Trustee and appoint a successor  trustee by written
instrument  delivered as provided in the preceding sentence.  In connection with
the appointment of a successor trustee pursuant to the preceding  sentence,  the
Company  shall,  on or  before  the date on which any such  appointment  becomes
effective,  obtain  from  each  Rating  Agency  written  confirmation  that  the
appointment  of any such  successor  trustee will not result in the reduction of
the  ratings  on any  class of the  Certificates  below  the  lesser of the then
current or original ratings on such Certificates.

        (c) The Holders of  Certificates  entitled to at least 51% of the Voting
Rights may at any time remove the  Trustee  and  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  to the  Company,  one complete set to the Trustee so removed
and one complete set to the successor so appointed.

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

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        Section 8.08  Successor Trustee.

        (a) Any  successor  trustee  appointed as provided in Section 8.07 shall
execute,  acknowledge and deliver to the Company 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  shall become  effective  and such  successor  trustee,
without any further act, deed or conveyance,  shall become fully vested with all
the rights,  powers, duties and obligations of its predecessor  hereunder,  with
the like  effect as if  originally  named as  trustee  herein.  The  predecessor
trustee shall deliver to the  successor  trustee all Mortgage  Files and related
documents and statements held by it hereunder  (other than any Mortgage Files at
the time held by a  Custodian,  which  shall  become the agent of any  successor
trustee  hereunder),  and the Company,  the Master  Servicer and the predecessor
trustee shall execute and deliver such  instruments  and do such other things as
may  reasonably be required for more fully and certainly  vesting and confirming
in the successor trustee all such rights, powers, duties and obligations.

        (b) No successor  trustee shall accept  appointment  as provided in this
Section unless at the time of such  acceptance  such successor  trustee shall be
eligible under the provisions of Section 8.06.

        (c) Upon acceptance of appointment by a successor trustee as provided in
this Section,  the Company  shall mail notice of the  succession of such trustee
hereunder  to all Holders of  Certificates  at their  addresses  as shown in the
Certificate  Register.  If the Company  fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee,  the successor trustee
shall cause such notice to be mailed at the expense of the Company.

        Section 8.09  Merger or Consolidation of Trustee.

        Any corporation or national  banking  association into which the Trustee
may be  merged  or  converted  or  with  which  it may  be  consolidated  or any
corporation  or  national  banking   association   resulting  from  any  merger,
conversion  or  consolidation  to which  the  Trustee  shall be a party,  or any
corporation or national  banking  association  succeeding to the business of the
Trustee,  shall  be  the  successor  of the  Trustee  hereunder,  provided  such
corporation  or  national  banking  association  shall  be  eligible  under  the
provisions of Section 8.06,  without the execution or filing of any paper or any
further act on the part of any of the  parties  hereto,  anything  herein to the
contrary  notwithstanding.  The Trustee  shall mail notice of any such merger or
consolidation  to the  Certificateholders  at  their  address  as  shown  in the
Certificate Register.

        Section 8.10 Appointment of Co-Trustee or Separate Trustee.

        (a)  Notwithstanding  any other provisions  hereof, at any time, for the
purpose of meeting any legal  requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located,  the
Master  Servicer and the Trustee  acting  jointly shall have the power and shall
execute and deliver all  instruments to appoint one or more Persons  approved by
the Trustee to act as co-trustee or  co-trustees,  jointly with the Trustee,  or
separate trustee or separate trustees, of all or any part of the Trust Fund, and
to vest in such Person or  Persons,  in such  capacity,  such title to the Trust
Fund, or any part thereof, and, subject to the other provisions of this Section

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8.10, such powers, duties, obligations, rights and trusts as the Master Servicer
and the Trustee may consider  necessary  or  desirable.  If the Master  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 Default shall have occurred and be
continuing, the Trustee alone shall have the power to make such appointment.  No
co-trustee or separate trustee  hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.06 hereunder and no notice to
Holders  of  Certificates  of  the  appointment  of  co-trustee(s)  or  separate
trustee(s) shall be required under Section 8.08 hereof.

        (b) In the case of any  appointment of a co-trustee or separate  trustee
pursuant  to this  Section  8.10 all  rights,  powers,  duties  and  obligations
conferred  or imposed  upon the Trustee  shall be  conferred or imposed upon and
exercised or performed by the Trustee,  and such separate  trustee or co-trustee
jointly,  except to the extent that under any law of any  jurisdiction  in which
any particular act or acts are to be performed  (whether as Trustee hereunder or
as successor to the Master Servicer hereunder), the Trustee shall be incompetent
or unqualified to perform such act or acts, in which event such rights,  powers,
duties and obligations  (including the holding of title to the Trust Fund 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.

        (c) 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.

        (d) Any separate trustee or co-trustee may, at any time,  constitute the
Trustee,  its agent or attorney-in-fact,  with full power and authority,  to the
extent not  prohibited  by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name.  If any separate  trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties,  rights,  remedies  and trusts shall vest in and be exercised by the
Trustee,  to the extent  permitted by law,  without the  appointment of a new or
successor trustee.

        Section 8.11  Appointment of Custodians.

        The  Trustee  may,  with the  consent  of the  Master  Servicer  and the
Company,  appoint one or more  Custodians who are not Affiliates of the Company,
the Master Servicer or any Seller to hold all or a portion of the Mortgage Files
as agent for the Trustee,  by entering  into a Custodial  Agreement.  Subject to
Article  VIII,  the Trustee  agrees to comply  with the terms of each  Custodial
Agreement and to enforce the terms and provisions  thereof against the Custodian
for the benefit of the Certificateholders.  Each Custodian shall be a depository
institution  subject to supervision by federal or state authority,  shall have a
combined  capital and surplus of at least  $15,000,000 and shall be qualified to
do  business  in the  jurisdiction  in which it holds any  Mortgage  File.  Each
Custodial  Agreement  may be amended  only as  provided  in Section  11.01.  The
Trustee shall notify the

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Certificateholders of the appointment of any Custodian (other than the Custodian
appointed as of the Closing Date) pursuant to this Section 8.11.

        Section 8.12  Appointment of Office or Agency.

        The Trustee will maintain an office or agency in the City of New York at
the  address  designated  in  Section  11.05  of  the  Series  Supplement  where
Certificates  may be surrendered for  registration of transfer or exchange.  The
Trustee will  maintain an office at the address  stated in Section  11.05 of the
Series Supplement where notices and demands to or upon the Trustee in respect of
this Agreement may be served.

                                          ARTICLE IX

                     TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES

        Section       9.01  Optional  Purchase  by the  Master  Servicer  of All
                      Certificates;  Termination  Upon  Purchase  by the  Master
                      Servicer or Liquidation of All Mortgage Loans.

        (a)  Subject  to  Section   9.02,   the   respective   obligations   and
responsibilities  of the Company,  the Master  Servicer and the Trustee  created
hereby in respect of the Certificates  (other than the obligation of the Trustee
to make certain payments after the Final Distribution Date to Certificateholders
and the  obligation of the Company to send certain  notices as  hereinafter  set
forth) shall  terminate upon the last action required to be taken by the Trustee
on the Final Distribution Date pursuant to this Article IX following the earlier
of:

                      (i) the later of the final  payment  or other  liquidation
               (or any Advance with respect  thereto) of the last  Mortgage Loan
               remaining  in the Trust Fund or the  disposition  of all property
               acquired upon  foreclosure  or deed in lieu of foreclosure of any
               Mortgage Loan, or

                      (ii) the  purchase by the Master  Servicer of all Mortgage
               Loans and all property  acquired in respect of any Mortgage  Loan
               remaining  in the  Trust  Fund  at a price  equal  to 100% of the
               unpaid  principal  balance of each Mortgage Loan or, if less than
               such  unpaid  principal  balance,  the fair  market  value of the
               related underlying property of such Mortgage Loan with respect to
               Mortgage  Loans as to which title has been  acquired if such fair
               market value is less than such unpaid  principal  balance (net of
               any unreimbursed  Advances  attributable to principal) on the day
               of repurchase plus accrued  interest  thereon at the Net Mortgage
               Rate (or Modified  Net Mortgage  Rate in the case of any Modified
               Mortgage Loan) to, but not including,  the first day of the month
               in which such repurchase price is distributed, provided, however,
               that in no event shall the trust created hereby  continue  beyond
               the expiration of 21 years from the death of the last survivor of
               the descendants of Joseph P. Kennedy,  the late ambassador of the
               United  States  to the  Court of St.  James,  living  on the date
               hereof and provided  further  that the  purchase  price set forth
               above shall be increased as is  necessary,  as  determined by the
               Master Servicer, to avoid  disqualification of any portion of any
               REMIC formed under the Series Supplement as a REMIC.

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        The right of the Master Servicer to purchase all the assets of the Trust
Fund pursuant to clause (ii) above is conditioned upon the Pool Stated Principal
Balance  as  of  the  Final   Distribution  Date,  prior  to  giving  effect  to
distributions to be made on such Distribution  Date, being less than ten percent
of the Cut-off Date Principal  Balance of the Mortgage  Loans.  If such right is
exercised by the Master  Servicer,  the Master  Servicer shall be deemed to have
been  reimbursed for the full amount of any  unreimbursed  Advances  theretofore
made by it with respect to the Mortgage Loans. In addition,  the Master Servicer
shall provide to the Trustee the certification  required by Section 3.15 and the
Trustee and any  Custodian  shall,  promptly  following  payment of the purchase
price,  release to the Master  Servicer the  Mortgage  Files  pertaining  to the
Mortgage Loans being purchased.

        In addition to the foregoing, on any Distribution Date on which the Pool
Stated Principal Balance,  prior to giving effect to distributions to be made on
such  Distribution  Date, is less than ten percent of the Cut-off Date Principal
Balance of the Mortgage  Loans,  Master  Servicer  shall have the right,  at its
option, to purchase the Certificates in whole, but not in part, at a price equal
to the outstanding  Certificate  Principal Balance of such Certificates plus the
sum of Accrued  Certificate  Interest  thereon for the related  Interest Accrual
Period and any previously  unpaid Accrued  Certificate  Interest.  If the Master
Servicer  exercises  this right to purchase the  outstanding  Certificates,  the
Master  Servicer  will  promptly   terminate  the  respective   obligations  and
responsibilities  created hereby in respect of the Certificates pursuant to this
Article IX.

        (b) The Master  Servicer  shall give the  Trustee not less than 60 days'
prior notice of the Distribution  Date on which the Master Servicer  anticipates
that the final  distribution  will be made to  Certificateholders  (whether as a
result of the  exercise  by the Master  Servicer  of its right to  purchase  the
assets  of the  Trust  Fund  or  otherwise)  or on  which  the  Master  Servicer
anticipates that the Certificates will be purchased (as a result of the exercise
by the Master Servicer to purchase the outstanding Certificates).  Notice of any
termination,  specifying the anticipated Final Distribution Date (which shall be
a  date  that  would   otherwise  be  a   Distribution   Date)  upon  which  the
Certificateholders  may  surrender  their  Certificates  to the  Trustee  (if so
required  by the  terms  hereof)  for  payment  of the  final  distribution  and
cancellation  or  notice  of  any  purchase  of  the  outstanding  Certificates,
specifying  the  Distribution  Date upon which the Holders may  surrender  their
Certificates  to the Trustee for payment,  shall be given promptly by the Master
Servicer (if it is exercising its right to purchase the assets of the Trust Fund
or to purchase the  outstanding  Certificates),  or by the Trustee (in any other
case) by letter to the  Certificateholders  mailed not earlier than the 15th day
and not later  than the 25th day of the month next  preceding  the month of such
final distribution specifying:

                      (i) the  anticipated  Final  Distribution  Date upon which
               final payment of the  Certificates is anticipated to be made upon
               presentation  and  surrender  of  Certificates  at the  office or
               agency of the Trustee  therein  designated or, in the case of the
               purchase by the Master Servicer of the outstanding  Certificates,
               the Distribution Date on which such purchase is to be made,

                      (ii) the amount of any such final payment,  or in the case
               of the  purchase of the  outstanding  Certificates,  the purchase
               price, in either case, if known, and

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                      (iii) that the Record Date  otherwise  applicable  to such
               Distribution  Date  is not  applicable,  and in the  case  of the
               Senior  Certificates and Class M Certificates,  that payment will
               be made only upon  presentation and surrender of the Certificates
               at the office or agency of the Trustee therein specified.

        If the Master Servicer is obligated to give notice to Certificateholders
as aforesaid, it shall give such notice to the Certificate Registrar at the time
such  notice is given to  Certificateholders  and,  if the  Master  Servicer  is
exercising its rights to purchase the  outstanding  Certificates,  it shall give
such  notice  to each  Rating  Agency  at the  time  such  notice  is  given  to
Certificateholders.  As a result of the  exercise by the Master  Servicer of its
right to  purchase  the  assets of the Trust  Fund,  the Master  Servicer  shall
deposit  in the  Certificate  Account  before  the  Final  Distribution  Date in
immediately available funds an amount equal to the purchase price for the assets
of the Trust Fund,  computed as provided  above.  As a result of the exercise by
the Master Servicer of its right to purchase the outstanding  Certificates,  the
Master Servicer shall deposit in an Eligible Account,  established by the Master
Servicer on behalf of the Trustee and separate from the  Certificate  Account in
the name of the Trustee in trust for the registered holders of the Certificates,
before the  Distribution  Date on which such purchase is to occur in immediately
available  funds an amount  equal to the  purchase  price for the  Certificates,
computed as above  provided,  and provide notice of such deposit to the Trustee.
The Trustee will withdraw  from such account the amount  specified in subsection
(c) below.

        (c) In the case of the  Senior,  Class M or Class B  Certificates,  upon
presentation  and  surrender  of  the  Certificates  by  the  Certificateholders
thereof, the Trustee shall distribute to the  Certificateholders  (i) the amount
otherwise distributable on such Distribution Date, if not in connection with the
Master  Servicer's  election to  repurchase  the assets of the Trust Fund or the
outstanding  Certificates,  or  (ii)  if  the  Master  Servicer  elected  to  so
repurchase  the assets of the Trust  Fund or the  outstanding  Certificates,  an
amount  determined  as  follows:  (A)  with  respect  to  each  Certificate  the
outstanding  Certificate  Principal  Balance thereof,  plus Accrued  Certificate
Interest for the related  Interest  Accrual  Period  thereon and any  previously
unpaid  Accrued  Certificate  Interest,  subject  to the  priority  set forth in
Section 4.02(a), and (B) with respect to the Class R Certificates, any excess of
the amounts available for distribution (including the repurchase price specified
in  clause  (ii) of  subsection  (a) of this  Section)  over  the  total  amount
distributed under the immediately preceding clause (A).

        (d) If any Certificateholders shall not surrender their Certificates for
final payment and cancellation on or before the Final  Distribution  Date (if so
required by the terms hereof), the Trustee shall on such date cause all funds in
the   Certificate   Account   not   distributed   in   final   distribution   to
Certificateholders  to be  withdrawn  therefrom  and  credited to the  remaining
Certificateholders by depositing such funds in a separate escrow account for the
benefit of such Certificateholders, and the Master Servicer (if it exercised its
right to purchase  the assets of the Trust  Fund),  or the Trustee (in any other
case) shall give a second written notice to the remaining  Certificateholders to
surrender their Certificates for cancellation and receive the final distribution
with  respect  thereto.  If within  six  months  after  the  second  notice  any
Certificate shall not have been surrendered for cancellation,  the Trustee shall
take  appropriate  steps as  directed  by the Master  Servicer  to  contact  the
remaining  Certificateholders  concerning  surrender of their Certificates.  The
costs  and  expenses  of  maintaining  the  escrow  account  and  of  contacting
Certificateholders  shall be paid out of the assets  which  remain in the escrow
account.  If within nine months after the second notice any  Certificates  shall
not have

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been surrendered for cancellation,  the Trustee shall pay to the Master Servicer
all amounts  distributable  to the holders thereof and the Master Servicer shall
thereafter  hold such amounts until  distributed  to such  Holders.  No interest
shall  accrue or be payable to any  Certificateholder  on any amount held in the
escrow account or by the Master Servicer as a result of such Certificateholder's
failure to surrender its  Certificate(s) for final payment thereof in accordance
with this Section 9.01.

        (e) If any  Certificateholders do not surrender their Certificates on or
before the Distribution Date on which a purchase of the outstanding Certificates
is to be made, the Trustee shall on such date cause all funds in the Certificate
Account  deposited therein by the Master Servicer pursuant to Section 9.01(b) to
be  withdrawn  therefrom  and  deposited  in a separate  escrow  account for the
benefit of such Certificateholders,  and the Master Servicer shall give a second
written notice to such  Certificateholders  to surrender their  Certificates for
payment of the purchase  price  therefor.  If within six months after the second
notice any Certificate  shall not have been  surrendered for  cancellation,  the
Trustee  shall take  appropriate  steps as  directed  by the Master  Servicer to
contact  the  Holders  of  such  Certificates   concerning  surrender  of  their
Certificates.  The costs and expenses of  maintaining  the escrow account and of
contacting  Certificateholders  shall be paid out of the assets  which remain in
the  escrow  account.  If  within  nine  months  after  the  second  notice  any
Certificates shall not have been surrendered for cancellation in accordance with
this  Section  9.01,  the Trustee  shall pay to the Master  Servicer all amounts
distributable  to the Holders thereof and the Master  Servicer shall  thereafter
hold such amounts until distributed to such Holders. No interest shall accrue or
be payable to any  Certificateholder on any amount held in the escrow account or
by the  Master  Servicer  as a result  of such  Certificateholder's  failure  to
surrender its  Certificate(s)  for payment in accordance with this Section 9.01.
Any  Certificate  that is not  surrendered on the  Distribution  Date on which a
purchase  pursuant to this Section 9.01 occurs as provided  above will be deemed
to have been  purchased  and the Holder as of such date will have no rights with
respect  thereto  except to receive the purchase  price therefor minus any costs
and expenses  associated with such escrow account and notices allocated thereto.
Any  Certificates  so  purchased  or  deemed  to  have  been  purchased  on such
Distribution Date shall remain outstanding hereunder.  The Master Servicer shall
be for all purposes the Holder thereof as of such date.

        Section 9.02  Additional Termination Requirements.

        (a) Each REMIC that  comprises  the Trust  Fund shall be  terminated  in
accordance  with the  following  additional  requirements,  unless  (subject  to
Section  10.01(f)) the Trustee and the Master  Servicer have received an Opinion
of Counsel  (which Opinion of Counsel shall not be an expense of the Trustee) to
the effect that the  failure of each such REMIC to comply with the  requirements
of this Section 9.02 will not (i) result in the imposition on the Trust of taxes
on "prohibited  transactions," as described in Section 860F of the Code, or (ii)
cause  any  such  REMIC  to fail to  qualify  as a REMIC  at any  time  that any
Certificate is outstanding:

                      (i)  The  Master   Servicer   shall   establish  a  90-day
               liquidation  period for each such REMIC and specify the first day
               of such period in a statement  attached to the Trust Fund's final
               Tax Return pursuant to Treasury regulations Section 1.860F-1. The
               Master  Servicer also shall satisfy all of the  requirements of a
               qualified  liquidation for a REMIC under Section 860F of the Code
               and regulations thereunder;

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                      (ii) The Master  Servicer  shall notify the Trustee at the
               commencement of such 90-day  liquidation  period and, at or prior
               to the time of making of the final  payment on the  Certificates,
               the  Trustee  shall  sell  or  otherwise  dispose  of  all of the
               remaining  assets of the Trust Fund in accordance  with the terms
               hereof; and

                      (iii) If the Master  Servicer or the Company is exercising
               its right to purchase  the assets of the Trust  Fund,  the Master
               Servicer shall,  during the 90-day  liquidation  period and at or
               prior to the Final Distribution Date,  purchase all of the assets
               of the Trust Fund for cash.

        (b) Each  Holder of a  Certificate  and the Trustee  hereby  irrevocably
approves  and appoints the Master  Servicer as its  attorney-in-fact  to adopt a
plan of complete  liquidation for each REMIC at the expense of the Trust Fund in
accordance with the terms and conditions of this Agreement.

        Section 9.03 Termination of Multiple REMICs.

        If the REMIC  Administrator  makes two or more separate REMIC elections,
the  applicable   REMIC  shall  be  terminated  on  the  earlier  of  the  Final
Distribution  Date and the date on which it is deemed to receive the last deemed
distributions on the related Uncertificated REMIC Regular Interests and the last
distribution due on the Certificates is made.

                                    ARTICLE X

                                REMIC PROVISIONS

        Section 10.01 REMIC Administration.

        (a) The REMIC  Administrator  shall make an  election to treat the Trust
Fund as one or more REMICs under the Code and, if  necessary,  under  applicable
state  law.  The  assets of each  such  REMIC  will be set  forth in the  Series
Supplement. Such election will be made on Form 1066 or other appropriate federal
tax or information  return (including Form 8811) or any appropriate state return
for the taxable  year ending on the last day of the  calendar  year in which the
Certificates  are issued.  For the purposes of each REMIC election in respect of
the Trust Fund,  Certificates  and  interests to be  designated  as the "regular
interests"  and the sole class of "residual  interests" in the REMIC will be set
forth in Section 10.03 of the Series Supplement. The REMIC Administrator and the
Trustee shall not permit the creation of any "interests"  (within the meaning of
Section  860G of the Code) in any REMIC  elected  in  respect  of the Trust Fund
other than the "regular interests" and "residual interests" so designated.

        (b) The Closing Date is hereby  designated  as the "startup  day" of the
Trust Fund within the meaning of Section 860G(a)(9) of the Code.

        (c)  The  REMIC   Administrator   shall  hold  a  Class  R   Certificate
representing a 0.01% Percentage  Interest each Class of the Class R Certificates
and shall be designated  as "the tax matters  person" with respect to each REMIC
in the manner  provided  under  Treasury  regulations  section  1.860F-4(d)  and
Treasury regulations section 301.6231(a)(7)-1. The REMIC Administrator, as tax

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matters  person,  shall (i) act on behalf of each REMIC in  relation  to any tax
matter or controversy involving the Trust Fund and (ii) represent the Trust Fund
in any administrative or judicial proceeding relating to an examination or audit
by any governmental  taxing authority with respect thereto.  The legal expenses,
including without  limitation  attorneys' or accountants' fees, and costs of any
such proceeding and any liability  resulting  therefrom shall be expenses of the
Trust  Fund and the  REMIC  Administrator  shall be  entitled  to  reimbursement
therefor out of amounts  attributable  to the  Mortgage  Loans on deposit in the
Custodial  Account as provided by Section  3.10 unless such legal  expenses  and
costs are incurred by reason of the REMIC  Administrator's  willful misfeasance,
bad faith or gross  negligence.  If the  REMIC  Administrator  is no longer  the
Master Servicer  hereunder,  at its option the REMIC  Administrator may continue
its duties as REMIC Administrator and shall be paid reasonable  compensation not
to exceed  $3,000 per year by any  successor  Master  Servicer  hereunder for so
acting as the REMIC Administrator.

        (d) The REMIC Administrator shall prepare or cause to be prepared all of
the Tax Returns  that it  determines  are  required  with  respect to each REMIC
created hereunder and deliver such Tax Returns in a timely manner to the Trustee
and the  Trustee  shall sign and file such Tax Returns in a timely  manner.  The
expenses of  preparing  such returns  shall be borne by the REMIC  Administrator
without any right of reimbursement  therefor.  The REMIC Administrator agrees to
indemnify  and hold  harmless  the Trustee  with respect to any tax or liability
arising  from the  Trustee's  signing  of Tax  Returns  that  contain  errors or
omissions.  The Trustee and Master  Servicer  shall  promptly  provide the REMIC
Administrator with such information as the REMIC  Administrator may from time to
time request for the purpose of enabling the REMIC  Administrator to prepare Tax
Returns.

        (e) The REMIC  Administrator  shall  provide (i) to any  Transferor of a
Class R Certificate  such information as is necessary for the application of any
tax relating to the transfer of a Class R Certificate to any Person who is not a
Permitted Transferee,  (ii) to the Trustee, and the Trustee shall forward to the
Certificateholders,  such  information or reports as are required by the Code or
the REMIC  Provisions  including  reports  relating to interest,  original issue
discount and market  discount or premium (using the Prepayment  Assumption)  and
(iii) to the Internal  Revenue  Service the name,  title,  address and telephone
number of the person who will serve as the representative of each REMIC.

        (f) The  Master  Servicer  and the REMIC  Administrator  shall take such
actions and shall cause each REMIC created hereunder to take such actions as are
reasonably within the Master Servicer's or the REMIC Administrator's control and
the scope of its duties more specifically set forth herein as shall be necessary
or  desirable  to  maintain  the status of each REMIC as a REMIC under the REMIC
Provisions  (and the  Trustee  shall  assist the Master  Servicer  and the REMIC
Administrator, to the extent reasonably requested by the Master Servicer and the
REMIC  Administrator to do so). The Master Servicer and the REMIC  Administrator
shall not knowingly or  intentionally  take any action,  cause the Trust Fund to
take any  action  or fail to take (or fail to  cause  to be  taken)  any  action
reasonably within their respective control that, under the REMIC Provisions,  if
taken or not taken,  as the case may be,  could (i)  endanger  the status of any
portion  of any REMIC  formed  under the  Series  Supplement  as a REMIC or (ii)
result in the imposition of a tax upon any such REMIC (including but not limited
to the tax on prohibited  transactions  as defined in Section  860F(a)(2) of the
Code and the tax on contributions to a REMIC set forth in Section 860G(d)

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of the Code) (either such event,  in the absence of an Opinion of Counsel or the
indemnification  referred to in this sentence,  an "Adverse REMIC Event") unless
the Master Servicer or the REMIC Administrator,  as applicable,  has received an
Opinion of Counsel (at the expense of the party  seeking to take such action or,
if such party fails to pay such  expense,  and the Master  Servicer or the REMIC
Administrator, as applicable,  determines that taking such action is in the best
interest  of the Trust Fund and the  Certificateholders,  at the  expense of the
Trust  Fund,  but in no event at the expense of the Master  Servicer,  the REMIC
Administrator  or the Trustee) to the effect that the  contemplated  action will
not,  with respect to each REMIC  created  hereunder,  endanger  such status or,
unless the Master  Servicer,  the REMIC  Administrator  or both, as  applicable,
determine in its or their sole  discretion  to indemnify  the Trust Fund against
the imposition of such a tax,  result in the imposition of such a tax.  Wherever
in this Agreement a  contemplated  action may not be taken because the timing of
such action might result in the  imposition  of a tax on the Trust Fund,  or may
only be taken  pursuant  to an  Opinion of Counsel  that such  action  would not
impose a tax on the Trust Fund,  such action may  nonetheless  be taken provided
that the  indemnity  given in the  preceding  sentence with respect to any taxes
that  might be  imposed  on the  Trust  Fund has been  given  and that all other
preconditions  to the taking of such  action  have been  satisfied.  The Trustee
shall not take or fail to take any action (whether or not authorized  hereunder)
as to which the Master Servicer or the REMIC Administrator,  as applicable,  has
advised it in writing  that it has  received an Opinion of Counsel to the effect
that an Adverse  REMIC  Event  could  occur  with  respect  to such  action.  In
addition, prior to taking any action with respect to any REMIC created hereunder
or any  related  assets  thereof,  or causing any such REMIC to take any action,
which is not expressly permitted under the terms of this Agreement,  the Trustee
will consult with the Master Servicer or the REMIC Administrator, as applicable,
or its designee,  in writing, with respect to whether such action could cause an
Adverse  REMIC Event to occur with  respect to any such  REMIC,  and the Trustee
shall not take any such  action or cause any such REMIC to take any such  action
as to which the Master Servicer or the REMIC Administrator,  as applicable,  has
advised it in writing  that an  Adverse  REMIC  Event  could  occur.  The Master
Servicer or the REMIC Administrator,  as applicable, may consult with counsel to
make  such  written  advice,  and the cost of same  shall be borne by the  party
seeking to take the action not expressly permitted by this Agreement,  but in no
event at the expense of the Master Servicer or the REMIC  Administrator.  At all
times as may be required  by the Code,  the Master  Servicer  will to the extent
within its  control  and the scope of its  duties  more  specifically  set forth
herein, maintain substantially all of the assets of each REMIC created hereunder
as  "qualified  mortgages"  as  defined in  Section  860G(a)(3)  of the Code and
"permitted investments" as defined in Section 860G(a)(5) of the Code.

        (g) In the event that any tax is imposed on "prohibited transactions" of
any REMIC  created  hereunder as defined in Section  860F(a)(2)  of the Code, on
"net income from  foreclosure  property" of any such REMIC as defined in Section
860G(c) of the Code,  on any  contributions  to any such REMIC after the Startup
Day  therefor  pursuant  to  Section  860G(d)  of the Code,  or any other tax is
imposed  by the Code or any  applicable  provisions  of state or local tax laws,
such tax shall be charged (i) to the Master Servicer,  if such tax arises out of
or results from a breach by the Master Servicer of any of its obligations  under
this Agreement or the Master Servicer has in its sole  discretion  determined to
indemnify  the Trust Fund  against such tax,  (ii) to the  Trustee,  if such tax
arises out of or results from a breach by the Trustee of any of its  obligations
under  this  Article  X, or (iii)  otherwise  against  amounts on deposit in the
Custodial  Account as provided by Section 3.10 and on the  Distribution  Date(s)
following such reimbursement the aggregate of such taxes shall be

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allocated  in  reduction  of the  Accrued  Certificate  Interest  on each  Class
entitled  thereto in the same manner as if such taxes  constituted  a Prepayment
Interest Shortfall.

        (h) The Trustee and the Master  Servicer  shall,  for federal income tax
purposes,  maintain  books  and  records  with  respect  to each  REMIC  created
hereunder  on a calendar  year and on an accrual  basis or as  otherwise  may be
required by the REMIC Provisions.

        (i)  Following  the Startup  Day,  neither the Master  Servicer  nor the
Trustee shall accept any  contributions of assets to any REMIC created hereunder
unless  (subject to Section  10.01(f)) the Master Servicer and the Trustee shall
have received an Opinion of Counsel (at the expense of the party seeking to make
such contribution) to the effect that the inclusion of such assets in such REMIC
will not  cause  the  REMIC to fail to  qualify  as a REMIC at any time that any
Certificates  are  outstanding  or subject  the REMIC to any tax under the REMIC
Provisions or other  applicable  provisions  of federal,  state and local law or
ordinances.

        (j)  Neither  the Master  Servicer  nor the  Trustee  shall  (subject to
Section  10.01(f))  enter  into any  arrangement  by  which  any  REMIC  created
hereunder will receive a fee or other  compensation  for services nor permit any
such REMIC to receive any income from assets other than "qualified mortgages" as
defined in Section 860G(a)(3) of the Code or "permitted  investments" as defined
in Section 860G(a)(5) of the Code.

        (k)  Solely  for the  purposes  of  Section  1.860G-1(a)(4)(iii)  of the
Treasury  Regulations,   the  "latest  possible  maturity  date"  by  which  the
Certificate  Principal  Balance of each Class of  Certificates  (other  than the
Interest Only  Certificates)  representing a regular  interest in the applicable
REMIC and the  Uncertificated  Principal  Balance of each  Uncertificated  REMIC
Regular  Interest  (other  than  each  Uncertificated   REMIC  Regular  Interest
represented by a Class A-V  Certificate,  if any) and the rights to the Interest
Only Certificates and Uncertificated  REMIC Regular Interest  represented by any
Class A-V  Certificate  would be reduced to zero is the  Maturity  Date for each
such Certificate and Interest.

        (l) Within 30 days after the Closing Date, the REMIC Administrator shall
prepare  and file with the  Internal  Revenue  Service  Form 8811,  "Information
Return for Real  Estate  Mortgage  Investment  Conduits  (REMIC)  and Issuers of
Collateralized Debt Obligations" for each REMIC created hereunder.

        (m) Neither the Trustee nor the Master  Servicer shall sell,  dispose of
or substitute for any of the Mortgage  Loans (except in connection  with (i) the
default,  imminent default or foreclosure of a Mortgage Loan,  including but not
limited to, the acquisition or sale of a Mortgaged  Property acquired by deed in
lieu of foreclosure,  (ii) the bankruptcy of any REMIC created hereunder,  (iii)
the  termination  of any such REMIC  pursuant to Article IX of this Agreement or
(iv) a  purchase  of  Mortgage  Loans  pursuant  to  Article  II or III of  this
Agreement) nor acquire any assets for any such REMIC, nor sell or dispose of any
investments  in the Custodial  Account or the  Certificate  Account for gain nor
accept any  contributions to any such REMIC after the Closing Date unless it has
received  an Opinion of Counsel  that such sale,  disposition,  substitution  or
acquisition will not (a) affect adversely the status of such REMIC as a REMIC or
(b)  unless  the  Master  Servicer  has  determined  in its sole  discretion  to
indemnify the Trust Fund against such tax, cause such REMIC

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to be subject to a tax on "prohibited  transactions" or "contributions" pursuant
to the REMIC Provisions.

          Section  10.02  Master  Servicer,   REMIC  Administrator  and  Trustee
               Indemnification.

        (a) The Trustee  agrees to indemnify  the Trust Fund,  the Company,  the
REMIC  Administrator  and the Master Servicer for any taxes and costs including,
without limitation,  any reasonable attorneys fees imposed on or incurred by the
Trust Fund, the Company or the Master  Servicer,  as a result of a breach of the
Trustee's covenants set forth in Article VIII or this Article X.

        (b) The REMIC  Administrator  agrees to  indemnify  the Trust Fund,  the
Company, the Master Servicer and the Trustee for any taxes and costs (including,
without  limitation,  any reasonable  attorneys' fees) imposed on or incurred by
the Trust Fund, the Company,  the Master Servicer or the Trustee, as a result of
a breach of the REMIC Administrator's covenants set forth in this Article X with
respect to compliance with the REMIC Provisions,  including without  limitation,
any penalties  arising from the Trustee's  execution of Tax Returns  prepared by
the REMIC  Administrator  that contain errors or omissions;  provided,  however,
that such liability will not be imposed to the extent such breach is a result of
an error or omission in information  provided to the REMIC  Administrator by the
Master Servicer in which case Section 10.02(c) will apply.

        (c) The Master Servicer agrees to indemnify the Trust Fund, the Company,
the REMIC  Administrator  and the  Trustee  for any taxes and costs  (including,
without  limitation,  any reasonable  attorneys' fees) imposed on or incurred by
the Trust Fund, the Company, the REMIC Administrator or the Trustee, as a result
of a breach of the Master Servicer's covenants set forth in this Article X or in
Article III with  respect to  compliance  with the REMIC  Provisions,  including
without  limitation,  any penalties arising from the Trustee's  execution of Tax
Returns prepared by the Master Servicer that contain errors or omissions.

        Section 10.03 Designation of REMIC(s).

        As provided in Section 10.03 of the Series Supplement.

                                          ARTICLE XI

                                   MISCELLANEOUS PROVISIONS

        Section 11.01 Amendment.

        (a) This  Agreement or any Custodial  Agreement may be amended from time
to time by the Company, the Master Servicer and the Trustee, without the consent
of any of the Certificateholders:

                      (i)    to cure any ambiguity,

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                      (ii) to correct or  supplement  any  provisions  herein or
               therein,  which may be  inconsistent  with any  other  provisions
               herein or therein or to correct any error,

                      (iii) to modify, eliminate or add to any of its provisions
               to such extent as shall be necessary or desirable to maintain the
               qualification  of the Trust Fund as a REMIC at all times that any
               Certificate  is  outstanding  or to avoid or minimize the risk of
               the  imposition of any tax on the Trust Fund pursuant to the Code
               that would be a claim  against the Trust Fund,  provided that the
               Trustee has received an Opinion of Counsel to the effect that (A)
               such  action  is  necessary   or   desirable  to  maintain   such
               qualification  or to avoid or minimize the risk of the imposition
               of any such tax and (B) such action will not adversely  affect in
               any material respect the interests of any Certificateholder,

                      (iv) to change the timing  and/or  nature of deposits into
               the Custodial Account or the Certificate Account or to change the
               name in which the Custodial Account is maintained,  provided that
               (A) the  Certificate  Account  Deposit  Date shall in no event be
               later than the related  Distribution  Date, (B) such change shall
               not, as evidenced by an Opinion of Counsel,  adversely  affect in
               any material respect the interests of any  Certificateholder  and
               (C) such  change  shall not result in a  reduction  of the rating
               assigned  to any  Class of  Certificates  below  the lower of the
               then-current  rating or the rating assigned to such  Certificates
               as of the Closing Date, as evidenced by a letter from each Rating
               Agency to such effect,

                      (v) to  modify,  eliminate  or add  to the  provisions  of
               Section  5.02(f)  or  any  other  provision  hereof   restricting
               transfer  of the Class R  Certificates,  by virtue of their being
               the  "residual  interests"  in a  REMIC,  provided  that (A) such
               change shall not result in  reduction  of the rating  assigned to
               any  such   Class  of   Certificates   below  the  lower  of  the
               then-current  rating or the rating assigned to such  Certificates
               as of the Closing Date, as evidenced by a letter from each Rating
               Agency to such effect,  and (B) such change shall not (subject to
               Section 10.01(f)),  as evidenced by an Opinion of Counsel (at the
               expense of the party seeking so to modify,  eliminate or add such
               provisions),  cause any  REMIC  created  hereunder  or any of the
               Certificateholders (other than the transferor) to be subject to a
               federal  tax  caused  by a  transfer  to a  Person  that is not a
               Permitted Transferee,

                      (vi) to make any other  provisions with respect to matters
               or  questions  arising  under this  Agreement  or such  Custodial
               Agreement  which shall not be  materially  inconsistent  with the
               provisions  of this  Agreement,  provided  that such action shall
               not, as evidenced by an Opinion of Counsel,  adversely  affect in
               any material respect the interests of any Certificateholder, or

                    (vii) to amend any  provision  herein or therein that is not
               material to any of the Certificateholders.

        (b) This  Agreement or any Custodial  Agreement may also be amended from
time to time by the  Company,  the  Master  Servicer  and the  Trustee  with the
consent of the Holders of Certificates

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evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each  Class of  Certificates  affected  thereby  for the  purpose  of adding any
provisions to or changing in any manner or eliminating  any of the provisions of
this  Agreement  or such  Custodial  Agreement or of modifying in any manner the
rights of the Holders of Certificates of such Class; provided,  however, that no
such amendment shall:

                      (i)  reduce  in any  manner  the  amount  of, or delay the
               timing of,  payments  which are required to be distributed on any
               Certificate   without   the   consent   of  the  Holder  of  such
               Certificate,

                      (ii) reduce the aforesaid  percentage of  Certificates  of
               any Class the  Holders  of which are  required  to consent to any
               such  amendment,  in any such case  without  the  consent  of the
               Holders of all Certificates of such Class then outstanding.

        (c)  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  (subject to Section  10.01(f) and at
the  expense  of the party  seeking  such  amendment)  to the  effect  that such
amendment  or the  exercise  of any power  granted to the Master  Servicer,  the
Company or the Trustee in accordance  with such amendment will not result in the
imposition  of a federal tax on the Trust Fund or cause any REMIC  created under
the  Series  Supplement  to fail to  qualify  as a REMIC  at any  time  that any
Certificate is outstanding.

        (d) Promptly after the execution of any such amendment the Trustee shall
furnish written notification of the substance of such amendment to the Custodian
and each  Certificateholder.  It  shall  not be  necessary  for the  consent  of
Certificateholders  under this Section 11.01 to approve the  particular  form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance  thereof.  The manner of obtaining such consents and of evidencing
the  authorization  of the  execution  thereof  by  Certificateholders  shall be
subject to such reasonable regulations as the Trustee may prescribe.

        (e) The Company shall have the option, in its sole discretion, to obtain
and  deliver  to  the  Trustee  any  corporate  guaranty,   payment  obligation,
irrevocable  letter  of  credit,   surety  bond,  insurance  policy  or  similar
instrument or a reserve  fund,  or any  combination  of the  foregoing,  for the
purpose of protecting the Holders of the Class B Certificates against any or all
Realized Losses or other  shortfalls.  Any such instrument or fund shall be held
by the Trustee for the benefit of the Class B Certificateholders,  but shall not
be and shall not be deemed to be under any  circumstances  included in the Trust
Fund. To the extent that any such instrument or fund  constitutes a reserve fund
for federal income tax purposes, (i) any reserve fund so established shall be an
outside  reserve fund and not an asset of the Trust Fund,  (ii) any such reserve
fund shall be owned by the Company,  and (iii) amounts  transferred by the Trust
Fund to any such  reserve  fund shall be treated as amounts  distributed  by the
Trust Fund to the Company or any  successor,  all within the meaning of Treasury
Regulations  Section  1.860G-2(h)  as  it  reads  as of  the  Cut-off  Date.  In
connection with the provision of any such instrument or fund, this Agreement and
any provision hereof may be modified,  added to, deleted or otherwise amended in
any manner  that is  related or  incidental  to such  instrument  or fund or the
establishment or  administration  thereof,  such amendment to be made by written
instrument  executed or  consented  to by the Company but without the consent of
any

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Certificateholder  and without the consent of the Master Servicer or the Trustee
being required unless any such amendment would impose any additional  obligation
on,   or   otherwise    adversely   affect   the   interests   of   the   Senior
Certificateholders,  the Class M Certificateholders,  the Master Servicer or the
Trustee,  as applicable;  provided that the Company obtains  (subject to Section
10.01(f))  an Opinion of Counsel  (which  need not be an opinion of  Independent
counsel)  to the effect that any such  amendment  will not cause (a) any federal
tax to be imposed on the Trust Fund,  including without limitation,  any federal
tax imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or
on "contributions  after the startup date" under Section  860G(d)(1) of the Code
and (b) any REMIC  created  hereunder  to fail to qualify as a REMIC at any time
that any  Certificate  is  outstanding.  In the event that the Company elects to
provide  such  coverage  in the form of a limited  guaranty  provided by General
Motors  Acceptance  Corporation,  the  Company  may elect  that the text of such
amendment to this Agreement shall be  substantially  in the form attached hereto
as Exhibit K (in which case Residential Funding's  Subordinate  Certificate Loss
Obligation  as described in such exhibit  shall be  established  by  Residential
Funding's  consent to such  amendment)  and that the limited  guaranty  shall be
executed  in the form  attached  hereto as Exhibit  K, with such  changes as the
Company shall deem to be appropriate;  it being  understood that the Trustee has
reviewed and approved the content of such forms and that the  Trustee's  consent
or approval to the use thereof is not required.

        Section 11.02 Recordation of Agreement; Counterparts.

        (a) To the extent permitted by applicable law, this Agreement is subject
to recordation in all  appropriate  public offices for real property  records in
all the counties or other  comparable  jurisdictions  in which any or all of the
properties  subject to the Mortgages are situated,  and in any other appropriate
public  recording  office or elsewhere,  such  recordation to be effected by the
Master Servicer and at its expense on direction by the Trustee  (pursuant to the
request  of  Holders  of  Certificates  entitled  to at least 25% of the  Voting
Rights),  but only upon  direction  accompanied  by an Opinion of Counsel to the
effect that such recordation  materially and beneficially  affects the interests
of the Certificateholders.

        (b) For the purpose of facilitating the recordation of this Agreement as
herein  provided  and  for  other  purposes,  this  Agreement  may  be  executed
simultaneously in any number of counterparts,  each of which  counterparts shall
be deemed to be an original,  and such counterparts shall constitute but one and
the same instrument.

        Section 11.03 Limitation on Rights of Certificateholders.

        (a) The death or incapacity of any  Certificateholder  shall not operate
to   terminate   this   Agreement   or  the  Trust  Fund,   nor   entitle   such
Certificateholder's  legal representatives or heirs to claim an accounting or to
take any action or  proceeding in any court for a partition or winding up of the
Trust Fund, nor otherwise affect the rights,  obligations and liabilities of any
of the parties hereto.

        (b) No  Certificateholder  shall  have  any  right  to vote  (except  as
expressly  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

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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.

        (c) No Certificateholder shall have any right by virtue of any provision
of this  Agreement to institute  any suit,  action or proceeding in equity or at
law  upon or  under  or with  respect  to this  Agreement,  unless  such  Holder
previously  shall have given to the  Trustee a written  notice of default and of
the continuance thereof, as hereinbefore  provided,  and unless also the Holders
of  Certificates  of any Class  evidencing in the aggregate not less than 25% of
the related Percentage  Interests of such Class, 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
of any  Class  shall  have any  right in any  manner  whatever  by virtue of any
provision of this  Agreement to affect,  disturb or prejudice  the rights of the
Holders of any other of such  Certificates  of such Class or any other Class, 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  Certificateholders  of such Class
or all Classes,  as the case may be. For the protection  and  enforcement of the
provisions  of this  Section  11.03,  each and every  Certificateholder  and the
Trustee  shall be entitled  to such  relief as can be given  either at law or in
equity.

        Section 11.04 Governing Law.

        This agreement and the  Certificates  shall be governed by and construed
in accordance with the laws of the State of New York and the obligations, rights
and remedies of the parties  hereunder  shall be determined  in accordance  with
such laws.

        Section 11.05 Notices.

        As provided in Section 11.05 of the Series Supplement.

        Section 11.06 Required Notices to Rating Agency and Subservicer.

        The Company,  the Master Servicer or the Trustee,  as applicable,  shall
notify each Rating  Agency and the  Subservicer  at such time as it is otherwise
required  pursuant to this Agreement to give notice of the occurrence of, any of
the events described in clause (a), (b), (c), (d), (g), (h), (i) or (j) below or
provide a copy to each Rating  Agency at such time as  otherwise  required to be
delivered  pursuant to this  Agreement  of any of the  statements  described  in
clauses (e) and (f) below:

        (a)    a material change or amendment to this Agreement,

        (b)    the occurrence of an Event of Default,

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     (c) the  termination  or  appointment  of a  successor  Master  Servicer or
Trustee or a change in the majority ownership of the Trustee,

        (d) the filing of any claim under the Master Servicer's blanket fidelity
bond and the errors and omissions  insurance  policy required by Section 3.12 or
the cancellation or modification of coverage under any such instrument,

     (e) the statement  required to be delivered to the Holders of each Class of
Certificates pursuant to Section 4.03,

     (f) the statements  required to be delivered  pursuant to Sections 3.18 and
3.19,

     (g) a change in the location of the  Custodial  Account or the  Certificate
Account,

        (h) the  occurrence of any monthly cash flow shortfall to the Holders of
any Class of  Certificates  resulting from the failure by the Master Servicer to
make an Advance pursuant to Section 4.04,

        (i)    the occurrence of the Final Distribution Date, and

        (j)    the repurchase of or substitution for any Mortgage Loan,

provided,  however,  that with respect to notice of the occurrence of the events
described in clauses (d), (g) or (h) above,  the Master  Servicer  shall provide
prompt  written  notice to each Rating  Agency and the  Subservicer  of any such
event known to the Master Servicer.

        Section 11.07 Severability of Provisions.

        If any one or more of the covenants, agreements,  provisions or terms of
this  Agreement  shall be for any  reason  whatsoever  held  invalid,  then such
covenants,  agreements,  provisions or terms shall be deemed  severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

        Section 11.08 Supplemental Provisions for Resecuritization.

        This  Agreement  may be  supplemented  by  means  of the  addition  of a
separate  Article  hereto  (a   "Supplemental   Article")  for  the  purpose  of
resecuritizing  any of the Certificates  issued  hereunder,  under the following
circumstances.  With  respect  to any Class or Classes  of  Certificates  issued
hereunder,  or any portion of any such Class,  as to which the Company or any of
its  Affiliates  (or  any  designee  thereof)  is  the  registered  Holder  (the
"Resecuritized  Certificates"),  the  Company  may  deposit  such  Resecuritized
Certificates into a new REMIC, grantor trust, FASIT or custodial  arrangement (a
"Restructuring  Vehicle") to be held by the Trustee  pursuant to a  Supplemental
Article.  The instrument adopting such Supplemental Article shall be executed by
the Company,  the Master  Servicer and the Trustee;  provided,  that neither the
Master  Servicer nor the Trustee shall withhold  their consent  thereto if their
respective interests would not be materially adversely affected

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thereby. To the extent that the terms of the Supplemental  Article do not in any
way  affect  any  provisions  of this  Agreement  as to any of the  Certificates
initially issued hereunder,  the adoption of the Supplemental  Article shall not
constitute an "amendment" of this Agreement.

        Each  Supplemental  Article  shall set forth  all  necessary  provisions
relating to the holding of the  Resecuritized  Certificates by the Trustee,  the
establishment of the  Restructuring  Vehicle,  the issuing of various classes of
new certificates by the  Restructuring  Vehicle and the distributions to be made
thereon,  and any  other  provisions  necessary  for the  purposes  thereof.  In
connection  with each  Supplemental  Article,  the Company  shall deliver to the
Trustee an Opinion of Counsel to the effect that (i) the  Restructuring  Vehicle
will  qualify as a REMIC,  grantor  trust,  FASIT or other entity not subject to
taxation  for  federal  income  tax  purposes  and  (ii)  the  adoption  of  the
Supplemental  Article  will not endanger the status of the Trust Fund as a REMIC
or  (subject to Section  10.01(f))  result in the  imposition  of a tax upon the
Trust Fund  (including but not limited to the tax on prohibited  transactions as
defined  in Section  860F(a)(2)  of the Code and the tax on  contributions  to a
REMIC as set forth in Section 860G(d) of the Code).

        Section 11.09 Allocation of Voting Rights.

               As provided in Section 11.09 of the Series Supplement.

                                             105

<PAGE>

                                          EXHIBIT A

             FORM OF CLASS A CERTIFICATE, [PRINCIPAL ONLY/CLASS A-P] CERTIFICATE
                          AND [INTEREST ONLY/CLASS A-V] CERTIFICATE

        SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986.

        [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

<PAGE>

<TABLE>
<CAPTION>

<S>                                             <C>
Certificate No. [____]                          [____]% [Adjustable] [Variable] Pass-Through
                                                Rate [based on a Notional Amount]
Class [A-___] Senior                            Percentage Interest: ____%
Date of Pooling and Servicing Agreement and     Aggregate Initial [Certificate Principal
Cut-off Date:                                   Balance] [Interest Only/Class A-V] [Notional
[______________]                                Amount] [Subclass Notional Amount] of the
                                                Class [A-___] Certificates: $________
First Distribution Date:                        [Initial] [Certificate Principal Balance]
[______________]                                [Interest Only/Class A-V] [Subclass] [Notional
                                                Amount] of this Certificate:
                                                $[--------------]
Master Servicer:
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]

</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE
                                       SERIES ________

               evidencing a percentage  interest in the distributions  allocable
               To the Class  [A-___]  certificates  with respect to a trust fund
               Consisting   primarily  of  a  pool  of   conventional   one-  to
               Four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
certificate  nor the underlying  mortgage loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  residential  funding  mortgage
securities I, inc.,  the master  servicer,  the trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the company, the master servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the certificates.

        This certifies that is the registered  owner of the percentage  interest
evidenced by this  certificate  [(obtained by dividing the [initial  certificate
principal balance] [initial  [interest  only/Class A-v] notional amount] of this
certificate by the aggregate [initial certificate principal balance of all Class
A-  certificates]  [initial  [interest  only/Class A-v] notional  amounts of all
[interest only/Class

<PAGE>

A-v]  certificates],  both as specified  above)] in certain  distributions  with
respect to the trust  fund  consisting  primarily  of an  interest  in a pool of
conventional  one- to four-family  fixed interest rate first mortgage loans (the
"mortgage loans"), formed and sold by residential funding mortgage securities I,
inc. (Hereinafter called the "company," which term includes any successor entity
under the agreement referred to below). The trust fund was created pursuant to a
series  supplement,  dated as specified  above, to the standard terms of pooling
and servicing agreement dated as of ________________ (together, the "pooling and
servicing  agreement" or the "agreement") among the company, the master servicer
and  _______________,  as trustee (the  "trustee"),  a summary of certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
agreement.  This  certificate  is issued  under  and is  subject  to the  terms,
provisions  and conditions of the  agreement,  to which  agreement the holder of
this  certificate by virtue of the  acceptance  hereof assents and by which such
holder is bound.

        Pursuant to the terms of the agreement,  a distribution  will be made on
the 25th day of each  month  or,  if such 25th day is not a  business  day,  the
business day  immediately  following (the  "distribution  date"),  commencing as
described  in the  agreement,  to the person in whose name this  certificate  is
registered  at the close of business on the last day (or if such last day is not
a business  day, the business day  immediately  preceding  such last day) of the
month immediately  preceding the month of such distribution (the "record date"),
from the available  distribution amount in an amount equal to the product of the
percentage  interest  evidenced by this certificate and the amount [(of interest
and  principal,  if any)]  required  to be  distributed  to  holders of Class A-
certificates on such distribution date. [the [interest  only/Class A-v] notional
amount  of  the  [interest  only/Class  A-v]  certificates  as of  any  date  of
determination is equal to the aggregate stated principal balance of the mortgage
loans corresponding to the uncertificated remic regular interests represented by
such [interest only/Class A-v] certificates.]

        Distributions  on this  certificate  will be made  either by the  master
servicer  acting on behalf of the trustee or by a paying agent  appointed by the
trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the person entitled thereto if such person shall have so notified the
master  servicer or such paying agent,  or by check mailed to the address of the
person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
certificate register.

        Notwithstanding  the above,  the final  distribution on this certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this certificate at the office or agency appointed
by the trustee for that purpose in the city and state of New York.  The [initial
certificate  principal  balance]  [initial  [interest  only/Class  A-v] notional
amount] of this  certificate  is set forth  above.] [the  certificate  principal
balance  hereof  will be  reduced to the extent of  distributions  allocable  to
principal and any realized losses allocable hereto.]

        This  certificate  is one of a duly  authorized  issue  of  certificates
issued in several classes  designated as mortgage  pass-through  certificates of
the series specified hereon (herein collectively called the "certificates").

        The certificates are limited in right of payment to certain  collections
and recoveries respecting the mortgage loans, all as more specifically set forth
herein and in the agreement. In the

<PAGE>

event master servicer funds are advanced with respect to any mortgage loan, such
advance is  reimbursable to the master  servicer,  to the extent provided in the
agreement, from related recoveries on such mortgage loan or from other cash that
would have been distributable to certificateholders.

        As provided in the  agreement,  withdrawals  from the custodial  account
and/or the certificate account created for the benefit of certificateholders may
be made by the  master  servicer  from  time to time  for  purposes  other  than
distributions to certificateholders,  such purposes including without limitation
reimbursement  to the company  and the master  servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The agreement permits,  with certain  exceptions  therein provided,  the
amendment of the agreement and the modification of the rights and obligations of
the  company,  the  master  servicer  and  the  trustee  and the  rights  of the
certificateholders  under the  agreement at any time by the company,  the master
servicer  and the  trustee  with the  consent  of the  holders  of  certificates
evidencing  in the aggregate  not less than 66% of the  percentage  interests of
each class of certificates  affected thereby.  Any such consent by the holder of
this  certificate  shall be  conclusive  and binding on such holder and upon all
future  holders  of this  certificate  and of any  certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  certificate.  The  agreement  also permits the
amendment thereof in certain circumstances without the consent of the holders of
any of the certificates and, in certain  additional  circumstances,  without the
consent of the holders of certain  classes of  certificates.  As provided in the
agreement and subject to certain  limitations therein set forth, the transfer of
this  certificate is registrable in the  certificate  register upon surrender of
this  certificate  for  registration  of  transfer  at the  offices or  agencies
appointed by the trustee in the city and state of New York, duly endorsed by, or
accompanied  by an assignment  in the form below or other written  instrument of
transfer in form satisfactory to the trustee and the certificate  registrar duly
executed by the holder  hereof or such  holder's  attorney  duly  authorized  in
writing, and thereupon one or more new certificates of authorized  denominations
evidencing  the same class and aggregate  percentage  interest will be issued to
the designated transferee or transferees.

        The  certificates are issuable only as registered  certificates  without
coupons in classes and in denominations  specified in the agreement. As provided
in  the  agreement  and  subject  to  certain  limitations  therein  set  forth,
certificates are  exchangeable for new certificates of authorized  denominations
evidencing the same Class and aggregate percentage interest, as requested by the
holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  company,  the master  servicer,  the  trustee  and the  certificate
registrar and any agent of the company, the master servicer,  the trustee 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 company,  the
master  servicer,  the trustee nor any such agent shall be affected by notice to
the contrary.

<PAGE>

        This  certificate  shall be governed by and construed in accordance with
the laws of the state of New York.

        The obligations  created by the agreement in respect of the certificates
and the  trust  fund  created  thereby  shall  terminate  upon  the  payment  to
certificateholders  of all  amounts  held by or on  behalf  of the  trustee  and
required to be paid to them pursuant to the  agreement  following the earlier of
(i) the maturity or other  liquidation of the last mortgage loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any mortgage  loan and (ii) the purchase by the master  servicer
from the trust fund of all remaining mortgage loans and all property acquired in
respect of such  mortgage  loans,  thereby  effecting  early  retirement  of the
certificates.  The agreement permits,  but does not require, the master servicer
to (i) purchase at a price determined as provided in the agreement all remaining
mortgage loans and all property acquired in respect of any mortgage loan or (ii)
purchase in whole,  but not in part,  all of the  certificates  from the holders
thereof; provided, that any such option may only be exercised if the pool stated
principal  balance of the mortgage loans as of the distribution  date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the cut-off date principal balance of the mortgage loans.

        Reference is hereby made to the further  provisions of this  certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon has been executed by the
certificate  registrar,  by  manual  signature,  this  certificate  shall not be
entitled to any benefit under the agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  [A- ]  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

                                   ASSIGNMENT

        FOR VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass- Through  Certificate and hereby authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

        I  (We)  further  direct  the  Certificate  Registrar  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

Dated:
      ________________            ____________________________________________
                                   Signature by or on behalf of assignor

                                   ___________________________________________
                                                   Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                           EXHIBIT B

                                  FORM OF CLASS M CERTIFICATE

        THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF  PAYMENT  TO THE SENIOR
CERTIFICATES  [CLASS M-1 CERTIFICATES] [AND CLASS M-2 CERTIFICATES] AS DESCRIBED
IN THE AGREEMENT (AS DEFINED BELOW).

        SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

        UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

        ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS  CERTIFICATE (OR INTEREST HEREIN) THAT
EITHER (A) SUCH TRANSFEREE IS NOT AN INVESTMENT  MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY PLAN) ACTING, DIRECTLY OR INDIRECTLY,  ON BEHALF OF OR PURCHASING
ANY CERTIFICATE WITH "PLAN ASSETS" OF ANY PLAN (A "PLAN  INVESTOR"),  (B) IT HAS
ACQUIRED AND IS HOLDING SUCH  CERTIFICATE IN RELIANCE ON PROHIBITED  TRANSACTION
EXEMPTION  ("PTE") 94-29, 59 FED. REG. 14674 (MARCH 29, 1994), AS AMENDED BY PTE
97-34, 62 FED. REG. 39021 (JULY 21, 1997),  AND PTE 2000-58,  65 FED. REG. 67765
(NOVEMBER 13, 2000) (THE "RFC  EXEMPTION"),  AND THAT IT UNDERSTANDS  THAT THERE
ARE CERTAIN  CONDITIONS TO THE AVAILABILITY OF THE RFC EXEMPTION  INCLUDING THAT
SUCH CERTIFICATE  MUST BE RATED, AT THE TIME OF PURCHASE,  NOT LOWER THAN "BBB-"
(OR ITS  EQUIVALENT)  BY  STANDARD  & POOR'S,  FITCH OR  MOODY'S  OR (C)(I)  THE
TRANSFEREE IS AN INSURANCE COMPANY, (II) THE SOURCE OF FUNDS TO BE USED BY IT TO
PURCHASE THE CERTIFICATE IS AN "INSURANCE  COMPANY GENERAL  ACCOUNT" (WITHIN THE
MEANING OF U.S.  DEPARTMENT  OF LABOR  PROHIBITED  TRANSACTION  CLASS  EXEMPTION
("PTCE")  95-60),  AND (III) THE  CONDITIONS  SET FORTH IN SECTIONS I AND III OF
PTCE 95-60 HAVE BEEN  SATISFIED  (EACH ENTITY THAT  SATISFIES THIS CLAUSE (C), A
"COMPLYING INSURANCE COMPANY").

<PAGE>

        IF THIS  CERTIFICATE  (OR ANY  INTEREST  HEREIN) IS  ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH,  THEN THE LAST PRECEDING
TRANSFEREE  THAT  EITHER  (I)  IS  NOT  A  PLAN  INVESTOR,  (II)  ACQUIRED  SUCH
CERTIFICATE  IN  COMPLIANCE  WITH THE RFC  EXEMPTION  OR  (III)  IS A  COMPLYING
INSURANCE  COMPANY  SHALL BE  RESTORED,  TO THE EXTENT  PERMITTED BY LAW, TO ALL
RIGHTS AND OBLIGATIONS AS CERTIFICATE  OWNER THEREOF  RETROACTIVE TO THE DATE OF
SUCH  TRANSFER OF THIS  CERTIFICATE.  THE TRUSTEE SHALL BE UNDER NO LIABILITY TO
ANY PERSON FOR MAKING ANY PAYMENTS  DUE ON THIS  CERTIFICATE  TO SUCH  PRECEDING
TRANSFEREE.

        ANY PURPORTED  CERTIFICATE  OWNER WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  HEREIN) WAS EFFECTED IN VIOLATION OF THE  RESTRICTIONS
IN SECTION  5.02(E) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE COMPANY,  THE TRUSTEE,  THE MASTER SERVICER,  ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

<PAGE>

<TABLE>

<S>                                             <C>
Certificate No. [____]                          [____]% Pass-Through Rate
Class [M-___] Subordinate
Date of Pooling and Servicing Agreement and     Principal Balance of the Class M Certificates:
Cut-off Date:                                   $_______________
[--------------]
First Distribution Date:                        Initial Certificate Principal Balance of this
[______________]                                Certificate:
                                                $[--------------]
Master Servicer:
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]

</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE,
                                       SERIES ________

               evidencing a percentage  interest in any distributions  allocable
               to the Class M-___  Certificates  with  respect to the Trust Fund
               consisting   primarily  of  a  pool  of   conventional   one-  to
               four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
Certificate  nor the underlying  Mortgage Loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  Residential  Funding  Mortgage
Securities I, Inc.,  the Master  Servicer,  the Trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the Company, the Master Servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

        This certifies that is the registered  owner of the Percentage  Interest
evidenced by this  Certificate  (obtained by dividing the Certificate  Principal
Balance of this Certificate by the aggregate  Certificate  Principal  Balance of
all Class M-___ Certificates,  both as specified above) in certain distributions
with respect to a Trust Fund consisting primarily of a pool of conventional one-
to four-family fixed interest rate first mortgage loans (the "Mortgage  Loans"),
formed and sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter
called the  "Company,"  which  term  includes  any  successor  entity  under the
Agreement  referred to below).  The Trust Fund was created  pursuant to a Series
Supplement, dated as specified above, to the Standard Terms of Pooling and

<PAGE>

Servicing  Agreement dated as of  ________________  (together,  the "Pooling and
Servicing  Agreement" or the "Agreement") among the Company, the Master Servicer
and  ___________,  as  trustee  (the  "Trustee"),  a summary  of  certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This  Certificate  is issued  under  and is  subject  to the  terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

        Pursuant to the terms of the Agreement,  a distribution  will be made on
the 25th day of each  month  or,  if such 25th day is not a  Business  Day,  the
Business Day  immediately  following (the  "Distribution  Date"),  commencing as
described  in the  Agreement,  to the Person in whose name this  Certificate  is
registered  at the close of business on the last day (or if such last day is not
a Business  Day, the Business Day  immediately  preceding  such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
from the Available  Distribution Amount in an amount equal to the product of the
Percentage  Interest  evidenced by this  Certificate and the amount (of interest
and  principal,  if any)  required to be  distributed  to Holders of Class M-___
Certificates on such Distribution Date.

        Distributions  on this  Certificate  will be made  either by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

        Notwithstanding  the above,  the final  distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that  purpose in the City and State of New York.  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate  Principal  Balance  hereof  will be  reduced  to the  extent of the
distributions allocable to principal and any Realized Losses allocable hereto.

        As described above, any transferee of this Certificate will be deemed to
have  represented by virtue of its purchase or holding of this  Certificate  (or
interest herein) that either (A) such transferee is not a Plan Investor,  (B) it
has acquired and is holding this  Certificate  in reliance on the RFC  Exemption
and that it understands that there are certain conditions to the availability of
the RFC Exemption  including that this Certificate must be rated, at the time of
purchase,  not lower than "BBB-" (or its equivalent) by Standard & Poor's, Fitch
or Moody's or (C) the transferee is a Complying  Insurance Company. In addition,
any purported Certificate Owner whose acquisition or holding of this Certificate
(or interest  herein) was effected in violation of the  restrictions  in Section
5.02(e) of the Agreement  shall  indemnify  and hold  harmless the Company,  the
Trustee,  the  Master  Servicer,  any  Subservicer,  and the Trust Fund from and
against any and all  liabilities,  claims,  costs or  expenses  incurred by such
parties as a result of such acquisition or holding.

        This  Certificate  is one of a duly  authorized  issue  of  Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates").

<PAGE>

        The Certificates are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

        As provided in the  Agreement,  withdrawals  from the Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The Agreement permits,  with certain  exceptions  therein provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

        As provided in the Agreement and subject to certain  limitations therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate  Registrar  duly  executed  by the  Holder  hereof or such  Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

        The  Certificates are issuable only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  Company,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Company, the Master Servicer,  the Trustee 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

<PAGE>

Company,  the Master Servicer,  the Trustee nor any such agent shall be affected
by notice to the contrary.

        This  Certificate  shall be governed by and construed in accordance with
the laws of the State of New York.

        The obligations  created by the Agreement in respect of the Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

        Unless the certificate of authentication hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  [M- ]  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

                                          ASSIGNMENT

        FOR VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass- Through  Certificate and hereby authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

        I  (We)  further  direct  the  Certificate  Registrar  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

Dated:
      ________________            ____________________________________________
                                   Signature by or on behalf of assignor

                                   ___________________________________________
                                                   Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                           EXHIBIT C

                                  FORM OF CLASS B CERTIFICATE

        THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF  PAYMENT  TO THE SENIOR
CERTIFICATES AND CLASS M CERTIFICATES  [AND CLASS B-1] [CLASS B-2  CERTIFICATES]
DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

        THIS  CERTIFICATE  HAS NOT BEEN AND WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

        NO TRANSFER OF THIS  CERTIFICATE  MAY BE MADE TO ANY PERSON,  UNLESS THE
TRANSFEREE  PROVIDES EITHER A  CERTIFICATION  PURSUANT TO SECTION 5.02(E) OF THE
AGREEMENT  OR AN OPINION OF COUNSEL  SATISFACTORY  TO THE MASTER  SERVICER,  THE
COMPANY  AND THE  TRUSTEE  THAT  THE  PURCHASE  OF  THIS  CERTIFICATE  WILL  NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER  SERVICER,  THE COMPANY
OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN
THE AGREEMENT.

<PAGE>

<TABLE>
<CAPTION>

<S>                                              <C>
Certificate No. [____]                          [____]% Pass-Through Rate
Class [B-___] Subordinate
Date of Pooling and Servicing Agreement and     Principal Balance of the Class B-___
Cut-off Date:                                   Certificates as of the Cut-off Date: $________
[--------------]
First Distribution Date:                        Initial Certificate Principal Balance of this
[______________]                                Certificate:
                                                $[--------------]
Master Servicer:
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]
</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE,
                                        SERIES _______

               evidencing a percentage  interest in any distributions  allocable
               to the Class B-___  Certificates  with  respect to the Trust Fund
               consisting   primarily  of  a  pool  of   conventional   one-  to
               four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
Certificate  nor the underlying  Mortgage Loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  Residential  Funding  Mortgage
Securities I, Inc.,  the Master  Servicer,  the Trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the Company, the Master Servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

        This certifies that  _______________________  is the registered owner of
the Percentage Interest evidenced by this Certificate  (obtained by dividing the
Certificate  Principal Balance of this Certificate by the aggregate  Certificate
Principal Balance of all Class B-___  Certificates,  both as specified above) in
certain  distributions  with respect to a Trust Fund  consisting  primarily of a
pool of  conventional  one- to  four-family  fixed  interest rate first mortgage
loans (the "Mortgage  Loans"),  formed and sold by Residential  Funding Mortgage
Securities I, Inc.  (hereinafter  called the "Company,"  which term includes any
successor  entity  under the  Agreement  referred to below).  The Trust Fund was
created  pursuant  to a Series  Supplement,  dated as  specified  above,  to the
Standard

<PAGE>

Terms of Pooling and Servicing Agreement dated as of ________________ (together,
the "Pooling and Servicing Agreement" or the "Agreement") among the Company, the
Master  Servicer  and  ___________,  as trustee  (the  "Trustee"),  a summary of
certain of the  pertinent  provisions  of which is set forth  hereafter.  To the
extent not defined herein,  the capitalized  terms used herein have the meanings
assigned in the  Agreement.  This  Certificate is issued under and is subject to
the terms,  provisions and conditions of the Agreement,  to which  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

        Pursuant to the terms of the Agreement, a distribution will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately following (the "Distribution Date"),  commencing on
the first  Distribution  Date specified  above, to the Person in whose name this
Certificate  is  registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately preceding such last
day) of the month next  preceding  the month of such  distribution  (the "Record
Date"), from the Available Distribution Amount in an amount equal to the product
of the  Percentage  Interest  evidenced by this  Certificate  and the amount (of
interest and principal, if any) required to be distributed to Holders of Class B
Certificates on such Distribution Date.

        Distributions  on this  Certificate  will be made  either by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

        Notwithstanding  the above,  the final  distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that  purpose in the City and State of New York.  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate  Principal  Balance  hereof  will be  reduced  to the  extent of the
distributions allocable to principal and any Realized Losses allocable hereto.

        No  transfer  of this  Class B  Certificate  will  be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933,  as  amended,  and  any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made,  (i) the  Trustee  or the  Company  may  require  an  opinion  of  counsel
acceptable  to and in form and  substance  satisfactory  to the  Trustee and the
Company that such transfer is exempt  (describing  the applicable  exemption and
the  basis  therefor)  from  or is  being  made  pursuant  to  the  registration
requirements  of the Securities  Act of 1933, as amended,  and of any applicable
statute of any state and (ii) the transferee shall execute an investment  letter
in the form  described by Section  5.02(e) of the  Agreement.  The Holder hereof
desiring to effect such transfer shall,  and does hereby agree to, indemnify the
Trustee, the Company,  the Master Servicer and the Certificate  Registrar acting
on behalf of the Trustee  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.
In connection  with any such transfer,  the Trustee will also require either (i)
an opinion of counsel  acceptable to and in form and substance  satisfactory  to
the  Trustee,   the  Company  and  the  Master  Servicer  with  respect  to  the
permissibility  of such transfer under the Employee  Retirement  Income Security
Act of 1974, as amended

<PAGE>

("ERISA"),  and  Section  4975 of the  Internal  Revenue  Code (the  "Code") and
stating,  among other things,  that the  transferee's  acquisition  of a Class B
Certificate will not constitute or result in a non-exempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code or (ii) a  representation
letter,  in the form as  described  by the  Agreement,  either  stating that the
transferee  is not an employee  benefit or other plan subject to the  prohibited
transaction  provisions of ERISA or Section 4975 of the Code (a "Plan"),  or any
other person (including an investment manager, a named fiduciary or a trustee of
any Plan)  acting,  directly  or  indirectly,  on behalf  of or  purchasing  any
Certificate with "plan assets" of any Plan, or stating that the transferee is an
insurance  company,  the  source  of  funds  to be  used by it to  purchase  the
Certificate is an "insurance  company  general  account"  (within the meaning of
Department of Labor Prohibited  Transaction Class Exemption ("PTCE") 95-60), and
the purchase is being made in reliance  upon the  availability  of the exemptive
relief afforded under Sections I and III of PTCE 95-60.

        This  Certificate  is one of a duly  authorized  issue  of  Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates").

        The Certificates are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

        As provided in the  Agreement,  withdrawals  from the Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The Agreement permits,  with certain  exceptions  therein provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

        As provided in the Agreement and subject to certain  limitations therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate Registrar duly executed

<PAGE>

by the Holder hereof or such Holder's  attorney duly authorized in writing,  and
thereupon one or more new  Certificates of authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

        The  Certificates are issuable only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  Company,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Company, the Master Servicer,  the Trustee 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 Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

        This  Certificate  shall be governed by and construed in accordance with
the laws of the State of New York.

        The obligations  created by the Agreement in respect of the Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

        Unless the certificate of authentication hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  B-___  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

Dated:
      ________________            ____________________________________________
                                   Signature by or on behalf of assignor

                                   ___________________________________________
                                                   Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                          EXHIBIT D

                                 FORM OF CLASS R CERTIFICATE

        THIS  CERTIFICATE  MAY NOT BE HELD BY OR  TRANSFERRED  TO A NON-  UNITED
STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

        SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"RESIDUAL  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

        NO TRANSFER OF THIS  CERTIFICATE  MAY BE MADE TO ANY PERSON,  UNLESS THE
TRANSFEREE  PROVIDES EITHER A  CERTIFICATION  PURSUANT TO SECTION 5.02(E) OF THE
AGREEMENT  OR AN OPINION OF COUNSEL  SATISFACTORY  TO THE MASTER  SERVICER,  THE
COMPANY  AND THE  TRUSTEE  THAT  THE  PURCHASE  OF  THIS  CERTIFICATE  WILL  NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER  SERVICER,  THE COMPANY
OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN
THE AGREEMENT.

        ANY RESALE,  TRANSFER OR OTHER  DISPOSITION OF THIS  CERTIFICATE  MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER
SERVICER AND THE TRUSTEE THAT (1) SUCH  TRANSFEREE IS NOT (A) THE UNITED STATES,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES,
OR  ANY  AGENCY  OR  INSTRUMENTALITY  OF ANY OF THE  FOREGOING  (OTHER  THAN  AN
INSTRUMENTALITY  WHICH IS A CORPORATION  IF ALL OF ITS ACTIVITIES ARE SUBJECT TO
TAX AND EXCEPT FOR  FREDDIE  MAC, A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT
SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL
ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING,  (C)
ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION
521 OF THE CODE)  WHICH IS EXEMPT  FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS  SUCH  ORGANIZATION  IS SUBJECT TO THE TAX  IMPOSED BY SECTION 511 OF THE
CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS
TAXABLE  INCOME),  (D) RURAL  ELECTRIC AND TELEPHONE  COOPERATIVES  DESCRIBED IN
SECTION  1381(A)(2)(C)  OF THE CODE,  (E) AN ELECTING  LARGE  PARTNERSHIP  UNDER
SECTION 775(A) OF THE CODE (ANY SUCH PERSON  DESCRIBED IN THE FOREGOING  CLAUSES
(A),  (B),  (C),  (D)  OR  (E)  BEING  HEREIN  REFERRED  TO  AS A  "DISQUALIFIED
ORGANIZATION"),  OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION,  (2) NO PURPOSE
OF SUCH  TRANSFER IS TO IMPEDE THE  ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH
TRANSFEREE  SATISFIES CERTAIN  ADDITIONAL  CONDITIONS  RELATING TO THE FINANCIAL
CONDITION OF THE PROPOSED TRANSFEREE.

<PAGE>

NOTWITHSTANDING  THE  REGISTRATION IN THE CERTIFICATE  REGISTER OR ANY TRANSFER,
SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED  ORGANIZATION OR
AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE
OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE
A CERTIFICATEHOLDER  FOR ANY PURPOSE HEREUNDER,  INCLUDING,  BUT NOT LIMITED TO,
THE  RECEIPT  OF  DISTRIBUTIONS  ON  THIS  CERTIFICATE.   EACH  HOLDER  OF  THIS
CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE  SHALL BE DEEMED TO HAVE CONSENTED
TO THE PROVISIONS OF THIS PARAGRAPH.

<PAGE>

<TABLE>
<CAPTION>

<S>                                             <C>
Certificate No. [____]                          [____]% Pass-Through Rate
Class [R-___] Senior
Date of Pooling and Servicing Agreement and     Aggregate Initial Certificate Principal Balance
Cut-off Date:                                   of the Class R-___ Certificates: $100.00
[--------------]
First Distribution Date:                        Initial Certificate Principal Balance of this
[______________]                                Certificate:
                                                $[--------------]
Master Servicer:                                Percentage Interest: _____%
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]

</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE,
                                        SERIES _______

               evidencing a percentage  interest in any distributions  allocable
               to the Class R[-__]  Certificates  with respect to the Trust Fund
               consisting   primarily  of  a  pool  of   conventional   one-  to
               four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
Certificate  nor the underlying  Mortgage Loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  Residential  Funding  Mortgage
Securities I, Inc.,  the Master  Servicer,  the Trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the Company, the Master Servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

        This certifies that is the registered  owner of the Percentage  Interest
evidenced by this  Certificate  (obtained  by dividing  the Initial  Certificate
Principal  Balance of this  Certificate  by the  aggregate  Initial  Certificate
Principal Balance of all Class R[-__] Certificates,  both as specified above) in
certain  distributions with respect to the Trust Fund consisting  primarily of a
pool of  conventional  one- to  four-family  fixed  interest rate first mortgage
loans (the "Mortgage  Loans"),  formed and sold by Residential  Funding Mortgage
Securities I, Inc.  (hereinafter  called the "Company,"  which term includes any
successor  entity  under the  Agreement  referred to below).  The Trust Fund was
created  pursuant  to a Series  Supplement,  dated as  specified  above,  to the
Standard

<PAGE>

Terms of Pooling and Servicing Agreement dated as of ________________ (together,
the "Pooling and Servicing Agreement" or the "Agreement") among the Company, the
Master  Servicer  and  ___________,  as trustee  (the  "Trustee"),  a summary of
certain of the  pertinent  provisions  of which is set forth  hereafter.  To the
extent not defined herein,  the capitalized  terms used herein have the meanings
assigned in the  Agreement.  This  Certificate is issued under and is subject to
the terms,  provisions and conditions of the Agreement,  to which  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

        Pursuant to the terms of the Agreement,  a distribution  will be made on
the 25th day of each  month  or,  if such 25th day is not a  Business  Day,  the
Business Day  immediately  following (the  "Distribution  Date"),  commencing as
described  in the  Agreement,  to the Person in whose name this  Certificate  is
registered  at the close of business on the last day (or if such last day is not
a Business  Day, the Business Day  immediately  preceding  such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
from the Available  Distribution Amount in an amount equal to the product of the
Percentage  Interest  evidenced by this  Certificate and the amount (of interest
and  principal,  if any)  required  to be  distributed  to  Holders  of  Class R
Certificates on such Distribution Date.

        Each  Holder of this  Certificate  will be  deemed to have  agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted Transferee,  (iii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions,  then the Company will have the right, in its
sole  discretion and without notice to the Holder of this  Certificate,  to sell
this Certificate to a purchaser selected by the Company,  which purchaser may be
the Company,  or any affiliate of the Company,  on such terms and  conditions as
the Company may choose.

        Notwithstanding  the above,  the final  distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that  purpose in the City and State of New York.  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate   Principal  Balance  hereof  will  be  reduced  to  the  extent  of
distributions  allocable to principal and any Realized Losses allocable  hereto.
Notwithstanding  the reduction of the  Certificate  Principal  Balance hereof to
zero,  this  Certificate  will remain  outstanding  under the  Agreement and the
Holder hereof may have additional  obligations with respect to this Certificate,
including  tax   liabilities,   and  may  be  entitled  to  certain   additional
distributions  hereon,  in  accordance  with the  terms  and  provisions  of the
Agreement.

        No transfer  of this Class  R[-__]  Certificate  will be made unless the
Trustee has received either (i) an opinion of counsel  acceptable to and in form
and substance  satisfactory to the Trustee,  the Company and the Master Servicer
with  respect  to  the  permissibility  of  such  transfer  under  the  Employee
Retirement Income Security Act of 1974, as amended  ("ERISA"),  and Section 4975
of

<PAGE>

the Internal Revenue Code (the "Code") and stating, among other things, that the
transferee's  acquisition of a Class R Certificate will not constitute or result
in a non-exempt  prohibited  transaction  under  Section 406 of ERISA or Section
4975 of the Code or (ii) a  representation  letter,  in the form as described by
the Agreement,  stating that the transferee is not an employee  benefit or other
plan subject to the prohibited  transaction  provisions of ERISA or Section 4975
of the Code (a "Plan"),  or any other person (including an investment manager, a
named  fiduciary or a trustee of any Plan) acting,  directly or  indirectly,  on
behalf of or purchasing any Certificate with "plan assets" of any Plan.

        This  Certificate  is one of a duly  authorized  issue  of  Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates").

        The Certificates are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

        As provided in the  Agreement,  withdrawals  from the Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The Agreement permits,  with certain  exceptions  therein provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

        As provided in the Agreement and subject to certain  limitations therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate  Registrar  duly  executed  by the  Holder  hereof or such  Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

<PAGE>

        The  Certificates are issuable only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  Company,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Company, the Master Servicer,  the Trustee 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 Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

        This  Certificate  shall be governed by and construed in accordance with
the laws of the State of New York.

        The obligations  created by the Agreement in respect of the Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

        Reference is hereby made to the further  provisions of this  Certificate
set forth on the reverse hereof,  which further provisions shall for all purpose
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  [R- ]  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

Dated:
      ________________            ____________________________________________
                                   Signature by or on behalf of assignor

                                   ___________________________________________
                                                   Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                          EXHIBIT E

                               FORM OF SELLER/SERVICER CONTRACT

        This  Seller/Servicer  Contract  (as  may be  amended,  supplemented  or
otherwise  modified from time to time, this "Contract") is made this day of , 20
, by and between  Residential  Funding  Corporation,  its successors and assigns
("Residential   Funding")  and  (the   "Seller/Servicer,"   and,  together  with
Residential Funding, the "parties" and each, individually, a "party").

        WHEREAS,  the  Seller/Servicer  desires to sell Loans to, and/or service
Loans for,  Residential  Funding,  and  Residential  Funding desires to purchase
Loans from the Seller/Servicer  and/or have the Seller/Servicer  service various
of its Loans, pursuant to the terms of this Contract and the Residential Funding
Seller  and  Servicer  Guides  incorporated  herein by  reference,  as  amended,
supplemented or otherwise modified, from time to time (together, the "Guides").

        NOW,  THEREFORE,  in  consideration  of the  premises,  and  the  terms,
conditions and agreements set forth below, the parties agree as follows:

1.      INCORPORATION OF GUIDES BY REFERENCE.

        The  Seller/Servicer  acknowledges  that it has  received  and  read the
Guides. All provisions of the Guides are incorporated by reference into and made
a part of this  Contract,  and  shall be  binding  upon the  parties;  provided,
however,  that the  Seller/Servicer  shall be  entitled  to sell Loans to and/or
service Loans for  Residential  Funding only if and for so long as it shall have
been authorized to do so by Residential  Funding in writing.  Specific reference
in this  Contract  to  particular  provisions  of the  Guides  and not to  other
provisions  does not mean that those  provisions of the Guides not  specifically
cited in this Contract are not applicable.  All terms used herein shall have the
same  meanings  as such terms have in the  Guides,  unless the  context  clearly
requires otherwise.

2.      AMENDMENTS.

        This Contract may not be amended or modified orally, and no provision of
this  Contract  may be waived or amended  except in writing  signed by the party
against whom  enforcement  is sought.  Such a written  waiver or amendment  must
expressly  reference this Contract.  However,  by their terms, the Guides may be
amended or  supplemented  by  Residential  Funding  from time to time.  Any such
amendment(s) to the Guides shall be binding upon the parties hereto.

3.      REPRESENTATIONS AND WARRANTIES.

        a.     Reciprocal Representations and Warranties.

        The Seller/Servicer and Residential Funding each represents and warrants
to the other that as of the date of this Contract:

<PAGE>

               (1)    Each party is duly  organized,  validly  existing,  and in
                      good  standing  under  the  laws  of its  jurisdiction  of
                      organization,  is qualified,  if necessary, to do business
                      and in good standing in each  jurisdiction  in which it is
                      required to be so qualified,  and has the requisite  power
                      and  authority  to enter into this  Contract and all other
                      agreements  which are contemplated by this Contract and to
                      carry out its  obligations  hereunder and under the Guides
                      and under such other agreements.

               (2)    This  Contract  has been  duly  authorized,  executed  and
                      delivered  by each  party  and  constitutes  a  valid  and
                      legally  binding  agreement of each party  enforceable  in
                      accordance with its terms.

               (3)    There is no action, proceeding or investigation pending or
                      threatened,  and no basis  therefor  is  known  to  either
                      party,  that could  affect  the  validity  or  prospective
                      validity of this Contract.

               (4)    Insofar as its capacity to carry out any obligation  under
                      this Contract is concerned,  neither party is in violation
                      of  any  charter,   articles  of  incorporation,   bylaws,
                      mortgage, indenture, indebtedness,  agreement, instrument,
                      judgment,  decree,  order, statute, rule or regulation and
                      none of the  foregoing  adversely  affects its capacity to
                      fulfill any of its  obligations  under this Contract.  Its
                      execution of, and  performance  pursuant to, this Contract
                      will not result in a violation of any of the foregoing.

        b.     Seller/Servicer's Representations, Warranties and Covenants.

               In addition to the representations, warranties and covenants made
               by the  Seller/Servicer  pursuant  to  subparagraph  (a) of  this
               paragraph  3,  the  Seller/Servicer  makes  the  representations,
               warranties  and  covenants  set  forth in the  Guides  and,  upon
               request,  agrees to deliver to Residential  Funding the certified
               Resolution of Board of Directors  which  authorizes the execution
               and delivery of this Contract.

4.      REMEDIES OF RESIDENTIAL FUNDING.

        If an Event of Seller  Default  or an Event of  Servicer  Default  shall
occur,  Residential  Funding  may, at its option,  exercise one or more of those
remedies set forth in the Guides.

5.      SELLER/SERVICER'S STATUS AS INDEPENDENT CONTRACTOR.

        At no time shall the  Seller/Servicer  represent that it is acting as an
agent of Residential Funding. The Seller/Servicer shall, at all times, act as an
independent contractor.

<PAGE>

6.      PRIOR AGREEMENTS SUPERSEDED.

        This Contract  restates,  amends and supersedes any and all prior Seller
Contracts or Servicer Contracts between the parties except that any subservicing
agreement  executed by the  Seller/Servicer in connection with any loan-security
exchange transaction shall not be affected.

7.      ASSIGNMENT.

        This Contract may not be assigned or  transferred,  in whole or in part,
by the Seller/Servicer without the prior written consent of Residential Funding.
Residential  Funding may sell,  assign,  convey,  hypothecate,  pledge or in any
other way transfer,  in whole or in part, without restriction,  its rights under
this Contract and the Guides with respect to any Commitment or Loan.

8.      NOTICES.

        All notices,  requests,  demands or other  communications that are to be
given under this  Contract  shall be in writing,  addressed  to the  appropriate
parties and sent by  telefacsimile  or by overnight  courier or by United States
mail,  postage prepaid,  to the addresses and  telefacsimile  numbers  specified
below.  However,  another  name,  address  and/or  telefacsimile  number  may be
substituted  by  the  Seller/Servicer  pursuant  to  the  requirements  of  this
paragraph 8, or Residential Funding pursuant to an amendment to the Guides.

If to Residential  Funding,  notices must be sent to the appropriate  address or
telefacsimile number specified in the Guides.

If to the Seller/Servicer, notice must be sent to:

        Attention:
        Telefacsimile Number: (_____) _____-_________

9.      JURISDICTION AND VENUE.

        Each of the parties irrevocably submits to the jurisdiction of any state
or federal court located in Hennepin County, Minnesota, over any action, suit or
proceeding  to enforce or defend any right  under  this  Contract  or  otherwise
arising from any loan sale or servicing relationship existing in connection with
this  Contract,  and each of the parties  irrevocably  agrees that all claims in
respect of any such  action or  proceeding  may be heard or  determined  in such
state or federal court. Each of the parties irrevocably waives the defense of an
inconvenient  forum to the  maintenance of any such action or proceeding and any
other  substantive or procedural  rights or remedies it may have with respect to
the maintenance of any such action or proceeding in any such forum.  Each of the
parties agrees that a final  judgment in any such action or proceeding  shall be
conclusive and may be

<PAGE>

enforced  in any  other  jurisdiction  by suit on the  judgment  or in any other
manner  provided by law. Each of the parties further agrees not to institute any
legal actions or proceedings  against the other party or any director,  officer,
employee,  attorney,  agent or  property of the other  party,  arising out of or
relating to this  Contract in any court other than as  hereinabove  specified in
this paragraph 9.

10.     MISCELLANEOUS.

        This Contract, including all documents incorporated by reference herein,
constitutes the entire  understanding  between the parties hereto and supersedes
all other agreements, covenants, representations, warranties, understandings and
communications between the parties, whether written or oral, with respect to the
transactions  contemplated by this Contract.  All paragraph  headings  contained
herein  are for  convenience  only and  shall not be  construed  as part of this
Contract.  Any provision of this Contract that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting  the  validity or  enforceability  of such  provision in any
other jurisdiction,  and, to this end, the provisions hereof are severable. This
Contract  shall be governed by, and construed  and enforced in accordance  with,
applicable federal laws and the laws of the State of Minnesota.

<PAGE>

        IN WITNESS WHEREOF,  the duly authorized officers of the Seller/Servicer
and Residential  Funding have executed this  Seller/Servicer  Contract as of the
date first above written.

ATTEST:                                      SELLER/SERVICER
[Corporate Seal]

                                             (Name of Seller/Servicer)
By:                                          By:
   ---------------------------------
             (Signature)                                         (Signature)
By:                                          By:
   ---------------------------------
            (Typed Name)                                        (Typed Name)
Title:                                       Title:
      ------------------------------

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

ATTEST:                                      RESIDENTIAL FUNDING CORPORATION
[Corporate Seal]
By:                                          By:
   ---------------------------------
             (Signature)                                         (Signature)
By:                                          By:
   ---------------------------------
            (Typed Name)                                        (Typed Name)
Title:                                       Title:
      ------------------------------               ----------------------------

<PAGE>

                                    EXHIBIT F

                          FORMS OF REQUEST FOR RELEASE

DATE:
TO:
RE:            REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Series Supplement, to the Standard Terms of Pooling and Servicing Agreement,
Dated:
Series#:
Account#:
Pool#:
Loan#:
Borrower Name(s):

Reason for Document Request: (circle one)

        Mortgage Loan Prepaid in Full       Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

Residential Funding Corporation
Authorized Signature
******************************************************************************
TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

Enclosed Documents:   [ ] Promissory Note
                      [ ] Primary Insurance Policy
                      [ ] Mortgage or Deed of Trust
                      [ ] Assignment(s) of Mortgage or Deed of Trust
                      [ ] Title Insurance Policy
                      [ ] Other:

Name:
Title:
Date:

<PAGE>

                                         EXHIBIT G-1

                           FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF              )
                      ) ss.:
COUNTY OF             )

                 [NAME OF OFFICER], being first duly sworn, deposes and says:

        1.  That he is  [Title  of  Officer]  of  [Name  of  Owner]  (record  or
beneficial  owner of the Mortgage  Pass-Through  Certificates,  Series  _______,
Class  R[-__]  (the  "Owner")),  a  [savings  institution]   [corporation]  duly
organized and existing under the laws of [the State of ] [the United States], on
behalf of which he makes this affidavit and agreement.

        2.  That  the  Owner  (i)  is  not  and  will  not  be  a  "disqualified
organization"  or an electing large  partnership as of [date of transfer] within
the  meaning of  Sections  860E(e)(5)  and 775,  respectively,  of the  Internal
Revenue Code of 1986, as amended (the "Code") or an electing  large  partnership
under  Section  775(a) of the Code,  (ii) will  endeavor to remain  other than a
disqualified  organization  for so long as it retains its ownership  interest in
the  Class  R[-__]  Certificates,  and  (iii)  is  acquiring  the  Class  R[-__]
Certificates  for its own account or for the account of another Owner from which
it has received an affidavit  and  agreement in  substantially  the same form as
this affidavit and agreement.  (For this purpose, a "disqualified  organization"
means an electing  large  partnership  under Section 775 of the Code, the United
States,   any  state  or   political   subdivision   thereof,   any   agency  or
instrumentality  of any of the foregoing (other than an  instrumentality  all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation,  a majority of whose board of directors is not selected by
any  such  governmental   entity)  or  any  foreign  government,   international
organization  or any agency or  instrumentality  of such foreign  government  or
organization,  any rural electric or telephone cooperative,  or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated  business
taxable income).

        3.  That the  Owner is aware  (i) of the tax that  would be  imposed  on
transfers of Class R[-__] Certificates to disqualified organizations or electing
large  partnerships,  under the Code,  that  applies to all  transfers  of Class
R[-__]  Certificates  after March 31,  1988;  (ii) that such tax would be on the
transferor  (or, with respect to transfers to electing  large  partnerships,  on
each such  partnership),  or, if such transfer is through an agent (which person
includes a broker, nominee or middleman) for a disqualified organization, on the
agent;  (iii) that the person  (other than with respect to transfers to electing
large partnerships)  otherwise liable for the tax shall be relieved of liability
for the tax if the  transferee  furnishes to such person an  affidavit  that the
transferee is not a disqualified organization and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
the Class R[-__] Certificates may be "noneconomic residual interests" within the
meaning of 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.

<PAGE>

        4. That the Owner is aware of the tax imposed on a "pass-through entity"
holding  Class  R[-__]  Certificates  if either  the  pass-through  entity is an
electing  large  partnership  under  Section  775 of the  Code or if at any time
during the taxable year of the pass-through  entity a disqualified  organization
is the record holder of an interest in such entity.  (For this purpose,  a "pass
through  entity"  includes  a  regulated   investment  company,  a  real  estate
investment  trust or common  trust fund,  a  partnership,  trust or estate,  and
certain cooperatives.)

        5.  The  Owner  is a  citizen  or  resident  of  the  United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws of, the United States or any political  subdivision  thereof (except in the
case of a partnership,  to the extent provided in Treasury  regulations),  or an
estate that is described in Section  7701(a)(30)(D) of the Code, or a trust that
is described in Section 7701(a)(30)(E) of the Code.

        6.  That the  Owner is aware  that the  Trustee  will not  register  the
transfer  of any  Class  R[- __]  Certificates  unless  the  transferee,  or the
transferee's  agent,  delivers to it an  affidavit  and  agreement,  among other
things,  in  substantially  the same form as this affidavit and  agreement.  The
Owner expressly agrees that it will not consummate any such transfer if it knows
or believes  that any of the  representations  contained in such  affidavit  and
agreement are false.

        7. That the Owner has reviewed the restrictions set forth on the face of
the Class  R[-__]  Certificates  and the  provisions  of Section  5.02(f) of the
Pooling and Servicing  Agreement under which the Class R[-__]  Certificates were
issued (in  particular,  clause  (iii)(A) and (iii)(B) of Section  5.02(f) which
authorize  the Trustee to deliver  payments to a person other than the Owner and
negotiate  a  mandatory  sale by the  Trustee in the event the Owner  holds such
Certificates in violation of Section 5.02(f)).  The Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

        8.  That  the  Owner   consents  to  any  additional   restrictions   or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable  arrangement to ensure that the Class R[-__] Certificates will only
be  owned,  directly  or  indirectly,  by an  Owner  that is not a  disqualified
organization.

        9.     The Owner's Taxpayer Identification Number is ________________.

        10.  This  affidavit  and  agreement  relates  only to the Class  R[-__]
Certificates  held by the Owner and not to any other  holder of the Class R[-__]
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R[-__] Certificates.

        11. That no purpose of the Owner  relating to the transfer of any of the
Class R[-__] Certificates by the Owner is or will be to impede the assessment or
collection of any tax.

        12. That the Owner has no present  knowledge or expectation that it will
be  unable  to pay  any  United  States  taxes  owed by it so long as any of the
Certificates remain outstanding.  In this regard, the Owner hereby represents to
and for the  benefit  of the  person  from whom it  acquired  the  Class  R[-__]
Certificate  that the Owner  intends to pay taxes  associated  with holding such
Class R[-

<PAGE>

__]  Certificate as they become due, fully  understanding  that it may incur tax
liabilities  in  excess  of  any  cash  flows  generated  by  the  Class  R[-__]
Certificate.

        13. That the Owner has no present  knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R[-__] Certificates remain outstanding.

        14. (a) The  Purchaser  is not an  employee  benefit  plan or other plan
subject to the  prohibited  transaction  provisions  of the Employee  Retirement
Income  Security  Act of 1974,  as amended  ("ERISA"),  or  Section  4975 of the
Internal  Revenue  Code of 1986,  as  amended  (the  "Code"),  or an  investment
manager,  named  fiduciary  or a trustee of any such plan,  or any other  Person
acting, directly or indirectly,  on behalf of or purchasing any Certificate with
"plan assets" of any such plan; or

               (b) The Purchaser  will provide the Trustee,  the Company and the
Master  Servicer  with an  opinion  of  counsel  acceptable  to and in form  and
substance  satisfactory  to the Trustee,  the Company and the Master Servicer to
the effect that the purchase of  Certificates  is permissible  under  applicable
law, will not  constitute  or result in any  non-exempt  prohibited  transaction
under ERISA or Section  4975 of the Code and will not subject the  Trustee,  the
Company  or the  Master  Servicer  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.

        In addition, the Purchaser hereby certifies, represents and warrants to,
and covenants  with, the Company,  the Trustee and the Master  Servicer that the
Purchaser  will not  transfer  such  Certificates  to any Plan or person  unless
either such Plan or person meets the requirements set forth in either (a) or (b)
above.

        Capitalized  terms used but not defined  herein  shall have the meanings
assigned in the Pooling and Servicing Agreement.

<PAGE>

        IN WITNESS WHEREOF,  the Owner has caused this instrument to be executed
on its  behalf,  pursuant to the  authority  of its Board of  Directors,  by its
[Title of Officer] and its corporate seal to be hereunto  attached,  attested by
its [Assistant] Secretary, this day of _____,___ 200__.

                                                   [NAME OF OWNER]

                                                   By:
                                                      ------------------------
                                                   [Name of Officer]
                                                   [Title of Officer]

[Corporate Seal]

ATTEST:

[Assistant] Secretary

        Personally  appeared before me the above-named [Name of Officer],  known
or proved to me to be the same person who executed the foregoing  instrument and
to be the  [Title of  Officer]  of the  Owner,  and  acknowledged  to me that he
executed  the  same as his  free  act and  deed and the free act and deed of the
Owner.

        Subscribed and sworn before me this ___ day of ________, 200 __.

                               NOTARY PUBLIC

                               COUNTY OF
                                         ---------------------------------

                               STATE OF
                                        ----------------------------------

                               My Commission expires the ____ day of
                               _____, 20__ .

<PAGE>

                                         EXHIBIT G-2

                                FORM OF TRANSFEROR CERTIFICATE

                                                   __________ , 20__

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[Trustee]

Attention: Residential Funding Corporation Series _______

               Re:    Mortgage Pass-Through Certificates,
                      Series ________, Class R[-__]

Ladies and Gentlemen:

        This  letter is  delivered  to you in  connection  with the  transfer by
_____________________ (the "Seller") to  _____________________(the  "Purchaser")
of   $______________   Initial   Certificate   Principal   Balance  of  Mortgage
Pass-Through  Certificates,  Series ________, Class R[-__] (the "Certificates"),
pursuant to Section 5.02 of the Series Supplement, dated as of ________________,
to  the  Standard  Terms  of  Pooling  and  Servicing   Agreement  dated  as  of
________________   (together,  the  "Pooling  and  Servicing  Agreement")  among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Corporation,  as master servicer, and __________, as trustee
(the "Trustee").  All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and  Servicing  Agreement.  The Seller  hereby
certifies,  represents and warrants to, and covenants  with, the Company and the
Trustee that:

     1. No purpose of the Seller  relating to the transfer of the Certificate by
the Seller to the Purchaser is or will be to impede the assessment or collection
of any tax.

        2. The  Seller  understands  that the  Purchaser  has  delivered  to the
Trustee and the Master  Servicer a transfer  affidavit and agreement in the form
attached to the Pooling and Servicing  Agreement as Exhibit G-1. The Seller does
not know or believe that any representation contained therein is false.

        3. The Seller has at the time of the  transfer  conducted  a  reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-  1(c)(4)(i)  and,  as a  result  of that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they  become  due and has  found no  significant  evidence  to
indicate  that the  Purchaser  will not continue to pay its debts as they become
due in the future.  The Seller  understands  that the transfer of a Class R[-__]
Certificate may not be respected for United States

<PAGE>

income tax purposes  (and the Seller may continue to be liable for United States
income  taxes  Associated  therewith)  unless the Seller has  conducted  such an
investigation.

     4. The Seller has no actual  knowledge that the proposed  Transferee is not
both a United States Person and a Permitted Transferee.

                                                   Very truly yours,

                                                   (Seller)

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

<PAGE>

                                          EXHIBIT H

                            FORM OF INVESTOR REPRESENTATION LETTER

                                                   ______________ , 20___

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

[Trustee]

Residential Funding Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

Attention: Residential Funding Corporation Series ________

               RE:    Mortgage Pass-Through Certificates,
                      Series ________, [Class B-]

Ladies and Gentlemen:

        _________________-   (the   "Purchaser")   intends  to   purchase   from
_________________  (the "Seller")  $_____________  Initial Certificate Principal
Balance of  Mortgage  Pass-Through  Certificates,  Series  ________,  Class (the
"Certificates"),   issued  pursuant  to  the  Series  Supplement,  dated  as  of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________  (together,  the "Pooling and Servicing Agreement") among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Corporation, as master servicer (the "Master Servicer"), and
_____________,  as  trustee  (the  "Trustee").  All terms  used  herein  and not
otherwise defined shall have the meanings set forth in the Pooling and Servicing
Agreement.  The  Purchaser  hereby  certifies,  represents  and warrants to, and
covenants with, the Company, the Trustee and the Master Servicer that:

        1. The Purchaser understands that (a) the Certificates have not been and
will not be registered or qualified under the Securities Act of 1933, as amended
(the "Act") or any state  securities  law, (b) the Company is not required to so
register or qualify the Certificates, (c) the Certificates may be resold only if
registered  and  qualified  pursuant to the  provisions  of the Act or any state
securities law, or if an exemption from such  registration and  qualification is
available,  (d)  the  Pooling  and  Servicing  Agreement  contains  restrictions
regarding the transfer of the Certificates and (e) the Certificates  will bear a
legend to the foregoing effect.

<PAGE>

        2. The Purchaser is acquiring the  Certificates  for its own account for
investment  only  and not  with a view to or for  sale in  connection  with  any
distribution  thereof in any manner that would violate the Act or any applicable
state securities laws.

        3.  The  Purchaser  is (a) 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) able to bear the economic risks of such an
investment  and (c) an "accredited  investor"  within the meaning of Rule 501(a)
promulgated pursuant to the Act.

        4. The Purchaser has been furnished  with, and has had an opportunity to
review  (a) [a copy of the  Private  Placement  Memorandum,  dated  ___________,
20___,  relating to the  Certificates  (b)] a copy of the Pooling and  Servicing
Agreement and [b] [c] such other information  concerning the  Certificates,  the
Mortgage  Loans and the Company as has been  requested by the Purchaser from the
Company or the Seller and is  relevant to the  Purchaser's  decision to purchase
the  Certificates.  The Purchaser has had any questions arising from such review
answered by the Company or the Seller to the satisfaction of the Purchaser.  [If
the  Purchaser did not purchase the  Certificates  from the Seller in connection
with the initial  distribution of the  Certificates and was provided with a copy
of the Private Placement Memorandum (the "Memorandum")  relating to the original
sale (the "Original  Sale") of the  Certificates  by the Company,  the Purchaser
acknowledges  that such  Memorandum  was provided to it by the Seller,  that the
Memorandum  was prepared by the Company  solely for use in  connection  with the
Original  Sale and the Company did not  participate  in or facilitate in any way
the  purchase of the  Certificates  by the  Purchaser  from the Seller,  and the
Purchaser  agrees  that it will look solely to the Seller and not to the Company
with  respect  to any  damage,  liability,  claim  or  expense  arising  out of,
resulting from or in connection with (a) error or omission,  or alleged error or
omission,  contained in the Memorandum,  or (b) any information,  development or
event arising after the date of the Memorandum.]

        5. The  Purchaser  has not and will not nor has it authorized or 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 of 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 (as to any of (a) through (e) above)
would  constitute a distribution  of any  Certificate  under the Act, that would
render the disposition of any Certificate a violation of Section 5 of the Act or
any state  securities law, or that would require  registration or  qualification
pursuant thereto.  The Purchaser will not sell or otherwise  transfer any of the
Certificates,  except in  compliance  with the  provisions  of the  Pooling  and
Servicing Agreement.

        6.     The Purchaser

        (a) is not an employee  benefit or other plan subject to the  prohibited
transaction  provisions of the Employee  Retirement Income Security Act of 1974,
as amended  ("ERISA),  or Section 4975 of the Internal  Revenue Code of 1986, as
amended ("Plan"), or any other person

<PAGE>

(including an investment  manager,  a named  fiduciary or a trustee of any Plan)
acting, directly or indirectly,  on behalf of or purchasing any Certificate with
"plan assets" of any Plan within the meaning of the  Department of Labor ("DOL")
regulation at 29 C.F.R. ss.2510.3-101;

        (b) is an  insurance  company,  the  source of funds to be used by it to
purchase the Certificates is an "insurance  company general account" (within the
meaning of DOL Prohibited  Transaction Class Exemption  ("PTCE") 95-60), and the
purchase is being made in reliance upon the availability of the exemptive relief
afforded under Sections I and III of PTCE 95-60; or

        (c) has provided the Trustee,  the Company and the Master  Servicer with
an opinion of counsel  acceptable to and in form and substance  satisfactory  to
the Trustee, the Company and the Master Servicer to the effect that the purchase
of  Certificates  is permissible  under  applicable  law, will not constitute or
result in any non-exempt  prohibited  transaction under ERISA or Section 4975 of
the Code and will not subject the Trustee, the Company or the Master Servicer 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.

        In addition, the Purchaser hereby certifies, represents and warrants to,
and covenants  with, the Company,  the Trustee and the Master  Servicer that the
Purchaser will not transfer such  Certificates to any Plan or person unless such
Plan or person  meets the  requirements  set  forth in either  6(a),  (b) or (c)
above.

                                                   Very truly yours,

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

<PAGE>

                                    EXHIBIT I

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                   _________, 20___

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

[Trustee]

Attention: Residential Funding Corporation Series ________

               Re:    Mortgage Pass-Through Certificates,
                      Series ________, [Class B-]

Ladies and Gentlemen:

        In connection  with the sale by  ____________________  (the "Seller") to
____________________ (the "Purchaser") of __________________ Initial Certificate
Principal Balance of Mortgage Pass-Through Certificates,  Series ________, Class
(the  "Certificates"),  issued  pursuant to the Series  Supplement,  dated as of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________  (together,  the "Pooling and Servicing Agreement") among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Corporation,  as master servicer, and __________, as trustee
(the "Trustee").  The Seller hereby  certifies,  represents and warrants to, and
covenants with, the Company and the Trustee that:

        Neither  the  Seller nor  anyone  acting on its behalf has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section  5 of the  Act or any  state  securities  law,  or  that  would  require
registration or qualification  pursuant thereto. The Seller will not act, in any
manner set forth in the foregoing sentence with respect to any Certificate.  The
Seller has not and will not sell or otherwise  transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

<PAGE>

                                                   Very truly yours,

                                                   (Seller)

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

<PAGE>

                                    EXHIBIT J

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

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

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

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

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

        The undersigned seller, as registered holder (the "Seller"),  intends to
transfer the Rule 144A Securities  described above to the undersigned buyer (the
"Buyer").

        1.  In  connection  with  such  transfer  and  in  accordance  with  the
agreements  pursuant to which the Rule 144A Securities  were issued,  the Seller
hereby  certifies the following  facts:  Neither the Seller nor anyone acting on
its behalf has offered, transferred,  pledged, sold or otherwise disposed of the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar security to, or solicited any offer to buy or accept a transfer,  pledge
or other disposition of the Rule 144A Securities,  any interest in the Rule 144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities 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
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or  another  "qualified  institutional  buyer" as defined in Rule
144A under the 1933 Act.

        2. The Buyer warrants and represents to, and covenants with, the Seller,
the Trustee and the Master Servicer (as defined in the Series Supplement,  dated
as of ________________, to the Standard Terms of Pooling and Servicing Agreement
dated  as  of  ________________  (the  "Agreement")  among  Residential  Funding
Corporation as Master Servicer,  Residential Funding Mortgage Securities I, Inc.
as  depositor  pursuant to Section  5.02 of the  Agreement  and  __________,  as
trustee, as follows:

               (a) The Buyer  understands that the Rule 144A Securities have not
        been registered under the 1933 Act or the securities laws of any state.

               (b) The  Buyer  considers  itself  a  substantial,  sophisticated
        institutional investor having such knowledge and experience in financial
        and  business  matters that it is capable of  evaluating  the merits and
        risks of investment in the Rule 144A Securities.

               (c) The Buyer has been furnished with all  information  regarding
        the Rule 144A  Securities  that it has  requested  from the Seller,  the
        Trustee or the Servicer.

<PAGE>

               (d)  Neither  the  Buyer nor  anyone  acting  on its  behalf  has
        offered,  transferred,  pledged,  sold or otherwise disposed of the Rule
        144A  Securities,  any interest in the Rule 144A Securities or any other
        similar security to, or solicited any offer to buy or accept a transfer,
        pledge or other disposition of the Rule 144A Securities, any interest in
        the  Rule  144A  Securities  or any  other  similar  security  from,  or
        otherwise  approached  or  negotiated  with  respect  to the  Rule  144A
        Securities,  any  interest  in the Rule  144A  Securities  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 Rule
        144A Securities  under the 1933 Act or that would render the disposition
        of the Rule 144A  Securities a violation of Section 5 of the 1933 Act or
        require  registration  pursuant  thereto,  nor  will it act,  nor has it
        authorized  or will it authorize  any person to act, in such manner with
        respect to the Rule 144A Securities.

               (e) The Buyer is a "qualified  institutional  buyer" as that term
        is defined in Rule 144A under the 1933 Act and has  completed  either of
        the forms of  certification to that effect attached hereto as Annex 1 or
        Annex 2.  The  Buyer  is  aware  that  the  sale to it is being  made in
        reliance on Rule 144A.  The Buyer is acquiring the Rule 144A  Securities
        for its own  account or the  accounts of other  qualified  institutional
        buyers,  understands  that  such  Rule 144A  Securities  may be  resold,
        pledged or transferred only (i) to a person reasonably  believed to be a
        qualified  institutional buyer that purchases for its own account or for
        the account of a qualified  institutional  buyer to whom notice is given
        that the  resale,  pledge or  transfer is being made in reliance on Rule
        144A, or (ii) pursuant to another exemption from registration  under the
        1933 Act.

        [3.    The Buyer

               (a) is not an  employee  benefit  or other  plan  subject  to the
        prohibited  transaction  provisions  of the Employee  Retirement  Income
        Security  Act of 1974,  as amended  ("ERISA"),  or  Section  4975 of the
        Internal  Revenue  Code of 1986,  as  amended (a  "Plan"),  or any other
        person (including an investment  manager, a named fiduciary or a trustee
        of any Plan) acting, directly or indirectly,  on behalf of or purchasing
        any Certificate with "plan assets" of any Plan within the meaning of the
        Department of Labor ("DOL") regulation at 29 C.F.R. ss.2510.3-101;

               (b) is an insurance company, the source of funds to be used by it
        to purchase the  Certificates is an "insurance  company general account"
        (within  the  meaning  of DOL  Prohibited  Transaction  Class  Exemption
        ("PTCE")  95-60),  and the  purchase is being made in reliance  upon the
        availability  of the exemptive  relief afforded under Sections I and III
        of PTCE 95-60; or

               (c) has provided the Trustee, the Company and the Master Servicer
        with an  opinion  of  counsel  acceptable  to and in form and  substance
        satisfactory to the Trustee,  the Company and the Master Servicer to the
        effect that the purchase of Certificates is permissible under applicable
        law,  will  not  constitute  or  result  in  any  non-exempt  prohibited
        transaction under ERISA or Section 4975 of the Code and will not subject
        the Trustee,  the Company or the Master  Servicer to any  obligation  or
        liability (including obligations or liabilities under

<PAGE>

        ERISA or Section  4975 of the Code) in addition to those  undertaken  in
        the Pooling and Servicing Agreement. ]

        4. This document may be executed in one or more  counterparts and by the
different  parties  hereto on  separate  counterparts,  each of  which,  when so
executed, shall be deemed to be an original; such counterparts,  together, shall
constitute one and the same document.

        IN WITNESS WHEREOF, each of the parties has executed this document as of
the date set forth below.

Print Name of Seller                   Print Name of Buyer

By:                                    By:
   ---------------------------------      ---------------------------------
Name:                                  Name:
Title:                                 Title:
Taxpayer Identification                Taxpayer Identification:
No.                                    No:
    --------------------------------      ---------------------------------
Date:                                  Date:
      ------------------------------         ------------------------------

<PAGE>

                              ANNEX 1 TO EXHIBIT J

          QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A [For
               Buyers Other Than Registered Investment Companies]

        The undersigned  hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

     1. As indicated  below,  the undersigned is the President,  Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

        2. In connection with purchases by the Buyer,  the Buyer is a "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933  ("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.

        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.

        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 or
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.

<PAGE>

        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 Adviser. The Buyer is an investment adviser registered under the
Investment Advisers Act of 1940.

     SBIC. The 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. The Buyer is a business development company
as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

        Trust Fund.  The Buyer is a trust fund whose  trustee is a bank or trust
company  and  whose  participants  are  exclusively  (a) plans  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,  or (b) employee  benefit plans within the meaning of Title I of
the Employee  Retirement  Income  Security Act of 1974,  but is not a trust fund
that includes as participants individual retirement accounts or H.R. 10 plans.

        3. The term  "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer,  (ii) securities that are part of
an unsold  allotment to or  subscription by the Buyer, if the Buyer is a dealer,
(iii) 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.

        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.  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.

        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.

                          Will the Buyer be purchasing the Rule 144A
Yes            No            Securities only for the Buyer's own account?

     6. If the answer to the foregoing  question is "no", the Buyer agrees that,
in connection  with any purchase of securities sold to the Buyer for the account
of a third party (including any separate  account) in reliance on Rule 144A, the
Buyer will only  purchase for the account of a third party that at the time is a
"qualified institutional buyer" within the meaning of Rule 144A. In

<PAGE>

addition,  the Buyer  agrees that the Buyer will not purchase  securities  for a
third party unless the Buyer has obtained a current  representation  letter from
such third party or taken other appropriate  steps  contemplated by Rule 144A to
conclude that such third party  independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

        7. The 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 Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.

                                                   Print Name of Buyer

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

                                                   Date:
                                                         ---------------------

<PAGE>

                              ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

        The undersigned  hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

        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  ("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, 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.

        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) bank deposit notes and  certificates of deposit,
(iii) loan participations,  (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

        5. The Buyer is familiar with Rule 144A and understands that each of the
parties to which this  certification  is made 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.

<PAGE>

        6. The  undersigned  will  notify  each of the  parties  to  which  this
certification is made of any changes in the information and conclusions  herein.
Until such notice,  the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this  certification by the undersigned as of the date of such
purchase.

                                                   Print Name of Buyer

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

                                                   IF AN ADVISOR:

                                                   Print Name of Buyer

                                                   Date:
                                                         ---------------------

<PAGE>

                                    EXHIBIT K

                   [TEXT OF AMENDMENT TO POOLING AND SERVICING
                  AGREEMENT PURSUANT TO SECTION 11.01(E) FOR A
                                LIMITED GUARANTY]

                                   ARTICLE XII
             Subordinate Certificate Loss Coverage; Limited Guaranty

        Section 12.01. Subordinate Certificate Loss Coverage;  Limited Guaranty.
(a) Subject to subsection  (c) below,  prior to the later of the third  Business
Day prior to each  Distribution  Date or the  related  Determination  Date,  the
Master Servicer shall determine  whether it or any Sub-Servicer will be entitled
to any  reimbursement  pursuant to Section 4.02(a) on such Distribution Date for
Advances or Sub-Servicer  Advances  previously made, (which will not be Advances
or Sub-Servicer Advances that were made with respect to delinquencies which were
subsequently determined to be Excess Special Hazard Losses, Excess Fraud Losses,
Excess  Bankruptcy  Losses or  Extraordinary  Losses)  and,  if so,  the  Master
Servicer shall demand payment from Residential Funding of an amount equal to the
amount of any Advances or Sub-Servicer  Advances  reimbursed pursuant to Section
4.02(a),  to the extent such  Advances or  Sub-Servicer  Advances  have not been
included in the amount of the Realized Loss in the related  Mortgage  Loan,  and
shall distribute the same to the Class B  Certificateholders  in the same manner
as if such amount were to be distributed pursuant to Section 4.02(a).

        (b)  Subject to  subsection  (c) below,  prior to the later of the third
Business Day prior to each Distribution Date or the related  Determination Date,
the Master  Servicer  shall  determine  whether any Realized  Losses (other than
Excess Special Hazard Losses,  Excess Bankruptcy Losses, Excess Fraud Losses and
Extraordinary  Losses)  will be allocated  to the Class B  Certificates  on such
Distribution  Date  pursuant to Section  4.05,  and, if so, the Master  Servicer
shall demand  payment from  Residential  Funding of the amount of such  Realized
Loss and shall distribute the same to the Class B Certificateholders in the same
manner as if such amount  were to be  distributed  pursuant to Section  4.02(a);
provided, however, that the amount of such demand in respect of any Distribution
Date shall in no event be greater than the sum of (i) the  additional  amount of
Accrued  Certificate  Interest  that  would  have  been  paid  for  the  Class B
Certificateholders  on such  Distribution  Date had such Realized Loss or Losses
not occurred plus (ii) the amount of the reduction in the Certificate  Principal
Balances  of the  Class B  Certificates  on such  Distribution  Date due to such
Realized  Loss or Losses.  Notwithstanding  such payment,  such Realized  Losses
shall be deemed to have been borne by the  Certificateholders  for  purposes  of
Section  4.05.  Excess  Special  Hazard  Losses,  Excess  Fraud  Losses,  Excess
Bankruptcy Losses and Extraordinary Losses allocated to the Class B Certificates
will not be covered by the Subordinate Certificate Loss Obligation.

        (c) Demands for payments pursuant to this Section shall be made prior to
the  later of the third  Business  Day  prior to each  Distribution  Date or the
related Determination Date by the Master Servicer with written notice thereof to
the Trustee.  The maximum amount that  Residential  Funding shall be required to
pay pursuant to this Section on any Distribution  Date (the "Amount  Available")
shall be equal to the lesser of (X) minus the sum of (i) all  previous  payments
made under  subsections  (a) and (b) hereof and (ii) all draws under the Limited
Guaranty made in lieu of such payments as

<PAGE>

described  below  in  subsection  (d) and (Y) the then  outstanding  Certificate
Principal  Balances of the Class B Certificates,  or such lower amount as may be
established  pursuant to Section  12.02.  Residential  Funding's  obligations as
described in this Section are referred to herein as the "Subordinate Certificate
Loss Obligation."

        (d)  The  Trustee  will  promptly   notify  General  Motors   Acceptance
Corporation of any failure of Residential Funding to make any payments hereunder
and  shall  demand  payment  pursuant  to the  limited  guaranty  (the  "Limited
Guaranty"),  executed by General Motors Acceptance  Corporation,  of Residential
Funding's  obligation  to make payments  pursuant to this Section,  in an amount
equal to the lesser of (i) the Amount Available and (ii) such required payments,
by  delivering to General  Motors  Acceptance  Corporation a written  demand for
payment by wire  transfer,  not later than the second  Business Day prior to the
Distribution Date for such month, with a copy to the Master Servicer.

        (e) All payments made by Residential Funding pursuant to this Section or
amounts  paid under the  Limited  Guaranty  shall be  deposited  directly in the
Certificate Account, for distribution on the Distribution Date for such month to
the Class B Certificateholders.

        (f) The  Company  shall  have the  option,  in its sole  discretion,  to
substitute  for  either  or  both of the  Limited  Guaranty  or the  Subordinate
Certificate  Loss  Obligation  another  instrument  in the  form of a  corporate
guaranty,  an irrevocable  letter of credit, a surety bond,  insurance policy or
similar  instrument  or a reserve fund;  provided  that (i) the Company  obtains
(subject to the provisions of Section 10.01(f) as if the Company was substituted
for the Master Servicer solely for the purposes of such provision) an Opinion of
Counsel (which need not be an opinion of Independent counsel) to the effect that
obtaining such  substitute  corporate  guaranty,  irrevocable  letter of credit,
surety bond,  insurance  policy or similar  instrument  or reserve fund will not
cause  either (a) any  federal  tax to be imposed on the Trust  Fund,  including
without limitation,  any federal tax imposed on "prohibited  transactions" under
Section  860(F)(a)(1) of the Code or on  "contributions  after the startup date"
under Section  860(G)(d)(1) of the Code or (b) the Trust Fund to fail to qualify
as a REMIC at any time that any  Certificate  is  outstanding,  and (ii) no such
substitution  shall  be made  unless  (A) the  substitute  Limited  Guaranty  or
Subordinate  Certificate  Loss Obligation is for an initial amount not less than
the then  current  Amount  Available  and  contains  provisions  that are in all
material  respects  equivalent to the original  Limited  Guaranty or Subordinate
Certificate   Loss   Obligation   (including   that  no  portion  of  the  fees,
reimbursements  or other  obligations under any such instrument will be borne by
the Trust  Fund),  (B) the long  term debt  obligations  of any  obligor  of any
substitute  Limited Guaranty or Subordinate  Certificate Loss Obligation (if not
supported by the Limited Guaranty) shall be rated at least the lesser of (a) the
rating  of  the  long  term  debt  obligations  of  General  Motors   Acceptance
Corporation  as of the date of  issuance  of the  Limited  Guaranty  and (b) the
rating  of  the  long  term  debt  obligations  of  General  Motors   Acceptance
Corporation at the date of such substitution and (C) the Company obtains written
confirmation from each nationally recognized credit rating agency that rated the
Class B Certificates at the request of the Company that such substitution  shall
not lower the  rating on the Class B  Certificates  below the  lesser of (a) the
then-current  rating  assigned to the Class B Certificates by such rating agency
and (b) the original  rating assigned to the Class B Certificates by such rating
agency. Any replacement of the Limited Guaranty or Subordinate  Certificate Loss
Obligation pursuant to this Section shall be accompanied by a written Opinion of
Counsel to the substitute guarantor or obligor, addressed to the Master

<PAGE>

Servicer and the Trustee, that such substitute  instrument  constitutes a legal,
valid and binding obligation of the substitute guarantor or obligor, enforceable
in accordance  with its terms,  and concerning  such other matters as the Master
Servicer and the Trustee  shall  reasonably  request.  Neither the Company,  the
Master  Servicer nor the Trustee shall be obligated to substitute for or replace
the Limited  Guaranty  or  Subordinate  Certificate  Loss  Obligation  under any
circumstance.

        Section   12.02.   Amendments   Relating   to  the   Limited   Guaranty.
Notwithstanding  Sections 11.01 or 12.01: (i) the provisions of this Article XII
may be amended,  superseded or deleted, (ii) the Limited Guaranty or Subordinate
Certificate Loss Obligation may be amended,  reduced or canceled,  and (iii) any
other  provision of this Agreement which is related or incidental to the matters
described  in this  Article  XII may be amended in any  manner;  in each case by
written  instrument  executed or  consented  to by the  Company and  Residential
Funding but without the consent of any Certificateholder and without the consent
of the Master  Servicer or the Trustee being required  unless any such amendment
would impose any  additional  obligation on, or otherwise  adversely  affect the
interests of, the Master Servicer or the Trustee,  as applicable;  provided that
the Company shall also obtain a letter from each  nationally  recognized  credit
rating agency that rated the Class B Certificates  at the request of the Company
to the effect that such amendment,  reduction, deletion or cancellation will not
lower  the  rating  on the  Class B  Certificates  below  the  lesser of (a) the
then-current  rating  assigned to the Class B Certificates by such rating agency
and (b) the original  rating assigned to the Class B Certificates by such rating
agency, unless (A) the Holder of 100% of the Class B Certificates is Residential
Funding  or  an  Affiliate  of  Residential  Funding,  or  (B)  such  amendment,
reduction,  deletion or cancellation is made in accordance with Section 11.01(e)
and,  provided  further that the Company  obtains  (subject to the provisions of
Section  10.01(f)  as if the  Company was  substituted  for the Master  Servicer
solely for the purposes of such provision),  in the case of a material amendment
or  supersession  (but not a reduction,  cancellation or deletion of the Limited
Guaranty or the Subordinate Certificate Loss Obligation),  an Opinion of Counsel
(which  need not be an opinion of  Independent  counsel)  to the effect that any
such amendment or  supersession  will not cause either (a) any federal tax to be
imposed on the Trust Fund, including without limitation, any federal tax imposed
on  "prohibited  transactions"  under  Section  860F(a)(1)  of  the  Code  or on
"contributions  after the startup date" under Section  860G(d)(1) of the Code or
(b) the  Trust  Fund to  fail  to  qualify  as a  REMIC  at any  time  that  any
Certificate is outstanding.  A copy of any such instrument  shall be provided to
the Trustee and the Master  Servicer  together  with an Opinion of Counsel  that
such amendment complies with this Section 12.02.

<PAGE>

                                    EXHIBIT L

                           [FORM OF LIMITED GUARANTY]
                                LIMITED GUARANTY
                 RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
                       Mortgage Pass-Through Certificates
                                 Series ________

                               ___________, 20____

[Trustee]

Attention: Residential Funding Corporation Series ________
Ladies and Gentlemen:

        WHEREAS,   Residential  Funding  Corporation,   a  Delaware  corporation
("Residential  Funding"),  an indirect wholly-owned subsidiary of General Motors
Acceptance Corporation,  a New York corporation ("GMAC"), plans to incur certain
obligations as described under Section 12.01 of the Series Supplement,  dated as
of  ________________,  to the Standard Terms of Pooling and Servicing  Agreement
dated  as of  ________________  (together,  the  "Servicing  Agreement"),  among
Residential  Funding Mortgage  Securities I, Inc. (the  "Company"),  Residential
Funding and  __________  (the  "Trustee") as amended by Amendment  No.  thereto,
dated as of , with respect to the  Mortgage  Pass-Through  Certificates,  Series
________ (the "Certificates"); and

        WHEREAS,   pursuant  to  Section  12.01  of  the  Servicing   Agreement,
Residential  Funding  agrees  to make  payments  to the  Holders  of the Class B
Certificates  with respect to certain  losses on the Mortgage Loans as described
in the Servicing Agreement; and

        WHEREAS,  GMAC desires to provide certain assurances with respect to the
ability of  Residential  Funding to secure  sufficient  funds and  faithfully to
perform its Subordinate Certificate Loss Obligation;

        NOW THEREFORE,  in  consideration  of the premises herein  contained and
certain  other good and valuable  consideration,  the receipt of which is hereby
acknowledged, GMAC agrees as follows:

        1. Provision of Funds.  (a) GMAC agrees to contribute and deposit in the
Certificate  Account on behalf of Residential  Funding (or otherwise  provide to
Residential  Funding, or to cause to be made available to Residential  Funding),
either  directly  or  through a  subsidiary,  in any case  prior to the  related
Distribution  Date,  such moneys as may be required  by  Residential  Funding to
perform its Subordinate  Certificate Loss Obligation when and as the same arises
from time to time upon the demand of the  Trustee  in  accordance  with  Section
12.01 of the Servicing Agreement.

        (b) The  agreement  set  forth  in the  preceding  clause  (a)  shall be
absolute,  irrevocable  and  unconditional  and  shall  not be  affected  by the
transfer by GMAC or any other person of all or any

<PAGE>

part  of its or  their  interest  in  Residential  Funding,  by any  insolvency,
bankruptcy, dissolution or other proceeding affecting Residential Funding or any
other  person,  by any defense or right of  counterclaim,  set-off or recoupment
that GMAC may have  against  Residential  Funding or any other  person or by any
other fact or circumstance.  Notwithstanding  the foregoing,  GMAC's obligations
under clause (a) shall terminate upon the earlier of (x)  substitution  for this
Limited Guaranty pursuant to Section 12.01(f) of the Servicing Agreement, or (y)
the termination of the Trust Fund pursuant to the Servicing Agreement.

        2.  Waiver.  GMAC  hereby  waives  any  failure  or delay on the part of
Residential  Funding,  the Trustee or any other person in asserting or enforcing
any  rights or in making  any  claims or demands  hereunder.  Any  defective  or
partial  exercise of any such  rights  shall not  preclude  any other or further
exercise  of  that  or  any  other  such  right.  GMAC  further  waives  demand,
presentment,  notice of default,  protest,  notice of  acceptance  and any other
notices with respect to this Limited Guaranty,  including,  without  limitation,
those of action or nonaction on the part of Residential Funding or the Trustee.

        3. Modification, Amendment and Termination. This Limited Guaranty may be
modified,  amended or terminated  only by the written  agreement of GMAC and the
Trustee and only if such  modification,  amendment or  termination  is permitted
under Section 12.02 of the Servicing  Agreement.  The  obligations of GMAC under
this  Limited  Guaranty  shall  continue  and  remain  in  effect so long as the
Servicing  Agreement is not modified or amended in any way that might affect the
obligations  of GMAC under  this  Limited  Guaranty  without  the prior  written
consent of GMAC.

     4. Successor.  Except as otherwise expressly provided herein, the guarantee
herein set forth shall be binding upon GMAC and its respective successors.

     5.  Governing  Law. This Limited  Guaranty shall be governed by the laws of
the State of New York.

     6. Authorization and Reliance. GMAC understands that a copy of this Limited
Guaranty  shall be delivered to the Trustee in connection  with the execution of
Amendment  No. 1 to the  Servicing  Agreement  and GMAC  hereby  authorizes  the
Company  and the  Trustee  to rely on the  covenants  and  agreements  set forth
herein.

     7.  Definitions.  Capitalized  terms used but not otherwise  defined herein
shall have the meaning given them in the Servicing Agreement.

     8.  Counterparts.  This  Limited  Guaranty may be executed in any number of
counterparts,  each  of  which  shall  be  deemed  to be an  original  and  such
counterparts shall constitute but one and the same instrument.

<PAGE>

        IN WITNESS WHEREOF, GMAC has caused this Limited Guaranty to be executed
and delivered by its respective officers thereunto duly authorized as of the day
and year first above written.

                                                   GENERAL MOTORS ACCEPTANCE
                                                   CORPORATION

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

Acknowledged by:
[Trustee], as Trustee

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

RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

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

<PAGE>

                                          EXHIBIT M

                 FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

                                                   _____________, 20______

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[Trustee]

Attention: Residential Funding Corporation Series ________

               Re:    Mortgage Pass-Through Certificates, Series ________
                      Assignment of Mortgage Loan

Ladies and Gentlemen:

        This letter is delivered to you in  connection  with the  assignment  by
___________   (the  "Trustee")  to   _____________________   (the  "Lender")  of
__________________(the  "Mortgage  Loan")  pursuant  to  Section  3.13(d) of the
Series  Supplement,  dated  as of  ________________,  to the  Standard  Terms of
Pooling and Servicing  Agreement  dated as of  ________________  (together,  the
"Pooling and Servicing Agreement") among Residential Funding Mortgage Securities
I, Inc., as seller (the "Company"),  Residential Funding Corporation,  as master
servicer, and the Trustee. All terms used herein and not otherwise defined shall
have the meanings set forth in the Pooling and Servicing  Agreement.  The Lender
hereby  certifies,  represents  and warrants to, and covenants  with, the Master
Servicer and the Trustee that:

        the  Mortgage  Loan  is  secured  by  Mortgaged  Property  located  in a
jurisdiction  in which an  assignment  in lieu of  satisfaction  is  required to
preserve lien priority,  minimize or avoid mortgage recording taxes or otherwise
comply with, or facilitate a refinancing under, the laws of such jurisdiction;

        the substance of the assignment is, and is intended to be, a refinancing
of such Mortgage Loan and the form of the  transaction is solely to comply with,
or facilitate the transaction under, such local laws;

        the Mortgage Loan following the proposed  assignment will be modified to
have a rate of  interest  at least  0.25  percent  below  or  above  the rate of
interest  on such  Mortgage  Loan prior to such  proposed  assignment;  and such
assignment is at the request of the borrower under the related Mortgage Loan.

<PAGE>

                                                   Very truly yours,

                                                   (Lender)

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

<PAGE>

                                          EXHIBIT N

                                 FORM OF REQUEST FOR EXCHANGE

                                                   [Date]

Bank One, National Association
1 Bank One Plaza
Suite IL1-0126
Chicago, Illinois 60670-0126

               Re:    Residential Funding Mortgage Securities I, Inc.
                      Mortgage Pass-Through Certificates, Series [________]

        Residential  Funding  Corporation,  as the Holder of a ____%  Percentage
Interest of the [Class/Subclass] of Class A-V Certificates,  hereby requests the
Trustee  to  exchange  the  above-referenced  Certificates  for  the  Subclasses
referred to below:

        1.     Class   A-V   Certificates,   corresponding   to  the   following
               Uncertificated    REMIC   Regular   Interests:    [List   numbers
               corresponding  to the related loans and Pool Strip Rates from the
               Mortgage Loan Schedule]. The Initial Subclass Notional Amount and
               the initial  Pass-Through Rate on the Class A-V Certificates will
               be $___________ and _____%, respectively.

        [2.    Repeat as appropriate.]

        The  Subclasses  requested  above will represent in the aggregate all of
the  Uncertificated  REMIC  Regular  Interests  represented  by  the  Class  A-V
Certificates surrendered for exchange.

        The  capitalized  terms  used  but not  defined  herein  shall  have the
meanings set forth in the Pooling and Servicing Agreement,  dated as of _______,
among  Residential  Funding  Mortgage  Securities I, Inc.,  Residential  Funding
Corporation and Bank One National Association, as trustee.

                                      RESIDENTIAL FUNDING CORPORATION

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

<PAGE>

                                          EXHIBIT A

             FORM OF CLASS A CERTIFICATE, [PRINCIPAL ONLY/CLASS A-P] CERTIFICATE
                          AND [INTEREST ONLY/CLASS A-V] CERTIFICATE

        SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986.

        [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

<PAGE>

<TABLE>

<S>                                             <C>
Certificate No. [____]                          [____]% [Adjustable] [Variable] Pass-Through
                                                Rate [based on a Notional Amount]
Class [A-___] Senior                            Percentage Interest: ____%
Date of Pooling and Servicing Agreement and     Aggregate Initial [Certificate Principal
Cut-off Date:                                   Balance] [Interest Only/Class A-V] [Notional
[______________]                                Amount] [Subclass Notional Amount] of the
                                                Class [A-___] Certificates: $________
First Distribution Date:                        [Initial] [Certificate Principal Balance]
[______________]                                [Interest Only/Class A-V] [Subclass] [Notional
                                                Amount] of this Certificate:
                                                $[--------------]
Master Servicer:
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]

</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE
                                       SERIES ________

               evidencing a percentage  interest in the distributions  allocable
               To the Class  [A-___]  certificates  with respect to a trust fund
               Consisting   primarily  of  a  pool  of   conventional   one-  to
               Four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
certificate  nor the underlying  mortgage loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  residential  funding  mortgage
securities I, inc.,  the master  servicer,  the trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the company, the master servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the certificates.

        This certifies that is the registered  owner of the percentage  interest
evidenced by this  certificate  [(obtained by dividing the [initial  certificate
principal balance] [initial  [interest  only/Class A-v] notional amount] of this
certificate by the aggregate [initial certificate principal balance of all Class
A-  certificates]  [initial  [interest  only/Class A-v] notional  amounts of all
[interest only/Class

<PAGE>

A-v]  certificates],  both as specified  above)] in certain  distributions  with
respect to the trust  fund  consisting  primarily  of an  interest  in a pool of
conventional  one- to four-family  fixed interest rate first mortgage loans (the
"mortgage loans"), formed and sold by residential funding mortgage securities I,
inc. (Hereinafter called the "company," which term includes any successor entity
under the agreement referred to below). The trust fund was created pursuant to a
series  supplement,  dated as specified  above, to the standard terms of pooling
and servicing agreement dated as of ________________ (together, the "pooling and
servicing  agreement" or the "agreement") among the company, the master servicer
and  _______________,  as trustee (the  "trustee"),  a summary of certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
agreement.  This  certificate  is issued  under  and is  subject  to the  terms,
provisions  and conditions of the  agreement,  to which  agreement the holder of
this  certificate by virtue of the  acceptance  hereof assents and by which such
holder is bound.

        Pursuant to the terms of the agreement,  a distribution  will be made on
the 25th day of each  month  or,  if such 25th day is not a  business  day,  the
business day  immediately  following (the  "distribution  date"),  commencing as
described  in the  agreement,  to the person in whose name this  certificate  is
registered  at the close of business on the last day (or if such last day is not
a business  day, the business day  immediately  preceding  such last day) of the
month immediately  preceding the month of such distribution (the "record date"),
from the available  distribution amount in an amount equal to the product of the
percentage  interest  evidenced by this certificate and the amount [(of interest
and  principal,  if any)]  required  to be  distributed  to  holders of Class A-
certificates on such distribution date. [the [interest  only/Class A-v] notional
amount  of  the  [interest  only/Class  A-v]  certificates  as of  any  date  of
determination is equal to the aggregate stated principal balance of the mortgage
loans corresponding to the uncertificated remic regular interests represented by
such [interest only/Class A-v] certificates.]

        Distributions  on this  certificate  will be made  either by the  master
servicer  acting on behalf of the trustee or by a paying agent  appointed by the
trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the person entitled thereto if such person shall have so notified the
master  servicer or such paying agent,  or by check mailed to the address of the
person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
certificate register.

        Notwithstanding  the above,  the final  distribution on this certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this certificate at the office or agency appointed
by the trustee for that purpose in the city and state of New York.  The [initial
certificate  principal  balance]  [initial  [interest  only/Class  A-v] notional
amount] of this  certificate  is set forth  above.] [the  certificate  principal
balance  hereof  will be  reduced to the extent of  distributions  allocable  to
principal and any realized losses allocable hereto.]

        This  certificate  is one of a duly  authorized  issue  of  certificates
issued in several classes  designated as mortgage  pass-through  certificates of
the series specified hereon (herein collectively called the "certificates").

        The certificates are limited in right of payment to certain  collections
and recoveries respecting the mortgage loans, all as more specifically set forth
herein and in the agreement. In the

<PAGE>

event master servicer funds are advanced with respect to any mortgage loan, such
advance is  reimbursable to the master  servicer,  to the extent provided in the
agreement, from related recoveries on such mortgage loan or from other cash that
would have been distributable to certificateholders.

        As provided in the  agreement,  withdrawals  from the custodial  account
and/or the certificate account created for the benefit of certificateholders may
be made by the  master  servicer  from  time to time  for  purposes  other  than
distributions to certificateholders,  such purposes including without limitation
reimbursement  to the company  and the master  servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The agreement permits,  with certain  exceptions  therein provided,  the
amendment of the agreement and the modification of the rights and obligations of
the  company,  the  master  servicer  and  the  trustee  and the  rights  of the
certificateholders  under the  agreement at any time by the company,  the master
servicer  and the  trustee  with the  consent  of the  holders  of  certificates
evidencing  in the aggregate  not less than 66% of the  percentage  interests of
each class of certificates  affected thereby.  Any such consent by the holder of
this  certificate  shall be  conclusive  and binding on such holder and upon all
future  holders  of this  certificate  and of any  certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  certificate.  The  agreement  also permits the
amendment thereof in certain circumstances without the consent of the holders of
any of the certificates and, in certain  additional  circumstances,  without the
consent of the holders of certain  classes of  certificates.  As provided in the
agreement and subject to certain  limitations therein set forth, the transfer of
this  certificate is registrable in the  certificate  register upon surrender of
this  certificate  for  registration  of  transfer  at the  offices or  agencies
appointed by the trustee in the city and state of New York, duly endorsed by, or
accompanied  by an assignment  in the form below or other written  instrument of
transfer in form satisfactory to the trustee and the certificate  registrar duly
executed by the holder  hereof or such  holder's  attorney  duly  authorized  in
writing, and thereupon one or more new certificates of authorized  denominations
evidencing  the same class and aggregate  percentage  interest will be issued to
the designated transferee or transferees.

        The  certificates are issuable only as registered  certificates  without
coupons in classes and in denominations  specified in the agreement. As provided
in  the  agreement  and  subject  to  certain  limitations  therein  set  forth,
certificates are  exchangeable for new certificates of authorized  denominations
evidencing the same Class and aggregate percentage interest, as requested by the
holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  company,  the master  servicer,  the  trustee  and the  certificate
registrar and any agent of the company, the master servicer,  the trustee 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 company,  the
master  servicer,  the trustee nor any such agent shall be affected by notice to
the contrary.

<PAGE>

        This  certificate  shall be governed by and construed in accordance with
the laws of the state of New York.

        The obligations  created by the agreement in respect of the certificates
and the  trust  fund  created  thereby  shall  terminate  upon  the  payment  to
certificateholders  of all  amounts  held by or on  behalf  of the  trustee  and
required to be paid to them pursuant to the  agreement  following the earlier of
(i) the maturity or other  liquidation of the last mortgage loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any mortgage  loan and (ii) the purchase by the master  servicer
from the trust fund of all remaining mortgage loans and all property acquired in
respect of such  mortgage  loans,  thereby  effecting  early  retirement  of the
certificates.  The agreement permits,  but does not require, the master servicer
to (i) purchase at a price determined as provided in the agreement all remaining
mortgage loans and all property acquired in respect of any mortgage loan or (ii)
purchase in whole,  but not in part,  all of the  certificates  from the holders
thereof; provided, that any such option may only be exercised if the pool stated
principal  balance of the mortgage loans as of the distribution  date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the cut-off date principal balance of the mortgage loans.

        Reference is hereby made to the further  provisions of this  certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon has been executed by the
certificate  registrar,  by  manual  signature,  this  certificate  shall not be
entitled to any benefit under the agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  [A- ]  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

                                          ASSIGNMENT

        FOR VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass- Through  Certificate and hereby authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

        I  (We)  further  direct  the  Certificate  Registrar  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

Dated:
      ----------------                ---------------------------------------
                                      Signature by or on behalf of assignor

                                      Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                           EXHIBIT B

                                  FORM OF CLASS M CERTIFICATE

        THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF  PAYMENT  TO THE SENIOR
CERTIFICATES  [CLASS M-1 CERTIFICATES] [AND CLASS M-2 CERTIFICATES] AS DESCRIBED
IN THE AGREEMENT (AS DEFINED BELOW).

        SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

        UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC), ANY TRANSFER,  PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

        ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY
VIRTUE OF ITS PURCHASE OR HOLDING OF THIS  CERTIFICATE (OR INTEREST HEREIN) THAT
EITHER (A) SUCH TRANSFEREE IS NOT AN INVESTMENT  MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY PLAN) ACTING, DIRECTLY OR INDIRECTLY,  ON BEHALF OF OR PURCHASING
ANY CERTIFICATE WITH "PLAN ASSETS" OF ANY PLAN (A "PLAN  INVESTOR"),  (B) IT HAS
ACQUIRED AND IS HOLDING SUCH  CERTIFICATE IN RELIANCE ON PROHIBITED  TRANSACTION
EXEMPTION  ("PTE") 94-29, 59 FED. REG. 14674 (MARCH 29, 1994), AS AMENDED BY PTE
97-34, 62 FED. REG. 39021 (JULY 21, 1997),  AND PTE 2000-58,  65 FED. REG. 67765
(NOVEMBER 13, 2000) (THE "RFC  EXEMPTION"),  AND THAT IT UNDERSTANDS  THAT THERE
ARE CERTAIN  CONDITIONS TO THE AVAILABILITY OF THE RFC EXEMPTION  INCLUDING THAT
SUCH CERTIFICATE  MUST BE RATED, AT THE TIME OF PURCHASE,  NOT LOWER THAN "BBB-"
(OR ITS  EQUIVALENT)  BY  STANDARD  & POOR'S,  FITCH OR  MOODY'S  OR (C)(I)  THE
TRANSFEREE IS AN INSURANCE COMPANY, (II) THE SOURCE OF FUNDS TO BE USED BY IT TO
PURCHASE THE CERTIFICATE IS AN "INSURANCE  COMPANY GENERAL  ACCOUNT" (WITHIN THE
MEANING OF U.S.  DEPARTMENT  OF LABOR  PROHIBITED  TRANSACTION  CLASS  EXEMPTION
("PTCE")  95-60),  AND (III) THE  CONDITIONS  SET FORTH IN SECTIONS I AND III OF
PTCE 95-60 HAVE BEEN  SATISFIED  (EACH ENTITY THAT  SATISFIES THIS CLAUSE (C), A
"COMPLYING INSURANCE COMPANY").

<PAGE>

        IF THIS  CERTIFICATE  (OR ANY  INTEREST  HEREIN) IS  ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH,  THEN THE LAST PRECEDING
TRANSFEREE  THAT  EITHER  (I)  IS  NOT  A  PLAN  INVESTOR,  (II)  ACQUIRED  SUCH
CERTIFICATE  IN  COMPLIANCE  WITH THE RFC  EXEMPTION  OR  (III)  IS A  COMPLYING
INSURANCE  COMPANY  SHALL BE  RESTORED,  TO THE EXTENT  PERMITTED BY LAW, TO ALL
RIGHTS AND OBLIGATIONS AS CERTIFICATE  OWNER THEREOF  RETROACTIVE TO THE DATE OF
SUCH  TRANSFER OF THIS  CERTIFICATE.  THE TRUSTEE SHALL BE UNDER NO LIABILITY TO
ANY PERSON FOR MAKING ANY PAYMENTS  DUE ON THIS  CERTIFICATE  TO SUCH  PRECEDING
TRANSFEREE.

        ANY PURPORTED  CERTIFICATE  OWNER WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  HEREIN) WAS EFFECTED IN VIOLATION OF THE  RESTRICTIONS
IN SECTION  5.02(E) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE COMPANY,  THE TRUSTEE,  THE MASTER SERVICER,  ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

<PAGE>

<TABLE>

<S>                                             <C>
Certificate No. [____]                          [____]% Pass-Through Rate
Class [M-___] Subordinate
Date of Pooling and Servicing Agreement and     Principal Balance of the Class M Certificates:
Cut-off Date:                                   $_______________
[--------------]
First Distribution Date:                        Initial Certificate Principal Balance of this
[______________]                                Certificate:
                                                $[--------------]
Master Servicer:
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]
</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE,
                                       SERIES ________

               evidencing a percentage  interest in any distributions  allocable
               to the Class M-___  Certificates  with  respect to the Trust Fund
               consisting   primarily  of  a  pool  of   conventional   one-  to
               four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
Certificate  nor the underlying  Mortgage Loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  Residential  Funding  Mortgage
Securities I, Inc.,  the Master  Servicer,  the Trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the Company, the Master Servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

        This certifies that is the registered  owner of the Percentage  Interest
evidenced by this  Certificate  (obtained by dividing the Certificate  Principal
Balance of this Certificate by the aggregate  Certificate  Principal  Balance of
all Class M-___ Certificates,  both as specified above) in certain distributions
with respect to a Trust Fund consisting primarily of a pool of conventional one-
to four-family fixed interest rate first mortgage loans (the "Mortgage  Loans"),
formed and sold by Residential Funding Mortgage Securities I, Inc.  (hereinafter
called the  "Company,"  which  term  includes  any  successor  entity  under the
Agreement  referred to below).  The Trust Fund was created  pursuant to a Series
Supplement, dated as specified above, to the Standard Terms of Pooling and

<PAGE>

Servicing  Agreement dated as of  ________________  (together,  the "Pooling and
Servicing  Agreement" or the "Agreement") among the Company, the Master Servicer
and  ___________,  as  trustee  (the  "Trustee"),  a summary  of  certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This  Certificate  is issued  under  and is  subject  to the  terms,
provisions  and conditions of the  Agreement,  to which  Agreement the Holder of
this  Certificate by virtue of the  acceptance  hereof assents and by which such
Holder is bound.

        Pursuant to the terms of the Agreement,  a distribution  will be made on
the 25th day of each  month  or,  if such 25th day is not a  Business  Day,  the
Business Day  immediately  following (the  "Distribution  Date"),  commencing as
described  in the  Agreement,  to the Person in whose name this  Certificate  is
registered  at the close of business on the last day (or if such last day is not
a Business  Day, the Business Day  immediately  preceding  such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
from the Available  Distribution Amount in an amount equal to the product of the
Percentage  Interest  evidenced by this  Certificate and the amount (of interest
and  principal,  if any)  required to be  distributed  to Holders of Class M-___
Certificates on such Distribution Date.

        Distributions  on this  Certificate  will be made  either by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

        Notwithstanding  the above,  the final  distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that  purpose in the City and State of New York.  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate  Principal  Balance  hereof  will be  reduced  to the  extent of the
distributions allocable to principal and any Realized Losses allocable hereto.

        As described above, any transferee of this Certificate will be deemed to
have  represented by virtue of its purchase or holding of this  Certificate  (or
interest herein) that either (A) such transferee is not a Plan Investor,  (B) it
has acquired and is holding this  Certificate  in reliance on the RFC  Exemption
and that it understands that there are certain conditions to the availability of
the RFC Exemption  including that this Certificate must be rated, at the time of
purchase,  not lower than "BBB-" (or its equivalent) by Standard & Poor's, Fitch
or Moody's or (C) the transferee is a Complying  Insurance Company. In addition,
any purported Certificate Owner whose acquisition or holding of this Certificate
(or interest  herein) was effected in violation of the  restrictions  in Section
5.02(e) of the Agreement  shall  indemnify  and hold  harmless the Company,  the
Trustee,  the  Master  Servicer,  any  Subservicer,  and the Trust Fund from and
against any and all  liabilities,  claims,  costs or  expenses  incurred by such
parties as a result of such acquisition or holding.

        This  Certificate  is one of a duly  authorized  issue  of  Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates").

<PAGE>

        The Certificates are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

        As provided in the  Agreement,  withdrawals  from the Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The Agreement permits,  with certain  exceptions  therein provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

        As provided in the Agreement and subject to certain  limitations therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate  Registrar  duly  executed  by the  Holder  hereof or such  Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

        The  Certificates are issuable only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  Company,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Company, the Master Servicer,  the Trustee 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

<PAGE>

Company,  the Master Servicer,  the Trustee nor any such agent shall be affected
by notice to the contrary.

        This  Certificate  shall be governed by and construed in accordance with
the laws of the State of New York.

        The obligations  created by the Agreement in respect of the Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

        Unless the certificate of authentication hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  [M- ]  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

                                          ASSIGNMENT

        FOR VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass- Through  Certificate and hereby authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

        I  (We)  further  direct  the  Certificate  Registrar  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

      ----------------                ---------------------------------------
                                      Signature by or on behalf of assignor

                                      Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                           EXHIBIT C

                                  FORM OF CLASS B CERTIFICATE

        THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF  PAYMENT  TO THE SENIOR
CERTIFICATES AND CLASS M CERTIFICATES  [AND CLASS B-1] [CLASS B-2  CERTIFICATES]
DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

        THIS  CERTIFICATE  HAS NOT BEEN AND WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

        NO TRANSFER OF THIS  CERTIFICATE  MAY BE MADE TO ANY PERSON,  UNLESS THE
TRANSFEREE  PROVIDES EITHER A  CERTIFICATION  PURSUANT TO SECTION 5.02(E) OF THE
AGREEMENT  OR AN OPINION OF COUNSEL  SATISFACTORY  TO THE MASTER  SERVICER,  THE
COMPANY  AND THE  TRUSTEE  THAT  THE  PURCHASE  OF  THIS  CERTIFICATE  WILL  NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER  SERVICER,  THE COMPANY
OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN
THE AGREEMENT.

<PAGE>

<TABLE>

<S>                                             <C>
Certificate No. [____]                          [____]% Pass-Through Rate
Class [B-___] Subordinate
Date of Pooling and Servicing Agreement and     Principal Balance of the Class B-___
Cut-off Date:                                   Certificates as of the Cut-off Date: $________
[--------------]
First Distribution Date:                        Initial Certificate Principal Balance of this
[______________]                                Certificate:
                                                $[--------------]
Master Servicer:
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]
</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE,
                                        SERIES _______

               evidencing a percentage  interest in any distributions  allocable
               to the Class B-___  Certificates  with  respect to the Trust Fund
               consisting   primarily  of  a  pool  of   conventional   one-  to
               four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
Certificate  nor the underlying  Mortgage Loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  Residential  Funding  Mortgage
Securities I, Inc.,  the Master  Servicer,  the Trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the Company, the Master Servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

        This certifies that  _______________________  is the registered owner of
the Percentage Interest evidenced by this Certificate  (obtained by dividing the
Certificate  Principal Balance of this Certificate by the aggregate  Certificate
Principal Balance of all Class B-___  Certificates,  both as specified above) in
certain  distributions  with respect to a Trust Fund  consisting  primarily of a
pool of  conventional  one- to  four-family  fixed  interest rate first mortgage
loans (the "Mortgage  Loans"),  formed and sold by Residential  Funding Mortgage
Securities I, Inc.  (hereinafter  called the "Company,"  which term includes any
successor  entity  under the  Agreement  referred to below).  The Trust Fund was
created  pursuant  to a Series  Supplement,  dated as  specified  above,  to the
Standard

<PAGE>

Terms of Pooling and Servicing Agreement dated as of ________________ (together,
the "Pooling and Servicing Agreement" or the "Agreement") among the Company, the
Master  Servicer  and  ___________,  as trustee  (the  "Trustee"),  a summary of
certain of the  pertinent  provisions  of which is set forth  hereafter.  To the
extent not defined herein,  the capitalized  terms used herein have the meanings
assigned in the  Agreement.  This  Certificate is issued under and is subject to
the terms,  provisions and conditions of the Agreement,  to which  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

        Pursuant to the terms of the Agreement, a distribution will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately following (the "Distribution Date"),  commencing on
the first  Distribution  Date specified  above, to the Person in whose name this
Certificate  is  registered at the close of business on the last day (or if such
last day is not a Business Day, the Business Day immediately preceding such last
day) of the month next  preceding  the month of such  distribution  (the "Record
Date"), from the Available Distribution Amount in an amount equal to the product
of the  Percentage  Interest  evidenced by this  Certificate  and the amount (of
interest and principal, if any) required to be distributed to Holders of Class B
Certificates on such Distribution Date.

        Distributions  on this  Certificate  will be made  either by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

        Notwithstanding  the above,  the final  distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that  purpose in the City and State of New York.  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate  Principal  Balance  hereof  will be  reduced  to the  extent of the
distributions allocable to principal and any Realized Losses allocable hereto.

        No  transfer  of this  Class B  Certificate  will  be made  unless  such
transfer is exempt from the  registration  requirements of the Securities Act of
1933,  as  amended,  and  any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made,  (i) the  Trustee  or the  Company  may  require  an  opinion  of  counsel
acceptable  to and in form and  substance  satisfactory  to the  Trustee and the
Company that such transfer is exempt  (describing  the applicable  exemption and
the  basis  therefor)  from  or is  being  made  pursuant  to  the  registration
requirements  of the Securities  Act of 1933, as amended,  and of any applicable
statute of any state and (ii) the transferee shall execute an investment  letter
in the form  described by Section  5.02(e) of the  Agreement.  The Holder hereof
desiring to effect such transfer shall,  and does hereby agree to, indemnify the
Trustee, the Company,  the Master Servicer and the Certificate  Registrar acting
on behalf of the Trustee  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.
In connection  with any such transfer,  the Trustee will also require either (i)
an opinion of counsel  acceptable to and in form and substance  satisfactory  to
the  Trustee,   the  Company  and  the  Master  Servicer  with  respect  to  the
permissibility  of such transfer under the Employee  Retirement  Income Security
Act of 1974, as amended

<PAGE>

("ERISA"),  and  Section  4975 of the  Internal  Revenue  Code (the  "Code") and
stating,  among other things,  that the  transferee's  acquisition  of a Class B
Certificate will not constitute or result in a non-exempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code or (ii) a  representation
letter,  in the form as  described  by the  Agreement,  either  stating that the
transferee  is not an employee  benefit or other plan subject to the  prohibited
transaction  provisions of ERISA or Section 4975 of the Code (a "Plan"),  or any
other person (including an investment manager, a named fiduciary or a trustee of
any Plan)  acting,  directly  or  indirectly,  on behalf  of or  purchasing  any
Certificate with "plan assets" of any Plan, or stating that the transferee is an
insurance  company,  the  source  of  funds  to be  used by it to  purchase  the
Certificate is an "insurance  company  general  account"  (within the meaning of
Department of Labor Prohibited  Transaction Class Exemption ("PTCE") 95-60), and
the purchase is being made in reliance  upon the  availability  of the exemptive
relief afforded under Sections I and III of PTCE 95-60.

        This  Certificate  is one of a duly  authorized  issue  of  Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates").

        The Certificates are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

        As provided in the  Agreement,  withdrawals  from the Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The Agreement permits,  with certain  exceptions  therein provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

        As provided in the Agreement and subject to certain  limitations therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate Registrar duly executed

<PAGE>

by the Holder hereof or such Holder's  attorney duly authorized in writing,  and
thereupon one or more new  Certificates of authorized  denominations  evidencing
the  same  Class  and  aggregate  Percentage  Interest  will  be  issued  to the
designated transferee or transferees.

        The  Certificates are issuable only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  Company,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Company, the Master Servicer,  the Trustee 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 Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

        This  Certificate  shall be governed by and construed in accordance with
the laws of the State of New York.

        The obligations  created by the Agreement in respect of the Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

        Unless the certificate of authentication hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  B-___  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

                                          ASSIGNMENT

        FOR VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass- Through  Certificate and hereby authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

        I  (We)  further  direct  the  Certificate  Registrar  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

Dated:
      ----------------                ---------------------------------------
                                      Signature by or on behalf of assignor

                                      Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                          EXHIBIT D

                                 FORM OF CLASS R CERTIFICATE

        THIS  CERTIFICATE  MAY NOT BE HELD BY OR  TRANSFERRED  TO A NON-  UNITED
STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

        SOLELY FOR U.S.  FEDERAL  INCOME TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"RESIDUAL  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

        NO TRANSFER OF THIS  CERTIFICATE  MAY BE MADE TO ANY PERSON,  UNLESS THE
TRANSFEREE  PROVIDES EITHER A  CERTIFICATION  PURSUANT TO SECTION 5.02(E) OF THE
AGREEMENT  OR AN OPINION OF COUNSEL  SATISFACTORY  TO THE MASTER  SERVICER,  THE
COMPANY  AND THE  TRUSTEE  THAT  THE  PURCHASE  OF  THIS  CERTIFICATE  WILL  NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER  SERVICER,  THE COMPANY
OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN
THE AGREEMENT.

        ANY RESALE,  TRANSFER OR OTHER  DISPOSITION OF THIS  CERTIFICATE  MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER
SERVICER AND THE TRUSTEE THAT (1) SUCH  TRANSFEREE IS NOT (A) THE UNITED STATES,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES,
OR  ANY  AGENCY  OR  INSTRUMENTALITY  OF ANY OF THE  FOREGOING  (OTHER  THAN  AN
INSTRUMENTALITY  WHICH IS A CORPORATION  IF ALL OF ITS ACTIVITIES ARE SUBJECT TO
TAX AND EXCEPT FOR  FREDDIE  MAC, A MAJORITY  OF ITS BOARD OF  DIRECTORS  IS NOT
SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL
ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING,  (C)
ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS' COOPERATIVES  DESCRIBED IN SECTION
521 OF THE CODE)  WHICH IS EXEMPT  FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS  SUCH  ORGANIZATION  IS SUBJECT TO THE TAX  IMPOSED BY SECTION 511 OF THE
CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS
TAXABLE  INCOME),  (D) RURAL  ELECTRIC AND TELEPHONE  COOPERATIVES  DESCRIBED IN
SECTION  1381(A)(2)(C)  OF THE CODE,  (E) AN ELECTING  LARGE  PARTNERSHIP  UNDER
SECTION 775(A) OF THE CODE (ANY SUCH PERSON  DESCRIBED IN THE FOREGOING  CLAUSES
(A),  (B),  (C),  (D)  OR  (E)  BEING  HEREIN  REFERRED  TO  AS A  "DISQUALIFIED
ORGANIZATION"),  OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION,  (2) NO PURPOSE
OF SUCH  TRANSFER IS TO IMPEDE THE  ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH
TRANSFEREE  SATISFIES CERTAIN  ADDITIONAL  CONDITIONS  RELATING TO THE FINANCIAL
CONDITION OF THE PROPOSED TRANSFEREE.

<PAGE>

NOTWITHSTANDING  THE  REGISTRATION IN THE CERTIFICATE  REGISTER OR ANY TRANSFER,
SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED  ORGANIZATION OR
AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE
OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE
A CERTIFICATEHOLDER  FOR ANY PURPOSE HEREUNDER,  INCLUDING,  BUT NOT LIMITED TO,
THE  RECEIPT  OF  DISTRIBUTIONS  ON  THIS  CERTIFICATE.   EACH  HOLDER  OF  THIS
CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE  SHALL BE DEEMED TO HAVE CONSENTED
TO THE PROVISIONS OF THIS PARAGRAPH.

<PAGE>

<TABLE>

<S>                                             <C>
Certificate No. [____]                          [____]% Pass-Through Rate
Class [R-___] Senior
Date of Pooling and Servicing Agreement and     Aggregate Initial Certificate Principal Balance
Cut-off Date:                                   of the Class R-___ Certificates: $100.00
[--------------]
First Distribution Date:                        Initial Certificate Principal Balance of this
[______________]                                Certificate:
                                                $[--------------]
Master Servicer:                                Percentage Interest: _____%
Residential Funding Corporation
Assumed Final Distribution Date:                CUSIP
[--------------]                                [--------------]
</TABLE>

                              MORTGAGE PASS-THROUGH CERTIFICATE,
                                        SERIES _______

               evidencing a percentage  interest in any distributions  allocable
               to the Class R[-__]  Certificates  with respect to the Trust Fund
               consisting   primarily  of  a  pool  of   conventional   one-  to
               four-family  fixed  interest rate first mortgage loans formed and
               sold by RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

        This  Certificate  is payable  solely from the assets of the Trust Fund,
and does not  represent  an  obligation  of or interest in  Residential  Funding
Mortgage Securities I, Inc., the Master Servicer,  the Trustee referred to below
or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  Neither  this
Certificate  nor the underlying  Mortgage Loans are guaranteed or insured by any
governmental  agency  or  instrumentality  or by  Residential  Funding  Mortgage
Securities I, Inc.,  the Master  Servicer,  the Trustee or GMAC Mortgage  Group,
Inc. or any of their affiliates.  None of the Company, the Master Servicer, GMAC
Mortgage  Group,  Inc. or any of their  affiliates will have any obligation with
respect to any  certificate  or other  obligation  secured  by or  payable  from
payments on the Certificates.

        This certifies that is the registered  owner of the Percentage  Interest
evidenced by this  Certificate  (obtained  by dividing  the Initial  Certificate
Principal  Balance of this  Certificate  by the  aggregate  Initial  Certificate
Principal Balance of all Class R[-__] Certificates,  both as specified above) in
certain  distributions with respect to the Trust Fund consisting  primarily of a
pool of  conventional  one- to  four-family  fixed  interest rate first mortgage
loans (the "Mortgage  Loans"),  formed and sold by Residential  Funding Mortgage
Securities I, Inc.  (hereinafter  called the "Company,"  which term includes any
successor  entity  under the  Agreement  referred to below).  The Trust Fund was
created  pursuant  to a Series  Supplement,  dated as  specified  above,  to the
Standard

<PAGE>

Terms of Pooling and Servicing Agreement dated as of ________________ (together,
the "Pooling and Servicing Agreement" or the "Agreement") among the Company, the
Master  Servicer  and  ___________,  as trustee  (the  "Trustee"),  a summary of
certain of the  pertinent  provisions  of which is set forth  hereafter.  To the
extent not defined herein,  the capitalized  terms used herein have the meanings
assigned in the  Agreement.  This  Certificate is issued under and is subject to
the terms,  provisions and conditions of the Agreement,  to which  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

        Pursuant to the terms of the Agreement,  a distribution  will be made on
the 25th day of each  month  or,  if such 25th day is not a  Business  Day,  the
Business Day  immediately  following (the  "Distribution  Date"),  commencing as
described  in the  Agreement,  to the Person in whose name this  Certificate  is
registered  at the close of business on the last day (or if such last day is not
a Business  Day, the Business Day  immediately  preceding  such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
from the Available  Distribution Amount in an amount equal to the product of the
Percentage  Interest  evidenced by this  Certificate and the amount (of interest
and  principal,  if any)  required  to be  distributed  to  Holders  of  Class R
Certificates on such Distribution Date.

        Each  Holder of this  Certificate  will be  deemed to have  agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted Transferee,  (iii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions,  then the Company will have the right, in its
sole  discretion and without notice to the Holder of this  Certificate,  to sell
this Certificate to a purchaser selected by the Company,  which purchaser may be
the Company,  or any affiliate of the Company,  on such terms and  conditions as
the Company may choose.

        Notwithstanding  the above,  the final  distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that  purpose in the City and State of New York.  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate   Principal  Balance  hereof  will  be  reduced  to  the  extent  of
distributions  allocable to principal and any Realized Losses allocable  hereto.
Notwithstanding  the reduction of the  Certificate  Principal  Balance hereof to
zero,  this  Certificate  will remain  outstanding  under the  Agreement and the
Holder hereof may have additional  obligations with respect to this Certificate,
including  tax   liabilities,   and  may  be  entitled  to  certain   additional
distributions  hereon,  in  accordance  with the  terms  and  provisions  of the
Agreement.

        No transfer  of this Class  R[-__]  Certificate  will be made unless the
Trustee has received either (i) an opinion of counsel  acceptable to and in form
and substance  satisfactory to the Trustee,  the Company and the Master Servicer
with  respect  to  the  permissibility  of  such  transfer  under  the  Employee
Retirement Income Security Act of 1974, as amended  ("ERISA"),  and Section 4975
of

<PAGE>

the Internal Revenue Code (the "Code") and stating, among other things, that the
transferee's  acquisition of a Class R Certificate will not constitute or result
in a non-exempt  prohibited  transaction  under  Section 406 of ERISA or Section
4975 of the Code or (ii) a  representation  letter,  in the form as described by
the Agreement,  stating that the transferee is not an employee  benefit or other
plan subject to the prohibited  transaction  provisions of ERISA or Section 4975
of the Code (a "Plan"),  or any other person (including an investment manager, a
named  fiduciary or a trustee of any Plan) acting,  directly or  indirectly,  on
behalf of or purchasing any Certificate with "plan assets" of any Plan.

        This  Certificate  is one of a duly  authorized  issue  of  Certificates
issued in several Classes  designated as Mortgage  Pass-Through  Certificates of
the Series specified hereon (herein collectively called the "Certificates").

        The Certificates are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

        As provided in the  Agreement,  withdrawals  from the Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the Company  and the Master  Servicer  of  advances  made,  or
certain expenses incurred, by either of them.

        The Agreement permits,  with certain  exceptions  therein provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Company,  the  Master  Servicer  and  the  Trustee  and the  rights  of the
Certificateholders  under the  Agreement at any time by the Company,  the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

        As provided in the Agreement and subject to certain  limitations therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in the City and State of New York,
duly  endorsed by, or  accompanied  by an  assignment in the form below or other
written  instrument  of  transfer  in form  satisfactory  to the Trustee and the
Certificate  Registrar  duly  executed  by the  Holder  hereof or such  Holder's
attorney duly authorized in writing,  and thereupon one or more new Certificates
of authorized  denominations  evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

<PAGE>

        The  Certificates are issuable only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

        No service charge will be made for any such  registration of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

        The  Company,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Company, the Master Servicer,  the Trustee 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 Company,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

        This  Certificate  shall be governed by and construed in accordance with
the laws of the State of New York.

        The obligations  created by the Agreement in respect of the Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure  of any Mortgage  Loan and (ii) the purchase by the Master  Servicer
from the Trust Fund of all remaining Mortgage Loans and all property acquired in
respect of such  Mortgage  Loans,  thereby  effecting  early  retirement  of the
Certificates.  The Agreement permits,  but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii)
purchase in whole,  but not in part,  all of the  Certificates  from the Holders
thereof; provided, that any such option may only be exercised if the Pool Stated
Principal  Balance of the Mortgage Loans as of the Distribution  Date upon which
the proceeds of any such  purchase are  distributed  is less than ten percent of
the Cut-off Date Principal Balance of the Mortgage Loans.

        Reference is hereby made to the further  provisions of this  Certificate
set forth on the reverse hereof,  which further provisions shall for all purpose
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

        IN WITNESS  WHEREOF,  the trustee has caused this certificate to be duly
executed.

Dated:________________                             [TRUSTEE],
                                                   as Trustee

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

                                 CERTIFICATE OF AUTHENTICATION

        This  is  one  of  the  Class  [R- ]  Certificates  referred  to in  the
within-mentioned Agreement.

                                                   [TRUSTEE],
                                                   as Certificate Registrar

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

<PAGE>

                                          ASSIGNMENT

        FOR VALUE  RECEIVED,  the  undersigned  hereby  sell(s),  assign(s)  and
transfer(s)  unto (Please print or typewrite name and address  including  postal
zip code of assignee) a  Percentage  Interest  evidenced by the within  Mortgage
Pass- Through  Certificate and hereby authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

        I  (We)  further  direct  the  Certificate  Registrar  to  issue  a  new
Certificate of a like  denomination  and Class,  to the above named assignee and
deliver such Certificate to the following address:

Dated:
      ----------------                ---------------------------------------
                                      Signature by or on behalf of assignor

                                      Signature Guaranteed

                                   DISTRIBUTION INSTRUCTIONS

        The assignee should include the following for purposes of distribution:

        Distributions  shall  be  made,  by  wire  transfer  or  otherwise,   in
immediately  available  funds  to  _______________________for   the  account  of
__________________  account number  ______________-,  or, if mailed by check, to
____________________________.   Applicable   statements   should  be  mailed  to
________________________.

        This  information  is provided by  _____________________,  the  assignee
named above, or ________________, as its agent.

<PAGE>

                                          EXHIBIT E

                               FORM OF SELLER/SERVICER CONTRACT

        This  Seller/Servicer  Contract  (as  may be  amended,  supplemented  or
otherwise  modified from time to time, this "Contract") is made this day of , 20
, by and between  Residential  Funding  Corporation,  its successors and assigns
("Residential   Funding")  and  (the   "Seller/Servicer,"   and,  together  with
Residential Funding, the "parties" and each, individually, a "party").

        WHEREAS,  the  Seller/Servicer  desires to sell Loans to, and/or service
Loans for,  Residential  Funding,  and  Residential  Funding desires to purchase
Loans from the Seller/Servicer  and/or have the Seller/Servicer  service various
of its Loans, pursuant to the terms of this Contract and the Residential Funding
Seller  and  Servicer  Guides  incorporated  herein by  reference,  as  amended,
supplemented or otherwise modified, from time to time (together, the "Guides").

        NOW,  THEREFORE,  in  consideration  of the  premises,  and  the  terms,
conditions and agreements set forth below, the parties agree as follows:

1.      INCORPORATION OF GUIDES BY REFERENCE.

        The  Seller/Servicer  acknowledges  that it has  received  and  read the
Guides. All provisions of the Guides are incorporated by reference into and made
a part of this  Contract,  and  shall be  binding  upon the  parties;  provided,
however,  that the  Seller/Servicer  shall be  entitled  to sell Loans to and/or
service Loans for  Residential  Funding only if and for so long as it shall have
been authorized to do so by Residential  Funding in writing.  Specific reference
in this  Contract  to  particular  provisions  of the  Guides  and not to  other
provisions  does not mean that those  provisions of the Guides not  specifically
cited in this Contract are not applicable.  All terms used herein shall have the
same  meanings  as such terms have in the  Guides,  unless the  context  clearly
requires otherwise.

2.      AMENDMENTS.

        This Contract may not be amended or modified orally, and no provision of
this  Contract  may be waived or amended  except in writing  signed by the party
against whom  enforcement  is sought.  Such a written  waiver or amendment  must
expressly  reference this Contract.  However,  by their terms, the Guides may be
amended or  supplemented  by  Residential  Funding  from time to time.  Any such
amendment(s) to the Guides shall be binding upon the parties hereto.

3.      REPRESENTATIONS AND WARRANTIES.

        a.     Reciprocal Representations and Warranties.

        The Seller/Servicer and Residential Funding each represents and warrants
to the other that as of the date of this Contract:

<PAGE>

               (1)    Each party is duly  organized,  validly  existing,  and in
                      good  standing  under  the  laws  of its  jurisdiction  of
                      organization,  is qualified,  if necessary, to do business
                      and in good standing in each  jurisdiction  in which it is
                      required to be so qualified,  and has the requisite  power
                      and  authority  to enter into this  Contract and all other
                      agreements  which are contemplated by this Contract and to
                      carry out its  obligations  hereunder and under the Guides
                      and under such other agreements.

               (2)    This  Contract  has been  duly  authorized,  executed  and
                      delivered  by each  party  and  constitutes  a  valid  and
                      legally  binding  agreement of each party  enforceable  in
                      accordance with its terms.

               (3)    There is no action, proceeding or investigation pending or
                      threatened,  and no basis  therefor  is  known  to  either
                      party,  that could  affect  the  validity  or  prospective
                      validity of this Contract.

               (4)    Insofar as its capacity to carry out any obligation  under
                      this Contract is concerned,  neither party is in violation
                      of  any  charter,   articles  of  incorporation,   bylaws,
                      mortgage, indenture, indebtedness,  agreement, instrument,
                      judgment,  decree,  order, statute, rule or regulation and
                      none of the  foregoing  adversely  affects its capacity to
                      fulfill any of its  obligations  under this Contract.  Its
                      execution of, and  performance  pursuant to, this Contract
                      will not result in a violation of any of the foregoing.

        b.     Seller/Servicer's Representations, Warranties and Covenants.

               In addition to the representations, warranties and covenants made
               by the  Seller/Servicer  pursuant  to  subparagraph  (a) of  this
               paragraph  3,  the  Seller/Servicer  makes  the  representations,
               warranties  and  covenants  set  forth in the  Guides  and,  upon
               request,  agrees to deliver to Residential  Funding the certified
               Resolution of Board of Directors  which  authorizes the execution
               and delivery of this Contract.

4.      REMEDIES OF RESIDENTIAL FUNDING.

        If an Event of Seller  Default  or an Event of  Servicer  Default  shall
occur,  Residential  Funding  may, at its option,  exercise one or more of those
remedies set forth in the Guides.

5.      SELLER/SERVICER'S STATUS AS INDEPENDENT CONTRACTOR.

        At no time shall the  Seller/Servicer  represent that it is acting as an
agent of Residential Funding. The Seller/Servicer shall, at all times, act as an
independent contractor.

<PAGE>

6.      PRIOR AGREEMENTS SUPERSEDED.

        This Contract  restates,  amends and supersedes any and all prior Seller
Contracts or Servicer Contracts between the parties except that any subservicing
agreement  executed by the  Seller/Servicer in connection with any loan-security
exchange transaction shall not be affected.

7.      ASSIGNMENT.

        This Contract may not be assigned or  transferred,  in whole or in part,
by the Seller/Servicer without the prior written consent of Residential Funding.
Residential  Funding may sell,  assign,  convey,  hypothecate,  pledge or in any
other way transfer,  in whole or in part, without restriction,  its rights under
this Contract and the Guides with respect to any Commitment or Loan.

8.      NOTICES.

        All notices,  requests,  demands or other  communications that are to be
given under this  Contract  shall be in writing,  addressed  to the  appropriate
parties and sent by  telefacsimile  or by overnight  courier or by United States
mail,  postage prepaid,  to the addresses and  telefacsimile  numbers  specified
below.  However,  another  name,  address  and/or  telefacsimile  number  may be
substituted  by  the  Seller/Servicer  pursuant  to  the  requirements  of  this
paragraph 8, or Residential Funding pursuant to an amendment to the Guides.

If to Residential  Funding,  notices must be sent to the appropriate  address or
telefacsimile number specified in the Guides.

If to the Seller/Servicer, notice must be sent to:

        Attention:
        Telefacsimile Number: (_____) _____-_________

9.      JURISDICTION AND VENUE.

        Each of the parties irrevocably submits to the jurisdiction of any state
or federal court located in Hennepin County, Minnesota, over any action, suit or
proceeding  to enforce or defend any right  under  this  Contract  or  otherwise
arising from any loan sale or servicing relationship existing in connection with
this  Contract,  and each of the parties  irrevocably  agrees that all claims in
respect of any such  action or  proceeding  may be heard or  determined  in such
state or federal court. Each of the parties irrevocably waives the defense of an
inconvenient  forum to the  maintenance of any such action or proceeding and any
other  substantive or procedural  rights or remedies it may have with respect to
the maintenance of any such action or proceeding in any such forum.  Each of the
parties agrees that a final  judgment in any such action or proceeding  shall be
conclusive and may be

<PAGE>

enforced  in any  other  jurisdiction  by suit on the  judgment  or in any other
manner  provided by law. Each of the parties further agrees not to institute any
legal actions or proceedings  against the other party or any director,  officer,
employee,  attorney,  agent or  property of the other  party,  arising out of or
relating to this  Contract in any court other than as  hereinabove  specified in
this paragraph 9.

10.     MISCELLANEOUS.

        This Contract, including all documents incorporated by reference herein,
constitutes the entire  understanding  between the parties hereto and supersedes
all other agreements, covenants, representations, warranties, understandings and
communications between the parties, whether written or oral, with respect to the
transactions  contemplated by this Contract.  All paragraph  headings  contained
herein  are for  convenience  only and  shall not be  construed  as part of this
Contract.  Any provision of this Contract that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting  the  validity or  enforceability  of such  provision in any
other jurisdiction,  and, to this end, the provisions hereof are severable. This
Contract  shall be governed by, and construed  and enforced in accordance  with,
applicable federal laws and the laws of the State of Minnesota.

<PAGE>

        IN WITNESS WHEREOF,  the duly authorized officers of the Seller/Servicer
and Residential  Funding have executed this  Seller/Servicer  Contract as of the
date first above written.

ATTEST:                                      SELLER/SERVICER
[Corporate Seal]

                                             (Name of Seller/Servicer)
By:                                          By:
   ---------------------------------
             (Signature)                                         (Signature)
By:                                          By:
   ---------------------------------
            (Typed Name)                                        (Typed Name)
Title:                                       Title:
      ------------------------------

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

ATTEST:                                      RESIDENTIAL FUNDING CORPORATION
[Corporate Seal]
By:                                          By:
   ---------------------------------
             (Signature)                                         (Signature)
By:                                          By:
   ---------------------------------
            (Typed Name)                                        (Typed Name)
Title:                                       Title:
      ------------------------------               ----------------------------

<PAGE>

                                          EXHIBIT F

                                 FORMS OF REQUEST FOR RELEASE

DATE:
TO:
RE:            REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Series Supplement, to the Standard Terms of Pooling and Servicing Agreement,
Dated:
Series#:
Account#:
Pool#:
Loan#:
Borrower Name(s):

Reason for Document Request: (circle one)

        Mortgage Loan Prepaid in Full       Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

Residential Funding Corporation
Authorized Signature
******************************************************************************
TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

Enclosed Documents:   [ ] Promissory Note
                      [ ] Primary Insurance Policy
                      [ ] Mortgage or Deed of Trust
                      [ ] Assignment(s) of Mortgage or Deed of Trust
                      [ ] Title Insurance Policy
                      [ ] Other:

Name:
Title:
Date:

<PAGE>

                                         EXHIBIT G-1

                           FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF              )
                      ) ss.:
COUNTY OF             )

                 [NAME OF OFFICER], being first duly sworn, deposes and says:

        1.  That he is  [Title  of  Officer]  of  [Name  of  Owner]  (record  or
beneficial  owner of the Mortgage  Pass-Through  Certificates,  Series  _______,
Class  R[-__]  (the  "Owner")),  a  [savings  institution]   [corporation]  duly
organized and existing under the laws of [the State of ] [the United States], on
behalf of which he makes this affidavit and agreement.

        2.  That  the  Owner  (i)  is  not  and  will  not  be  a  "disqualified
organization"  or an electing large  partnership as of [date of transfer] within
the  meaning of  Sections  860E(e)(5)  and 775,  respectively,  of the  Internal
Revenue Code of 1986, as amended (the "Code") or an electing  large  partnership
under  Section  775(a) of the Code,  (ii) will  endeavor to remain  other than a
disqualified  organization  for so long as it retains its ownership  interest in
the  Class  R[-__]  Certificates,  and  (iii)  is  acquiring  the  Class  R[-__]
Certificates  for its own account or for the account of another Owner from which
it has received an affidavit  and  agreement in  substantially  the same form as
this affidavit and agreement.  (For this purpose, a "disqualified  organization"
means an electing  large  partnership  under Section 775 of the Code, the United
States,   any  state  or   political   subdivision   thereof,   any   agency  or
instrumentality  of any of the foregoing (other than an  instrumentality  all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation,  a majority of whose board of directors is not selected by
any  such  governmental   entity)  or  any  foreign  government,   international
organization  or any agency or  instrumentality  of such foreign  government  or
organization,  any rural electric or telephone cooperative,  or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated  business
taxable income).

        3.  That the  Owner is aware  (i) of the tax that  would be  imposed  on
transfers of Class R[-__] Certificates to disqualified organizations or electing
large  partnerships,  under the Code,  that  applies to all  transfers  of Class
R[-__]  Certificates  after March 31,  1988;  (ii) that such tax would be on the
transferor  (or, with respect to transfers to electing  large  partnerships,  on
each such  partnership),  or, if such transfer is through an agent (which person
includes a broker, nominee or middleman) for a disqualified organization, on the
agent;  (iii) that the person  (other than with respect to transfers to electing
large partnerships)  otherwise liable for the tax shall be relieved of liability
for the tax if the  transferee  furnishes to such person an  affidavit  that the
transferee is not a disqualified organization and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
the Class R[-__] Certificates may be "noneconomic residual interests" within the
meaning of 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.

<PAGE>

        4. That the Owner is aware of the tax imposed on a "pass-through entity"
holding  Class  R[-__]  Certificates  if either  the  pass-through  entity is an
electing  large  partnership  under  Section  775 of the  Code or if at any time
during the taxable year of the pass-through  entity a disqualified  organization
is the record holder of an interest in such entity.  (For this purpose,  a "pass
through  entity"  includes  a  regulated   investment  company,  a  real  estate
investment  trust or common  trust fund,  a  partnership,  trust or estate,  and
certain cooperatives.)

        5.  The  Owner  is a  citizen  or  resident  of  the  United  States,  a
corporation,  partnership  or other entity created or organized in, or under the
laws of, the United States or any political  subdivision  thereof (except in the
case of a partnership,  to the extent provided in Treasury  regulations),  or an
estate that is described in Section  7701(a)(30)(D) of the Code, or a trust that
is described in Section 7701(a)(30)(E) of the Code.

        6.  That the  Owner is aware  that the  Trustee  will not  register  the
transfer  of any  Class  R[- __]  Certificates  unless  the  transferee,  or the
transferee's  agent,  delivers to it an  affidavit  and  agreement,  among other
things,  in  substantially  the same form as this affidavit and  agreement.  The
Owner expressly agrees that it will not consummate any such transfer if it knows
or believes  that any of the  representations  contained in such  affidavit  and
agreement are false.

        7. That the Owner has reviewed the restrictions set forth on the face of
the Class  R[-__]  Certificates  and the  provisions  of Section  5.02(f) of the
Pooling and Servicing  Agreement under which the Class R[-__]  Certificates were
issued (in  particular,  clause  (iii)(A) and (iii)(B) of Section  5.02(f) which
authorize  the Trustee to deliver  payments to a person other than the Owner and
negotiate  a  mandatory  sale by the  Trustee in the event the Owner  holds such
Certificates in violation of Section 5.02(f)).  The Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

        8.  That  the  Owner   consents  to  any  additional   restrictions   or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable  arrangement to ensure that the Class R[-__] Certificates will only
be  owned,  directly  or  indirectly,  by an  Owner  that is not a  disqualified
organization.

        9.     The Owner's Taxpayer Identification Number is ________________.

        10.  This  affidavit  and  agreement  relates  only to the Class  R[-__]
Certificates  held by the Owner and not to any other  holder of the Class R[-__]
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R[-__] Certificates.

        11. That no purpose of the Owner  relating to the transfer of any of the
Class R[-__] Certificates by the Owner is or will be to impede the assessment or
collection of any tax.

        12. That the Owner has no present  knowledge or expectation that it will
be  unable  to pay  any  United  States  taxes  owed by it so long as any of the
Certificates remain outstanding.  In this regard, the Owner hereby represents to
and for the  benefit  of the  person  from whom it  acquired  the  Class  R[-__]
Certificate  that the Owner  intends to pay taxes  associated  with holding such
Class R[-

<PAGE>

__]  Certificate as they become due, fully  understanding  that it may incur tax
liabilities  in  excess  of  any  cash  flows  generated  by  the  Class  R[-__]
Certificate.

        13. That the Owner has no present  knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R[-__] Certificates remain outstanding.

        14. (a) The  Purchaser  is not an  employee  benefit  plan or other plan
subject to the  prohibited  transaction  provisions  of the Employee  Retirement
Income  Security  Act of 1974,  as amended  ("ERISA"),  or  Section  4975 of the
Internal  Revenue  Code of 1986,  as  amended  (the  "Code"),  or an  investment
manager,  named  fiduciary  or a trustee of any such plan,  or any other  Person
acting, directly or indirectly,  on behalf of or purchasing any Certificate with
"plan assets" of any such plan; or

               (b) The Purchaser  will provide the Trustee,  the Company and the
Master  Servicer  with an  opinion  of  counsel  acceptable  to and in form  and
substance  satisfactory  to the Trustee,  the Company and the Master Servicer to
the effect that the purchase of  Certificates  is permissible  under  applicable
law, will not  constitute  or result in any  non-exempt  prohibited  transaction
under ERISA or Section  4975 of the Code and will not subject the  Trustee,  the
Company  or the  Master  Servicer  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.

        In addition, the Purchaser hereby certifies, represents and warrants to,
and covenants  with, the Company,  the Trustee and the Master  Servicer that the
Purchaser  will not  transfer  such  Certificates  to any Plan or person  unless
either such Plan or person meets the requirements set forth in either (a) or (b)
above.

        Capitalized  terms used but not defined  herein  shall have the meanings
assigned in the Pooling and Servicing Agreement.

<PAGE>

        IN WITNESS WHEREOF,  the Owner has caused this instrument to be executed
on its  behalf,  pursuant to the  authority  of its Board of  Directors,  by its
[Title of Officer] and its corporate seal to be hereunto  attached,  attested by
its [Assistant] Secretary, this day of _____,___ 200__.

                                                   [NAME OF OWNER]

                                                   By:
                                                      -----------------------
                                                   [Name of Officer]
                                                   [Title of Officer]

[Corporate Seal]

ATTEST:

[Assistant] Secretary

        Personally  appeared before me the above-named [Name of Officer],  known
or proved to me to be the same person who executed the foregoing  instrument and
to be the  [Title of  Officer]  of the  Owner,  and  acknowledged  to me that he
executed  the  same as his  free  act and  deed and the free act and deed of the
Owner.

        Subscribed and sworn before me this ___ day of ________, 200 __.

                          NOTARY PUBLIC

                          COUNTY OF
                                    ---------------------------------

                          STATE OF
                                   ----------------------------------

                          My Commission expires the ____ day of
                          _____, 20__ .

<PAGE>

                                         EXHIBIT G-2

                                FORM OF TRANSFEROR CERTIFICATE

                                                   __________ , 20__

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[Trustee]

Attention: Residential Funding Corporation Series _______

               Re:    Mortgage Pass-Through Certificates,
                      Series ________, Class R[-__]

Ladies and Gentlemen:

        This  letter is  delivered  to you in  connection  with the  transfer by
_____________________ (the "Seller") to  _____________________(the  "Purchaser")
of   $______________   Initial   Certificate   Principal   Balance  of  Mortgage
Pass-Through  Certificates,  Series ________, Class R[-__] (the "Certificates"),
pursuant to Section 5.02 of the Series Supplement, dated as of ________________,
to  the  Standard  Terms  of  Pooling  and  Servicing   Agreement  dated  as  of
________________   (together,  the  "Pooling  and  Servicing  Agreement")  among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Corporation,  as master servicer, and __________, as trustee
(the "Trustee").  All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and  Servicing  Agreement.  The Seller  hereby
certifies,  represents and warrants to, and covenants  with, the Company and the
Trustee that:

     1. No purpose of the Seller  relating to the transfer of the Certificate by
the Seller to the Purchaser is or will be to impede the assessment or collection
of any tax.

        2. The  Seller  understands  that the  Purchaser  has  delivered  to the
Trustee and the Master  Servicer a transfer  affidavit and agreement in the form
attached to the Pooling and Servicing  Agreement as Exhibit G-1. The Seller does
not know or believe that any representation contained therein is false.

        3. The Seller has at the time of the  transfer  conducted  a  reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-  1(c)(4)(i)  and,  as a  result  of that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they  become  due and has  found no  significant  evidence  to
indicate  that the  Purchaser  will not continue to pay its debts as they become
due in the future.  The Seller  understands  that the transfer of a Class R[-__]
Certificate may not be respected for United States

<PAGE>

income tax purposes  (and the Seller may continue to be liable for United States
income  taxes  Associated  therewith)  unless the Seller has  conducted  such an
investigation.

     4. The Seller has no actual  knowledge that the proposed  Transferee is not
both a United States Person and a Permitted Transferee.

                        Very truly yours,

                        (Seller)

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

<PAGE>

                                          EXHIBIT H

                            FORM OF INVESTOR REPRESENTATION LETTER

                                                   ______________ , 20___

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

[Trustee]

Residential Funding Corporation
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

Attention: Residential Funding Corporation Series ________

               RE:    Mortgage Pass-Through Certificates,
                      Series ________, [Class B-]

Ladies and Gentlemen:

        _________________-   (the   "Purchaser")   intends  to   purchase   from
_________________  (the "Seller")  $_____________  Initial Certificate Principal
Balance of  Mortgage  Pass-Through  Certificates,  Series  ________,  Class (the
"Certificates"),   issued  pursuant  to  the  Series  Supplement,  dated  as  of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________  (together,  the "Pooling and Servicing Agreement") among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Corporation, as master servicer (the "Master Servicer"), and
_____________,  as  trustee  (the  "Trustee").  All terms  used  herein  and not
otherwise defined shall have the meanings set forth in the Pooling and Servicing
Agreement.  The  Purchaser  hereby  certifies,  represents  and warrants to, and
covenants with, the Company, the Trustee and the Master Servicer that:

        1. The Purchaser understands that (a) the Certificates have not been and
will not be registered or qualified under the Securities Act of 1933, as amended
(the "Act") or any state  securities  law, (b) the Company is not required to so
register or qualify the Certificates, (c) the Certificates may be resold only if
registered  and  qualified  pursuant to the  provisions  of the Act or any state
securities law, or if an exemption from such  registration and  qualification is
available,  (d)  the  Pooling  and  Servicing  Agreement  contains  restrictions
regarding the transfer of the Certificates and (e) the Certificates  will bear a
legend to the foregoing effect.

<PAGE>

        2. The Purchaser is acquiring the  Certificates  for its own account for
investment  only  and not  with a view to or for  sale in  connection  with  any
distribution  thereof in any manner that would violate the Act or any applicable
state securities laws.

        3.  The  Purchaser  is (a) 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) able to bear the economic risks of such an
investment  and (c) an "accredited  investor"  within the meaning of Rule 501(a)
promulgated pursuant to the Act.

        4. The Purchaser has been furnished  with, and has had an opportunity to
review  (a) [a copy of the  Private  Placement  Memorandum,  dated  ___________,
20___,  relating to the  Certificates  (b)] a copy of the Pooling and  Servicing
Agreement and [b] [c] such other information  concerning the  Certificates,  the
Mortgage  Loans and the Company as has been  requested by the Purchaser from the
Company or the Seller and is  relevant to the  Purchaser's  decision to purchase
the  Certificates.  The Purchaser has had any questions arising from such review
answered by the Company or the Seller to the satisfaction of the Purchaser.  [If
the  Purchaser did not purchase the  Certificates  from the Seller in connection
with the initial  distribution of the  Certificates and was provided with a copy
of the Private Placement Memorandum (the "Memorandum")  relating to the original
sale (the "Original  Sale") of the  Certificates  by the Company,  the Purchaser
acknowledges  that such  Memorandum  was provided to it by the Seller,  that the
Memorandum  was prepared by the Company  solely for use in  connection  with the
Original  Sale and the Company did not  participate  in or facilitate in any way
the  purchase of the  Certificates  by the  Purchaser  from the Seller,  and the
Purchaser  agrees  that it will look solely to the Seller and not to the Company
with  respect  to any  damage,  liability,  claim  or  expense  arising  out of,
resulting from or in connection with (a) error or omission,  or alleged error or
omission,  contained in the Memorandum,  or (b) any information,  development or
event arising after the date of the Memorandum.]

        5. The  Purchaser  has not and will not nor has it authorized or 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 of 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 (as to any of (a) through (e) above)
would  constitute a distribution  of any  Certificate  under the Act, that would
render the disposition of any Certificate a violation of Section 5 of the Act or
any state  securities law, or that would require  registration or  qualification
pursuant thereto.  The Purchaser will not sell or otherwise  transfer any of the
Certificates,  except in  compliance  with the  provisions  of the  Pooling  and
Servicing Agreement.

        6.     The Purchaser

        (a) is not an employee  benefit or other plan subject to the  prohibited
transaction  provisions of the Employee  Retirement Income Security Act of 1974,
as amended  ("ERISA),  or Section 4975 of the Internal  Revenue Code of 1986, as
amended ("Plan"), or any other person

<PAGE>

(including an investment  manager,  a named  fiduciary or a trustee of any Plan)
acting, directly or indirectly,  on behalf of or purchasing any Certificate with
"plan assets" of any Plan within the meaning of the  Department of Labor ("DOL")
regulation at 29 C.F.R. ss.2510.3-101;

        (b) is an  insurance  company,  the  source of funds to be used by it to
purchase the Certificates is an "insurance  company general account" (within the
meaning of DOL Prohibited  Transaction Class Exemption  ("PTCE") 95-60), and the
purchase is being made in reliance upon the availability of the exemptive relief
afforded under Sections I and III of PTCE 95-60; or

        (c) has provided the Trustee,  the Company and the Master  Servicer with
an opinion of counsel  acceptable to and in form and substance  satisfactory  to
the Trustee, the Company and the Master Servicer to the effect that the purchase
of  Certificates  is permissible  under  applicable  law, will not constitute or
result in any non-exempt  prohibited  transaction under ERISA or Section 4975 of
the Code and will not subject the Trustee, the Company or the Master Servicer 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.

        In addition, the Purchaser hereby certifies, represents and warrants to,
and covenants  with, the Company,  the Trustee and the Master  Servicer that the
Purchaser will not transfer such  Certificates to any Plan or person unless such
Plan or person  meets the  requirements  set  forth in either  6(a),  (b) or (c)
above.

                                                   Very truly yours,

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

<PAGE>

                                          EXHIBIT I

                           FORM OF TRANSFEROR REPRESENTATION LETTER

                                                   _________, 20___

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, MN 55437

[Trustee]

Attention: Residential Funding Corporation Series ________

               Re:    Mortgage Pass-Through Certificates,
                      Series ________, [Class B-]

Ladies and Gentlemen:

        In connection  with the sale by  ____________________  (the "Seller") to
____________________ (the "Purchaser") of __________________ Initial Certificate
Principal Balance of Mortgage Pass-Through Certificates,  Series ________, Class
(the  "Certificates"),  issued  pursuant to the Series  Supplement,  dated as of
________________, to the Standard Terms of Pooling and Servicing Agreement dated
as of ________________  (together,  the "Pooling and Servicing Agreement") among
Residential  Funding  Mortgage  Securities I, Inc.,  as seller (the  "Company"),
Residential Funding Corporation,  as master servicer, and __________, as trustee
(the "Trustee").  The Seller hereby  certifies,  represents and warrants to, and
covenants with, the Company and the Trustee that:

        Neither  the  Seller nor  anyone  acting on its behalf has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section  5 of the  Act or any  state  securities  law,  or  that  would  require
registration or qualification  pursuant thereto. The Seller will not act, in any
manner set forth in the foregoing sentence with respect to any Certificate.  The
Seller has not and will not sell or otherwise  transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

<PAGE>

                                                   Very truly yours,

                                                   (Seller)

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

<PAGE>

                                          EXHIBIT J

                        [FORM OF RULE 144A INVESTMENT REPRESENTATION]

                   Description of Rule 144A Securities, including numbers:

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

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

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

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

        The undersigned seller, as registered holder (the "Seller"),  intends to
transfer the Rule 144A Securities  described above to the undersigned buyer (the
"Buyer").

        1.  In  connection  with  such  transfer  and  in  accordance  with  the
agreements  pursuant to which the Rule 144A Securities  were issued,  the Seller
hereby  certifies the following  facts:  Neither the Seller nor anyone acting on
its behalf has offered, transferred,  pledged, sold or otherwise disposed of the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar security to, or solicited any offer to buy or accept a transfer,  pledge
or other disposition of the Rule 144A Securities,  any interest in the Rule 144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities 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
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or  another  "qualified  institutional  buyer" as defined in Rule
144A under the 1933 Act.

        2. The Buyer warrants and represents to, and covenants with, the Seller,
the Trustee and the Master Servicer (as defined in the Series Supplement,  dated
as of ________________, to the Standard Terms of Pooling and Servicing Agreement
dated  as  of  ________________  (the  "Agreement")  among  Residential  Funding
Corporation as Master Servicer,  Residential Funding Mortgage Securities I, Inc.
as  depositor  pursuant to Section  5.02 of the  Agreement  and  __________,  as
trustee, as follows:

               (a) The Buyer  understands that the Rule 144A Securities have not
        been registered under the 1933 Act or the securities laws of any state.

               (b) The  Buyer  considers  itself  a  substantial,  sophisticated
        institutional investor having such knowledge and experience in financial
        and  business  matters that it is capable of  evaluating  the merits and
        risks of investment in the Rule 144A Securities.

               (c) The Buyer has been furnished with all  information  regarding
        the Rule 144A  Securities  that it has  requested  from the Seller,  the
        Trustee or the Servicer.

<PAGE>

               (d)  Neither  the  Buyer nor  anyone  acting  on its  behalf  has
        offered,  transferred,  pledged,  sold or otherwise disposed of the Rule
        144A  Securities,  any interest in the Rule 144A Securities or any other
        similar security to, or solicited any offer to buy or accept a transfer,
        pledge or other disposition of the Rule 144A Securities, any interest in
        the  Rule  144A  Securities  or any  other  similar  security  from,  or
        otherwise  approached  or  negotiated  with  respect  to the  Rule  144A
        Securities,  any  interest  in the Rule  144A  Securities  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 Rule
        144A Securities  under the 1933 Act or that would render the disposition
        of the Rule 144A  Securities a violation of Section 5 of the 1933 Act or
        require  registration  pursuant  thereto,  nor  will it act,  nor has it
        authorized  or will it authorize  any person to act, in such manner with
        respect to the Rule 144A Securities.

               (e) The Buyer is a "qualified  institutional  buyer" as that term
        is defined in Rule 144A under the 1933 Act and has  completed  either of
        the forms of  certification to that effect attached hereto as Annex 1 or
        Annex 2.  The  Buyer  is  aware  that  the  sale to it is being  made in
        reliance on Rule 144A.  The Buyer is acquiring the Rule 144A  Securities
        for its own  account or the  accounts of other  qualified  institutional
        buyers,  understands  that  such  Rule 144A  Securities  may be  resold,
        pledged or transferred only (i) to a person reasonably  believed to be a
        qualified  institutional buyer that purchases for its own account or for
        the account of a qualified  institutional  buyer to whom notice is given
        that the  resale,  pledge or  transfer is being made in reliance on Rule
        144A, or (ii) pursuant to another exemption from registration  under the
        1933 Act.

        [3.    The Buyer

               (a) is not an  employee  benefit  or other  plan  subject  to the
        prohibited  transaction  provisions  of the Employee  Retirement  Income
        Security  Act of 1974,  as amended  ("ERISA"),  or  Section  4975 of the
        Internal  Revenue  Code of 1986,  as  amended (a  "Plan"),  or any other
        person (including an investment  manager, a named fiduciary or a trustee
        of any Plan) acting, directly or indirectly,  on behalf of or purchasing
        any Certificate with "plan assets" of any Plan within the meaning of the
        Department of Labor ("DOL") regulation at 29 C.F.R. ss.2510.3-101;

               (b) is an insurance company, the source of funds to be used by it
        to purchase the  Certificates is an "insurance  company general account"
        (within  the  meaning  of DOL  Prohibited  Transaction  Class  Exemption
        ("PTCE")  95-60),  and the  purchase is being made in reliance  upon the
        availability  of the exemptive  relief afforded under Sections I and III
        of PTCE 95-60; or

               (c) has provided the Trustee, the Company and the Master Servicer
        with an  opinion  of  counsel  acceptable  to and in form and  substance
        satisfactory to the Trustee,  the Company and the Master Servicer to the
        effect that the purchase of Certificates is permissible under applicable
        law,  will  not  constitute  or  result  in  any  non-exempt  prohibited
        transaction under ERISA or Section 4975 of the Code and will not subject
        the Trustee,  the Company or the Master  Servicer to any  obligation  or
        liability (including obligations or liabilities under

<PAGE>

        ERISA or Section  4975 of the Code) in addition to those  undertaken  in
        the Pooling and Servicing Agreement. ]

        4. This document may be executed in one or more  counterparts and by the
different  parties  hereto on  separate  counterparts,  each of  which,  when so
executed, shall be deemed to be an original; such counterparts,  together, shall
constitute one and the same document.

        IN WITNESS WHEREOF, each of the parties has executed this document as of
the date set forth below.

Print Name of Seller                   Print Name of Buyer

By:                                    By:
   ---------------------------------      ---------------------------------
Name:                                  Name:
Title:                                 Title:
Taxpayer Identification                Taxpayer Identification:
No.                                    No:
    --------------------------------      ---------------------------------
Date:                                  Date:
      ------------------------------         ------------------------------

<PAGE>

                              ANNEX 1 TO EXHIBIT J

          QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A [For
               Buyers Other Than Registered Investment Companies]

        The undersigned  hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

     1. As indicated  below,  the undersigned is the President,  Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

        2. In connection with purchases by the Buyer,  the Buyer is a "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933  ("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.

        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.

        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 or
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.

<PAGE>

        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 Adviser. The Buyer is an investment adviser registered under the
Investment Advisers Act of 1940.

     SBIC. The 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. The Buyer is a business development company
as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

        Trust Fund.  The Buyer is a trust fund whose  trustee is a bank or trust
company  and  whose  participants  are  exclusively  (a) plans  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,  or (b) employee  benefit plans within the meaning of Title I of
the Employee  Retirement  Income  Security Act of 1974,  but is not a trust fund
that includes as participants individual retirement accounts or H.R. 10 plans.

        3. The term  "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer,  (ii) securities that are part of
an unsold  allotment to or  subscription by the Buyer, if the Buyer is a dealer,
(iii) 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.

        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.  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.

        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.

                          Will the Buyer be purchasing the Rule 144A
Yes            No            Securities only for the Buyer's own account?

     6. If the answer to the foregoing  question is "no", the Buyer agrees that,
in connection  with any purchase of securities sold to the Buyer for the account
of a third party (including any separate  account) in reliance on Rule 144A, the
Buyer will only  purchase for the account of a third party that at the time is a
"qualified institutional buyer" within the meaning of Rule 144A. In

<PAGE>

addition,  the Buyer  agrees that the Buyer will not purchase  securities  for a
third party unless the Buyer has obtained a current  representation  letter from
such third party or taken other appropriate  steps  contemplated by Rule 144A to
conclude that such third party  independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

        7. The 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 Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.

                              Print Name of Buyer

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

                              Date:
                                    -------------------------------------

<PAGE>

                              ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

        The undersigned  hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

        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  ("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, 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.

        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) bank deposit notes and  certificates of deposit,
(iii) loan participations,  (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

        5. The Buyer is familiar with Rule 144A and understands that each of the
parties to which this  certification  is made 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.

<PAGE>

        6. The  undersigned  will  notify  each of the  parties  to  which  this
certification is made of any changes in the information and conclusions  herein.
Until such notice,  the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this  certification by the undersigned as of the date of such
purchase.

                                Print Name of Buyer

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

                                IF AN ADVISOR:

                                Print Name of Buyer

                                Date:
                                      -------------------------------------

<PAGE>

                                    EXHIBIT K

                   [TEXT OF AMENDMENT TO POOLING AND SERVICING
                  AGREEMENT PURSUANT TO SECTION 11.01(E) FOR A
                                LIMITED GUARANTY]

                                   ARTICLE XII
             Subordinate Certificate Loss Coverage; Limited Guaranty

        Section 12.01. Subordinate Certificate Loss Coverage;  Limited Guaranty.
(a) Subject to subsection  (c) below,  prior to the later of the third  Business
Day prior to each  Distribution  Date or the  related  Determination  Date,  the
Master Servicer shall determine  whether it or any Sub-Servicer will be entitled
to any  reimbursement  pursuant to Section 4.02(a) on such Distribution Date for
Advances or Sub-Servicer  Advances  previously made, (which will not be Advances
or Sub-Servicer Advances that were made with respect to delinquencies which were
subsequently determined to be Excess Special Hazard Losses, Excess Fraud Losses,
Excess  Bankruptcy  Losses or  Extraordinary  Losses)  and,  if so,  the  Master
Servicer shall demand payment from Residential Funding of an amount equal to the
amount of any Advances or Sub-Servicer  Advances  reimbursed pursuant to Section
4.02(a),  to the extent such  Advances or  Sub-Servicer  Advances  have not been
included in the amount of the Realized Loss in the related  Mortgage  Loan,  and
shall distribute the same to the Class B  Certificateholders  in the same manner
as if such amount were to be distributed pursuant to Section 4.02(a).

        (b)  Subject to  subsection  (c) below,  prior to the later of the third
Business Day prior to each Distribution Date or the related  Determination Date,
the Master  Servicer  shall  determine  whether any Realized  Losses (other than
Excess Special Hazard Losses,  Excess Bankruptcy Losses, Excess Fraud Losses and
Extraordinary  Losses)  will be allocated  to the Class B  Certificates  on such
Distribution  Date  pursuant to Section  4.05,  and, if so, the Master  Servicer
shall demand  payment from  Residential  Funding of the amount of such  Realized
Loss and shall distribute the same to the Class B Certificateholders in the same
manner as if such amount  were to be  distributed  pursuant to Section  4.02(a);
provided, however, that the amount of such demand in respect of any Distribution
Date shall in no event be greater than the sum of (i) the  additional  amount of
Accrued  Certificate  Interest  that  would  have  been  paid  for  the  Class B
Certificateholders  on such  Distribution  Date had such Realized Loss or Losses
not occurred plus (ii) the amount of the reduction in the Certificate  Principal
Balances  of the  Class B  Certificates  on such  Distribution  Date due to such
Realized  Loss or Losses.  Notwithstanding  such payment,  such Realized  Losses
shall be deemed to have been borne by the  Certificateholders  for  purposes  of
Section  4.05.  Excess  Special  Hazard  Losses,  Excess  Fraud  Losses,  Excess
Bankruptcy Losses and Extraordinary Losses allocated to the Class B Certificates
will not be covered by the Subordinate Certificate Loss Obligation.

        (c) Demands for payments pursuant to this Section shall be made prior to
the  later of the third  Business  Day  prior to each  Distribution  Date or the
related Determination Date by the Master Servicer with written notice thereof to
the Trustee.  The maximum amount that  Residential  Funding shall be required to
pay pursuant to this Section on any Distribution  Date (the "Amount  Available")
shall be equal to the lesser of (X) minus the sum of (i) all  previous  payments
made under  subsections  (a) and (b) hereof and (ii) all draws under the Limited
Guaranty made in lieu of such payments as

<PAGE>

described  below  in  subsection  (d) and (Y) the then  outstanding  Certificate
Principal  Balances of the Class B Certificates,  or such lower amount as may be
established  pursuant to Section  12.02.  Residential  Funding's  obligations as
described in this Section are referred to herein as the "Subordinate Certificate
Loss Obligation."

        (d)  The  Trustee  will  promptly   notify  General  Motors   Acceptance
Corporation of any failure of Residential Funding to make any payments hereunder
and  shall  demand  payment  pursuant  to the  limited  guaranty  (the  "Limited
Guaranty"),  executed by General Motors Acceptance  Corporation,  of Residential
Funding's  obligation  to make payments  pursuant to this Section,  in an amount
equal to the lesser of (i) the Amount Available and (ii) such required payments,
by  delivering to General  Motors  Acceptance  Corporation a written  demand for
payment by wire  transfer,  not later than the second  Business Day prior to the
Distribution Date for such month, with a copy to the Master Servicer.

        (e) All payments made by Residential Funding pursuant to this Section or
amounts  paid under the  Limited  Guaranty  shall be  deposited  directly in the
Certificate Account, for distribution on the Distribution Date for such month to
the Class B Certificateholders.

        (f) The  Company  shall  have the  option,  in its sole  discretion,  to
substitute  for  either  or  both of the  Limited  Guaranty  or the  Subordinate
Certificate  Loss  Obligation  another  instrument  in the  form of a  corporate
guaranty,  an irrevocable  letter of credit, a surety bond,  insurance policy or
similar  instrument  or a reserve fund;  provided  that (i) the Company  obtains
(subject to the provisions of Section 10.01(f) as if the Company was substituted
for the Master Servicer solely for the purposes of such provision) an Opinion of
Counsel (which need not be an opinion of Independent counsel) to the effect that
obtaining such  substitute  corporate  guaranty,  irrevocable  letter of credit,
surety bond,  insurance  policy or similar  instrument  or reserve fund will not
cause  either (a) any  federal  tax to be imposed on the Trust  Fund,  including
without limitation,  any federal tax imposed on "prohibited  transactions" under
Section  860(F)(a)(1) of the Code or on  "contributions  after the startup date"
under Section  860(G)(d)(1) of the Code or (b) the Trust Fund to fail to qualify
as a REMIC at any time that any  Certificate  is  outstanding,  and (ii) no such
substitution  shall  be made  unless  (A) the  substitute  Limited  Guaranty  or
Subordinate  Certificate  Loss Obligation is for an initial amount not less than
the then  current  Amount  Available  and  contains  provisions  that are in all
material  respects  equivalent to the original  Limited  Guaranty or Subordinate
Certificate   Loss   Obligation   (including   that  no  portion  of  the  fees,
reimbursements  or other  obligations under any such instrument will be borne by
the Trust  Fund),  (B) the long  term debt  obligations  of any  obligor  of any
substitute  Limited Guaranty or Subordinate  Certificate Loss Obligation (if not
supported by the Limited Guaranty) shall be rated at least the lesser of (a) the
rating  of  the  long  term  debt  obligations  of  General  Motors   Acceptance
Corporation  as of the date of  issuance  of the  Limited  Guaranty  and (b) the
rating  of  the  long  term  debt  obligations  of  General  Motors   Acceptance
Corporation at the date of such substitution and (C) the Company obtains written
confirmation from each nationally recognized credit rating agency that rated the
Class B Certificates at the request of the Company that such substitution  shall
not lower the  rating on the Class B  Certificates  below the  lesser of (a) the
then-current  rating  assigned to the Class B Certificates by such rating agency
and (b) the original  rating assigned to the Class B Certificates by such rating
agency. Any replacement of the Limited Guaranty or Subordinate  Certificate Loss
Obligation pursuant to this Section shall be accompanied by a written Opinion of
Counsel to the substitute guarantor or obligor, addressed to the Master

<PAGE>

Servicer and the Trustee, that such substitute  instrument  constitutes a legal,
valid and binding obligation of the substitute guarantor or obligor, enforceable
in accordance  with its terms,  and concerning  such other matters as the Master
Servicer and the Trustee  shall  reasonably  request.  Neither the Company,  the
Master  Servicer nor the Trustee shall be obligated to substitute for or replace
the Limited  Guaranty  or  Subordinate  Certificate  Loss  Obligation  under any
circumstance.

        Section   12.02.   Amendments   Relating   to  the   Limited   Guaranty.
Notwithstanding  Sections 11.01 or 12.01: (i) the provisions of this Article XII
may be amended,  superseded or deleted, (ii) the Limited Guaranty or Subordinate
Certificate Loss Obligation may be amended,  reduced or canceled,  and (iii) any
other  provision of this Agreement which is related or incidental to the matters
described  in this  Article  XII may be amended in any  manner;  in each case by
written  instrument  executed or  consented  to by the  Company and  Residential
Funding but without the consent of any Certificateholder and without the consent
of the Master  Servicer or the Trustee being required  unless any such amendment
would impose any  additional  obligation on, or otherwise  adversely  affect the
interests of, the Master Servicer or the Trustee,  as applicable;  provided that
the Company shall also obtain a letter from each  nationally  recognized  credit
rating agency that rated the Class B Certificates  at the request of the Company
to the effect that such amendment,  reduction, deletion or cancellation will not
lower  the  rating  on the  Class B  Certificates  below  the  lesser of (a) the
then-current  rating  assigned to the Class B Certificates by such rating agency
and (b) the original  rating assigned to the Class B Certificates by such rating
agency, unless (A) the Holder of 100% of the Class B Certificates is Residential
Funding  or  an  Affiliate  of  Residential  Funding,  or  (B)  such  amendment,
reduction,  deletion or cancellation is made in accordance with Section 11.01(e)
and,  provided  further that the Company  obtains  (subject to the provisions of
Section  10.01(f)  as if the  Company was  substituted  for the Master  Servicer
solely for the purposes of such provision),  in the case of a material amendment
or  supersession  (but not a reduction,  cancellation or deletion of the Limited
Guaranty or the Subordinate Certificate Loss Obligation),  an Opinion of Counsel
(which  need not be an opinion of  Independent  counsel)  to the effect that any
such amendment or  supersession  will not cause either (a) any federal tax to be
imposed on the Trust Fund, including without limitation, any federal tax imposed
on  "prohibited  transactions"  under  Section  860F(a)(1)  of  the  Code  or on
"contributions  after the startup date" under Section  860G(d)(1) of the Code or
(b) the  Trust  Fund to  fail  to  qualify  as a  REMIC  at any  time  that  any
Certificate is outstanding.  A copy of any such instrument  shall be provided to
the Trustee and the Master  Servicer  together  with an Opinion of Counsel  that
such amendment complies with this Section 12.02.

<PAGE>

                                    EXHIBIT L

                           [FORM OF LIMITED GUARANTY]
                                LIMITED GUARANTY
                 RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.
                       Mortgage Pass-Through Certificates
                                 Series ________

                                                   ___________, 20____

[Trustee]

Attention: Residential Funding Corporation Series ________
Ladies and Gentlemen:

        WHEREAS,   Residential  Funding  Corporation,   a  Delaware  corporation
("Residential  Funding"),  an indirect wholly-owned subsidiary of General Motors
Acceptance Corporation,  a New York corporation ("GMAC"), plans to incur certain
obligations as described under Section 12.01 of the Series Supplement,  dated as
of  ________________,  to the Standard Terms of Pooling and Servicing  Agreement
dated  as of  ________________  (together,  the  "Servicing  Agreement"),  among
Residential  Funding Mortgage  Securities I, Inc. (the  "Company"),  Residential
Funding and  __________  (the  "Trustee") as amended by Amendment  No.  thereto,
dated as of , with respect to the  Mortgage  Pass-Through  Certificates,  Series
________ (the "Certificates"); and

        WHEREAS,   pursuant  to  Section  12.01  of  the  Servicing   Agreement,
Residential  Funding  agrees  to make  payments  to the  Holders  of the Class B
Certificates  with respect to certain  losses on the Mortgage Loans as described
in the Servicing Agreement; and

        WHEREAS,  GMAC desires to provide certain assurances with respect to the
ability of  Residential  Funding to secure  sufficient  funds and  faithfully to
perform its Subordinate Certificate Loss Obligation;

        NOW THEREFORE,  in  consideration  of the premises herein  contained and
certain  other good and valuable  consideration,  the receipt of which is hereby
acknowledged, GMAC agrees as follows:

        1. Provision of Funds.  (a) GMAC agrees to contribute and deposit in the
Certificate  Account on behalf of Residential  Funding (or otherwise  provide to
Residential  Funding, or to cause to be made available to Residential  Funding),
either  directly  or  through a  subsidiary,  in any case  prior to the  related
Distribution  Date,  such moneys as may be required  by  Residential  Funding to
perform its Subordinate  Certificate Loss Obligation when and as the same arises
from time to time upon the demand of the  Trustee  in  accordance  with  Section
12.01 of the Servicing Agreement.

        (b) The  agreement  set  forth  in the  preceding  clause  (a)  shall be
absolute,  irrevocable  and  unconditional  and  shall  not be  affected  by the
transfer by GMAC or any other person of all or any

<PAGE>

part  of its or  their  interest  in  Residential  Funding,  by any  insolvency,
bankruptcy, dissolution or other proceeding affecting Residential Funding or any
other  person,  by any defense or right of  counterclaim,  set-off or recoupment
that GMAC may have  against  Residential  Funding or any other  person or by any
other fact or circumstance.  Notwithstanding  the foregoing,  GMAC's obligations
under clause (a) shall terminate upon the earlier of (x)  substitution  for this
Limited Guaranty pursuant to Section 12.01(f) of the Servicing Agreement, or (y)
the termination of the Trust Fund pursuant to the Servicing Agreement.

        2.  Waiver.  GMAC  hereby  waives  any  failure  or delay on the part of
Residential  Funding,  the Trustee or any other person in asserting or enforcing
any  rights or in making  any  claims or demands  hereunder.  Any  defective  or
partial  exercise of any such  rights  shall not  preclude  any other or further
exercise  of  that  or  any  other  such  right.  GMAC  further  waives  demand,
presentment,  notice of default,  protest,  notice of  acceptance  and any other
notices with respect to this Limited Guaranty,  including,  without  limitation,
those of action or nonaction on the part of Residential Funding or the Trustee.

        3. Modification, Amendment and Termination. This Limited Guaranty may be
modified,  amended or terminated  only by the written  agreement of GMAC and the
Trustee and only if such  modification,  amendment or  termination  is permitted
under Section 12.02 of the Servicing  Agreement.  The  obligations of GMAC under
this  Limited  Guaranty  shall  continue  and  remain  in  effect so long as the
Servicing  Agreement is not modified or amended in any way that might affect the
obligations  of GMAC under  this  Limited  Guaranty  without  the prior  written
consent of GMAC.

     4. Successor.  Except as otherwise expressly provided herein, the guarantee
herein set forth shall be binding upon GMAC and its respective successors.

     5.  Governing  Law. This Limited  Guaranty shall be governed by the laws of
the State of New York.

     6. Authorization and Reliance. GMAC understands that a copy of this Limited
Guaranty  shall be delivered to the Trustee in connection  with the execution of
Amendment  No. 1 to the  Servicing  Agreement  and GMAC  hereby  authorizes  the
Company  and the  Trustee  to rely on the  covenants  and  agreements  set forth
herein.

     7.  Definitions.  Capitalized  terms used but not otherwise  defined herein
shall have the meaning given them in the Servicing Agreement.

     8.  Counterparts.  This  Limited  Guaranty may be executed in any number of
counterparts,  each  of  which  shall  be  deemed  to be an  original  and  such
counterparts shall constitute but one and the same instrument.

<PAGE>

        IN WITNESS WHEREOF, GMAC has caused this Limited Guaranty to be executed
and delivered by its respective officers thereunto duly authorized as of the day
and year first above written.

                                                   GENERAL MOTORS ACCEPTANCE
                                                   CORPORATION

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

Acknowledged by:
[Trustee], as Trustee

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

RESIDENTIAL FUNDING MORTGAGE SECURITIES I, INC.

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

<PAGE>

                                          EXHIBIT M

                 FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

                                                   _____________, 20______

Residential Funding Mortgage Securities I, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[Trustee]

Attention: Residential Funding Corporation Series ________

               Re:    Mortgage Pass-Through Certificates, Series ________
                      Assignment of Mortgage Loan

Ladies and Gentlemen:

        This letter is delivered to you in  connection  with the  assignment  by
___________   (the  "Trustee")  to   _____________________   (the  "Lender")  of
__________________(the  "Mortgage  Loan")  pursuant  to  Section  3.13(d) of the
Series  Supplement,  dated  as of  ________________,  to the  Standard  Terms of
Pooling and Servicing  Agreement  dated as of  ________________  (together,  the
"Pooling and Servicing Agreement") among Residential Funding Mortgage Securities
I, Inc., as seller (the "Company"),  Residential Funding Corporation,  as master
servicer, and the Trustee. All terms used herein and not otherwise defined shall
have the meanings set forth in the Pooling and Servicing  Agreement.  The Lender
hereby  certifies,  represents  and warrants to, and covenants  with, the Master
Servicer and the Trustee that:

        the  Mortgage  Loan  is  secured  by  Mortgaged  Property  located  in a
jurisdiction  in which an  assignment  in lieu of  satisfaction  is  required to
preserve lien priority,  minimize or avoid mortgage recording taxes or otherwise
comply with, or facilitate a refinancing under, the laws of such jurisdiction;

        the substance of the assignment is, and is intended to be, a refinancing
of such Mortgage Loan and the form of the  transaction is solely to comply with,
or facilitate the transaction under, such local laws;

        the Mortgage Loan following the proposed  assignment will be modified to
have a rate of  interest  at least  0.25  percent  below  or  above  the rate of
interest  on such  Mortgage  Loan prior to such  proposed  assignment;  and such
assignment is at the request of the borrower under the related Mortgage Loan.

<PAGE>

                                                   Very truly yours,

                                                   (Lender)

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

<PAGE>

                                          EXHIBIT N

                                 FORM OF REQUEST FOR EXCHANGE

                                                   [Date]

Bank One, National Association
1 Bank One Plaza
Suite IL1-0126
Chicago, Illinois 60670-0126

               Re:    Residential Funding Mortgage Securities I, Inc.
                      Mortgage Pass-Through Certificates, Series [________]

        Residential  Funding  Corporation,  as the Holder of a ____%  Percentage
Interest of the [Class/Subclass] of Class A-V Certificates,  hereby requests the
Trustee  to  exchange  the  above-referenced  Certificates  for  the  Subclasses
referred to below:

        1.     Class   A-V   Certificates,   corresponding   to  the   following
               Uncertificated    REMIC   Regular   Interests:    [List   numbers
               corresponding  to the related loans and Pool Strip Rates from the
               Mortgage Loan Schedule]. The Initial Subclass Notional Amount and
               the initial  Pass-Through Rate on the Class A-V Certificates will
               be $___________ and _____%, respectively.

        [2.    Repeat as appropriate.]

        The  Subclasses  requested  above will represent in the aggregate all of
the  Uncertificated  REMIC  Regular  Interests  represented  by  the  Class  A-V
Certificates surrendered for exchange.

        The  capitalized  terms  used  but not  defined  herein  shall  have the
meanings set forth in the Pooling and Servicing Agreement,  dated as of _______,
among  Residential  Funding  Mortgage  Securities I, Inc.,  Residential  Funding
Corporation and Bank One National Association, as trustee.

                                       RESIDENTIAL FUNDING CORPORATION

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

<PAGE>

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