Document:

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                                                                  EXECUTION COPY

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                    GREENPOINT HOME EQUITY LOAN TRUST 2000-2

                Class A-1 Variable Rate Asset Backed Certificates
                   Class A-2 Variable Rate Asset Backed Notes

                         POOLING AGREEMENT AND INDENTURE

                          Dated as of September 1, 2000

                         BANK ONE, NATIONAL ASSOCIATION
                                     Trustee

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                                TABLE OF CONTENTS
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ARTICLE I Definitions and Incorporation by Reference..............................................................2

      SECTION 1.1.    Definitions.................................................................................2
      SECTION 1.2.    Incorporation by Reference of the Trust Indenture Act.......................................2
      SECTION 1.3.    Rules of Construction.......................................................................3
      SECTION 1.4.    Action by or Consent of Securityholders and Residual Certificateholders.....................3
      SECTION 1.5.    Conflict with TIA...........................................................................3

ARTICLE II The Notes; the Securities..............................................................................4

      SECTION 2.1.    Form........................................................................................4
      SECTION 2.2.    Execution, Authentication and Delivery......................................................4
      SECTION 2.3.    Registration; Registration of Transfer and Exchange.........................................4
      SECTION 2.4.    Mutilated, Destroyed, Lost or Stolen Notes..................................................4
      SECTION 2.5.    Persons Deemed Owners.......................................................................5
      SECTION 2.6.    Payment of Principal and Interest; Defaulted Interest.......................................5
      SECTION 2.7.    Cancellation................................................................................6
      SECTION 2.8.    Release of Collateral.......................................................................6
      SECTION 2.9.    Book-Entry Notes............................................................................6
      SECTION 2.10.   Notices to Clearing Agency..................................................................6
      SECTION 2.11.   Definitive Notes............................................................................6

ARTICLE III Covenants.............................................................................................6

      SECTION 3.1.    Payment of Principal and Interest...........................................................6
      SECTION 3.2.    Maintenance of Office or Agency.............................................................6
      SECTION 3.3.    Money for Payments to be Held in Trust......................................................7
      SECTION 3.4.    Existence...................................................................................8
      SECTION 3.5.    Protection of Trust Property................................................................8
      SECTION 3.6.    Opinions as to Trust Property...............................................................9
      SECTION 3.7.    Performance of Obligations; Servicing of Mortgage Loans.....................................9
      SECTION 3.8.    Negative Covenants.........................................................................10
      SECTION 3.9.    Annual Statement as to Compliance..........................................................11
      SECTION 3.10.   Issuer May Not Consolidate or Transfer Assets..............................................11
      SECTION 3.11.   No Other Business..........................................................................11
      SECTION 3.12.   No Borrowing...............................................................................11
      SECTION 3.13.   Servicer's Obligations.....................................................................11
      SECTION 3.14.   Guarantees, Loans, Advances and Other Liabilities..........................................11
      SECTION 3.15.   Capital Expenditures.......................................................................12
      SECTION 3.16.   Compliance with Laws.......................................................................12
      SECTION 3.17.   Restricted Payments........................................................................12
      SECTION 3.18.   Notice of Rapid Amortization Events and Events of Servicing Termination....................12
      SECTION 3.19.   Further Instruments and Acts...............................................................12
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      SECTION 3.20.   Amendments of Sale and Servicing Agreement and Trust Agreement.............................12
      SECTION 3.21.   Income Tax Characterization................................................................12

ARTICLE IV Satisfaction and Discharge............................................................................13

      SECTION 4.1.    Satisfaction and Discharge of Pooling Agreement............................................13
      SECTION 4.2.    Application of Trust Money.................................................................14
      SECTION 4.3.    Repayment of Monies Held by Security Paying Agent..........................................14

ARTICLE V Remedies...............................................................................................14

      SECTION 5.1.    Remedies...................................................................................14
      SECTION 5.2.    Limitation of Suits........................................................................14
      SECTION 5.3.    Unconditional Rights of Securityholders To Receive Principal and Interest..................15
      SECTION 5.4.    Restoration of Rights and Remedies.........................................................15
      SECTION 5.5.    Rights and Remedies Cumulative.............................................................16
      SECTION 5.6.    Delay or Omission Not a Waiver.............................................................16
      SECTION 5.7.    Control by Securityholders.................................................................16
      SECTION 5.8.    Undertaking for Costs......................................................................16
      SECTION 5.9.    Waiver of Stay or Extension Laws...........................................................17
      SECTION 5.10.   Action on Securities.......................................................................17
      SECTION 5.11.   Performance and Enforcement of Certain Obligations.........................................17
      SECTION 5.12.   Subrogation................................................................................18
      SECTION 5.13.   Preference Claims..........................................................................18

ARTICLE VI The Trustee...........................................................................................19

      SECTION 6.1.    Duties of Trustee..........................................................................19
      SECTION 6.2.    Rights of Trustee..........................................................................21
      SECTION 6.3.    Individual Rights of Trustee...............................................................22
      SECTION 6.4.    Trustee's Disclaimer.......................................................................22
      SECTION 6.5.    Notice of Rapid Amortization Events and Events of Servicing Termination....................22
      SECTION 6.6.    Reports by Trustee to Holders..............................................................22
      SECTION 6.7.    Compensation and Indemnity.................................................................22
      SECTION 6.8.    Replacement of Trustee.....................................................................23
      SECTION 6.9.    Successor Trustee by Merger................................................................24
      SECTION 6.10.   Appointment of Co-Trustee or Separate Trustee..............................................25
      SECTION 6.11.   Eligibility; Disqualification..............................................................26
      SECTION 6.12.   Preferential Collection of Claims Against Issuer...........................................26
      SECTION 6.13.   Appointment and Powers.....................................................................26
      SECTION 6.14.   Performance of Duties......................................................................27
      SECTION 6.15.   Limitation on Liability....................................................................27
      SECTION 6.16.   Reliance Upon Documents....................................................................27
      SECTION 6.17.   Representations and Warranties of the Trustee..............................................27
      SECTION 6.18.   Waiver of Setoffs..........................................................................28
      SECTION 6.19.   Control by the Controlling Party...........................................................28
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      SECTION 6.20.   Trustee May Enforce Claims Without Possession of Certificates..............................28
      SECTION 6.21.   Suits for Enforcement......................................................................28
      SECTION 6.22.   Mortgagor Claims...........................................................................28

ARTICLE VII Securityholders' Lists and Reports...................................................................29

      SECTION 7.1.    Issuer To Furnish To Trustee Names and Addresses of Securityholders........................29
      SECTION 7.2.    Preservation of Information; Communications to Securityholders.............................29
      SECTION 7.3.    Reports by Issuer..........................................................................30
      SECTION 7.4.    Reports by Trustee.........................................................................30

ARTICLE VIII Payments and Statements to Securityholders and Residual Securityholders; Accounts,
                      Disbursements and Releases.................................................................31

      SECTION 8.1.    Collection of Money........................................................................31
      SECTION 8.2.    Release of Trust Property..................................................................31
      SECTION 8.3.    Establishment of Accounts..................................................................31
      SECTION 8.4.    The Policy and the Guarantee...............................................................32
      SECTION 8.5.    Payments under the GreenPoint Bank Demand Note.............................................33
      SECTION 8.6.    Reserve Fund...............................................................................34
      SECTION 8.7.    Priority of Distributions..................................................................35
      SECTION 8.8.    Statements to Securityholders..............................................................37
      SECTION 8.9.    Rights of Securityholders and Residual Certificateholders..................................39
      SECTION 8.10.   Opinion of Counsel.........................................................................39

ARTICLE IX Supplemental Pooling Agreements.......................................................................39

      SECTION 9.1.    Supplemental Pooling Agreements Without Consent of Securityholders.........................39
      SECTION 9.2.    Supplemental Pooling Agreements with Consent of Securityholders............................41
      SECTION 9.3.    Execution of Supplemental Pooling Agreements...............................................42
      SECTION 9.4.    Effect of Supplemental Pooling Agreement...................................................42
      SECTION 9.5.    Reference in Securities to Conformity With Trust Indenture Act.............................42
      SECTION 9.6.    Reference in Securities to Supplemental Pooling Agreements.................................43

ARTICLE X Redemption of Securities...............................................................................43

      SECTION 10.1.   Redemption.................................................................................43
      SECTION 10.2.   Surrender of Securities....................................................................43
      SECTION 10.3.   Form of Redemption Notice..................................................................45
      SECTION 10.4.   Securities Payable on Redemption Date......................................................45

ARTICLE XI Miscellaneous.........................................................................................45

      SECTION 11.1.   Compliance Certificates and Opinions, etc..................................................45
      SECTION 11.2.   Form of Documents Delivered to Trustee.....................................................46
      SECTION 11.3.   Acts of Securityholders....................................................................47
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      SECTION 11.4.   Notices, etc., to Trustee, Issuer, Insurer, Freddie Mac and Rating Agencies................47
      SECTION 11.5.   Notices to Securityholders; Waiver.........................................................48
      SECTION 11.6.   Alternate Payment and Notice Provisions....................................................49
      SECTION 11.7.   Conflict with Trust Indenture Act..........................................................49
      SECTION 11.8.   Effect of Headings and Table of Contents...................................................49
      SECTION 11.9.   Successors and Assigns.....................................................................49
      SECTION 11.10.  Separability...............................................................................49
      SECTION 11.11.  Benefits of Pooling Agreement..............................................................50
      SECTION 11.12.  Legal Holidays.............................................................................50
      SECTION 11.13.  GOVERNING LAW..............................................................................50
      SECTION 11.14.  Counterparts...............................................................................50
      SECTION 11.15.  Recording of Pooling Agreement.............................................................50
      SECTION 11.16.  Trust Obligation...........................................................................50
      SECTION 11.17.  No Petition................................................................................51
      SECTION 11.18.  Inspection.................................................................................51
      SECTION 11.19.  Limitation of Liability....................................................................51

ARTICLE XII Rapid Amortization Events............................................................................52

      SECTION 12.1.   Rapid Amortization Events..................................................................52
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ANNEX A - Defined Terms

EXHIBIT A - Form of Class A-2 Note

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     POOLING AGREEMENT AND INDENTURE, dated as of September 1, 2000 (the
"Pooling Agreement"), between GREENPOINT HOME EQUITY LOAN TRUST 2000-2, a
Delaware business trust (the "Issuer"), BANK ONE, National Association as
trustee (the "Trustee") and FEDERAL HOME LOAN MORTGAGE CORPORATION ("Freddie
Mac").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's Class A-1 Variable Rate
Asset Backed Certificates (the "Class A-1 Certificates") and Class A-2 Variable
Rate Asset Backed Notes (the "Class A-2 Notes" and, together with the Class A-1
Certificates, the "Securities"):

     As security for the payment and performance by the Issuer of its
obligations under this Pooling Agreement and the Securities, the Issuer has
agreed to assign the Collateral (as defined below) to the Trustee on behalf of
the Securityholders.

     Financial Guaranty Insurance Company (the "Insurer") has issued and
delivered a financial guaranty insurance policy for both Classes of Securities,
dated the Closing Date (the "Policy"), pursuant to which the Insurer guarantees
the Insured Payments (as defined below).

     As an inducement to the Insurer to issue and deliver the Policy, the Issuer
and the Insurer have executed and delivered the Insurance and Indemnity
Agreement, dated as of September 26, 2000 (as amended from time to time, the
"Insurance Agreement"), among the Insurer, the Issuer, GreenPoint Mortgage
Funding, Inc., GreenPoint Mortgage Securities Inc. and the Trustee.

     As an additional inducement to the Insurer to issue the Policy and Freddie
Mac to issue the Guarantee, and as security for the performance by the Issuer of
the Insurer Issuer Secured Obligations and as security for the performance by
the Issuer of the Trustee Issuer Secured Obligations, the Issuer has agreed to
grant and assign the Collateral (as defined below) to the Trustee for the
benefit of the Issuer Secured Parties, as their respective interests may appear.

     Freddie Mac has guaranteed the payment of Insured Payments on the Class A-1
Certificates to the extent not otherwise paid by the Insurer (the "Guarantee")
pursuant to Section 8.4 of this Pooling Agreement.

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                                 GRANTING CLAUSE

     The Issuer hereby Grants to the Trustee at the Closing Date, for the
benefit of the Issuer Secured Parties all of the Issuer's right, title and
interest in and to: (i)(A) a pool ("Pool I") of certain adjustable rate home
equity revolving credit line loans (the "HELOC Mortgage Loans") (including any
Additional Balances related thereto) and certain second lien closed-end loans
(the "Closed End Mortgage Loans") in each case which substantially conform to
the loan origination standards with respect to loan balances and other items, as
of the date of origination set forth by Freddie Mac (the "Pool I Mortgage
Loans") and (B) a pool ("Pool II") of certain HELOC Mortgage Loans (including
any Additional Balances related thereto) and certain Closed End Mortgage Loans
(the "Pool II Mortgage Loans" and together with the Pool I Mortgage Loans, the
"Mortgage Loans"), in each case as set forth in Exhibit A to the Sale and
Servicing Agreement; (ii) the collections in respect of the Mortgage Loans after
the Cut-Off Date; (iii) property that secured a Mortgage Loan that has been
acquired by foreclosure or deed in lieu of foreclosure; (iv) rights of the
Sponsor under hazard insurance policies covering the Mortgaged Properties; (v)
the Policy; (vi) the Demand Note; (vii) amounts on deposit from time to time in
the Collection Account; (viii) any amounts on deposit in the Reserve Fund; (ix)
all rights under the Purchase Agreement assigned to the Issuer (including all
representations and warranties of the Seller contained therein) and all rights
of the Issuer under the Sale and Servicing Agreement; and (x) any and all
proceeds of the foregoing (the items set forth in (i) through (ix) above, the
"Collateral").

     The foregoing Grant is made in trust to the Trustee, for the benefit first,
of the Holders of the Securities, and second, for the benefit of the Insurer and
Freddie Mac. The Trustee hereby acknowledges such Grant, accepts the trusts
under this Pooling Agreement in accordance with the provisions of this Pooling
Agreement and agrees to perform its duties required in this Pooling Agreement to
the best of its ability to the end that the interests of such parties,
recognizing the priorities of their respective interests may be adequately and
effectively protected.

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. Definitions. Except as otherwise specified herein, the
following terms have the respective meanings set forth in Annex A to this
Pooling Agreement.

     SECTION 1.2. Incorporation by Reference of the Trust Indenture Act.
Whenever this Pooling Agreement refers to a provision of the Trust Indenture Act
("TIA"), the provision is incorporated by reference in and made a part of this
Pooling Agreement. The following TIA terms used in this Pooling Agreement have
the following meanings:

     "Commission" means the Securities and Exchange Commission.

     "indenture securities" means the Class A-2 Notes.

     "indenture security holder" means a Holder of the Class A-2 Notes.

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     "indenture to be qualified" means this Pooling Agreement.

     "Indenture Trustee" or "institutional trustee" means the Trustee.

     "obligor" on the indenture securities means the Issuer.

     All other TIA terms used in this Pooling Agreement that are defined by the
TIA, or defined by Commission rule have the meaning assigned to them by such
definitions.

     SECTION 1.3. Rules of Construction. Unless the context otherwise requires:

       (i) a term has the meaning assigned to it;

       (ii) an accounting term not otherwise defined has the meaning assigned to
     it in accordance with generally accepted accounting principles as in effect
     from time to time;

       (iii) "or" is not exclusive;

       (iv) "including" means including without limitation; and

       (v) words in the singular include the plural and words in the plural
     include the singular.

     SECTION 1.4. Action by or Consent of Securityholders and Residual
Certificateholders. Whenever any provision of this Pooling Agreement refers to
action to be taken, or consented to, by Securityholders or Residual
Certificateholders, such provision shall be deemed to refer to the
Securityholder or Residual Certificateholder, as the case may be, of record as
of the Record Date immediately preceding the date on which such action is to be
taken, or consent given, by Securityholders or Residual Certificateholders.
Solely for the purposes of any action to be taken, or consented to, by
Securityholders or Residual Certificateholders, any Security or Residual
Certificate registered in the name of GreenPoint Mortgage Funding, Inc. or any
Affiliate thereof shall be deemed not to be outstanding; provided, however,
that, solely for the purpose of determining whether the Trustee or the Owner
Trustee is entitled to rely upon any such action or consent, only Securities or
Residual Certificates which the Owner Trustee or the Trustee, respectively,
knows to be so owned shall be so disregarded.

     SECTION 1.5. Conflict with TIA. If any provision hereof limits, qualifies
or conflicts with a provision of the TIA that is required under the TIA to be
part of and govern this Indenture, the latter provision shall control and all
provisions required by the TIA are hereby incorporated by reference. If any
provision of this Pooling Agreement modifies or excludes any provision of the
TIA that may be so modified or excluded, the latter provisions shall be deemed
to apply to this Pooling Agreement as so modified or to be excluded, as the case
may be.

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                                   ARTICLE II

                            The Notes; the Securities

     SECTION 2.1. Form. The Class A-2 Notes, together with the Trustee's
certificate of authentication, shall be in substantially the form set forth in
Exhibit A hereto, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Pooling Agreement and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Notes may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Note.

     Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibit A are part of the terms of this Pooling Agreement.

     SECTION 2.2. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be original or
facsimile.

     Notes bearing the original or facsimile signature of individuals who were
at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

     The Trustee shall authenticate and deliver Class A-2 Notes for original
issue in the aggregate principal amount of $77,669,000. The Class A-2 Notes
outstanding at any time may not exceed such amounts except as provided in
Section 2.6.

     Each Note shall be dated the date of its authentication. The Notes shall be
issuable as registered Notes in the minimum denomination of $1,000 and in
integral multiples of $1,000 in excess thereof.

     No Note shall be entitled to any benefit under this Pooling Agreement or be
valid or obligatory for any purpose, unless there appears attached to such Note
a certificate of authentication substantially in the form provided for herein
executed by the Trustee by the manual signature of one of its authorized
signatories, and such certificate attached to any Notes shall be conclusive
evidence, and the only evidence, that such Notes have been duly authenticated
and delivered hereunder. Subject to Section 3.10 of the Trust Agreement, the
Notes shall be Book Entry Notes.

     SECTION 2.3. Registration; Registration of Transfer and Exchange. All terms
concerning the registration and registration of transfer and exchange of the
Class A-2 Notes are contained in the Trust Agreement.

     SECTION 2.4. Mutilated, Destroyed, Lost or Stolen Notes. All terms
concerning mutilated, destroyed, lost or stolen Class A-2 Notes are contained in
the Trust Agreement.

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     SECTION 2.5. Persons Deemed Owners. All terms concerning deemed ownership
of the Notes are contained in the Trust Agreement.

     SECTION 2.6. Payment of Principal and Interest; Defaulted Interest.

     (a) The Securities shall accrue interest as provided herein, and such
amount shall be payable on each Payment Date as specified herein. Any
installment of interest or principal, if any, payable on any Security which is
punctually paid or duly provided for by the Issuer on the applicable Payment
Date shall be paid to the Person in whose name such Security (or one or more
Predecessor Securities) is registered on the Record Date, by check mailed
first-class, postage prepaid, to such Person's address as it appears on the
Security Register on such Record Date, except that, unless Definitive Securities
have been issued pursuant to Section 2.11, with respect to Securities registered
on the Record Date in the name of the nominee of the Clearing Agency (initially,
such nominee to be Cede & Co.), and with respect to the Class A-1 Certificates
payment will be made by wire transfer in immediately available funds to the
account designated by such nominee or the Class A-1 Securityholder and except
for the final installment of principal payable with respect to such Security on
a Payment Date or on the Final Scheduled Payment Date (and except for the
Redemption Price for any Security called for redemption pursuant to Section
10.1) which shall be payable as provided below. The funds represented by any
such checks returned undelivered shall be held in accordance with Section 3.3.

     (b) Upon written notice from the Issuer, the Trustee shall notify the
Person in whose name a Security is registered at the close of business on the
Record Date preceding the Payment Date on which the Issuer expects that the
final installment of principal of and interest on such Security will be paid.
Such notice shall be mailed or transmitted by facsimile prior to such final
Payment Date and shall specify that such final installment will be payable only
upon presentation and surrender of such Security and shall specify the place
where such Security may be presented and surrendered for payment of such
installment. Notices in connection with redemptions of Securities shall be
mailed to Securityholders as provided in Section 10.2.

     (c) If the Issuer defaults in a payment of interest on the Securities, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the applicable Security Rate to the extent lawful. The
Issuer may pay such defaulted interest to the Persons who are Securityholders on
a subsequent special Record Date, which date shall be at least five Business
Days prior to the Payment Date. The Issuer shall fix or cause to be fixed any
such special Record Date and Payment Date, and, at least 15 days before any such
special Record Date, the Issuer shall mail to each Securityholder and the
Trustee a notice that states the special Record Date, the Payment Date and the
amount of defaulted interest to be paid.

     (d) Promptly following the date on which all principal of and interest on
the Securities has been paid in full and the Securities have been surrendered to
the Trustee, the Trustee shall, upon written notice from the Servicer of the
amounts, if any, that the Insurer and Freddie Mac have paid in respect of the
Securities under the Policy, the Guarantee or otherwise which has not been
reimbursed to either the Insurer or Freddie Mac, deliver such surrendered
Securities to the Insurer and Freddie Mac, pro rata by unreimbursed amount, to
the extent not previously canceled or destroyed.

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     SECTION 2.7. Cancellation. All terms concerning cancellation of the Class
A-2 Notes are contained in the Trust Agreement.

     SECTION 2.8. Release of Collateral. The Trustee shall, on or after the
Termination Date, release any remaining portion of the Trust Property from the
lien created by this Pooling Agreement and deposit in the Collection Account any
funds then on deposit in any other Account. The Trustee shall release property
from the lien created by this Pooling Agreement pursuant to this Section 2.8
only upon receipt of an Issuer Request by it accompanied by an Officer's
Certificate and an Opinion of Counsel and (if required by the TIA) Independent
Certificates in accordance with TIA ss.ss. 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.1.

     SECTION 2.9. Book-Entry Notes. All terms concerning Book-Entry Securities
are contained in the Trust Agreement.

     SECTION 2.10. Notices to Clearing Agency. All terms concerning notices to
the Clearing Agency are contained in the Trust Agreement.

     SECTION 2.11. Definitive Notes. All terms concerning Definitive Securities
are contained in the Trust Agreement.

                                   ARTICLE III

                                    COVENANTS

     SECTION 3.1. Payment of Principal and Interest. The Issuer will duly and
punctually pay the principal of and interest on the Securities in accordance
with the terms of the Certificates and this Pooling Agreement. The Class A-1
Certificates represent beneficial ownership interests in the Trust and the Class
A-2 Notes shall be debt obligations of the Trust and both Classes of Securities
are limited in right of payment to amounts available from the Trust as provided
in this Pooling Agreement and the Trust shall not otherwise be liable for
payments on the Securities. No person shall be personally liable for any amounts
payable under the Securities. Amounts properly withheld under the Code by any
Person from a payment to any Securityholder of interest and/or principal shall
be considered as having been paid by the Issuer to such Securityholder for all
purposes of this Pooling Agreement.

     SECTION 3.2. Maintenance of Office or Agency. The Issuer will maintain in
New York, New York, an office or agency where Securities may be surrendered for
registration, transfer or exchange of the Securities, and where notices and
demands to or upon the Issuer in respect of the Securities and this Pooling
Agreement may be served. The Issuer hereby initially appoints the Trustee to
serve as its agent for the foregoing purposes. The Issuer will give prompt
written notice to the Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Trustee with the
address thereof, such surrenders, notices and demands may be made or served at
the Corporate Trust Office, and the Issuer hereby appoints the Trustee as its
agent to receive all such surrenders, notices and demands.

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     SECTION 3.3. Money for Payments to be Held in Trust. The Issuer will cause
each Security Paying Agent other than the Trustee to execute and deliver to the
Trustee, the Insurer and Freddie Mac an instrument in which such Security Paying
Agent shall agree with the Trustee (and if the Trustee acts as Security Paying
Agent, it hereby so agrees), subject to the provisions of this Section, that
such Security Paying Agent will:

       (i) hold all sums held by it for the payment of amounts due with respect
     to the Securities in trust for the benefit of the Persons entitled thereto
     until such sums shall be paid to such Persons or otherwise disposed of as
     herein provided and pay such sums to such Persons as herein provided;

       (ii) give the Trustee written notice of any default by the Issuer (or any
     other obligor upon the Securities) of which it has actual knowledge in the
     making of any payment required to be made with respect to the Securities;

       (iii) at any time during the continuance of any such default, upon the
     written request of the Trustee, forthwith pay to the Trustee all sums so
     held in trust by such Security Paying Agent;

       (iv) immediately resign as a Security Paying Agent and forthwith pay to
     the Trustee all sums held by it in trust for the payment of Securities if
     at any time it ceases to meet the standards required to be met by a
     Security Paying Agent at the time of its appointment; and

       (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Securities of any
     applicable withholding taxes imposed thereon and with respect to any
     applicable reporting requirements in connection therewith.

     The Issuer may at any time, for the purpose of obtaining the satisfaction
and discharge of this Pooling Agreement or for any other purpose, by Issuer
Order direct any Security Paying Agent to pay to the Trustee all sums held in
trust by such Security Paying Agent, such sums to be held by the Trustee upon
the same trusts as those upon which the sums were held by such Security Paying
Agent; and upon such a payment by any Security Paying Agent to the Trustee, such
Security Paying Agent shall be released from all further liability with respect
to such money.

     Subject to applicable laws with respect to the escheat of funds, any money
held by the Trustee or any Security Paying Agent in trust for the payment of any
amount due with respect to any Security and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer Request, and shall be deposited by the
Trustee in the Collection Account; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Trustee or such Security Paying Agent with respect to
such trust money shall thereupon cease.

     SECTION 3.4. Existence. The Issuer will keep in full effect its existence,
rights and franchises as a business trust under the laws of the State of
Delaware (unless it

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becomes, or any successor Issuer hereunder is or becomes, organized under the
laws of any other state or of the United States of America, in which case the
Issuer will keep in full effect its existence, rights and franchises under the
laws of such other jurisdiction) and will obtain and preserve its qualification
to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Pooling Agreement,
the Trust Property, the Securities, and each other instrument or agreement
included in the Trust Property.

     SECTION 3.5. Protection of Trust Property. The Issuer intends the security
interest granted pursuant to this Pooling Agreement in favor of the Issuer
Secured Parties to be prior to all other liens in respect of the Trust Property,
and the Issuer shall take all actions necessary to obtain and maintain, in favor
of the Trustee, for the benefit of the Issuer Secured Parties, a first lien on
and a first priority, perfected security interest in the Trust Property. The
Issuer will from time to time prepare (or shall cause to be prepared), execute
and deliver all such supplements and amendments hereto and all such financing
statements, continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:

       (i) Grant more effectively all or any portion of the Trust Property;

       (ii) maintain or preserve the lien and security interest (and the
     priority thereof) in favor of the Trustee for the benefit of the Issuer
     Secured Parties created by this Pooling Agreement or carry out more
     effectively the purposes hereof;

       (iii) perfect, publish notice of or protect the validity of any Grant
     made or to be made by this Pooling Agreement;

       (iv) enforce any of the Collateral, including making draws on the Demand
     Note;

       (v) preserve and defend title to the Trust Property and the rights of the
     Trustee in such Trust Property against the claims of all persons and
     parties; and

       (vi) pay all taxes or assessments levied or assessed upon the Trust
     Property when due.

The Issuer hereby designates the Trustee its agent and attorney-in-fact to
execute any financing statement, continuation statement or other instrument
required by the Trustee pursuant to this Section; provided that, such
designation shall not be deemed to create a duty in the Trustee to monitor the
compliance of the Issuer with respect to its duties under this Section 3.5 or
the adequacy of any financing statement, continuation statement or other
instrument prepared by the Issuer.

     SECTION 3.6. Opinions as to Trust Property.

     (a) On the Closing Date, the Issuer shall furnish to the Trustee, the
Insurer and Freddie Mac an Opinion of Counsel stating that, in the opinion of
such counsel, such actions have been taken with respect to the recording and
filing of this Pooling Agreement, any Pooling Agreements supplemental hereto,
and any other requisite documents, and with respect to the

                                       8
<PAGE>

execution and filing of any financing statements and continuation statements, as
are necessary to perfect and make effective the first priority lien and security
interest in favor of the Trustee, for the benefit of the Issuer Secured Parties,
created by this Pooling Agreement.

     (b) Within 90 days after the beginning of each calendar year, beginning in
2001, the Issuer shall furnish to the Trustee, the Insurer and Freddie Mac, an
Opinion of Counsel either stating that, in the opinion of such counsel, such
actions have been taken with respect to the recording, filing, re-recording and
refiling of this Pooling Agreement, any Pooling Agreements supplemental hereto
and any other requisite documents and with respect to the execution and filing
of any financing statements and continuation statements as are necessary to
maintain the lien and security interest created by this Pooling Agreement and
reciting the details of such action or stating that in the opinion of such
counsel, no such action is necessary to maintain such lien and security
interest. Such Opinion of Counsel shall also describe the recording, filing,
re-recording and refiling of this Pooling Agreement, any Pooling Agreements
supplemental hereto and any other requisite documents and the execution and
filing of any financing statements and continuation statements that will, in the
opinion of such counsel, be required to maintain the lien and security interest
of this Pooling Agreement.

     SECTION 3.7. Performance of Obligations; Servicing of Mortgage Loans.

     (a) The Issuer will not take any action and will use its best efforts not
to permit any action to be taken by others that would release any Person from
any of such Person's material covenants or obligations under any instrument or
agreement included in the Trust Property or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
ordered by any bankruptcy or other court or as expressly provided in this
Pooling Agreement, the Basic Documents or such other instrument or agreement.

     (b) The Issuer may contract with other Persons acceptable to the
Controlling Party to assist it in performing its duties under this Pooling
Agreement, and any performance of such duties by a Person identified to the
Trustee, the Insurer and Freddie Mac in an Officer's Certificate of the Issuer
shall be deemed to be action taken by the Issuer. Initially, the Issuer has
contracted with the Servicer to assist the Issuer in performing its duties under
this Pooling Agreement.

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Pooling Agreement, the Basic Documents and in
the instruments and agreements included in the Trust Property, including, but
not limited, to preparing (or causing to be prepared) and filing (or causing to
be filed) all UCC financing statements and continuation statements required to
be filed by the terms of this Pooling Agreement and the Sale and Servicing
Agreement in accordance with and within the time periods provided for herein and
therein. Except as otherwise expressly provided therein, the Issuer shall not
waive, amend, modify, supplement or terminate any Basic Document or any
provision thereof without the consent of the Trustee and the Controlling Party.

     (d) If a Responsible Officer of the Owner Trustee shall have actual
knowledge of the occurrence of an Event of Servicing Termination under the Sale
and Servicing Agreement,

                                       9
<PAGE>

the Issuer shall promptly notify the Trustee, the Insurer, Freddie Mac and the
Rating Agencies thereof in accordance with Section 11.4, and shall specify in
such notice the action, if any, the Issuer is taking in respect of such default.
If an Event of Servicing Termination shall arise from the failure of the
Servicer to perform any of its duties or obligations under the Sale and
Servicing Agreement with respect to the Mortgage Loans, the Issuer shall take
all reasonable steps available to it to remedy such failure.

     (e) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Sponsor of their respective duties under the
Basic Documents (x) without the prior consent of the Insurer and Freddie Mac or
(y) if the effect thereof would adversely affect the Holders of the Securities.

     SECTION 3.8. Negative Covenants. So long as any Securities are Outstanding,
the Issuer shall not:

       (i) except as expressly permitted by this Pooling Agreement or the Basic
     Documents, sell, transfer, exchange or otherwise dispose of any of the
     properties or assets of the Issuer, including those included in the Trust
     Property (but excluding any Mortgage Loans removed from either Pool
     pursuant to Section 2.07 of the Sale and Servicing Agreement), without the
     consent of the Controlling Party (which consent may not be unreasonably
     withheld) provided, that if an Insurer Default has occurred and is
     continuing and if Freddie Mac has not performed its duties pursuant to the
     Guarantee, the Securityholders representing 66-2/3% of the Outstanding
     Amount may direct the Trustee to sell or dispose of the Trust Property.

       (ii) claim any credit on, or make any deduction from the principal or
     interest payable in respect of, the Securities (other than amounts properly
     withheld from such payments under the Code) or assert any claim against any
     present or former Securityholder by reason of the payment of the taxes
     levied or assessed upon any part of the Trust Property; or

       (iii) (A) permit the validity or effectiveness of this Pooling Agreement
     to be impaired, or permit the lien in favor of the Trustee created by this
     Pooling Agreement to be amended, hypothecated, subordinated, terminated or
     discharged, or permit any Person to be released from any covenants or
     obligations with respect to the Securities under this Pooling Agreement
     except as may be expressly permitted hereby, (B) permit any lien, charge,
     excise, claim, security interest, mortgage or other encumbrance (other than
     the lien of this Pooling Agreement) to be created on or extend to or
     otherwise arise upon or burden the Trust Property or any part thereof or
     any interest therein or the proceeds thereof (other than tax liens,
     mechanics' liens and other liens that arise by operation of law, in each
     case on a Mortgaged Property and arising solely as a result of an action or
     omission of the related obligor), (C) permit the lien of this Pooling
     Agreement not to constitute a valid first priority (other than with respect
     to any such tax, mechanics' or other lien) security interest in the Trust
     Property or (D) amend, modify or fail to comply with the provisions of the
     Basic Documents without the prior written consent of the Insurer and
     Freddie Mac, which consents may not be unreasonably withheld.

                                       10
<PAGE>

     SECTION 3.9. Annual Statement as to Compliance. The Issuer will deliver to
the Trustee, the Insurer and Freddie Mac, within 90 days after the end of each
fiscal year of the Issuer (commencing with the fiscal year ended December 31,
2000) and otherwise in compliance with the requirements of TIA Section
314(a)(4), an Officer's Certificate stating, as to the Authorized Officer
signing such Officer's Certificate, that

       (i) a review of the activities of the Issuer during such year and of
     performance under this Pooling Agreement has been made under such
     Authorized Officer's supervision; and

       (ii) to the best of such Authorized Officer's knowledge, based on such
     review, the Issuer has complied with all conditions and covenants under
     this Pooling Agreement throughout such year, or, if there has been a
     default in the compliance of any such condition or covenant, specifying
     each such default known to such Authorized Officer and the nature and
     status thereof.

     SECTION 3.10. Issuer May Not Consolidate or Transfer Assets.

     (a) The Issuer may not consolidate or merge with or into any other Person.

     (b) Except as otherwise provided in the Sale and Servicing Agreement, the
Issuer shall not convey or transfer all or substantially all of its properties
or assets, including those included in the Trust Property, to any Person.

     SECTION 3.11. No Other Business. The Issuer shall not engage in any
business other than purchasing, owning, selling and managing the Mortgage Loans
and other assets in the manner contemplated by this Pooling Agreement and the
Basic Documents and activities incidental thereto.

     SECTION 3.12. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness or any certificates of beneficial interest except for (i) the Class
A-1 Certificates and the Residual Certificates, (ii) the Class A-2 Notes, (iii)
obligations owing from time to time to the Insurer under the Insurance Agreement
and Freddie Mac under the Guarantee and (iv) any other indebtedness permitted by
or arising under the Basic Documents, except that the Issuer shall not incur any
indebtedness that would cause it, or any portion thereof, to be treated as a
"taxable mortgage pool" under Section 7701 of the Code. The proceeds of the
Securities and the Residual Certificates shall be used exclusively to fund the
Issuer's purchase of the Mortgage Loans and the other assets specified in the
Sale and Servicing Agreement, to fund the Reserve Fund and to pay the Issuer's
organizational, transactional and start-up expenses.

     SECTION 3.13. Servicer's Obligations. The Issuer shall cause the Servicer
to comply with Sections 3.10 and 4.01 of the Sale and Servicing Agreement and
Section 8.6 herein.

     SECTION 3.14. Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by the Sale and Servicing Agreement or this Pooling Agreement, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of

                                       11
<PAGE>

so doing or otherwise), endorse or otherwise become contingently liable,
directly or indirectly, in connection with the obligations, stocks or dividends
of, or own, purchase, repurchase or acquire (or agree contingently to do so) any
stock, obligations, assets or securities of, or any other interest in, or make
any capital contribution to, any other Person.

     SECTION 3.15. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     SECTION 3.16. Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Securities, this Pooling
Agreement or any Basic Document.

     SECTION 3.17. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security or
(iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, distributions
to the Servicer, the Owner Trustee, the Trustee and the Securityholders as
permitted by, and to the extent funds are available for such purpose under, the
Sale and Servicing Agreement, this Pooling Agreement, or Trust Agreement. The
Issuer will not, directly or indirectly, make payments to or distributions from
the Collection Account except in accordance with this Pooling Agreement and the
Basic Documents.

     SECTION 3.18. Notice of Rapid Amortization Events and Events of Servicing
Termination. Upon a Responsible Officer of the Owner Trustee having actual
knowledge thereof, the Issuer agrees to give the Trustee, the Insurer, Freddie
Mac and the Rating Agencies prompt written notice of each Rapid Amortization
Event hereunder or Event of Servicing Termination under the Sale and Servicing
Agreement.

     SECTION 3.19. Further Instruments and Acts. Upon request of the Controlling
Party, the Issuer will execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Pooling Agreement.

     SECTION 3.20. Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer shall not agree to any amendment to Section 9.01 of the
Sale and Servicing Agreement or Section 12.1 of the Trust Agreement to eliminate
the requirements thereunder that the Trustee, the Insurer, Freddie Mac or the
Holders of the Securities consent to amendments thereto as provided therein.

     SECTION 3.21. Income Tax Characterization. For purposes of federal income,
state and local income and franchise and any other income taxes, the Issuer and
the Securityholders will treat the Securities as indebtedness of the Sponsor and
hereby instruct the

                                       12
<PAGE>

Trustee to treat the Securities as indebtedness of the Sponsor for federal and
state tax reporting purposes.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     SECTION 4.1. Satisfaction and Discharge of Pooling Agreement. Upon payment
in full of the Securities, this Pooling Agreement shall cease to be of further
effect with respect to the Securities except as to (i) the rights of
registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Securities, (iii) the rights of Securityholders to
receive payments of principal thereof and interest thereon, (iv) Sections 3.3,
3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations and
immunities of the Trustee hereunder (including the rights of the Trustee under
Section 6.7 and the obligations of the Trustee under Section 4.2) and (vi) the
rights of Securityholders as beneficiaries hereof with respect to the property
so deposited with the Trustee payable to all or any of them, and the Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Pooling Agreement with respect
to the Securities, when

     either

     (1) all Securities theretofore authenticated and delivered (other than (i)
Securities that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 3.4 of the Trust Agreement and (ii) Securities
for which payment money has theretofore been deposited in trust or segregated
and held in trust by the Issuer and thereafter repaid to the Issuer or
discharged from such trust, as provided in Section 3.3) have been delivered to
the Trustee for cancellation and the Policy has terminated and been returned to
the Insurer for cancellation and all amounts owing to the Insurer and Freddie
Mac have been paid in full; or

     (2) all Securities not theretofore delivered to the Trustee for
cancellation

       (i) have become due and payable,

       (ii) will become due and payable at their respective Final Scheduled
     Payment Dates within one year, or

       (iii) are to be called for redemption within one year under arrangements
     satisfactory to the Trustee for the giving of notice of redemption by the
     Trustee in the name, and at the expense, of the Issuer,

and in the case of (i), (ii) or (iii) above

     (A) the Issuer, has irrevocably deposited or caused to be irrevocably
deposited with the Trustee cash or direct obligations of or obligations
guaranteed by the United States of America (which will mature prior to the date
such amounts are payable), in trust for such purpose, in an amount sufficient to
pay and discharge the entire outstanding principal balance of the Class A-1
Certificates and the entire indebtedness on the Class A-2 Notes, in each case to
the

                                       13
<PAGE>

extent not theretofore delivered to the Trustee for cancellation when due on the
Final Scheduled Payment Date or Redemption Date (if Securities shall have been
called for redemption pursuant to Section 10.1), as the case may be;

     (B) the Issuer has paid or caused to be paid all Insurer Issuer Secured
Obligations and all Trustee Issuer Secured Obligations; and

     (C) the Issuer has delivered to the Trustee, the Insurer and Freddie Mac an
Officer's Certificate, an Opinion of Counsel and if required by the TIA, the
Trustee, the Insurer or Freddie Mac an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of
Section 11.1(a) and each stating that all conditions precedent herein provided
relating to the satisfaction and discharge of this Pooling Agreement have been
complied with.

     SECTION 4.2. Application of Trust Money. All monies deposited with the
Trustee pursuant to Section 4.1 hereof shall be held in trust and applied by it,
in accordance with the provisions of the Securities and this Pooling Agreement,
to the payment, either directly or through any Security Paying Agent, as the
Trustee may determine, to the Holders of the particular Securities for the
payment or redemption of which such monies have been deposited with the Trustee,
of all sums due and to become due thereon for principal and interest.

     SECTION 4.3. Repayment of Monies Held by Security Paying Agent. In
connection with the satisfaction and discharge of this Pooling Agreement with
respect to the Securities, all monies then held by any Security Paying Agent
other than the Trustee under the provisions of this Pooling Agreement with
respect to such Securities shall, upon demand of the Issuer, be paid to the
Trustee to be held and applied according to Section 3.3 and thereupon such
Security Paying Agent shall be released from all further liability with respect
to such monies.

                                    ARTICLE V

                                    REMEDIES

     SECTION 5.1. Remedies. If a Rapid Amortization Event, with respect to a
Class of Securities, as described in Article XII shall have occurred and be
continuing, the Rapid Amortization Period with respect to such Class of
Securities shall immediately commence and the related Securityholders shall be
entitled on each Payment Date to an amount equal to the Class A-1 Maximum
Principal Payment or the Class A-2 Maximum Principal Payment, as applicable,
payable during such Rapid Amortization Period. The rights contained in this
Article V are in addition to any rights which the Securityholders possess
pursuant to Article XII.

     SECTION 5.2. Limitation of Suits. No Holder of any Security shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Pooling Agreement, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

       (i) such Holder has previously given written notice to the Trustee of a
     continuing Rapid Amortization Event;

                                       14
<PAGE>

       (ii) the Holders of not less than 25% of the Outstanding Amount of the
     related Securities have made written request to the Trustee to institute
     such proceeding with respect to the Securities in respect of such Rapid
     Amortization Event in its own name as Trustee hereunder;

       (iii) such Holder or Holders have offered to the Trustee indemnity
     reasonably satisfactory to it against the costs, expenses and liabilities
     to be incurred in complying with such request;

       (iv) the Trustee for 60 days after its receipt of such notice, request
     and offer of indemnity has failed to institute such proceedings;

       (v) no direction inconsistent with such written request has been given to
     the Trustee during such 60-day period by the Holders of a majority of the
     Outstanding Amount of the related Securities; and

       (vi) an Insurer Default shall have occurred and be continuing and Freddie
     Mac (in the case of the Class A-1 Certificates) or a successor insurer has
     not succeeded to the Insurer's rights and duties under the Basic Documents;

it being understood and intended that no Holders of Securities shall have any
right in any manner whatsoever by virtue of, or by availing of, any provision of
this Pooling Agreement to affect, disturb or prejudice the rights of any other
Holders of Securities or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Pooling Agreement,
except in the manner herein provided.

     In the event the Trustee shall receive conflicting or inconsistent requests
and indemnity from two or more groups of Holders of related Securities, each
representing less than a majority of the Outstanding Amount of the related
Securities, the Trustee in its sole discretion may determine what action, if
any, shall be taken, notwithstanding any other provisions of this Pooling
Agreement.

     SECTION 5.3. Unconditional Rights of Securityholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Pooling Agreement,
the Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any, on
such Security on or after the respective due dates thereof expressed in such
Security or in this Pooling Agreement (or, in the case of redemption, on or
after the Redemption Date) and to institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Holder.

     SECTION 5.4. Restoration of Rights and Remedies. If the Controlling Party
or any Securityholder has instituted any proceeding to enforce any right or
remedy under this Pooling Agreement and such proceeding has been discontinued or
abandoned for any reason, then and in every such case the Issuer, the Insurer,
Freddie Mac, the Trustee and the Securityholders shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Trustee, the Insurer, Freddie Mac and the Securityholders shall continue as
though no such proceeding had been instituted.

                                       15
<PAGE>

     SECTION 5.5. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Controlling Party or to the related
Securityholders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

     SECTION 5.6. Delay or Omission Not a Waiver. No delay or omission of the
Trustee, Controlling Party or any Holder of any Security to exercise any right
or remedy accruing upon any Rapid Amortization Event shall impair any such right
or remedy or constitute a waiver of any such Rapid Amortization Event or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Trustee, the Insurer, Freddie Mac or to the Securityholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee, the Insurer, Freddie Mac or by the Securityholders, as the case may be.

     SECTION 5.7. Control by Securityholders. The Controlling Party shall have
the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee pursuant to Section 12.1 hereof. If,
however, the Trustee is the Controlling Party, the Holders of a majority of the
Outstanding Amount of the related Securities shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee pursuant to Section 12.1 with respect to the related Securities or
exercising any trust or power conferred on the Trustee; provided that

       (i) such direction shall not be in conflict with any rule of law or with
     this Pooling Agreement;

       (ii) the Trustee may take any other action deemed proper by the Trustee
     that is not inconsistent with such direction;

provided, however, that, subject to Section 6.1, the Trustee need not take any
action that it determines might involve it in liability or might materially
adversely affect the rights of any related Securityholders not consenting to
such action.

     SECTION 5.8. Undertaking for Costs. All parties to this Pooling Agreement
agree, and each Holder of any Security by such Holder's acceptance thereof shall
be deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Pooling Agreement, or
in any suit against the Trustee for any action taken, suffered or omitted by it
as Trustee, the filing by any party litigant in such suit of an undertaking to
pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to (a) any suit instituted by the Trustee, (b) any suit
instituted by the Insurer, Freddie Mac, any Securityholder, or group of
Securityholders with the prior written consent of the Controlling Party, in each
case holding in the aggregate more than 10% of the Outstanding Amount of the
Securities or (c) any suit instituted by any Securityholder for the enforcement
of the payment of principal of or interest on

                                       16
<PAGE>

any Security on or after the respective due dates expressed in such Security and
in this Pooling Agreement (or, in the case of redemption, on or after the
Redemption Date).

     SECTION 5.9. Waiver of Stay or Extension Laws. The Issuer covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Pooling
Agreement; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.

     SECTION 5.10. Action on Securities. The Trustee's right to seek and recover
judgment on the Securities or under this Pooling Agreement shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Pooling Agreement. Neither the lien of this Pooling Agreement
nor any rights or remedies of the Trustee, the Insurer, Freddie Mac or the
Securityholders shall be impaired by the recovery of any judgment by the
Trustee, the Insurer or Freddie Mac against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Property or upon any
of the assets of the Issuer.

     SECTION 5.11. Performance and Enforcement of Certain Obligations.

     (a) Promptly following a request from the Trustee (at the direction of the
Controlling Party) to do so and at the Servicer's expense, the Issuer agrees to
take all such lawful action as the Trustee may request to compel or secure the
performance and observance by the Sponsor and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale and
Servicing Agreement in accordance with the terms thereof, and to exercise any
and all rights, remedies, powers and privileges lawfully available to the Issuer
under or in connection with the Sale and Servicing Agreement to the extent and
in the manner directed by the Trustee, including the transmission of notices of
default on the part of the Sponsor or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Sponsor or the Servicer of each of their obligations
under the Sale and Servicing Agreement.

     (b) If the Trustee is a Controlling Party and if a Rapid Amortization Event
has occurred and is continuing, the Trustee may, and, at the written direction
of the Holders of 66-2/3% of the Outstanding Amount of the related Class of
Securities shall, exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Sponsor or the Servicer under or in connection with
the Sale and Servicing Agreement, including the right or power to take any
action to compel or secure performance or observance by the Sponsor or the
Servicer of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the
Sale and Servicing Agreement, and any right of the Issuer to take such action
shall be suspended.

                                       17
<PAGE>

     SECTION 5.12. Subrogation.

     (a) The Trustee shall receive as attorney-in-fact of each Securityholder
any Insured Payment from the Insurer pursuant to the Policy. Any and all Insured
Payments disbursed by the Trustee from claims made under the Policy shall not be
considered payment by the Trust, and shall not discharge the obligations of the
Trust with respect thereto. The Insurer shall, to the extent it makes any
payment with respect to any Class of Securities, become subrogated to the rights
of the recipient of such payments to the extent of such payments. Subject to and
conditioned upon any payment with respect to any Class of Securities by or on
behalf of the Insurer, the Trustee shall assign to the Insurer all rights to the
payment of interest or principal with respect to such Class of Securities which
are then due for payment to the extent of all payments made by the Insurer. The
Insurer may exercise any option, vote, right, power or the like with respect to
such Class of Securities to the extent that it has made payment pursuant to the
Policy.

     (b) Freddie Mac shall, to the extent it makes any payment with respect to
the Class A-1 Certificates, become subrogated to the rights of the recipient of
such payments to the extent of such payments. Subject to and conditioned upon
any payment with respect to the Class A-1 Certificates by or on behalf of
Freddie Mac, the Trustee shall assign to Freddie Mac all rights to the payment
of interest or principal with respect to the Class A-1 Certificates which are
then due for payment to the extent of all payments made by Freddie Mac. Freddie
Mac may exercise any option, vote, right, power or the like with respect to the
Class A-1 Certificates to the extent that it has made payment pursuant to the
Guarantee.

     SECTION 5.13. Preference Claims.

     (a) In the event that the Trustee has received a certified copy of an order
of the appropriate court that any payment on a Security has been avoided in
whole or in part as a preference payment under applicable bankruptcy law, the
Trustee shall so notify the Insurer, shall comply with the provisions of the
Policy to obtain payment by the Insurer of such avoided payment, and shall, at
the time it provides notice to the Insurer, notify Holders of the related
Securities and Freddie Mac by mail that, in the event that any Securityholder's
payment is so recoverable, such Securityholder will be entitled to payment
pursuant to the terms of the Policy. The Trustee shall furnish to the Insurer at
its written request, the requested records it holds in its possession evidencing
the payments of principal of and interest on Securities, if any, which have been
made by the Trustee and subsequently recovered from Securityholders, and the
dates on which such payments were made. Pursuant to the terms of the Policy, the
Insurer will make such payment on behalf of the related Securityholder to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy named in
the Final Order (as defined in the Policy) and not to the Trustee or any
Securityholder directly.

     (b) The Trustee shall promptly notify the Insurer and Freddie Mac of any
proceeding or the institution of any action (of which the Trustee has actual
knowledge) seeking the avoidance as a preferential transfer under applicable
bankruptcy, insolvency, receivership, rehabilitation or similar law (a
"Preference Claim") of any distribution made with respect to the Securities.
Each Holder, by its purchase of Securities, and the Trustee hereby agree that so
long as an Insurer Default shall not have occurred and be continuing, the
Insurer may at any time

                                       18
<PAGE>

during the continuation of any proceeding relating to a Preference Claim direct
all matters relating to such Preference Claim, including, without limitation,
(i) the direction of any appeal of any order relating to any Preference Claim
and (ii) the posting of any surety, supersedes or performance bond pending any
such appeal at the expense of the Insurer, but subject to reimbursement as
provided in the Insurance Agreement. In addition, and without limitation of the
foregoing, as set forth in Section 5.12, the Insurer shall be subrogated to, and
each Securityholder and the Trustee hereby delegate and assign, to the fullest
extent permitted by law, the rights of the Trustee and each Securityholder in
the conduct of any proceeding with respect to a Preference Claim, including,
without limitation, all rights of any party to an adversary proceeding action
with respect to any court order issued in connection with any such Preference
Claim. All actions taken under this Section 5.13(b) by the Trustee shall be
taken in accordance with the terms of the Policy.

                                   ARTICLE VI

                                   THE TRUSTEE

     SECTION 6.1. Duties of Trustee.

     (a) If a Rapid Amortization Event has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Pooling
Agreement and the Basic Documents and use the same degree of care and skill in
its exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person's own affairs; provided, however, that if the
Trustee is acting as Servicer, it shall use the same degree of care and skill as
is required of the Servicer under the Sale and Servicing Agreement.

     (b) Except during the continuance of a Rapid Amortization Event

       (i) the Trustee undertakes to perform such duties and only such duties as
     are specifically set forth in this Pooling Agreement and no implied
     covenants or obligations shall be read into this Pooling Agreement against
     the Trustee; and

       (ii) in the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates or opinions furnished to
     the Trustee and conforming to the requirements of this Pooling Agreement;
     however, the Trustee shall examine the certificates and opinions to
     determine whether or not they conform on their face to the requirements of
     this Pooling Agreement.

     (c) The Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

       (i) this paragraph does not limit the effect of paragraph (b) of this
     Section;

                                       19
<PAGE>

       (ii) the Trustee shall not be liable for any error of judgment made in
     good faith by a Responsible Officer unless it is proved that the Trustee
     was negligent in ascertaining the pertinent facts;

       (iii) the Trustee shall not be liable with respect to any action it takes
     or omits to take in good faith in accordance with a direction received by
     it pursuant to Section 5.12; and

       (iv) the Trustee shall not be charged with knowledge of any failure by
     the Servicer to comply with the obligations of the Servicer referred to in
     clauses (i) and (ii) of Section 6.01 of the Sale and Servicing Agreement
     unless a Responsible Officer of the Trustee at the Corporate Trust Office
     obtains actual knowledge of such failure or occurrence or the Trustee
     receives written notice of such failure or occurrence from the Servicer,
     the Insurer, Freddie Mac or the Holders of Securities evidencing more than
     50% of the Outstanding Amount.

     (d) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with the Issuer.

     (e) No provision of this Pooling Agreement shall require the Trustee 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 it shall have reasonable grounds to believe that repayment
of such funds or indemnity reasonably satisfactory to it against such risk or
liability is not reasonably assured to it.

     (f) Every provision of this Pooling Agreement relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section and to the provisions of the TIA.

     (g) The Trustee shall, upon three Business Days' prior written notice to
the Trustee, permit any representative of the Insurer or Freddie Mac, during the
Trustee's normal business hours, to examine all books of account, records,
reports and other papers of the Trustee relating to the Securities, to make
copies and extracts therefrom and to discuss the Trustee's affairs and actions,
as such affairs and actions relate to the Trustee's duties with respect to the
Securities, with the Trustee's officers and employees responsible for carrying
out the Trustee's duties with respect to the Securities.

     (h) The Trustee shall, and hereby agrees that it will, perform all of the
obligations and duties required of it under the Sale and Servicing Agreement.

     (i) The Trustee shall, and hereby agrees that it will, hold the Policy in
trust, and will hold any proceeds of any claim on the Policy in trust solely for
the use and benefit of the Securityholders.

     (j) In no event shall Bank One, National Association, in any of its
capacities hereunder, be deemed to have assumed any duties of the Owner Trustee
under the Delaware Business Trust Statute, common law, or the Trust Agreement.

                                       20
<PAGE>

     SECTION 6.2. Rights of Trustee.

     (a) The Trustee may rely on any document reasonably believed by it to be
genuine and to have been signed or presented by the proper person. The Trustee
need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an
Officer's Certificate or an Opinion of Counsel. The Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on the
Officer's Certificate or Opinion of Counsel.

     (c) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys or a custodian or nominee.

     (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Trustee's conduct does not constitute
willful misconduct, negligence or bad faith.

     (e) The Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Pooling Agreement and the
Securities shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

     (f) The Trustee shall be under no obligation to institute, conduct or
defend any litigation under this Pooling Agreement or in relation to this
Pooling Agreement, at the request, order or direction of any of the Holders of
Securities or the Controlling Party, pursuant to the provisions of this Pooling
Agreement, unless such Holders of Securities or the Controlling Party shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that may be incurred therein or thereby; provided,
however, that the Trustee shall, upon the occurrence of a Rapid Amortization
Event or Event of Servicing Termination as defined in the Sale and Servicing
Agreement (that has not been cured or waived), exercise the rights and powers
vested in it by this Pooling Agreement or the Sale and Servicing Agreement with
reasonable care and skill.

     (g) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document, unless requested in writing to do so by the Insurer, Freddie Mac or
by the Holders of Securities evidencing not less than 25% of the Outstanding
Amount thereof; 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 Pooling Agreement or the Sale and Servicing Agreement, the Trustee may
require indemnity reasonably satisfactory to it against such cost, expense or
liability as a condition to so proceeding; the reasonable expense of every such
examination shall be paid by the Person making such request, or, if paid by the
Trustee shall be reimbursed by the Person making such request upon demand.

                                       21
<PAGE>

     (h) The Trustee shall not be accountable, shall have no liability and makes
no representation as to any acts or omissions hereunder of the Servicer until
such time as the Trustee may be required to act as Servicer.

     SECTION 6.3. Individual Rights of Trustee. The Trustee in its individual or
any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Issuer or its Affiliates with the same rights it would
have if it were not Trustee. Any Security Paying Agent, Security Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee must comply with Sections 6.11 and 6.12.

     SECTION 6.4. Trustee's Disclaimer. The Trustee shall not be responsible for
and makes no representation as to the validity or adequacy of this Pooling
Agreement, the Trust Property or the Securities, it shall not be accountable for
the Issuer's use of the proceeds from the Securities, and it shall not be
responsible for any statement of the Issuer in the Pooling Agreement or in any
document issued in connection with the sale of the Securities or in the
Securities other than the Trustee's certificate of authentication.

     SECTION 6.5. Notice of Rapid Amortization Events and Events of Servicing
Termination. If a Rapid Amortization Period or an Event of Servicing Termination
occurs and is continuing and if it is either known by, or written notice of the
existence thereof has been delivered to, a Responsible Officer of the Trustee,
the Trustee shall mail to the Insurer and each Securityholder notice of such
event within 90 days after such knowledge or notice occurs. Except in the case
of a default in payment of principal of or interest on any Security, the Trustee
may withhold the notice to the Securityholders if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice is
in the interests of Securityholders; provided that the Trustee shall not
withhold any such notice with respect to the Class A-1 Certificates or to the
Insurer.

     SECTION 6.6. Reports by Trustee to Holders. Upon written request, the
Security Paying Agent or the Servicer shall on behalf of the Issuer deliver to
each Securityholder such information as may be reasonably required to enable
such Holder to prepare its Federal and state income tax returns required by law.

     SECTION 6.7. Compensation and Indemnity.

     (a) Pursuant to Section 8.7 and subject to Section 6.10 herein, the Issuer
shall, or shall cause the Servicer to, pay to the Trustee from time to time
compensation for its services. The Trustee's compensation shall not be limited
by any law on compensation of a trustee of an express trust. The Issuer shall or
shall cause the Servicer to reimburse the Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Trustee's agents, counsel, accountants and experts. The Issuer shall or shall
cause the Servicer to indemnify the Trustee and its respective officers,
directors, employees and agents against any and all loss, liability or expense
(including attorneys' fees and expenses) incurred by each of them in connection
with the acceptance or the administration of this trust and the performance of
its duties hereunder. The Trustee shall notify the Issuer and the Servicer
promptly of any claim for which it may seek

                                       22
<PAGE>

indemnity. Failure by the Trustee to so notify the Issuer and the Servicer shall
not relieve the Issuer of its obligations hereunder or the Servicer of its
obligations under Article VIII of the Sale and Servicing Agreement. The Issuer
shall or shall cause the Servicer to defend the claim, the Trustee may have
separate counsel and the Issuer shall or shall cause the Servicer to pay the
fees and expenses of such counsel. Neither the Issuer nor the Servicer need
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Trustee through the Trustee's own willful misconduct, negligence
or bad faith.

     (b) The Issuer's payment obligations to the Trustee pursuant to this
Section shall survive the discharge of this Pooling Agreement. Notwithstanding
anything else set forth in this Pooling Agreement or the Basic Documents, the
Trustee agrees that the obligations of the Issuer (but not the Servicer) to the
Trustee hereunder and under the Basic Documents shall be recourse to the Trust
Property only and specifically shall not be recourse to the assets of the Issuer
or any Securityholder. In addition, the Trustee agrees that its recourse to the
Issuer, the Trust Property, the Sponsor and amounts held in the Reserve Fund
shall be limited to the right to receive the distributions referred to in
Section 8.7 herein.

     SECTION 6.8. Replacement of Trustee. The Trustee may resign at any time by
so notifying the Issuer, the Insurer and Freddie Mac by written notice. Upon
receiving such notice of resignation, the Issuer shall promptly appoint a
successor Trustee (approved in writing by the Controlling Party, so long as such
approval is not unreasonably withheld) by written instrument, in duplicate, one
copy of such instrument shall be delivered to the resigning Trustee (who shall
deliver a copy to the Servicer) and one copy each to the successor Trustee and
to Freddie Mac; provided, however, that any such successor Trustee shall be
subject to the prior written approval of the Servicer and shall be a Freddie Mac
"approved trustee". The Issuer may and, at the request of the Controlling Party
shall, remove the Trustee, if:

       (i) the Trustee fails to comply with Section 6.11;

       (ii) a court having jurisdiction in the premises in respect of the
     Trustee in an involuntary case or proceeding under federal or state banking
     or bankruptcy laws, as now or hereafter constituted, or any other
     applicable federal or state bankruptcy, insolvency or other similar law,
     shall have entered a decree or order granting relief or appointing a
     receiver, liquidator, assignee, custodian, trustee, conservator,
     sequestrator (or similar official) for the Trustee or for any substantial
     part of the Trustee's property, or ordering the winding-up or liquidation
     of the Trustee's affairs;

       (iii) an involuntary case under the federal bankruptcy laws, as now or
     hereafter in effect, or another present or future federal or state
     bankruptcy, insolvency or similar law is commenced with respect to the
     Trustee and such case is not dismissed within 60 days;

       (iv) the Trustee commences a voluntary case under any federal or state
     banking or bankruptcy laws, as now or hereafter constituted, or any other
     applicable federal or state bankruptcy, insolvency or other similar law, or
     consents to the appointment of or taking possession by a receiver,
     liquidator, assignee, custodian, trustee, conservator, sequestrator (or
     other similar official) for the Trustee or for any substantial

                                       23
<PAGE>

     part of the Trustee's property, or makes any assignment for the benefit of
     creditors or fails generally to pay its debts as such debts become due or
     takes any corporate action in furtherance of any of the foregoing; or

       (v) the Trustee otherwise becomes incapable of acting.

     Additionally, the Issuer shall remove the Trustee at the request of the
Controlling Party.

     If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason (the Trustee in such event being referred to herein as
the retiring Trustee), the Issuer shall promptly appoint a successor Trustee
acceptable to the Controlling Party. If the Issuer fails to appoint such a
successor Trustee, the Controlling Party may appoint a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee, to the Insurer, to Freddie Mac and to the Issuer.
Thereupon the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and
duties of the retiring Trustee under this Pooling Agreement. The successor
Trustee shall mail a notice of its succession to Securityholders. The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee.

     If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Issuer, or the
Holders of a majority in Outstanding Amount of the Securities may petition any
court of competent jurisdiction for the appointment of a successor Trustee
acceptable to the Controlling Party.

     If the Trustee fails to comply with Section 6.11, any Securityholder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee acceptable to the Controlling Party.

     Any resignation or removal of the Trustee and appointment of a successor
Trustee pursuant to any of the provisions of this Section shall not become
effective until acceptance of appointment by the successor Trustee pursuant to
Section 6.8 and payment of all fees and expenses owed to the outgoing Trustee.

     Notwithstanding the replacement of the Trustee pursuant to this Section,
the Issuer's and the Servicer's indemnity obligations under Section 6.7 shall
continue for the benefit of the retiring Trustee and the Servicer shall pay any
amounts owing to the Trustee.

     SECTION 6.9. Successor Trustee by Merger. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all its corporate
trust business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

     In case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this Pooling
Agreement any of the Securities shall have been authenticated but not delivered,
any such successor to the Trustee

                                       24
<PAGE>

may adopt the certificate of authentication of any predecessor trustee, and
deliver such Securities so authenticated; and in case at that time any of the
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
in the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities or
in this Pooling Agreement.

     SECTION 6.10. Appointment of Co-Trustee or Separate Trustee.

     (a) Notwithstanding any other provisions of this Pooling Agreement, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust may at the time be located, the Trustee, with the
consent of the Controlling Party, shall have the power and may execute and
deliver all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, 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 Securityholders, such title to the Trust, or any part hereof,
and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable.

     (b) 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 personally liable by reason of any act
     or omission of any other trustee hereunder, including acts or omissions of
     predecessor or successor trustees; and

       (iii) the Trustee and the Servicer acting jointly may at any time accept
     the resignation of or remove any separate trustee or co-trustee except that
     following the occurrence of an Event of Servicing Termination, the Trustee
     acting alone may accept the resignation of or remove any separate trustee
     or co-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 Pooling Agreement and the
conditions of this Article VI. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified

                                       25
<PAGE>

in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Pooling
Agreement, specifically including every provision of this Pooling 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
Pooling Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, dissolve, become insolvent, 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.

     (e) The Servicer shall be responsible for the fees of any co-trustee or
separate trustee appointed hereunder.

     SECTION 6.11. Eligibility; Disqualification. The Trustee shall at all times
satisfy the requirements of TIA ss. 310(a) and at all times be a Freddie Mac
approved trustee; provided, however, that the Trustee shall be entitled to
presume that it is a Freddie Mac approved trustee until such time as it shall
have received written notice from Freddie Mac that it is not a Freddie Mac
approved trustee. The Trustee shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of
condition. The Trustee shall provide copies of such reports to the Insurer or
Freddie Mac upon request. The Trustee shall comply with TIA ss. 310(b),
including the optional provision permitted by the second sentence of TIA ss.
310(b)(9); provided, however, that there shall be excluded from the operation of
TIA ss. 310(b)(1) any indenture or indentures under which other securities of
the Issuer are outstanding if the requirements for such exclusion set forth in
TIA ss. 310(b)(1) are met.

     SECTION 6.12. Preferential Collection of Claims Against Issuer. The Trustee
shall comply with TIA ss. 311(a), excluding any creditor relationship listed in
TIA ss. 311(b). A Trustee who has resigned or been removed shall be subject to
TIA ss. 311(a) to the extent indicated.

     SECTION 6.13. Appointment and Powers. Subject to the terms and conditions
hereof, each of the Issuer Secured Parties hereby appoints Bank One, National
Association as the Trustee with respect to the Collateral, and Bank One,
National Association hereby accepts such appointment and agrees to act as
Trustee with respect to the Trust Property for the Issuer Secured Parties, to
maintain custody and possession of such Trust Property (except as otherwise
provided hereunder) and to perform the other duties of the Trustee in accordance
with the provisions of this Pooling Agreement and the other Basic Documents.
Each Issuer Secured Party hereby authorizes the Trustee to take such action on
its behalf, and to exercise such rights, remedies, powers and privileges
hereunder, as the Controlling Party may direct and as are specifically
authorized to be exercised by the Trustee by the terms hereof, together with
such actions, rights, remedies, powers and privileges as are reasonably
incidental thereto. The Trustee shall act upon and in compliance with the
written instructions of the Controlling Party delivered pursuant to this Pooling
Agreement promptly following receipt of such written instructions; provided that
the Trustee shall not act in accordance with any instructions (i) which are not
authorized by, or in

                                       26
<PAGE>

violation of the provisions of, this Pooling Agreement or (ii) for which the
Trustee has not received reasonable indemnity. Receipt of such instructions
shall not be a condition to the exercise by the Trustee of its express duties
hereunder, except where this Pooling Agreement provides that the Trustee is
permitted to act only following and in accordance with such instructions.

     SECTION 6.14. Performance of Duties. The Trustee shall have no duties or
responsibilities except those expressly set forth in this Pooling Agreement and
the other Basic Documents to which the Trustee is a party or as directed by the
Controlling Party in accordance with this Pooling Agreement. The Trustee shall
not be required to take any discretionary actions hereunder except at the
written direction and with the indemnification of the Controlling Party. The
Trustee shall, and hereby agrees that it will, perform all of the duties and
obligations required of it under the Sale and Servicing Agreement.

     SECTION 6.15. Limitation on Liability. Neither the Trustee nor any of its
directors, officers, employees and agents shall be liable for any action taken
or omitted to be taken by it or them hereunder, or in connection herewith,
except that the Trustee shall be liable for its negligence, bad faith or willful
misconduct; nor shall the Trustee be responsible for the validity,
effectiveness, value, sufficiency or enforceability against the Issuer of this
Pooling Agreement or any of the Trust Property (or any part thereof).

     SECTION 6.16. Reliance Upon Documents. In the absence of negligence, bad
faith or willful misconduct on its part, the Trustee shall be entitled to rely
on any communication, instrument, paper or other document reasonably believed by
it to be genuine and correct and to have been signed or sent by the proper
Person or Persons and shall have no liability in acting, or omitting to act,
where such action or omission to act is in reasonable reliance upon any
statement or opinion contained in any such document or instrument.

     SECTION 6.17. Representations and Warranties of the Trustee. The Trustee
represents and warrants to the Issuer and to each Issuer Secured Party as
follows:

     (a) Due Organization. The Trustee is a national banking association, duly
organized, validly existing and in good standing under the laws of the United
States and is duly authorized and licensed under applicable law to conduct its
business as presently conducted.

     (b) Corporate Power. The Trustee has all requisite right, power and
authority to execute and deliver this Pooling Agreement and to perform all of
its duties as the Trustee hereunder.

     (c) Due Authorization. The execution and delivery by the Trustee of this
Pooling Agreement and the other Basic Documents to which it is a party, and the
performance by the Trustee of its duties hereunder and thereunder, have been
duly authorized by all necessary corporate proceedings, are required for the
valid execution and delivery by the Trustee, or the performance by the Trustee,
of this Pooling Agreement and such other Basic Documents.

     (d) Valid and Binding Pooling Agreement. The Trustee has duly executed and
delivered this Pooling Agreement and each other Basic Document to which it is a
party, and each of this Pooling Agreement and each such other Basic Document
constitutes the legal, valid

                                       27
<PAGE>

and binding obligation of the Trustee, enforceable against the Trustee in
accordance with its terms, except as (i) such enforceability may be limited by
bankruptcy, insolvency, reorganization and similar laws relating to or affecting
the enforcement of creditors' rights generally and (ii) the availability of
equitable remedies may be limited by equitable principles of general
applicability.

     SECTION 6.18. Waiver of Setoffs. The Trustee hereby expressly waives any
and all rights of setoff that the Trustee may otherwise at any time have under
applicable law with respect to any Account and agrees that amounts in the
Accounts shall at all times be held and applied solely in accordance with the
provisions hereof.

     SECTION 6.19. Control by the Controlling Party. The Trustee shall comply
with notices and instructions given by the Issuer only if accompanied by the
written consent of the Controlling Party.

     SECTION 6.20. Trustee May Enforce Claims Without Possession of
Certificates. All rights of action and claims under this Pooling Agreement or
the Securities may be prosecuted and enforced by the Trustee without the
possession of any of the Securities 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. 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 Securityholders in respect of which such judgment has
been recovered.

     SECTION 6.21. Suits for Enforcement. In case an Event of Servicing
Termination or other default by the Servicer or the Sponsor hereunder shall
occur and be continuing, the Controlling Party may proceed to protect and
enforce its rights and the rights of the Securityholders under this Pooling
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 Pooling Agreement or in aid of the execution of any power granted in this
Pooling Agreement or for the enforcement of any other legal, equitable or other
remedy, as the Controlling Party, being advised by counsel, shall deem most
effectual to protect and enforce any of the rights of the Controlling Party and
the Securityholders.

     SECTION 6.22. Mortgagor Claims. In connection with any offset defenses, or
affirmative claim for recovery, asserted in legal actions brought by Mortgagors
under one or more Mortgage Loans based upon provisions therein or upon other
rights or remedies arising from any requirements of law applicable to the
Mortgage Loans:

     (a) The Trustee is the holder of the Mortgage Loans only as trustee on
behalf of the holders of the Securities, the Insurer and Freddie Mac, and not as
a principal or in any individual or personal capacity.

     (b) The Trustee shall not be personally liable for, or obligated to pay
Mortgagors, any affirmative claims asserted thereby, or responsible to holders
of the Securities for any offset defense amounts applied against Mortgage Loan
payments, pursuant to such legal actions.

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<PAGE>

     (c) The Trustee will pay, solely from available Trust money, affirmative
claims for recovery by Mortgagors only pursuant to final judicial orders or
judgments, or judicially-approved settlement agreements, resulting from such
legal actions.

     (d) The Trustee will comply with judicial orders and judgments which
require its actions or cooperation in connection with Mortgagors' legal actions
to recover affirmative claims against holders of the Securities.

     (e) The Trustee will cooperate with and assist the Servicer, the Sponsor,
or holders of the Securities in their defense of legal actions by Mortgagors to
recover affirmative claims if such cooperation and assistance is not contrary to
the interests of the Trustee as a party to such legal actions and if the Trustee
is satisfactorily indemnified for all liability, costs and expenses arising
therefrom.

     (f) The Issuer and Servicer hereby agree to indemnify, hold harmless and
defend the Trustee from and against any and all liability, loss, costs and
expenses of the Trustee resulting from any affirmative claims for recovery
asserted or collected by Mortgagors under the Mortgage Loans.

     SECTION 6.23. Trustee Verification. Before the third Distribution Date, the
Trustee is required to confirm, to the extent such data is available in the
Information Circular or from the Underwriter, that the cash flows, weighted
average lives, yields and credit enhancement default analysis for the A-1, as
presented in the Information Circular, are correct therein based on the
assumptions and principal and interest methodology described in the Information
Circular, and are consistent with the model developed by the Trustee for the
calculations that the Trustee is required to make under the transaction
documents.

                                  ARTICLE VII

                       SECURITYHOLDERS' LISTS AND REPORTS

     SECTION 7.1. Issuer To Furnish To Trustee Names and Addresses of
Securityholders. The Issuer will furnish or cause to be furnished to the Trustee
(a) not more than five days after the earlier of (i) each Record Date and (ii)
three months after the last Record Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders as of such Record
Date, (b) at such other times as the Trustee may request in writing, within 30
days after receipt by the Issuer of any such request, a list of similar form and
content as of a date not more than 10 days prior to the time such list is
furnished; provided, however, that so long as the Trustee is the Security
Registrar, no such list shall be required to be furnished. The Trustee or, if
the Trustee is not the Security Registrar, the Issuer shall furnish to the
Insurer or the Issuer in writing upon their written request and at such other
times as the Insurer or the Issuer may request a copy of the list.

     SECTION 7.2. Preservation of Information; Communications to
Securityholders.

     (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders contained in the most recent
list furnished to

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<PAGE>

the Trustee as provided in Section 7.1 and the names and addresses of Holders
received by the Trustee in its capacity as Security Registrar. The Trustee may
destroy any list furnished to it as provided in such Section 7.1 upon receipt of
a new list so furnished.

     (b) Securityholders may communicate with other Securityholders with respect
to their rights under this Pooling Agreement or under the Securities.

     (c) The Issuer, the Trustee and the Security Registrar shall have the
protection of TIA ss. 312(c).

     SECTION 7.3. Reports by Issuer.

     (a) The Issuer shall:

       (i) file with the Trustee, within 15 days after the Issuer is required to
     file the same with the Commission, copies of the annual reports and copies
     of the information, documents and other reports (or copies of such portions
     of any of the foregoing as the Commission may from time to time by rules
     and regulations prescribe) which the Issuer may be required to file with
     the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

       (ii) file with the Trustee and the Commission in accordance with rules
     and regulations prescribed from time to time by the Commission such
     additional information, documents and reports with respect to compliance by
     the Issuer with the conditions and covenants of this Pooling Agreement as
     may be required from time to time by such rules and regulations; and

       (iii) supply to the Trustee (and the Trustee shall transmit by mail to
     all Securityholders described in TIA ss. 313(c)) such summaries of any
     information, documents and reports required to be filed by the Issuer
     pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required
     by rules and regulations prescribed from time to time by the Commission.

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

     SECTION 7.4. Reports by Trustee. If required by TIA ss. 313(a), within 60
days after each December 31, beginning with December 31, 2000, the Trustee shall
mail to each Securityholder and Freddie Mac as required by TIA ss. 313(c) a
brief report dated as of such date that complies with TIA ss. 313(a). The
Trustee also shall comply with TIA ss. 313(b).

     A copy of each report at the time of its mailing to Securityholders shall
be filed by the Trustee with the Commission and each stock exchange, if any, on
which the Securities are listed. The Issuer shall notify the Trustee if and when
the Securities are listed on any stock exchange.

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<PAGE>

                                  ARTICLE VIII

    PAYMENTS AND STATEMENTS TO SECURITYHOLDERS AND RESIDUAL SECURITYHOLDERS;
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.1. Collection of Money. Except as otherwise expressly provided
herein, the Trustee may demand payment or delivery of, and shall receive and
collect, directly and without intervention or assistance of any fiscal agent or
other intermediary, all money and other property payable to or receivable by the
Trustee pursuant to this Pooling Agreement and the Sale and Servicing Agreement.
The Trustee shall apply all such money received by it as provided in this
Pooling Agreement and the Sale and Servicing Agreement. Except as otherwise
expressly provided in this Pooling Agreement or in the Sale and Servicing
Agreement, if any default occurs in the making of any payment or performance
under any agreement or instrument that is part of the Trust Property, the
Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
proceedings.

     SECTION 8.2. Release of Trust Property.

     (a) Subject to Section 8.10 and the payment of its fees and expenses
pursuant to Section 6.7, the Trustee may, and when required by the Issuer and
the provisions of this Pooling Agreement shall, execute instruments to release
property from the lien of this Pooling Agreement, in a manner and under
circumstances that are not inconsistent with the provisions of this Pooling
Agreement or the Sale and Servicing Agreement. No party relying upon an
instrument executed by the Trustee as provided in this Article VIII shall be
bound to ascertain the Trustee's authority, inquire into the satisfaction of any
conditions precedent or see to the application of any monies.

     (b) The Trustee shall, at such time as there are no Securities outstanding
and all sums due the Trustee pursuant to Section 6.7, to Freddie Mac pursuant to
this Pooling Agreement and to the Insurer pursuant to the Insurance Agreement
have been paid, release any remaining portion of the Trust Property that secured
the Securities from the lien of this Pooling Agreement and release to the Issuer
or any other Person entitled thereto any funds then on deposit in the Accounts.
The Trustee shall release property from the lien of this Pooling Agreement
pursuant to this Section 8.2(b) only upon receipt of an Issuer Request
accompanied by an Officer's Security, an Opinion of Counsel and (if required by
the TIA) Independent Certificates in accordance with TIA ss.ss. 314(c) and
314(d)(1) meeting the applicable requirements of Section 11.1.

     SECTION 8.3. Establishment of Accounts. The Sponsor shall cause to be
established, and the Trustee shall maintain, at the Corporate Trust Office of
the Trustee, a Collection Account and a Reserve Fund to be held by the Trustee
in the name of the Trust for the benefit of the Securityholders, the Insurer and
Freddie Mac, as their interests may appear. Each account shall be an Eligible
Account. In addition, the Sponsor shall be permitted to withdraw amounts from
the Collection Account from time to time as described in Section 3.03 of the
Sale and Servicing Agreement.

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<PAGE>

     SECTION 8.4. The Policy and the Guarantee.

     (a) By the close of business on the Business Day following each
Determination Date the Trustee shall determine from the related Servicing
Certificate with respect to the immediately following Payment Date, the Class
A-1 Deficiency Amount and the Class A-2 Deficiency Amount, if any.

     (b) If the Trustee determines pursuant to paragraph (a) above that a Class
A-1 Deficiency Amount would exist, the Trustee shall complete a Notice in the
form of Exhibit A to the Policy and submit such notice to the Insurer and a copy
of such notice to Freddie Mac no later than 12:00 noon New York City time on the
related Determination Date preceding such Payment Date as a claim for a payment
in an amount equal to the Class A-1 Deficiency Amount.

     (c) If the Trustee determines pursuant to paragraph (a) above that a Class
A-2 Deficiency Amount would exist, the Trustee shall complete a Notice in the
form of Exhibit A to the Policy and submit such notice to the Insurer and a copy
of such notice to Freddie Mac no later than the close of business New York City
time on the Business Day following the related Determination Date preceding such
Payment Date as a claim for a payment in an amount equal to the Class A-2
Deficiency Amount.

     (d) Upon receipt of payments made pursuant to the Policy from the Insurer
on behalf of the related Securityholders, the Trustee shall deposit such
payments in the Collection Account and shall distribute such payments, or the
proceeds thereof, in accordance with Section 8.7(d) hereof to the related
Securityholders.

     (e) If the Trustee determines that it has received less than the entire
Class A-1 Deficiency Amount for which it made a claim to the Insurer pursuant to
clause (b) (the difference between the amount for which a claim was submitted
and the amount received from the Insurer being an "Insured Payment Deficiency
Amount") or there is a Relief Act Shortfall with respect to the Class A-1
Certificates it shall immediately make a claim (a "Guarantee Claim") to Freddie
Mac for payment of such amount. Freddie Mac unconditionally and irrevocably
guarantees that if it has received a Guarantee Claim it shall distribute an
aggregate amount equal to the entire claim for such Payment Date (a "Guarantee
Payment") directly to the Holders of the Class A-1 Certificates on the related
Payment Date, without first depositing such amount in the Collection Account, as
follows: (i) the portion of any such amount related to interest that is due and
unpaid to the Class A-1 Securityholders for such Payment Date shall be
distributed to the Class A-1 Securityholders on a pro rata basis based on the
Class A-1 Interest Payment Amount payable on such Securities with respect to
such Payment Date; and (ii) the portion of any such amount related to principal
that is due and unpaid to the Class A-1 Securityholders for such Payment Date
shall be distributed to the Class A-1 Securityholders on a pro rata basis based
on the Class A-1 Principal Payment Amount payable on such Securities with
respect to such Payment Date.

     (f) The Trustee shall (i) receive payments made pursuant to the Policy as
attorney-in-fact of each related Securityholder receiving any Insured Payment
from the Insurer, and (ii) disburse such Insured Payment to the related
Securityholders as set forth in Section 8.7(d) hereof. The Insurer shall be
entitled to receive the applicable Class A-1 Reimbursement Amount and the Class
A-2 Reimbursement Amount and Freddie Mac shall be entitled to receive

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<PAGE>

the applicable Class A-1 Reimbursement Amount pursuant to Section 8.7(d)(vii)
hereof with respect to each Insured Payment or Guarantee Payment made by the
Insurer or Freddie Mac, as applicable. The Trustee hereby agrees on behalf of
each Securityholder and the Trust for the benefit of the Insurer or Freddie Mac,
as applicable, that it recognizes that to the extent the Insurer or Freddie Mac,
as applicable, makes payments made pursuant to the Policy or Guarantee, either
directly or indirectly (as by paying through the Trustee), to the related
Securityholders, the Insurer or Freddie Mac, as applicable, will be subrogated
to the related Securityholders and will be entitled to receive such related
Reimbursement Amount.

     (g) On any Payment Date that Freddie Mac makes a Guarantee Payment (other
than Relief Act Shortfalls) pursuant to clause (e), Freddie Mac will be entitled
to receive that pro rata portion of the Premium Amount that would otherwise be
payable to the Insurer for the related Payment Date in the ratio of (x) the
amount of the Guarantee Payment paid by Freddie Mac to (y) the Class A-1
Deficiency Amount for the related Payment Date. Any amounts paid to Freddie Mac
pursuant to this clause (g) will be deemed for all purposes to have been paid to
the Insurer.

     (h) If it has actual knowledge or notice of an Insurer Default, the Trustee
shall promptly notify the Servicer, the Sponsor, Freddie Mac and the Rating
Agencies upon the occurrence of an Insurer Default.

     SECTION 8.5. Payments under the GreenPoint Bank Demand Note. On each
Payment Date, the Trustee shall demand payment from GreenPoint Bank under the
Demand Note of the Demand Note Draw Amount (as defined below) payable thereunder
and deposit such amount into the Collection Account. The Trustee shall use its
best efforts to give GreenPoint Bank notice of any draw to be made under the
Demand Note at least one Business Day prior to the related Payment Date. The
Demand Note Draw Amount (the "Demand Note Draw Amount") shall be equal to the
following (but only up to a cumulative amount of $3,533,933.16):

       (a) On each Payment Date during the Demand Note Term (as defined below),
     the amount of Realized Losses relating to each Pool for such Payment Date
     (unless, after giving effect to such Realized Losses, the related Specified
     Overcollateralization Amount would still be met on such Payment Date); and

       (b) On the Payment Date in September, 2002, if the Demand Note is still
     in effect, the amount required to achieve the Specified
     Overcollateralization Amount for each Class,

     If payments made under the Demand Note on any Payment Date are insufficient
to pay all amounts owing in each Class on such Payment Date, any such payments
received will be distributed between the Classes pro rata, based on the
outstanding principal balance of each such Class on such Payment Date.

     In addition, GreenPoint Bank agrees under the Demand Note to pay any
Capitalized Interest Shortfall for each Payment Date occurring during the Demand
Note Term. For purposes of the Demand Note, Capitalized Interest Shortfall shall
mean the excess, if any, of (i) the sum of the Class A-1 Interest Payment Amount
and the Class A-2 Interest Payment Amount for such

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<PAGE>

Payment Date over (ii) the total Interest Collections received on the Mortgage
Loans during the immediately preceding Collection Period.

     The term of the Demand Note (the "Demand Note Term") shall be from
September 26, 2000 until its maturity on the later of (i) the date on which the
Spread Holiday Termination Date for each Class has been reached or (ii) the date
on which the Specified Collateralization Amount for each Class has been reached,
but in no event later than the Payment Date in September 2002.

     SECTION 8.6. Reserve Fund.

     (a) On each Payment Date the Trustee shall deposit to the Reserve Fund the
amounts, if any, described in Section 8.7(d)(x) hereof.

     (b)(i) If, on any Payment Date, and after taking into account the
application of the Pool I Available Funds plus any Crossover Amount payable from
Pool II (but not the proceeds of any Insured Payment or Guarantee Payment) to
the items listed in clauses (i) through (ix) of Section 8.7(d) hereof with
respect to Pool I on such Payment Date (x) the full amount of the Class A-1
Interest Payment Amount (excluding any Relief Act Shortfalls) has not been paid;
(y) on and following the Insured Payment Date, a Pool I Overcollateralization
Deficit would result; and/or (z) a Class A-1 Reimbursement Amount exists (the
sum of such deficiencies the "Pool I Deficiency Amount"), the Trustee shall
withdraw from the Reserve Fund and deposit in the Collection Account an amount
with respect to the Class A-1 Certificates equal to the lesser of (x) the
product of (a) the amount then on deposit in the Reserve Fund and (b) a
fraction, the numerator of which is the Pool I Deficiency Amount and the
denominator of which is the sum of (i) the Pool I Deficiency Amount and (ii) the
Pool II Deficiency Amount and (y) the Pool I Deficiency Amount.

     (ii) If, on any Payment Date, and after taking into account, the
application of the Pool II Available Funds plus any Crossover Amount payable
from Pool I (but not the proceeds of any Insured Payment) to the items listed in
clauses (i) through (ix) of Section 8.7 (d) hereof with respect to Pool II on
such Payment Date (x) the full amount of the Class A-2 Interest Payment Amount
(excluding any Relief Act Shortfalls) has not been paid, (y) on and following
the Insured Payment Date, a Pool II Overcollateralization Deficit would result;
and/or (z) a Class A-2 Reimbursement Amount exists (the sum of such deficiencies
the "Pool II Deficiency Amount"), the Trustee shall withdraw from the Reserve
Fund and deposit in the Collection Account an amount with respect to the Class
A-2 Notes equal to the lesser of (x) the product of (a) the amount then on
deposit in the Reserve Fund and (b) a fraction, the numerator of which is the
Pool II Deficiency Amount and the denominator of which is the sum of (i) the
Pool II Deficiency Amount and (ii) the Pool I Deficiency Amount and (y) the Pool
II Deficiency Amount.

     (c)(i) If, on any Payment Date, (A) the sum of (i) the Pool I
Overcollateralization Amount plus (ii) the Pool II Overcollateralization Amount
plus (iii) the amount on deposit in the Reserve Fund minus (iv) any Pool I
Overcollateralization Deficit minus (v) any Pool II Overcollateralization
Deficit, in each case after taking into account all distributions on such
Payment Date other than any distribution of any Reserve Reduction Amounts (as
defined below) exceeds (B) the sum of (i) the Pool I Specified
Overcollateralization Amount plus (ii) the Pool II

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<PAGE>

Specified Overcollateralization Amount for such Payment Date (such excess being
"Reserve Reduction Amount"), the Reserve Reduction Amount shall be released from
the Reserve Fund and distributed to the Residual Certificateholders.

     SECTION 8.7. Priority of Distributions.

     (a) The Trustee shall deposit to the Collection Account, with respect to
Pool I, without duplication, upon receipt, (i) any payments related to the Class
A-1 Certificates made pursuant to the Policy, the Guarantee or the Demand Note,
(ii) the proceeds of any liquidation of the assets of the Trust, (iii) Interest
Collections and Principal Collections remitted by the Servicer, together with
any Substitution Amounts, and any Loan Purchase Price amounts received by the
Trustee relating to such Pool, and (iv) the amount, if any, to be transferred on
such Payment Date from the Reserve Fund pursuant to Section 8.6(b)(i) hereof.

     (b) The Trustee shall deposit to the Collection Account, with respect to
Pool II, without duplication, upon receipt, (i) any payments related to the
Class A-2 Notes made pursuant to the Policy or the Demand Note, (ii) the
proceeds of any liquidation of the assets of the Trust, (iii) Interest
Collections and Principal Collections remitted by the Servicer, together with
any Substitution Amounts, and any Loan Purchase Price Amounts received by the
Trustee relating to such Pool, and (iv) the amount, if any, to be transferred on
such Payment Date from the Reserve Fund pursuant to Section 8.6(b)(ii) hereof.

     (c) [Intentionally Omitted].

     (d) With respect to the Collection Account, on each Payment Date, the
Trustee shall make the following allocations, disbursements and transfers in the
following order of priority, and each such allocation, transfer and disbursement
shall be treated as having occurred only after all preceding allocations,
transfers and disbursements have occurred:

       (i) to the Trustee, the Trustee's Fee then due on account of each Class
     of Securities;

       (ii) from amounts then on deposit in the Collection Account, (x) from
     amounts on deposit therein with respect to Pool I, the Premium Amounts with
     respect to the Class A-1 Certificates to the Insurer for such Payment Date
     and (y) from amounts then on deposit therein with respect to Pool II, the
     Premium Amounts with respect to the Class A-2 Notes to the Insurer for such
     Payment Date;

       (iii) from amounts then on deposit in the Collection Account with respect
     to Pool I, the Guarantee Fee Amount payable to Freddie Mac under the
     Guarantee for such Payment Date;

       (iv) (x) from amounts then on deposit therein with respect to Pool I, to
     the Class A-1 Securityholders, the Class A-1 Interest Payment Amount for
     such Payment Date and (y) from amounts then on deposit therein with respect
     to Pool II, to the Class A-2 Securityholders, the Class A-2 Interest
     Payment Amount for such Payment Date;

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<PAGE>

       (v) (x) from amounts then on deposit therein with respect to Pool I, to
     the Class A-1 Securityholders as a distribution of principal, the Class A-1
     Principal Payment Amount for such Payment Date and (y) from amounts then on
     deposit therein with respect to the Pool II, to the Class A-2
     Securityholders, as a distribution of principal, the Class A-2 Principal
     Payment Amount for such Payment Date;

       (vi) (x) from amounts then on deposit therein with respect to Pool I, to
     the Class A-1 Securityholders, as a distribution of principal, the Pool I
     Overcollateralization Deficit for such Payment Date and (y) from amounts
     then on deposit therein with respect to Pool II, to the Class A-2
     Securityholders, as a distribution of principal, the Pool II
     Overcollateralization Deficit for such Payment Date;

       (vii) (x) from amounts then on deposit therein with respect to Pool I, to
     the Insurer or Freddie Mac, as applicable, the Class A-1 Reimbursement
     Amount, if any, then due to it and (y) from amounts then on deposit therein
     with respect to Pool II, to the Insurer, the Class A-2 Reimbursement
     Amount, if any, then due to it;

       (viii) (x) from amounts then on deposit therein with respect to Pool I,
     the Excess Cashflow with respect to the Class A-1 Certificates shall be
     applied to the extent necessary to fund the full amount of the Accelerated
     Principal Payment with respect to the Class A-1 Certificates and (y) from
     amounts then on deposit therein with respect to Pool II, the Excess
     Cashflow with respect to the Class A-2 Notes shall be applied to the extent
     necessary to fund the full amount of the Accelerated Principal Payment with
     respect to the Class A-2 Notes;

       (ix) any portion of the Available Funds with respect to a Pool remaining
     after the application described in items (i) through (viii) above on a
     Payment Date shall be used to fund any deficiency in items (iv), (vi) and
     (vii) above with respect to the other Pool on such Payment Date (such
     amount which is available to be allocated with respect to the other Pool on
     such Payment Date is a "Crossover Amount" for the related Pool);

       (x) to the Reserve Fund for application pursuant to this Pooling
     Agreement, to the extent that the sum of (a) the Pool I
     Overcollateralization Amount plus (b) the Pool II Overcollateralization
     Amount (after taking into account the reductions in the Security Principal
     Balance with respect to each Class of Securities on such Payment Date due
     to the application of the amounts described in clauses (v), (vi), (viii)
     and (ix) above) is less than the sum of (a) the Pool I Specified
     Overcollateralization Amount and (b) the Pool II Specified
     Overcollateralization Amount as of such Payment Date;

       (xi) from amounts then on deposit therein to the Servicer, reimbursement
     for amounts reimbursable to the Servicer pursuant to Section 3.03 and
     Section 5.03 of the Sale and Servicing Agreement to the extent not
     previously reimbursed;

       (xii) (x) from amounts then on deposit therein with respect to Pool I,
     the current Class A-1 Deferred Interest with respect to the Class A-1
     Certificates and any

                                       36
<PAGE>

     unpaid Class A-1 Deferred Interest from prior Payment Dates with interest
     thereon at the applicable Class A-1 Formula Certificate Rate and (y) from
     amounts then on deposit therein with respect to Pool II, the current Class
     A-2 Deferred Interest with respect to the Class A-2 Notes and any unpaid
     Class A-2 Deferred Interest from prior Payment Dates with interest thereon
     at the applicable Class A-2 Formula Note Rate;

       (xiii) to the Manager of the Trust, the Management Fee then due;

       (xiv) to GreenPoint Bank, reimbursements of all amounts drawn under the
     Demand Note and;

       (xv) to the Residual Certificateholders, any amounts remaining on deposit
     in the Collection Account or any amounts available to be released from the
     Reserve Fund pursuant to Section 8.6(c) hereof.

     SECTION 8.8. Statements to Securityholders. The Trustee will (i) transmit
electronically and via fax on each Determination Date to the Servicer, the Class
A-1 Securityholders, the Insurer and Freddie Mac a statement setting forth among
other items with respect to the Class A-1 Certificates and (ii) make available
via its internet website on each Payment Date concurrently with each
distribution to the Class A-2 Securityholders to the Servicer, the Class A-2
Securityholders, the Insurer and Freddie Mac a statement setting forth among
other items with respect to the Class A-2 Notes:

       (i) the amount being distributed to each Class of Securities;

       (ii) the amount of interest included in such distribution and the related
     security rate;

       (iii) the amount, if any, of overdue accrued interest included in such
     distribution (and the amount of interest thereon);

       (iv) the amount, if any, of the remaining overdue accrued interest after
     giving effect to such distribution;

       (v) the amount, if any, of principal included in such distribution;

       (vi) the Servicing Fee for such Payment Date;

       (vii) the related principal balance, after giving effect to such
     distribution;

       (viii) the related initial Pool Balance and the related Pool Balance as
     of the end of the preceding Collection Period;

       (ix) by Pool and in the aggregate, the number and aggregate Principal
     Balance of Mortgage Loans that were (A) delinquent (exclusive of Mortgage
     Loans in bankruptcy or foreclosure or properties acquired by the Trust by
     deed in lieu of foreclosure) (1) 30 to 59 days, (2) 60 to 89 days, (3) 90
     to 119 days, (4) 120 to 149 days,

                                       37
<PAGE>

     (5) 150 to 179 days and (6) 180 or more days, (B) in foreclosure, (C) in
     bankruptcy and (D) properties acquired by the Trust by deed in lieu of
     foreclosure;

       (x) cumulative losses as a percentage of original Pool Balance and
     current Pool Balance;

       (xi) the six-month rolling average of Mortgage Loans that are 60 days or
     more delinquent;

       (xii) the book value of any real estate which is acquired by the Trust
     through foreclosure or grant of deed in lieu of foreclosure;

       (xiii) the amount of any draws on (a) the Policy and (b) the Demand Note;

       (xiv) the amount, if any, on deposit in the Reserve Fund and the amount,
     if any, transferred from the Reserve Fund in respect of such Payment Date;

       (xv) whether an Event of Servicing Termination or an Insurer Default has
     occurred;

       (xvi) whether the Managed Amortization Period has ended and the Rapid
     Amortization Period has begun;

       (xvii) the Pool I Specified Overcollateralization Amount and the Pool II
     Specified Overcollateralization Amount; and

       (xviii) the Pool I Overcollateralization Amount and the Pool II
     Overcollateralization Amount, in each case after giving effect to payments
     on such Payment Date.

     In the case of information furnished pursuant to clauses (ii), (iii), (iv)
and (v) above, the amounts shall be expressed as a dollar amount per Class A
Security with a $1,000 denomination.

     The Trustee will make the reports referred to in this Section (and, at its
option, any additional files containing the same information in an alternative
format) available each month to Securityholders, the Insurer, the Sponsor, the
Servicer and Freddie Mac via the Trustee's internet website, which is presently
located at www.abs.bankone.com. Any such persons that are unable to use this
website are entitled to have a paper copy of such information mailed to them via
first class mail by calling the Trustee at 1-800-524-9472. The Trustee shall
have the right to change the manner in which the reports referred to in this
Section are distributed in order to make such distribution more convenient
and/or more accessible to the Securityholders, the Insurer, the Sponsor, the
Servicer and Freddie Mac. The Trustee will provide timely and adequate
notification to all such parties regarding any such change to the method of
distribution of the reports.

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<PAGE>

     Each report provided to the Insurer or Freddie Mac (either via the
Trustee's website or a paper copy) pursuant to this Section 8.8 shall
additionally report: (a) the total amount of funds received as Insured Payments
or Guarantee Payments, as applicable, for such Payment Date, separately stating
the portions used to pay principal and interest components of the Class A-1
Deficiency Amount; (b) the cumulative Insured Payments made by the Insurer or
Guarantee Payments made by Freddie Mac, as applicable, through such Payment
Date; and (c) other information as the Insurer or Freddie Mac may reasonably
request from time to time.

     Within 60 days after the end of each calendar year, the Servicer shall
prepare or cause to be prepared and shall forward to the Trustee the information
set forth in clauses (i) and (ii) above aggregated for such calendar year. Such
obligation of the Servicer shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Servicer or a
Security Paying Agent pursuant to any requirements of the Code.

     SECTION 8.9. Rights of Securityholders and Residual Certificateholders. The
Class A-1 Certificates shall represent beneficial interests in the Trust and the
Class A-2 Notes shall represent obligations of the Trust, each representing
interests in or secured by the Trust Property, including the Collection Account
and the right to receive Interest Collections, Principal Collections, if any,
and other amounts at the times and in the amounts specified in this Pooling
Agreement; the Residual Certificates shall represent a beneficial interest in
the Trust (other than the Reserve Fund and the Policy and other than that
interest held by the Class A-1 Securityholders).

     SECTION 8.10. Opinion of Counsel. The Trustee, the Insurer and Freddie Mac
shall receive at least seven days' notice when requested by the Issuer to take
any action pursuant to Section 8.2(a), accompanied by copies of any instruments
involved, and the Trustee shall also require as a condition to such action, an
Opinion of Counsel, stating the legal effect of any such action, outlining the
steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with and such action
will not materially and adversely impair the security for the Securities or the
rights of the Securityholders, the Insurer or Freddie Mac in contravention of
the provisions of this Pooling Agreement; provided, however, that such Opinion
of Counsel shall not be required to express an opinion as to the fair value of
the Trust Property. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Trustee in connection with any such action.

                                   ARTICLE IX

                         SUPPLEMENTAL POOLING AGREEMENTS

     SECTION 9.1. Supplemental Pooling Agreements Without Consent of
Securityholders.

     (a) Without the consent of the Holders of any Securities but with the
consent of the Controlling Party, as evidenced to the Trustee, the parties
hereto, when authorized by an Issuer Order, at any time and from time to time,
may enter into one or more Pooling Agreements

                                       39
<PAGE>

supplemental hereto (which shall conform to the provisions of the TIA as in
force at the date of the execution thereof), in form satisfactory to the
Trustee, for any of the following purposes:

       (i) to correct or amplify the description of any property at any time
     subject to the lien of this Pooling Agreement, or better to assure, convey
     and confirm unto the Trustee any property subject or required to be
     subjected to the lien of this Pooling Agreement, or to subject to the lien
     of this Pooling Agreement additional property;

       (ii) to evidence the succession, in compliance with the applicable
     provisions hereof, of another person to the Issuer, and the assumption by
     any such successor of the covenants of the Issuer herein and in the
     Securities contained;

       (iii) to add to the covenants of the Issuer, for the benefit of the
     Holders of the Securities, or to surrender any right or power herein
     conferred upon the Issuer;

       (iv) to convey, transfer, assign, mortgage or pledge any property to or
     with the Trustee;

       (v) to cure any ambiguity, to correct or supplement any provision herein
     or in any supplemental Pooling Agreement which may be inconsistent with any
     other provision herein or in any supplemental Pooling Agreement or to make
     any other provisions with respect to matters or questions arising under
     this Pooling Agreement or in any supplemental Pooling Agreement; provided
     that such action shall not adversely affect the interests of the Holders of
     the Securities; or

       (vi) to evidence and provide for the acceptance of the appointment
     hereunder by a successor trustee with respect to the Securities and to add
     to or change any of the provisions of this Pooling Agreement as shall be
     necessary to facilitate the administration of the trusts hereunder by more
     than one trustee, pursuant to the requirements of Article VI.

       (vii) to modify, eliminate or add to the provisions of this Pooling
     Agreement to such extent as shall be necessary to effect the qualification
     of the Pooling Agreement under the TIA or under any similar federal statue
     hereafter enacted and to add to this Pooling Agreement such other
     provisions as may be expressly required by the TIA.

     The Trustee is hereby authorized to join in the execution of any such
supplemental Pooling Agreement and to make any further appropriate agreements
and stipulations that may be therein contained.

     (b) The parties hereto, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Securities but with the prior
written consent of the Controlling Party and with prior notice to the Rating
Agencies by the Issuer, as evidenced to the Trustee, enter into a Pooling
Agreement or Pooling Agreements supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Pooling Agreement or of modifying in any manner the rights
of the Holders of

                                       40
<PAGE>

the Securities under this Pooling Agreement; provided, however, that such action
shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Securityholder.

     SECTION 9.2. Supplemental Pooling Agreements with Consent of
Securityholders. The parties hereto, when authorized by an Issuer Order, also
may, with prior notice to the Rating Agencies, with the consent of the Insurer
and Freddie Mac and with the consent of the Holders of not less than a majority
of the Outstanding Amount of the Securities, by Act of such Holders delivered to
the parties hereto, enter into a Pooling Agreement or Pooling Agreements
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Pooling Agreement or of
modifying in any manner the rights of the Holders of the Securities under this
Pooling Agreement; provided, however, that, subject to the express rights of the
Insurer and Freddie Mac under the Basic Documents, no such supplemental Pooling
Agreement shall, without the consent of the Holder of each Outstanding
Securities affected thereby:

       (i) change the date of payment of any installment of principal of or
     interest on any Security, or reduce the principal amount thereof, the
     interest rate thereon or the Redemption Price with respect thereto, change
     the provision of this Pooling Agreement relating to the application of
     collections on, or the proceeds of the sale of, the Trust Property to
     payment of principal of or interest on the Securities, or change any place
     of payment where, or the coin or currency in which, any Security or the
     interest thereon is payable;

       (ii) impair the right to institute suit for the enforcement of the
     provisions of this Pooling Agreement requiring the application of funds
     available therefor, as provided in Article V, to the payment of any such
     amount due on the Securities on or after the respective due dates thereof
     (or, in the case of redemption, on or after the Redemption Date);

       (iii) reduce the percentage of the Outstanding Amount of the Securities,
     the consent of the Holders of which is required for any such supplemental
     Pooling Agreement, or the consent of the Holders of which is required for
     any waiver of compliance with certain provisions of this Pooling Agreement
     or certain defaults hereunder and their consequences provided for in this
     Pooling Agreement;

       (iv) modify or alter the provisions of the proviso to the definition of
     the term "Outstanding";

       (v) reduce the percentage of the Outstanding Amount of the Securities
     required to direct the Trustee to direct the Issuer to sell or liquidate
     the Trust Property pursuant to Section 5.4;

       (vi) modify any provision of this Section except to increase any
     percentage specified herein or to provide that certain additional
     provisions of this Pooling Agreement or the Basic Documents cannot be
     modified or waived without the consent of the Holder of each Outstanding
     Security affected thereby;

                                       41
<PAGE>

       (vii) modify any of the provisions of this Pooling Agreement in such
     manner as to affect the calculation of the amount of any payment of
     interest or principal due on any Security on any Payment Date (including
     the calculation of any of the individual components of such calculation);
     or

       (viii) permit the creation of any lien ranking prior to or on a parity
     with the lien of this Pooling Agreement with respect to any part of the
     Trust Property or, except as otherwise permitted or contemplated herein or
     in any of the Basic Documents, terminate the lien of this Pooling Agreement
     on any property at any time subject hereto or deprive the Holder of any
     Security of the security provided by the lien of this Pooling Agreement.

     The Trustee may determine whether or not any Securities would be adversely
affected by any supplemental Pooling Agreement upon receipt of an Opinion of
Counsel to that effect and any such determination shall be conclusive upon the
Holders of all Securities, whether theretofore or thereafter authenticated and
delivered hereunder. The Trustee shall not be liable for any such determination
made in good faith.

     It shall not be necessary for any Act of Securityholders under this Section
to approve the particular form of any proposed supplemental Pooling Agreement,
but it shall be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the parties hereto of any supplemental
Pooling Agreement pursuant to this Section, the Trustee shall mail to the
Holders of the Securities to which such amendment or supplemental Pooling
Agreement relates a notice setting forth in general terms the substance of such
supplemental Pooling Agreement. Any failure of the Trustee to mail such notice,
or any defect therein, shall not, however, in any way impair or affect the
validity of any such supplemental Pooling Agreement.

     SECTION 9.3. Execution of Supplemental Pooling Agreements. In executing, or
permitting the additional trusts created by, any supplemental Pooling Agreement
permitted by this Article IX or the modifications thereby of the trusts created
by this Pooling Agreement, the Trustee shall be entitled to receive, and subject
to Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of
Counsel (and, if requested, an Officer's Security) stating that the execution of
such supplemental Pooling Agreement is authorized or permitted by this Pooling
Agreement. The Trustee may, but shall not be obligated to, enter into any such
supplemental Pooling Agreement that affects the Trustee's own rights, duties,
liabilities or immunities under this Pooling Agreement or otherwise.

     SECTION 9.4. Effect of Supplemental Pooling Agreement. Upon the execution
of any supplemental Pooling Agreement pursuant to the provisions hereof, this
Pooling Agreement shall be and be deemed to be modified and amended in
accordance therewith with respect to the Securities affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Pooling Agreement of the Trustee, the Issuer and the
Holders of the Securities shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and

                                       42
<PAGE>

conditions of any such supplemental Pooling Agreement shall be and be deemed to
be part of the terms and conditions of this Pooling Agreement for any and all
purposes.

     SECTION 9.5. Reference in Securities to Conformity With Trust Indenture
Act. Every amendment of this Pooling Agreement and every supplemental Pooling
Agreement executed pursuant to this Article IX shall conform to the requirements
of the TIA as then in effect so long as this Pooling Agreement shall then be
qualified under the TIA.

     SECTION 9.6. Reference in Securities to Supplemental Pooling Agreements.
Securities authenticated and delivered after the execution of any supplemental
Pooling Agreement pursuant to this Article IX may, and if required by the
Trustee shall, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental Pooling Agreement. If the Issuer or the
Trustee shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Issuer, to any such supplemental Pooling
Agreement may be prepared and executed by the Issuer and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.

                                    ARTICLE X

                            REDEMPTION OF SECURITIES

     SECTION 10.1. Redemption. The Securities are subject to redemption in
whole, but not in part, at the direction of the Sponsor pursuant to Section
7.01(b) of the Sale and Servicing Agreement, on any Payment Date on which the
Sponsor exercises its option to transfer the Trust Property pursuant to said
Section 7.01(b), for a purchase price equal to the Redemption Price. The
Servicer or the Issuer shall furnish the Insurer and Freddie Mac notice of such
redemption. If the Securities of either Class are to be redeemed pursuant to
this Section 10.1, the Servicer or the Issuer shall furnish notice of such
election to the Trustee not later than 35 days prior to the Redemption Date and
the Issuer shall deposit with the Trustee in the Collection Account the
Redemption Price of such Securities not less than five Business Days prior to
the Redemption Date whereupon all such Securities shall be due and payable on
the Redemption Date upon the furnishing of a notice complying with Section 10.2.

     SECTION 10.2. Surrender of Securities.

     (a) Notice of any termination, specifying the Payment Date (which shall be
a date that would otherwise be a Payment Date) upon which the Securityholders
may surrender their Securities to the Trustee for payment of the final
distribution and cancellation, shall be given promptly by the Trustee (upon
receipt of written directions from the Sponsor, if the Sponsor is exercising its
right to transfer of the Mortgage Loans, given not later than the first day of
the month preceding the month of such final distribution) to the Insurer, to
Freddie Mac and to the Servicer and by letter to Securityholders 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 Payment Date
upon which final distribution of the Securities will be made upon presentation
and surrender of Securities at the office or agency of the Trustee therein
designated, (ii) the amount of any such final distribution and (iii) that the
Record Date otherwise applicable to such Payment Date is not applicable,
distributions being made only upon presentation and surrender

                                       43
<PAGE>

of the Securities at the office or agency of the Trustee therein specified. In
the event written directions are delivered by the Sponsor to the Trustee as
described in the preceding sentence, the Sponsor shall deposit in the Collection
Account on or before the Payment Date for such final distribution in immediately
available funds an amount which, when added to the funds on deposit in the
Collection Account that are payable to the Securityholders, will be equal to the
retransfer amount for the Mortgage Loans computed as above provided, together
with (x) all amounts due and owing to the Insurer for unpaid premiums and
unreimbursed draws on the Policy and all other amounts due and owing to the
Insurer pursuant to the Insurance Agreement, together with interest thereon as
provided under the Insurance Agreement, and (y) all amounts due and owing to
Freddie Mac for unpaid payments under the Guarantee.

     (b) Upon presentation and surrender of the Securities, the Trustee shall
cause to be distributed to the Holders of Securities on the Payment Date for
such final distribution, in proportion to the Percentage Interests of their
respective Securities and to the extent that funds are available for such
purpose, an amount equal to (i) if such final distribution is not being made
pursuant to the transfer to the Sponsor pursuant to Section 7.01(a)(B)(i) of the
Sale and Servicing Agreement, the amount required to be distributed to
Securityholders pursuant to Section 5.01 of the Sale and Servicing Agreement for
such Payment Date and (ii) if such final distribution is being made pursuant to
such retransfer, the amount specified in Section 7.01(a)(B)(i) of the Sale
Servicing Agreement. The distribution on such final Payment Date pursuant to a
retransfer pursuant to Section 7.01(a)(B)(i) of the Sale and Servicing Agreement
shall be in lieu of the distribution otherwise required to be made on such
Payment Date in respect of the Securities. On the final Payment Date prior to
having made the distributions called for above, the Trustee shall, based upon
the information set forth in the Servicing Security for such Payment Date,
withdraw from the Collection Account and remit pro rata (A) to the Insurer the
lesser of (x) the amount available for distribution on such final Payment Date,
net of any portion thereof necessary to pay the amounts described in clauses (i)
and (ii) above and (y) the unpaid amounts due and owing to the Insurer for
unpaid premiums and unreimbursed draws on the Policy and all other amounts due
and owing to the Insurer pursuant to the Insurance Agreement, together with
interest thereon as provided under the Insurance Agreement and (B) to Freddie
Mac the unpaid amounts due and owing to Freddie Mac for unreimbursed Guarantee
Payments and all other amounts due and owing to Freddie Mac pursuant to the
Guarantee, together with interest thereon at the Late Payment Rate (as defined
in the Policy).

     (c) In the event that all of the Securityholders shall not surrender their
Securities for final payment and cancellation on or before such final Payment
Date, the Trustee shall on such date cause all funds in the Collection Account
not distributed in final distribution to Securityholders to be withdrawn
therefrom and credited to the remaining Securityholders by depositing such funds
in a separate escrow account for the benefit of such Securityholders and the
Sponsor (if the Sponsor has exercised its right to transfer the Mortgage Loans)
or the Trustee (in any other case) and shall give a second written notice to the
remaining Securityholders to surrender their Securities for cancellation and
receive the final distribution with respect thereto. If within one year after
the second notice all the Securities shall not have been surrendered for
cancellation, the Trustee may take appropriate steps, or may appoint an agent to
take appropriate steps, to contact the remaining Securityholders concerning
surrender of their Securities, and the cost thereof shall be paid out of the
funds on deposit in such escrow account.

                                       44
<PAGE>

     SECTION 10.3. Form of Redemption Notice. Notice of redemption supplied to
the Trustee by the Sponsor under Section 10.1 shall be given by the Trustee by
facsimile or by first-class mail, postage prepaid, transmitted or mailed prior
to the applicable Redemption Date to each Holder of Securities of record, as of
the close of business on the date which is not less than 5 days prior to the
applicable Redemption Date, at such Holder's address appearing in the Security
Register.

     All notices of redemption shall state:

       (i) the Redemption Date;

       (ii) the Redemption Price;

       (iii) that the Record Date otherwise applicable to such Redemption Date
     is not applicable and that payments shall be made only upon presentation
     and surrender of such Securities at the place where such Securities are to
     be surrendered for payment of the Redemption Price (which shall be the
     office or agency of the Issuer to be maintained as provided in Section
     3.2); and

       (iv) that interest on the Securities shall cease to accrue on the
     Redemption Date.

     Notice of redemption of the Securities shall be given by the Trustee in the
name and at the expense of the Issuer. Failure to give notice of redemption, or
any defect therein, to any Holder of any Security shall not impair or affect the
validity of the redemption of any other Security.

     SECTION 10.4. Securities Payable on Redemption Date. The Securities to be
redeemed shall, following notice of redemption as required by Section 10.2, on
the Redemption Date become due and payable at the Redemption Price and (unless
the Issuer shall default in the payment of the Redemption Price) no interest
shall accrue on the Redemption Price for any period after the date to which
accrued interest is calculated for purposes of calculating the Redemption Price.

                                   ARTICLE XI

                                  MISCELLANEOUS

     SECTION 11.1. Compliance Certificates and Opinions, etc. Upon any
application or request by the Issuer to the Trustee to take any action under any
provision of this Pooling Agreement, the Issuer shall furnish to the Trustee and
to the Insurer and Freddie Mac if the application or request is made to the
Trustee (i) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Pooling Agreement relating to the proposed action have
been complied with, (ii) an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent, if any, have been complied with and
(iii) (if required by the TIA) an Independent Certificate from a firm of
certified public accountants meeting the applicable requirements of this
Section, except that, in the case of any such application or request

                                       45
<PAGE>

as to which the furnishing of such documents is specifically required by any
provision of this Pooling Agreement, no additional certificate or opinion need
be furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Pooling Agreement shall include:

       (i) a statement that each signatory of such certificate or opinion has
     read or has caused to be read such covenant or condition and the
     definitions herein relating thereto;

       (ii) a brief statement as to the nature and scope of the examination or
     investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

       (iii) a statement that, in the opinion of each such signatory, such
     signatory has made such examination or investigation as is necessary to
     enable such signatory to express an informed opinion as to whether or not
     such covenant or condition has been complied with; and

       (iv) a statement as to whether, in the opinion of each such signatory
     such condition or covenant has been complied with.

     SECTION 11.2. Form of Documents Delivered to Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

     Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his or her certificate or opinion is
based are erroneous. Any such certificate of an Authorized Officer or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Servicer, the Sponsor or the Issuer, stating that the information with respect
to such factual matters is in the possession of the Servicer, the Sponsor or the
Issuer, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

     Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Pooling Agreement, they may, but need not, be
consolidated and form one instrument.

     Whenever in this Pooling Agreement, in connection with any application or
certificate or report to the Trustee, it is provided that the Issuer shall
deliver any document as a

                                       46
<PAGE>

condition of the granting of such application, or as evidence of the Issuer's
compliance with any term hereof, it is intended that the truth and accuracy, at
the time of the granting of such application or at the effective date of such
certificate or report (as the case may be), of the facts and opinions stated in
such document shall in such case be conditions precedent to the right of the
Issuer to have such application granted or to the sufficiency of such
certificate or report. The foregoing shall not, however, be construed to affect
the Trustee's right to conclusively rely upon the truth and accuracy of any
statement or opinion contained in any such document as provided in Article VI.

     SECTION 11.3. Acts of Securityholders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Pooling Agreement to be given or taken by
Securityholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Securityholders in person or by
agents duly appointed in writing; and except as herein otherwise expressly
provided such action shall become effective when such instrument or instruments
are delivered to the Trustee, and, where it is hereby expressly required, to the
Issuer. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the
Securityholders 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 Pooling Agreement and (subject to Section
6.1) conclusive in favor of the Trustee and the Issuer, if made in the manner
provided in this Section.

     (b) The fact and date of the execution by any person of any such instrument
or writing may be proved in any customary manner of the Trustee.

     (c) The ownership of Securities shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Securities shall bind the Holder of every
Security issued upon the registration 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 Issuer in reliance thereon, whether or not notation of such
action is made upon such Security.

     SECTION 11.4. Notices, etc., to Trustee, Issuer, Insurer, Freddie Mac and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Securityholders or other documents provided or permitted by
this Pooling Agreement to be made upon, given or furnished to or filed with:

     (a) The Trustee by any Securityholder or by the Issuer shall be sufficient
for every purpose hereunder if personally delivered, delivered by overnight
courier or mailed first-class and shall be deemed to have been duly given upon
receipt to the Trustee at its Corporate Trust Office and any notice delivered by
facsimile shall be addressed to the Corporate Trust Office, telecopy number
(312) 407-1708, or

     (b) The Issuer by the Trustee or by any Securityholder shall be sufficient
for every purpose hereunder if personally delivered, delivered by facsimile or
overnight courier or mailed first class, and shall deemed to have been duly
given upon receipt to the Issuer addressed

                                       47
<PAGE>

to: GreenPoint Home Equity Loan Trust 2000-2, in care of Wilmington Trust
Company, Rodney Square North, 1100 North Market Street, Wilmington, DE
19890-0001 Attention: Corporate Trust Administration, or at any other address
previously furnished in writing to the Trustee by Issuer. The Issuer shall
promptly transmit any notice received by it from the Securityholders to the
Trustee.

     (c) The Insurer by the Issuer or the Trustee shall be sufficient for any
purpose hereunder if in writing and mailed by first-class mail personally
delivered or telecopied to the recipient as follows:

     To the Insurer:           Financial Guaranty Insurance Company
                               115 Broadway
                               New York, NY 10006
                               Attn: Research and Risk Management
                               GreenPoint Home Equity Loan Trust--2000-2
                               Telecopy: (212) 312-3220

     (d) Freddie Mac by the Issuer or the Trustee shall be sufficient for any
purpose hereunder if in writing and mailed by first class mail personally
delivered or telecopied to the recipient as follows:

     To Freddie Mac:            Federal Home Loan Mortgage Corporation
                                8200 Jones Branch Dr.
                                McLean, Virginia 22102
                                Attn: Vice-President, Mortgage Funding
                                Fax: (703) 903-2138

     Notices required to be given to the Rating Agencies by the Issuer, the
Trustee or the Owner Trustee shall be in writing, personally delivered,
delivered by overnight courier or first class or via facsimile to (i) in the
case of Moody's, at the following address: Moody's Investors Service, Inc., 99
Church Street, New York, New York 10004, Fax No: (212) 533-0355 and (ii) in the
case of S&P, at the following address: Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041,
Attention: Asset Backed Surveillance Department, Fax No: (212) 438-2661; or as
to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

     SECTION 11.5. Notices to Securityholders; Waiver. Where this Pooling
Agreement provides for notice to Securityholders of any event, such notice shall
be sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Securityholder affected by such
event (and in all cases, the Insurer and Freddie Mac shall receive notice), at
his address as it appears on the Security Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Securityholders is given by mail, neither
the failure to mail such notice nor any defect in any notice so mailed to any
particular Securityholder shall affect the sufficiency of such notice with
respect to other Securityholders, and any notice that is mailed in the manner
herein provided shall conclusively be presumed to have been duly given.

                                       48
<PAGE>

     Where this Pooling Agreement provides for notice in any manner, such notice
may be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Securityholders shall be filed with the Trustee but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

     In case, by reason of the suspension of regular mail service as a result of
a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Securityholders when such notice is required to be given
pursuant to any provision of this Pooling Agreement, then any manner of giving
such notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.

     Where this Pooling Agreement provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder.

     SECTION 11.6. Alternate Payment and Notice Provisions. Notwithstanding any
provision of this Pooling Agreement or any of the Securities to the contrary,
the Issuer may enter into any agreement with any Holder of a Security providing
for a method of payment, or notice by the Trustee or any Security Paying Agent
to such Holder, that is different from the methods provided for in this Pooling
Agreement for such payments or notices, provided that such methods are
reasonable and consented to by the Trustee (which consent shall not be
unreasonably withheld). The Issuer will furnish to the Trustee a copy of each
such agreement and the Trustee will cause payments to be made and notices to be
given in accordance with such agreements.

     SECTION 11.7. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this indenture by any of the provisions of the TIA, such required
provision shall control.

     The provisions of TIA ss.ss. 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless
expressly excluded by this Pooling Agreement) are a part of and govern this
indenture, whether or not physically contained herein.

     SECTION 11.8. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 11.9. Successors and Assigns. All covenants and agreements in this
Pooling Agreement and the Securities by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Trustee in this
Pooling Agreement shall bind its successors.

     SECTION 11.10. Separability. In case any provision in this Pooling
Agreement or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

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<PAGE>

     SECTION 11.11. Benefits of Pooling Agreement. The Insurer and its
successors and assigns shall be third-party beneficiaries to the provisions of
this Pooling Agreement, and shall be entitled to rely upon and directly to
enforce such provisions of this Pooling Agreement. Nothing in this Pooling
Agreement or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the Insurer, and
the Securityholders, and any other party secured hereunder, and any other person
with an ownership interest in any part of the Trust Property, any benefit or any
legal or equitable right, remedy or claim under this Pooling Agreement. The
Insurer and Freddie Mac may disclaim any of their rights and powers under this
Pooling Agreement (in which case the Trustee may exercise such rights or powers
hereunder), but not their duties and obligations under the Policy or Guarantee,
respectively, upon delivery of a written notice to the Trustee.

     SECTION 11.12. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Securities or this Pooling Agreement) payment need not be made
on such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the date on which nominally due, and no interest
shall accrue for the period from and after any such nominal date.

     SECTION 11.13. GOVERNING LAW. THIS POOLING AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 11.14. Counterparts. This Pooling Agreement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

     SECTION 11.15. Recording of Pooling Agreement. If this Pooling Agreement is
subject to recording in any appropriate public recording offices, such recording
is to be effected by the Issuer and at its expense accompanied by an Opinion of
Counsel (which may be counsel to the Trust or any other counsel reasonably
acceptable to the Trustee and the Controlling Party) to the effect that such
recording is necessary either for the protection of the Securityholders or any
other person secured hereunder or for the enforcement of any right or remedy
granted to the Trustee under this Pooling Agreement.

     SECTION 11.16. Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Sponsor, the
Servicer, the Owner Trustee or the Trustee on the Securities or under this
Pooling Agreement or any Security or other writing delivered in connection
herewith or therewith, against (i) the Sponsor, the Servicer, the Trustee or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Sponsor, the Servicer, the Trustee or the
Owner Trustee in its individual capacity, any holder of a beneficial interest in
the Issuer, the Sponsor, the Servicer, the Owner Trustee or the Trustee or of
any successor or assign of the Sponsor, the Servicer, the Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood

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<PAGE>

that the Trustee and the Owner Trustee have no such obligations in their
individual capacity) and except that any such owner or beneficiary shall be
fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Pooling
Agreement, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

     SECTION 11.17. No Petition. The Trustee, by entering into this Pooling
Agreement, and each Securityholder, by accepting a Security, hereby covenant and
agree that they will not at any time institute against the Sponsor, or the
Issuer, or join in any institution against the Sponsor, or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Securities, this
Pooling Agreement or any of the Basic Documents.

     SECTION 11.18. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Trustee, of the Insurer or of
Freddie Mac, during the Issuer's normal business hours, to examine all the books
of account, records, reports, and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Trustee shall and shall cause its representatives to hold in
confidence all such information except to the extent disclosure may be required
by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Trustee may reasonably determine
that such disclosure is consistent with its Obligations hereunder.

     SECTION 11.19. Limitation of Liability. It is expressly understood and
agreed by the parties hereto that (a) this Pooling Agreement is executed and
delivered by Wilmington Trust Company, not individually or personally but solely
as Owner Trustee of the Issuer under the Trust Agreement, in the exercise of the
powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as personal representations, undertakings and
agreements by Wilmington Trust Company but is made and intended for the purpose
for binding only the Issuer, (c) nothing herein contained shall be construed as
creating any liability on Wilmington Trust Company individually or personally,
to perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties to this Pooling
Agreement and by any person claiming by, through or under them and (d) under no
circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaking by the Issuer under this Pooling Agreement or any related
documents.

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<PAGE>

                                  ARTICLE XII

                            RAPID AMORTIZATION EVENTS

     SECTION 12.1. Rapid Amortization Events. The following shall constitute
Rapid Amortization Events with respect to each Class of Securities:

     (a) failure on the part of the Issuer, the Sponsor or the Servicer, as the
case may be, (i) to make any payment or deposit required by the terms of this
Pooling Agreement, the Sale and Servicing Agreement or the Insurance Agreement,
within two Business Days after notification that such payment or deposit is
required to be made, or (ii) to observe or perform in any material respect the
covenants or agreements of the Issuer, the Sponsor or the Servicer, as the case
may be, set forth in the Sale and Servicing Agreement or the Insurance Agreement
or this Pooling Agreement, as the case may be, which failure, in each case,
materially and adversely affects the interests of the Securityholders, the
Insurer or Freddie Mac (with respect to the Class A-1 Certificates) and which,
in the case of clause (ii), continues unremedied and continues to affect
materially and adversely the interests of the Securityholders, the Insurer or
Freddie Mac (with respect to the Class A-1 Certificates) for a period of 60 days
after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Issuer, the Sponsor or the Servicer, as
the case may be, by the Trustee, or to the Issuer, the Sponsor or the Servicer,
as the case may be, and the Trustee by the Insurer or Freddie Mac (with respect
to the Class A-1 Certificates) or Holders of Securities evidencing more than 50%
of the Outstanding Amount;

     (b) any representation or warranty made by the Issuer, the Sponsor or the
Servicer, as the case may be, in this Pooling Agreement, the Sale and Servicing
Agreement or the Insurance Agreement shall prove to have been incorrect in any
material respect when made, as a result of which the interests of the
Securityholders, the Insurer or Freddie Mac (with respect to the Class A-1
Certificates) are materially and adversely affected and which continues to be
incorrect in any material respect and continues to affect materially and
adversely the interests of the Securityholders, the Insurer or Freddie Mac (with
respect to the Class A-1 Certificates) for a period of 60 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given to the Issuer, the Sponsor or the Servicer, as the case may be,
by the Trustee, or to the Issuer, the Sponsor or the Servicer, as the case may
be, and the Trustee by either the Insurer, Freddie Mac (with respect to the
Class A-1 Certificates) or the Holders of Securities evidencing more than 50% of
the Outstanding Amount; provided, however, that with respect to any such
representation or warranty made with respect to the related Mortgage Loans, a
Rapid Amortization Event pursuant to this subparagraph (b) shall not be deemed
to have occurred hereunder if the Servicer or the Sponsor has accepted
retransfer of such related Mortgage Loan or related Mortgage Loans during such
period (or such longer period not to exceed an additional 60 days as the Trustee
may specify with the consent of the Insurer and Freddie Mac (with respect to the
Class A-1 Certificates)) in accordance with the provisions hereof;

     (c) the Servicer, the Sponsor or the Issuer or any of their Subsidiaries or
Affiliates 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

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<PAGE>

assets and liabilities or similar proceedings of or relating to the Servicer,
the Sponsor or the Trust or of or relating to all or substantially all of such
Person's 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, the Sponsor of the Trust and such decree or
order shall have remained in force undischarged or unstayed for a period of 30
days; or the Servicer, the Sponsor or the Trust 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;

     (d) the Issuer becomes subject to regulation by the Securities and Exchange
Commission as an investment company within the meaning of the Investment Company
Act of 1940, as amended;

     (e) as of a given date, the aggregate of all draws under the Policy (and
the Guarantee with respect to the Class A-1 Certificates) related to either
Class exceeds 1% of the related Pool Balance as of the Cut-Off Date; and

     (f) default in the payment of any interest, principal or any installment of
principal on the related Class of Class A Securities when the same becomes due
and payable, and such default continues for a period of five Business Days.

     The occurrence of a Rapid Amortization Event with respect to a Class of
Securities will not cause the occurrence of a Rapid Amortization Event with
respect to the other Class of Securities unless the same event or circumstance
is a Rapid Amortization Event with respect to both Classes.

     In the case of any event described above in clauses (a) through (e) above,
a Rapid Amortization Event with respect to a Class of Securities will be deemed
to have occurred only if, after the applicable grace period, if any, described
herein or in the Sale and Servicing Agreement either (i) Holders holding
Securities evidencing more than 50% of the Outstanding Amount of such Class of
Securities, with the prior written consent of the Controlling Party, or (ii) the
Controlling Party, by written notice to the Issuer, the Insurer, Freddie Mac,
the Sponsor, the Servicer and the Trustee declare that a Rapid Amortization
Event has occurred with respect to such Class as of the date of such notice, or
in the case of any event described in clause (f), the Controlling Party or
Holders holding Securities evidencing more than 50% of the Outstanding Amount of
such Class of Securities by such written notice declare that a Rapid
Amortization Event has occurred with respect to such Class as of the date of
such notice. Following the occurrence of a Rapid Amortization Event described in
clauses (a) through (e) the Controlling Party shall have the right to direct the
Trustee to sell the related Pool of Mortgage Loans. Following the occurrence of
a Rapid Amortization Event described in clause (f), the Holders holding
Securities evidencing more than 50% of the Outstanding Amount of such Class of
Securities shall have the right to so direct the Trustee. If the Controlling
Party has directed such sale, the Policy or the Guarantee, as applicable, will
cover any amounts by which such remaining

                                       53
<PAGE>

net proceeds are insufficient to pay the related Security Principal Balance of
such Class of Securities, together with all accrued and unpaid interest thereon.

     In addition to the consequences of a Rapid Amortization Event discussed
above, if the Sponsor voluntarily files a bankruptcy petition or goes into
liquidation or any person is appointed a receiver or bankruptcy trustee of the
Sponsor, on the day of any such filing or appointment no further Additional
Balances will be transferred to the Trust, and the Sponsor will promptly give
notice to the Trustee, the Insurer and Freddie Mac of any such filing or
appointment. Within 15 days, the Trustee will publish a notice of the occurrence
of such event. If so directed by the Controlling Party, the Trustee will sell,
dispose of or otherwise liquidate the Trust Property with respect to the
Mortgage Loans in each Pool in a commercially reasonable manner and on
commercially reasonable terms. So long as no Event of Servicing Termination has
occurred and is continuing, any such sale, disposal or liquidation and such
sale, disposal or liquidation will be "servicing retained" by the Servicer. With
respect to each Pool and the related Class of Securities, the net proceeds of
such sale will first be paid pro rata to the Insurer to the extent of
unreimbursed draws under the Policy related to such Class of Securities and
other amounts owing to the Insurer (but only if an Insurer Default shall not
have occurred and be continuing) and to Freddie Mac to the extent of
unreimbursed payments under the Guarantee related to such Class of Securities.
The remainder of such net proceeds will then be distributed to the Holders of
the such Class of Securities insofar as may be necessary to reduce the Security
Principal Balance of such Class, together with all accrued and unpaid interest
due thereon, to zero. If the Controlling Party has directed the Trustee to
undertake such sale or liquidation, the Policy or the Guarantee, as applicable,
will cover any amount by which such remaining net proceeds are insufficient to
pay the related Security Principal Balance, together with all accrued and unpaid
interest due thereon, in full.

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<PAGE>

     IN WITNESS WHEREOF, the Issuer, the Trustee and Freddie Mac have caused
this Pooling Agreement and Indenture to be duly executed by their respective
officers, hereunto duly authorized, all as of the day and year first above
written.

                             GREENPOINT HOME EQUITY LOAN TRUST 2000-2

                             By: WILMINGTON TRUST COMPANY,
                             not in its individual capacity but solely as Owner
                             Trustee

                             By: /s/ Anita Dallago
                                 ----------------------------------------------
                             Name: Anita Dallago
                             Title: Financial Services Officer

                             BANK ONE, N.A.,
                             not in its individual capacity but solely as
                             Trustee

                             By: /s/ Steven E. Charles
                                 ----------------------------------------------
                             Name: Steven E. Charles
                             Title: Vice President

                             FEDERAL HOME LOAN
                             MORTGAGE CORPORATION

                             By: /s/ Charles W. Pearson
                                 ----------------------------------------------
                             Name: Charles W. Pearson
                             Title:

Acknowledged and Agreed:

GREENPOINT MORTGAGE SECURITIES INC.

By:  /s/ David Molumby
     ------------------------------
     Name:  David Molumby
     Title:  Vice President

<PAGE>

                                                                  EXECUTION COPY

                             ANNEX A - DEFINED TERMS

     Accelerated Principal Payment: With respect to any Payment Date and each
Pool, a payment received as a payment of principal by the Securityholders of the
related Class of Securities, for the purpose of increasing the related
Overcollateralization Amount, and to be paid from the Excess Cashflow with
respect to the related Pool, and equal to (A) on each Payment Date from the
related Parity Date through the related Spread Holiday Termination Date, the
lesser of (i) 33.33% of the related Excess Cashflow and (ii) the
Overcollateralization Deficiency Amount for the related Pool and (B) on each
Payment Date after the related Spread Holiday Termination Date, the lesser of
(i) 100% of the related Excess Cashflow and (ii) the Overcollateralization
Deficiency Amount for the related Pool.

     Account: The Collection Account and the Reserve Fund.

     Act: As defined in Section 11.3(a) of the Pooling Agreement.

     Additional Balance: As to the HELOC Mortgage Loans contained in each Pool
and any date of determination, the aggregate amount of all Draws conveyed to the
Issuer with respect to such Pool pursuant to Section 2.01 of the Sale and
Servicing Agreement.

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

     Appraised Value: As to any Mortgaged Property, the value established by
either a full appraisal or a drive by inspection of such Mortgaged Property made
to establish compliance with the underwriting criteria then in effect in
connection with the application for the Mortgage Loan secured by such Mortgaged
Property.

     Assignment of Mortgage: With respect to any Mortgage, an assignment, notice
of transfer or equivalent instrument, in recordable form, sufficient under the
laws of the jurisdiction in which the related Mortgaged Property is located to
reflect the sale of the Mortgage to the Trustee, which assignment, notice of
transfer or equivalent instrument may be in the form of one or more blanket
assignments covering the Mortgage Loans secured by Mortgaged Properties located
in the same jurisdiction.

     Authorized Newspaper: A newspaper of general circulation in the Borough of
Manhattan, The City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays
and holidays.

     Authorized Officer: With respect to the Issuer and the Servicer, any
officer or agent acting pursuant to a power of attorney of the Owner Trustee or
the Servicer, respectively, who is authorized to act for the Owner Trustee or
the Servicer, respectively, in matters relating to the Issuer and the Servicer,
respectively, and who is identified on the list of Authorized Officers delivered
by each of the Owner Trustee and the Servicer, respectively, to the Trustee on
the Closing Date (as such lists may be modified or supplemented from time to
time thereafter).

<PAGE>

     Available Funds: The Pool I Available Funds or the Pool II Available Funds.

     Basic Documents: The Pooling Agreement, the Securities, the Residual
Certificate, the Certificate of Trust, the Trust Agreement, the Sale and
Servicing Agreement, the Purchase Agreement, the Indemnification Agreement, the
Management Agreement, the Insurance Agreement, the Demand Note and the Policy.

     BBA: The British Bankers' Association.

     BIF: The Bank Insurance Fund, as from time to time constituted, created
under the Financial Institutions Reform, Recovery and Enhancement Act of 1989,
or if at any time after the execution of this instrument the Bank Insurance Fund
is not existing and performing duties now assigned to it, the body performing
such duties on such date.

     Billing Cycle: With respect to any Mortgage Loan and Collection Period, the
billing period specified in the related Loan Agreement and with respect to which
amounts billed are received during such Collection Period.

     Book-Entry Securities: A beneficial interest in the Securities, ownership
and transfers of which shall be made through book entries by a Clearing Agency
as described in Section 3.8 of the Trust Agreement.

     Business Day: Any day other than a Saturday, Sunday or other day on which
banking institutions in the state of New York, the Commonwealth of Virginia or
the state in which the Corporate Trust Office is located are required or
authorized by law or executive order to be closed.

     Capitalized Interest Shortfall: Has the meaning specified in the Demand
Note.

     Certificate of Trust: The certificate of trust of the Issuer substantially
in the form of Exhibit B to the Trust Agreement.

     Certificate Purchase Agreement: The Certificate Purchase Agreement, dated
as of September 26, 2000, by and among the Servicer, the Sponsor, and Freddie
Mac concerning the sale to Freddie Mac of the Class A-1 Certificates.

     Class: Each respective class of Securities.

     Class A-1 Certificate: Any Certificate designated as a "Class A-1 Home
Equity Loan Asset-Backed Certificate" on the face thereof in substantially the
form of Exhibit A to the Trust Agreement.

     Class A-1 Certificate Principal Balance: As of any time of determination,
the Original Class A-1 Certificate Principal Balance, less any amounts actually
distributed as principal to the Class A-1 Certificates on all prior Payment
Dates.

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<PAGE>

     Class A-1 Certificate Rate: (A) For the first Interest Accrual Period,
6.75063% and (B) for any Interest Accrual Period thereafter, the lesser of the
Class A-1 Formula Certificate Rate and the Class A-1 Maximum Rate.

     Class A-1 Deferred Interest: With respect to any Payment Date, the excess,
if any, of interest due at the Class A-1 Formula Certificate Rate over interest
due at the Class A-1 Certificate Rate.

     Class A-1 Deficiency Amount: With respect to any Payment Date, the excess,
if any, of the Required Payments related to the Class A-1 Certificates over the
Net Available Distribution Amount related to the Class A-1 Certificates for such
Payment Date.

     Class A-1 Formula Certificate Rate: For any Interest Accrual Period, the
lesser of (i)(x) with respect to any Payment Date which occurs on or prior to
the Class A-1 Optional Redemption Date, LIBOR plus 0.13% per annum and (y) for
any Payment Date thereafter, LIBOR plus 0.26% per annum and (ii) 15.50%.

     Class A-1 Interest Payment Amount: With respect to any Payment Date, the
product of (x) the Class A-1 Certificate Rate applicable to such Payment Date,
(y) the Class A-1 Certificate Principal Balance immediately prior to such
Payment Date and (z) a fraction, the numerator of which is the actual number of
days in the related Interest Accrual Period and the denominator of which is 360.

     Class A-1 Maximum Rate: As to any Interest Accrual Period, the Weighted
Average Net Loan Rate of the Pool I Mortgage Loans for the Collection Period
during which such Interest Accrual Period begins (adjusted to an effective rate
reflecting accrued interest calculated on the basis of the actual number of days
in the Interest Accrual Period and a year assumed to consist of 360 days).

     Class A-1 Maximum Principal Payment: With respect to (i) any Payment Date
during the Managed Amortization Period, the Pool I Net Principal Collections and
(ii) any Payment Date during the Rapid Amortization Period, 100% of the Pool I
Principal Collections relating to such Payment Date.

     Class A-1 Securityholder: Any Holder of a Class A-1 Certificate.

     Class A-1 Optional Redemption Date: The date on which the Sponsor is first
able to exercise its right of optional redemption of the Class A-1 Certificates
pursuant to Section 10.1 of the Pooling Agreement or Section 7.01 of the Sale
and Servicing Agreement.

     Class A-1 Principal Payment Amount: On any Payment Date, the excess of (x)
the Class A-1 Maximum Principal Payment over (y) the Pool I
Overcollateralization Reduction Amount.

     Class A-1 Reimbursement Amount: As of any Payment Date, the sum of (w)(i)
all Insured Payments made pursuant to the Policy by the Insurer and in each case
not previously repaid to the Insurer pursuant to Section 8.7(d)(vii) of the
Pooling Agreement, plus (ii) interest accrued on each such payment made pursuant
to the Policy not previously repaid calculated at

                                       3
<PAGE>

the Late Payment Rate from the date the Trustee received the related Insured
Payments, (x)(i) any other amounts then due and owing to the Insurer under the
Insurance Agreement, plus (ii) interest on such amounts at the Late Payment
Rate, (y)(i) all related payments made pursuant to the Guarantee by Freddie Mac
and in each case not previously repaid to Freddie Mac pursuant to Section
8.7(d)(vii) of the Pooling Agreement, plus (ii) interest accrued on each such
payment made pursuant to the Guarantee not previously repaid calculated at the
Late Payment Rate from the date Freddie Mac made the related payment and (z)(i)
other amounts then due and owing to Freddie Mac under the Guarantee, plus (ii)
interest on such amounts at the Late Payment Rate.

     Class A-2 Deferred Interest: With respect to any Payment Date, the excess,
if any, of interest due at the Class A-2 Formula Note Rate over interest due at
the Class A-2 Note Rate.

     Class A-2 Deficiency Amount: With respect to any Payment Date, the excess,
if any, of the Required Payments related to the Class A-2 Notes over the Net
Available Distribution Amount related to the Class A-2 Notes for such Payment
Date.

     Class A-2 Formula Note Rate: For any Interest Accrual Period, the lesser of
(i)(x) with respect to any Payment Date which occurs on or prior to the Class
A-2 Optional Redemption Date, LIBOR plus 0.24% per annum and (y) for any Payment
Date thereafter, LIBOR plus 0.48% per annum and (ii) 15.50%.

     Class A-2 Interest Payment Amount: With respect to any Payment Date, the
product of (x) the Class A-2 Note Rate applicable to such Payment Date, (y) the
Class A-2 Note Principal Balance immediately prior to such Payment Date and (z)
a fraction, the numerator of which is the actual number of days in the related
Interest Accrual Period and the denominator of which is 360.

     Class A-2 Maximum Rate: As to any Interest Accrual Period, the Weighted
Average Net Loan Rate of the Pool II Mortgage Loans for the Collection Period
during which such Interest Accrual Period begins (adjusted to an effective rate
reflecting accrued interest calculated on the basis of the actual number of days
in the Interest Accrual Period commencing in the month in which such Interest
Accrual Period commences and a year assumed to consist of 360 days).

     Class A-2 Maximum Principal Payment: With respect to (i) any Payment Date
during the Managed Amortization Period, the Pool II Net Principal Collections
and (ii) any Payment Date during the Rapid Amortization Period, 100% of the Pool
II Principal Collections relating to such Payment Date.

     Class A-2 Note: Any note designated as a "Class A-2 Home Equity Loan
Asset-Backed Note" on the face thereof in substantially the form of Exhibit A to
the Pooling Agreement.

     Class A-2 Note Principal Balance: As of any time of determination, the
Original Class A-2 Note Principal Balance, less any amounts actually distributed
as principal to the Class A-2 Notes on all prior Payment Dates.

                                       4
<PAGE>

     Class A-2 Note Rate: (A) For the first Interest Accrual Period, 6.86063%,
and (B) for any Interest Accrual Period thereafter, the lesser of the Class A-2
Formula Note Rate and the Class A-2 Maximum Rate.

     Class A-2 Securityholder: Any Holder of a Class A-2 Note.

     Class A-2 Optional Redemption Date: The date on which the Sponsor is first
able to exercise its right of optional redemption of the Class A-2 Notes
pursuant to Section 10.1 of the Pooling Agreement or Section 7.01 of the Sale
and Servicing Agreement.

     Class A-2 Principal Payment Amount: On any Payment Date, the excess of (x)
the Class A-2 Maximum Principal Payment over (y) the Pool II
Overcollateralization Reduction Amount.

     Class A-2 Reimbursement Amount: As of any Payment Date, the sum of (x)(i)
all related payments made pursuant to the Policy by the Insurer and in each case
not previously repaid to the Insurer pursuant to Section 8.7(d)(vii) of the
Pooling Agreement, plus (ii) interest accrued on each such payment made pursuant
to the Policy not previously repaid calculated at the Late Payment Rate from the
date the Trustee received the related Insured Payments and (y)(i) any other
amounts then due and owing to the Insurer under the Insurance Agreement, plus
(ii) interest on such amounts at the Late Payment Rate.

     Clearing Agency: An organization registered as a "clearing agency" pursuant
to Section 17A of the Exchange Act.

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

     Closed-End Mortgage Loans: With respect to Pool I and Pool II, Mortgage
Loans consisting solely of fixed-rate closed-end second lien mortgage loans
under the Mortgage Notes.

     Closed-End Principal Balance: As to any Closed-End Mortgage Loan, other
than a Liquidated Mortgage Loan, and as of any date, the related Cut-Off Date
Principal Balance minus all collections credited as principal against the
Closed-End Principal Balance of such Closed-End Mortgage Loan in accordance with
the related Mortgage Note prior to such day.

     Closing Date: September 26, 2000.

     Code: The Internal Revenue Code of 1986, as amended from time to time.

     Collateral: As defined in the Granting Clause of the Pooling Agreement.

     Collection Account: That account designated as the "Collection Account" and
established pursuant to Section 8.3 of the Pooling Agreement.

     Collection Period: With respect to any Payment Date and any Mortgage Loans,
the calendar month preceding such Payment Date.

                                       5
<PAGE>

     Combined Loan-to-Value Ratio: (i) With respect to any HELOC Mortgage Loan
as of any date, the percentage equivalent of a fraction, the numerator of which
is the sum of (A) the Credit Limit and (B) the outstanding principal balance as
of the date of application for the related credit line (or as of any subsequent
date, if any, as of which such outstanding principal balance may be determined
in connection with an increase in the Credit Limit for such HELOC Mortgage Loan)
of any mortgage loan or mortgage loans that are senior in priority to the HELOC
Mortgage Loan and which are secured by the same Mortgaged Property and the
denominator of which is (C) the Appraised Value of the related Mortgaged
Property as set forth in the Mortgage File as of the date of the appraisal or on
such subsequent date, if any, or (D) in the case of a Mortgaged Property
purchased within one year of the date of execution of the related Credit Line
Agreement, the lesser of (x) the Appraised Value of the related Mortgaged
Property as set forth in the loan files as of the date of the appraisal and (y)
the purchase price of such Mortgaged Property and (ii) with respect to any
Closed-End Mortgage Loan as of any date, the percentage equivalent of a
fraction, the numerator of which is the sum of (A) the original principal
balance of the Closed-End Mortgage Loan and (B) any outstanding principal
balances of mortgage loans senior to such Closed-End Mortgage Loan (calculated
at the date of application for the Closed-End Mortgage Loan) and the denominator
of which is (C) the Appraised Value of the related Mortgaged Property as set
forth in the Mortgage File as of the date of the appraisal or (D) in the case of
a Mortgaged Property purchased within one year of the origination of the related
Closed-End Mortgage Loan, the lesser of (x) the Appraised Value of the related
Mortgaged Property as set forth in the Mortgage Files as of the date of the
appraisal and (y) the purchase price of such Mortgaged Property.

     Company: GreenPoint Mortgage Funding, Inc. or any successor thereto.

     Controlling Party: (A) The Insurer, so long as no Insurer Default shall
have occurred and be continuing, (B) Freddie Mac (with respect to the Class A-1
Certificates unless Freddie Mac has defaulted on its Guarantee) for so long as
an Insurer Default shall have occurred, or (C) the Trustee (with respect to the
Class A-2 Notes and with respect to the Class A-1 Certificates if Freddie Mac
has defaulted on its Guarantee) for so long as an Insurer Default shall have
occurred.

     Corporate Trust Office: With respect to (i) the Trustee, the principal
corporate trust office of the Trustee at which at any particular time its
corporate trust business shall be administered, which office at date of the
execution of the Pooling Agreement is located at 1 Bank One Plaza, Suite
ILI-0126, Chicago, Illinois 60670-0126, Attention: Corporate Trust Services (for
the purposes of Section 3.2 of the Pooling Agreement, such office is located at
14 Wall Street, New York, New York 10005) and (ii) the Owner Trustee, the
principal corporate trust office of the Owner Trustee located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration, or at such other address as the Owner Trustee
may designate by notice to the Securityholders and the Sponsor, or the principal
corporate trust office of any successor Owner Trustee (the address of which the
successor owner trustee will notify the Securityholders and the Sponsor).

     Credit Limit: As to any HELOC Mortgage Loan, the maximum principal balance
permitted under the terms of the related Credit Line Agreement.

                                       6
<PAGE>

     Credit Limit Utilization Rate: As to any HELOC Mortgage Loan, the
percentage equivalent of a fraction the numerator of which is the principal
balance for such HELOC Mortgage Loan and the denominator of which is the related
Credit Limit.

     Credit Line Agreement: With respect to any HELOC Mortgage Loan, the related
home equity line of credit agreement and promissory note executed by the related
Mortgagor and any amendment or modification thereof.

     Credit Scores: With respect to the Mortgage Loans, statistical credit
scores obtained by mortgage lenders in connection with the loan application to
help assess a borrower's creditworthiness.

     Crossover Amount: As defined in Section 8.7(d)(ix) of the Pooling
Agreement.

     Cut-Off Date: For any Mortgage Loan, the close of business on the latest of
(i) August 31, 2000, (ii) the date of origination of such Mortgage Loan or (iii)
the date of addition or substitution of such Mortgage Loan into a Pool.

     Cut-Off Date Principal Balance: With respect to any Mortgage Loan, the
unpaid principal balance thereof as of the Cut-Off Date.

     Default: Any occurrence that is, or with notice or the lapse of time or
both would become, a Rapid Amortization Event.

     Defective Mortgage Loan: A Mortgage Loan subject to retransfer pursuant to
Section 2.03 or 2.05 of the Sale and Servicing Agreement.

     Deferred Interest: The Class A-1 Deferred Interest and/or the Class A-2
Deferred Interest, as applicable.

     Deficiency Amount: The Class A-1 Deficiency Amount and/or the Class A-2
Deficiency Amount, as applicable.

     Definitive Securities: As defined in Section 3.10 of the Trust Agreement.

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

     Demand Note: The demand note issued by GreenPoint Bank, a New York State
chartered savings bank, to the Insurer on September 26, 2000.

                                       7
<PAGE>

     Demand Note Draw Amount: As defined in Section 8.5 of the Pooling
Agreement.

     Depository: The initial Depository shall be The Depository Trust Company,
the nominee of which is Cede & Co., as the registered Holder of Class A-2 Notes
evidencing $77,669,000 in initial aggregate principal amount of the Class A-2
Notes. The Depository shall at all times be a "clearing corporation" as defined
in Section 8-102(5) of the UCC of the State of New York.

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

     Designated Telerate Page: The Dow Jones Telerate Service page 3750, or such
other page as may replace page 3750 on that service or such other service as may
be nominated by the BBA as the information vendor for the purpose of displaying
the BBA's "Interest Settlement Rates" for deposits in U.S. dollars.

     Determination Date: With respect to any Payment Date, the fourth Business
Day prior to such Payment Date or such earlier day as shall be designated by the
Insurer, Freddie Mac and the Trustee.

     Draw: With respect to any HELOC Mortgage Loan, an additional borrowing by
the Mortgagor subsequent to the Cut-Off Date in accordance with the related
Credit Line Agreement.

     Draw Period: With respect to any HELOC Mortgage Loan, the period of time
specified in the related Credit Line Agreement whereby a Mortgagor may make a
Draw under the related Credit Line Agreement, not to exceed five or fifteen
years (as applicable) unless extended pursuant to such Credit Line Agreement and
the Sale and Servicing Agreement, such extension to be limited by the provisions
set forth in Section 2.04 of the Sale and Servicing Agreement.

     Eligible Account: A segregated account that is (i) maintained with a
depository institution whose short-term debt obligations at the time of any
deposit therein have the highest short-term debt rating by the Rating Agencies,
(ii) one or more accounts maintained with a depository institution whose
long-term unsecured debt rating by the Rating Agencies is at least A+ and whose
accounts are fully insured by either the Savings Association Insurance Fund or
the Bank Insurance Fund of the Federal Deposit Insurance Corporation established
by such fund, (iii) a segregated trust account maintained with the Trustee in
its fiduciary capacity or (iv) otherwise acceptable to each Rating Agency and
the Controlling Party as evidenced by a letter from each Rating Agency and the
Controlling Party to the Trustee, without reduction or withdrawal of their then
current ratings of the Class A Securities without regard to the Policy or
Guarantee.

     Eligible Investments: One or more of the following (excluding any callable
investments purchased at a premium):

                                       8
<PAGE>

          (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 that 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 three months from the date of acquisition thereof,
     provided that the short-term unsecured debt obligations of the party
     agreeing to repurchase such obligations are at the time rated by each
     Rating Agency in its highest short-term rating category (which is A-1+ for
     Standard & Poor's and P-1 for Moody's);

          (iii) certificates of deposit, time deposits and bankers' acceptances
     (which, if Moody's is a Rating Agency, 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) of any U.S.
     depository institution or trust company incorporated under the laws of the
     United States or any state thereof and subject to supervision and
     examination by federal and/or state banking authorities, provided that the
     unsecured short-term debt obligations of such depository institution or
     trust company at the date of acquisition thereof have been rated by each of
     Moody's and Standard & Poor's in its highest unsecured short-term debt
     rating category;

          (iv) commercial paper (having original maturities of not more than 270
     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
     Standard & Poor's and Moody's in their highest short-term debt rating
     categories;

          (v) short-term investment funds ("STIFS") sponsored by any trust
     company or national banking association incorporated under the laws of the
     United States or any state thereof which on the date of acquisition has
     been rated by Standard & Poor's and Moody's in their respective highest
     applicable rating category;

          (vi) interests in any money market fund which at the date of
     acquisition of the interests in such fund and throughout the time such
     interests are held in such fund has a rating of Aaa by Moody's and either
     AAAm or AAAm-G by Standard & Poor's or such lower rating as will not result
     in the qualification, downgrading or withdrawal of the then-current rating
     assigned to the Securities by each Rating Agency without regard to the
     Policy or the Guarantee; and

          (vii) other obligations or securities that are acceptable to each
     Rating Agency and the Controlling Party as an Eligible Investment hereunder
     and will not result in a reduction in the then current rating of the
     Securities without regard to the Policy or the Guarantee, as evidenced by a
     letter to such effect from such Rating Agency and the Controlling Party and
     with respect to which the Servicer has received confirmation that, for tax
     purposes, the investment complies with the last clause of this definition;

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

                                       9
<PAGE>

interest payments derived from obligations underlying such instrument and the
interest and principal payments with respect to such instrument provided a yield
to maturity at par greater than 120% of the yield to maturity at par of the
underlying obligations; and provided, further, that (x) no instrument described
hereunder may be purchased at a price greater than par if such instrument may be
prepaid or called at a price less than its purchase price prior to its stated
maturity and (y) all Eligible Investments shall mature no later than the next
Payment Date.

     Eligible Substitute Mortgage Loan: A Mortgage Loan substituted by the
Sponsor, with the consent of the Controlling Party, for a Defective Mortgage
Loan which must, on the date of such substitution, (i) have an outstanding
Principal Balance (or, in the case of a substitution of more than one Mortgage
Loan for a Defective Mortgage Loan, an aggregate Principal Balance), equal to or
less than the Principal Balance of the Defective Mortgage Loan as of the
applicable Cut-Off Date; (ii) except for HELOC Mortgage Loans still in their
teaser period, have a Loan Rate not less than the Loan Rate of the Defective
Mortgage Loan and not more than 4.00% in excess of the Loan Rate of such
Defective HELOC Mortgage Loan; (iii) for HELOC Mortgage Loans, have a Loan Rate
based on the same Index as the Defective Mortgage Loan with adjustments to such
Loan Rate made on the same date on which the Defective HELOC Mortgage Loan's
interest rate adjusts; (iv) for HELOC Mortgage Loans, have a Margin that is not
less than the Margin of the Defective HELOC Mortgage Loan and not more than 100
basis points higher than the Margin for the Defective HELOC Mortgage Loan; (v)
have a mortgage of the same or higher level of priority as the Defective
Mortgage Loan at the time such Mortgage Loan was transferred to the Trust; (vi)
have a remaining term to maturity not more than 120 months earlier and not more
than 180 months later than the remaining term to maturity of the Defective
Mortgage Loan; (vii) comply with each representation and warranty as to the
Mortgage Loans set forth in the Sale and Servicing Agreement (deemed to be made
as of the date of substitution); (viii) have an original Combined Loan-to-Value
Ratio not greater than that of the Defective Mortgage Loan; and (ix) have a
Credit Score greater than or equal to the Credit Score of the Defective Mortgage
Loan at the time such Mortgage Loan was transferred to the Trust; (x) the
related Mortgaged Property is not an investment property; (xi) the related
Mortgaged Property is not a second home; and (xii) the Combined Loan-to-Value
Ratio is not greater than 100%.

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

     Event of Servicing Termination: As defined in Section 6.01 of the Sale and
Servicing Agreement.

     Event of Termination: As defined in Article IX of the Purchase Agreement.

     Excess Cashflow: With respect to each Pool and any Payment Date, the
related Available Funds with respect to such Pool for such Payment Date which
remain on deposit in the Collection Account after taking into account the
distributions listed in clauses (i) through (vii) of Section 8.7(d) of the
Pooling Agreement with respect to such Pool and such Payment Date.

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

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

                                       10
<PAGE>

     Final Scheduled Payment Date: For the Class A-1 Certificates, the Payment
Date in September 15, 2026 and for the Class A-2 Notes, the Payment Date in
September 15, 2026, in each case whereby the related Securityholders shall be
entitled to receive a payment of principal in an amount equal to the respective
outstanding Security Principal Balance.

     Foreclosure Profit: With respect to a Liquidated Mortgage Loan, the amount,
if any, by which (i) the aggregate of its Net Liquidation Proceeds exceeds (ii)
the related Principal Balance (plus accrued and unpaid interest thereon at the
applicable Loan Rate from the date interest was last paid through the last day
in the related Collection Period) of such Liquidated Mortgage Loan immediately
prior to the final recovery of its Liquidation Proceeds.

     Freddie Mac: Federal Home Loan Mortgage Corporation.

     GAAP: Generally accepted accounting principles, consistently applied.

     Grant: Mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create, grant a lien upon and a security interest in
and right of set-off against, deposit, set over and confirm pursuant to the
Pooling Agreement. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other monies payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
proceedings in the name of the Granting party or otherwise and generally to do
and receive anything that the Granting party is or may be entitled to do or
receive thereunder or with respect thereto.

     Gross Margin: As to any HELOC Mortgage Loans, the percentage set forth as
the "Gross Margin" for such HELOC Mortgage Loans on Exhibit A to the Sale and
Servicing Agreement.

     Guarantee: The guarantee of Freddie Mac contained in Section 8.4(e) of the
Pooling Agreement.

     Guarantee Claim: As defined in Section 8.4(e) of the Pooling Agreement.

     Guarantee Fee Amount: With respect to the Class A-1 Certificates, the
product of (x) 1/12, (y) the Guarantee Fee Percentage and (z) the Class A-1
Certificate Principal Balance as of the related Payment Date (prior to the
payment of any amounts on such Payment Date).

     Guarantee Fee Percentage: As described in a letter agreement, dated as of
September 26, 2000, by and among Freddie Mac, the Sponsor and the Trustee.

     Guarantee Payment: As defined in Section 8.4(e) of the Pooling Agreement.

     HELOC Mortgage Loans: With respect to Pool I and Pool II, Mortgage Loans
consisting solely of adjustable-rate home equity revolving credit line loans
under the Credit Line Agreements.

                                       11
<PAGE>

     HELOC Principal Balance: As to any HELOC Mortgage Loan, other than a
Liquidated Mortgage Loan, and as of any date, the related Cut-Off Date Principal
Balance, plus (i) any Additional Balance in respect of such HELOC Mortgage Loan,
minus (ii) all collections credited as principal against the HELOC Principal
Balance of any such HELOC Mortgage Loan in accordance with the related Credit
Line Agreement prior to such day.

     Holder or Securityholder: The Person in whose name a Security is registered
on the Security Register.

     Indebtedness: With respect to any Person at any time, (a) indebtedness or
liability of such Person for borrowed money whether or not evidenced by bonds,
debentures, notes or other instruments, or for the deferred purchase price of
property or services (including trade obligations); (b) obligations of such
Person as lessee under leases which should have been or should be, in accordance
with generally accepted accounting principles, recorded as capital leases; (c)
current liabilities of such Person in respect of funding vested benefits under
plans covered by Title IV of ERISA; (d) obligations issued for or liabilities
incurred on the account of such Person; (e) obligations or liabilities of such
Person arising under acceptance facilities; (f) obligations of such Person under
any guarantees, endorsements (other than for collection or deposit in the
ordinary course of business) and other contingent obligations to purchase, to
provide funds for payment, to supply funds to invest in any Person or otherwise
to assure a creditor against loss; (g) obligations of such Person secured by any
lien on property or assets of such Person, whether or not the obligations have
been assumed by such Person; or (h) obligations of such Person under any
interest rate or currency exchange agreement.

     Indemnification Agreement: The Indemnification Agreement, dated as of
September 15, 2000, by and among the Insurer and Lehman Brothers Inc., as
underwriter.

     Independent: When used with respect to any specified Person, that the
Person (a) is in fact independent of the Issuer, any other obligor upon the
Securities, the Sponsor and any Affiliate of any of the foregoing Persons, (b)
does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Sponsor or any Affiliate of
any of the foregoing Persons and (c) is not connected with the Issuer, any such
other obligor, the Sponsor or any Affiliate of any of the foregoing Persons as
an officer, employee, promoter, underwriter, trustee, partner, director or
Person performing similar functions.

     Independent Certificate: A certificate or opinion to be delivered to the
Trustee under the circumstances described in, and otherwise complying with, the
applicable requirements of Section 11.1 of the Pooling Agreement, prepared by an
Independent appraiser or other expert appointed pursuant to an Issuer Order and
approved by the Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in the Pooling Agreement and that the signer is Independent within the meaning
thereof.

     Index: With respect to each Interest Rate Adjustment Date for a HELOC
Mortgage Loan, the highest "prime rate" as published in the "Money Rates" table
of The Wall Street Journal as of the last business day of the previous Billing
Cycle.

                                       12
<PAGE>

     Initial Pool I Balance: $273,100,000.

     Initial Pool II Balance: $76,900,000.

     Insurance Agreement: The Insurance and Indemnity Agreement, dated as of
September 26, 2000, by and among the Insurer, the Servicer, the Sponsor and the
Trustee.

     Insurance Policy: Any hazard, title or primary mortgage insurance policy
relating to a Mortgage Loan, but shall not include the Policy.

     Insurance Proceeds: Proceeds paid by any insurer (other than the Insurer)
pursuant to any Insurance Policy covering a Mortgage Loan, or amounts required
to be paid by the Servicer pursuant to the last sentence of Section 3.04 of the
Sale and Servicing Agreement, net of any component thereof (i) covering any
expenses incurred by or on behalf of the Servicer in connection with obtaining
such proceeds, (ii) that is applied to the restoration or repair of the related
Mortgaged Property, (iii) released to the Mortgagor in accordance with the
Servicer's normal servicing procedures or (iv) required to be paid to any holder
of a mortgage senior to such Mortgage Loan.

     Insured Payment: As defined in the Policy with respect to a Class of
Securities and as of any Payment Date.

     Insured Payment Deficiency Amount: As defined in Section 8.4(e) of the
Pooling Agreement.

     Insured Payment Date: With respect to each Class, will be the earlier to
occur of (i) the first Payment Date after the Parity Date with respect to such
Class and (ii) the date on which the Demand Note matures.

     Insurer: Financial Guaranty Insurance Company, a New York domiciled stock
insurance corporation.

     Insurer Default: Any of (i) the failure by the Insurer to make a payment
required under the Policy in accordance with the terms thereof, (ii) the
voluntary or involuntary filing of a petition or other invocation of the process
of any court or government authority for the purpose of commencing or sustaining
a case under any federal or state bankruptcy, insolvency or similar law against
the Insurer, (iii) the appointing of a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Insurer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Insurer or (iv) the Insurer's failure to be qualified to do
business as a financial guaranty insurer in any jurisdiction in which its
failure to be so qualified would have a material adverse effect on the Insurer's
ability to perform under the Policy and the Insurance Agreement.

     Insurer Issuer Secured Obligations: All amounts and obligations which the
Issuer may at any time owe to or on behalf of the Insurer or Freddie Mac under
the Pooling Agreement, the Insurance Agreement or any other Basic Document.

                                       13
<PAGE>

     Interest Accrual Period: With respect to any Payment Date, the period from
and including the prior Payment Date (or, in the case of the October 2000
Payment Date, from and including the Closing Date) to, but excluding, the
current Payment Date, with interest being computed on the basis of the actual
number of days in such Interest Accrual Period and a 360-day year.

     Interest Collections: With respect to each Pool and for any Payment Date,
the sum of all payments by or on behalf of Mortgagors and any other amounts
constituting interest, including the portion of Net Liquidation Proceeds and
Insurance Proceeds allocated to interest pursuant to the terms of the related
Loan Agreement (net of the applicable servicing fees and excluding the fees or
late charges or similar administrative fees paid by Mortgagors), during the
related Collection Period, less the related Servicing Fee for the related
Collection Period. The terms of the related Loan Agreement shall determine the
portion of each payment in respect of such Mortgage Loan that constitutes
principal or interest.

     Interest Determination Date: (i) With respect to any Interest Accrual
Period (other than the initial Interest Accrual Period), the second LIBOR
Business Day preceding the first day of such Interest Accrual Period and (ii)
with respect to the initial Interest Accrual Period, the second LIBOR Business
Day preceding the Closing Date.

     Interest Payment Amount: The Class A-1 Interest Payment Amount or the Class
A-2 Interest Payment Amount, as applicable.

     Interest Rate Adjustment Date: With respect to each HELOC Mortgage Loan,
any date on which the Loan Rate is adjusted in accordance with the related
Credit Line Agreement.

     Interest Settlement Rates: Those rates which are displayed on the
Designated Telerate Page.

     Issuer or Trust: GreenPoint Home Equity Loan Trust 2000-2, a Delaware
business trust, until a successor replaces it and, thereafter, the successor.

     Issuer Order and Issuer Request: A written order or request signed in the
name of the Issuer by any one of its Authorized Officers and delivered to the
Trustee.

     Issuer Secured Obligations: The Insurer Issuer Secured Obligations and the
Trustee Issuer Secured Obligations.

     Issuer Secured Parties: Each of the Trustee in respect of the Trustee
Issuer Secured Obligations and the Insurer in respect of the Insurer Issuer
Secured Obligations.

     Late Payment Rate: For any Payment Date, the greater of (i) the rate of
interest, as it is publicly announced by Citibank, N.A. at its principal office
in New York, New York as its prime rate (any change in such prime rate of
interest to be effective on the date such change is announced by Citibank, N.A.)
plus 2% and (ii) the then applicable highest rate of interest on the related
Securities. The Late Payment Rate shall be computed on the basis of a year of
360 days

                                       14
<PAGE>

and the actual number of days elapsed. In no event shall the Late Payment Rate
exceed the maximum rate permissible under any applicable law limiting interest
rates.

     LIBOR: With respect to any Interest Accrual Period, the rate determined by
the Trustee on the related Interest Determination Date appearing on the
Designated Telerate Page on that Interest Determination Date based on the
Interest Settlement Rate for U.S. dollar deposits of one-month maturity set by
the BBA as of the Interest Determination Date. If the BBA's Interest Settlement
Rate does not appear on the Designated Telerate Page as of 11:00 a.m. (London
time) on such date, or if the Designated Telerate Page is not available on such
date, the Trustee will obtain such rate from the Reuters Monitor Money Rates
Service page "LIBOR01" or the Bloomberg L.P. page "BBAM." If such rate is not
published for such Interest Determination Date, LIBOR for such date will be the
most recently published Interest Settlement Rate. In the event that the BBA no
longer sets an Interest Settlement Rate, the Trustee (after consultation with
the Controlling Party) will designate an alternative index that has performed in
a manner substantially similar to the BBA's Interest Settlement Rate.

     LIBOR Business Day: Any day on which banks in London and New York are open
for conducting transactions in foreign currency and exchange.

     Lien: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; provided,
however, that any assignment pursuant to Section 5.02 of the Sale and Servicing
Agreement shall not be deemed to constitute a Lien.

     Lifetime Rate Cap: With respect to each HELOC Mortgage Loan with respect to
which the related Mortgage Note provides for a lifetime rate cap, the maximum
Loan Rate permitted over the life of such HELOC Mortgage Loan under the terms of
the related Credit Line Agreement previously delivered to the Trustee.

     Liquidated Mortgage Loan: As to any Payment Date, any Mortgage Loan in
respect of which the Servicer has determined, in accordance with the servicing
procedures specified in the Sale and Servicing Agreement, as of the end of the
related Collection Period, that all Liquidation Proceeds which it expects to
recover with respect to the disposition of such Mortgage Loan or the related REO
have been recovered.

     Liquidation Expenses: Out-of-pocket expenses (exclusive of overhead) which
are incurred by the Servicer in connection with the liquidation of any Mortgage
Loan and not recovered under any Insurance Policy, including, without
limitation, legal fees and expenses, any unreimbursed amount expended pursuant
to Section 3.06 of the Sale and Servicing Agreement (including, without
limitation, amounts advanced to correct defaults on any mortgage loan which is
senior to such Mortgage Loan and amounts advanced to keep current or pay off a
mortgage loan that is senior to such Mortgage Loan) respecting the related
Mortgage Loan and any related

                                       15
<PAGE>

and unreimbursed expenditures with respect to real estate property taxes, water
or sewer taxes, condominium association dues, property restoration or
preservation or insurance against casualty, loss or damage.

     Liquidation Loss Amounts: With respect to any Payment Date and Mortgage
Loan that became a Liquidated Mortgage Loan during the related Collection
Period, the unrecovered portion of the related Principal Balance thereof at the
end of such Collection Period, after giving effect to the Net Liquidation
Proceeds applied in reduction of such Principal Balance.

     Liquidation Proceeds: Proceeds (including Insurance Proceeds) received in
connection with the liquidation of any Mortgage Loan or related REO, whether
through trustee's sale, foreclosure sale or otherwise.

     Loan Agreement: Any Credit Line Agreement or Mortgage Note.

     Loan Purchase Price: With respect to any Mortgage Loan purchased from the
Trust on a Determination Date pursuant to Section 3.06 of the Sale and Servicing
Agreement, an amount equal to the Principal Balance of such Mortgage Loan as of
the date of purchase, plus one month's interest on the outstanding Principal
Balance thereof as of the beginning of the preceding Collection Period computed
at the Loan Rate less the Servicing Fee, together with, without duplication, the
aggregate amount of (i) all delinquent interest, all advances made by the
Servicer and not subsequently recovered from the related Mortgage Loan and (ii)
any Class A-1 Reimbursement Amount or Class A-2 Reimbursement Amount related to
such Mortgage Loan.

     Loan Rate: With respect to any HELOC Mortgage Loan and as of any day, the
per annum rate of interest applicable under the related Credit Line Agreement to
the calculation of interest for such day on the Principal Balance of such HELOC
Mortgage Loan. With respect to any Closed-End Mortgage Loan and as of any day,
the per annum rate of interest applicable under the related Mortgage Note to the
calculation of interest for such day on the Principal Balance of such Closed-End
Mortgage Loan.

     Loan Rate Cap: With respect to each Mortgage Loan, the lesser of (i) the
Lifetime Rate Cap, if any, or (ii) the applicable state usury ceiling, if any.

     Losses: Any and all out-of-pocket losses, claims, damages, liabilities or
expenses (including reasonable attorneys' fees and disbursements) directly
incurred by any Person specified in the Purchase Agreement, resulting from
transactions entered into under the Purchase Agreement (other than liability for
taxes). Losses must be accounted for and presented for reimbursement documented
in reasonable detail and within a reasonable time.

     Managed Amortization Period: With respect to each Class of Securities, the
period commencing on the Closing Date and ending on the earlier to occur of (x)
the September 2005 Payment Date and (y) the Payment Date which immediately
precedes the occurrence of a Rapid Amortization Event with respect to such Class
of Securities.

     Management Agreement: The Management Agreement, dated as of September 1,
2000, by and between the Company and the Issuer.

                                       16
<PAGE>

     Management Fee: $500 per month.

     Manager: The Person acting in such capacity pursuant to the Management
Agreement or its successors or assigns, which shall initially be the Company.

     Margin: With respect to each HELOC Mortgage Loan, the fixed percentage
amount set forth in the related Loan Agreement which amount is added to the
Prime Rate in accordance with the terms of the related Loan Agreement to
determine the Loan Rate for such HELOC Mortgage Loan, subject to any maximum.

     Minimum Monthly Payment: With respect to any Mortgage Loan and any month,
the minimum amount required to be paid by the related Mortgagor in that month.

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

     Mortgage: The mortgage, deed of trust or other instrument creating a first
or junior lien on an estate in fee simple interest in real property securing a
Mortgage Note or Credit Line Agreement.

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

     Mortgage Loan Schedule: With respect to any date, the schedule of Mortgage
Loans included in the Trust on such date. The schedule of Mortgage Loans as of
the Cut-Off Date is the schedule set forth in Exhibit A to the Sale and
Servicing Agreement, which schedule sets forth as to each such Mortgage Loan, to
the extent applicable, (i) the Cut-Off Date Principal Balance, (ii) the Credit
Limit, (iii) the Gross Margin, (iv) the Lifetime Rate Cap, (v) the account
number, (vi) the current Loan Rate, (vii) the Combined Loan-to-Value Ratio,
(viii) a code specifying the property type, (ix) a code specifying documentation
type and (x) a code specifying lien position. The Mortgage Loan Schedule will be
deemed to be amended from time to time to reflect Additional Balances and
Eligible Substitute Mortgage Loans.

     Mortgage Loans: Any HELOC Mortgage Loans, including any Additional Balances
with respect thereto, as well as any Closed-End Mortgage Loans, that are
transferred and assigned to the Trustee pursuant to Sections 2.01 and 2.10 of
the Sale and Servicing Agreement, together with the Related Documents, exclusive
of mortgage loans that are retransferred to the Sponsor or the Servicer from
time to time pursuant to Sections 2.03, 2.05 or 3.06 of the Sale and Servicing
Agreement as from time to time are held as a part of the Trust. The Mortgage
Loans originally so held are identified in the Mortgage Loan Schedule delivered
on the Closing Date. The Mortgage Loans shall also include any Eligible
Substitute Mortgage Loans substituted by the Sponsor for a Defective Mortgage
Loan pursuant to Sections 2.03 and 2.05 of the Sale and Servicing Agreement. The
term "Mortgage Loan" includes the terms "HELOC Mortgage Loans" and "Closed-End
Mortgage Loans."

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

                                       17
<PAGE>

     Mortgaged Property: The underlying property, including any real property
and improvements thereon, securing a Mortgage Loan.

     Mortgagor: The obligor on a Mortgage Note or Credit Line Agreement.

     Net Available Distribution Amount: For each Payment Date and for each Class
of Class A Securities, the related Total Available Funds on such Payment Date.

     Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
Liquidation Proceeds net of Liquidation Expenses.

     Net Loan Rate: With respect to any Mortgage Loan and as to any day, the
Loan Rate (assuming each HELOC Mortgage Loan is fully indexed) less the
Servicing Fee Rate, the Premium Percentage (multiplied by a fraction, the
numerator of which is the Security Principal Balance of the related Class of
Securities and the denominator of which is the related Pool Balance), with
respect to the Pool I Mortgage Loans only, the Guarantee Fee Percentage
(multiplied by a fraction, the numerator of which is the Class A-1 Certificate
Principal Balance and the denominator of which is the Pool I Balance) and the
Trustee Fee Rate.

     Officer's Certificate: A certificate signed by any Authorized Officer of
the Issuer, under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.1 of the Pooling Agreement and
delivered to the Trustee.

     Opinion of Counsel: One or more opinions of counsel who may, except as
otherwise expressly provided in the Pooling Agreement, be employees of or
counsel to the Issuer and, if addressed to the Insurer or Freddie Mac,
satisfactory to such party, and which shall comply with any applicable
requirements of Section 11.1 of the Pooling Agreement, and if addressed to the
Insurer or Freddie Mac, shall be satisfactory to such party; provided, that any
opinion relating to matters of federal, state or local taxation must be provided
by independent, outside counsel.

     Optional Redemption Date: Either of the Class A-1 Optional Redemption Date
or the Class A-2 Optional Redemption Date.

     Original Class A Security Principal Balance: The Original Class A-1
Certificate Principal Balance or the Original Class A-2 Note Principal Balance.

     Original Class A-1 Certificate Principal Balance: $275,831,000.

     Original Class A-2 Note Principal Balance: $77,669,000.

     Original Pool Balance: $350,000,000.

     Outstanding: As of the date of determination, all Securities theretofore
authenticated and delivered under the Pooling Agreement except:

          (i) Securities theretofore canceled by the Security Registrar or
     delivered to the Securities Registrar for cancellation;

                                       18
<PAGE>

          (ii) Securities or portions thereof the payment for which money in the
     necessary amount has been theretofore deposited with the Trustee or any
     Security Paying Agent in trust for the Holders of such Securities
     (provided, however, that if such Securities are to be redeemed, notice of
     such redemption has been duly given pursuant to the Pooling Agreement or
     provision therefor, satisfactory to the Trustee); and

          (iii) Securities in exchange for or in lieu of other Securities which
     have been authenticated and delivered pursuant to the Pooling Agreement
     unless proof satisfactory to the Trustee is presented that any such
     Securities are held by a bona fide purchaser;

provided, however, that Securities which have been paid with proceeds of the
Policy or the Guarantee shall continue to remain Outstanding for purposes of the
Pooling Agreement until the Insurer or Freddie Mac, as applicable, has been paid
as subrogee under the Insurance Agreement or Pooling Agreement, as applicable,
or the Insurer or Freddie Mac, as applicable, has been reimbursed pursuant to
the Insurance Agreement or Pooling Agreement, as applicable, as evidenced by a
written notice from the Insurer or Freddie Mac, as applicable, delivered to the
Trustee, and the Insurer or Freddie Mac, as applicable, shall be deemed to be
the Holder thereof to the extent of any payments thereon made by the Insurer or
Freddie Mac, as applicable; provided, further, that in determining whether the
Holders of the requisite Outstanding Amount of the Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder
or under any Basic Document, Securities owned by the Issuer, any other obligor
upon the Securities, the Sponsor or any Affiliate of any of the foregoing
Persons shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities that a Responsible Officer of the Trustee either actually knows to be
so owned or has received written notice thereof shall be so disregarded.
Securities so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Securities and that the pledgee
is not the Issuer, any other obligor upon the Securities, the Sponsor or any
Affiliate of any of the foregoing Persons.

     Outstanding Amount: With respect to any date of determination, the
aggregate Security Principal Balance of all the Securities, or Class of
Securities, as applicable, Outstanding as of such date of determination.

     Overcollateralization Amount: As applicable, the Pool I
Overcollateralization Amount or the Pool II Overcollateralization Amount.

     Overcollateralization Deficiency Amount: As applicable, the Pool I
Overcollateralization Deficiency Amount or the Pool II Overcollateralization
Deficiency Amount.

     Overcollateralization Deficit: As applicable, the Pool I
Overcollateralization Deficit or the Pool II Overcollateralization Deficit.

                                       19
<PAGE>

     Overcollateralization Reduction Amount: As applicable, the Pool I
Overcollateralization Reduction Amount or the Pool II Overcollateralization
Reduction Amount.

     Owner Trustee: Wilmington Trust Company, a Delaware banking corporation,
not in its individual capacity, but solely as owner trustee under the Trust
Agreement, and any successor Owner Trustee thereunder.

     Owner Trustee Fee: A fee which is separately agreed to between the Servicer
and the Owner Trustee and is payable to the Owner Trustee .

     Owner Trustee Fee Rate: The per annum rate at which the Owner Trustee Fee
is calculated.

     Parity Date: With respect to each Class of Securities and the related Pool,
the Payment Date on which the related Pool Balance first equals or exceeds the
outstanding principal balance with respect to such Class of Securities.

     Payment Date: The fifteenth day of each month, or if such day is not a
Business Day, then the next Business Day, beginning in the month immediately
following the Closing Date.

     Percentage Interest: As to any Security, the percentage obtained by
dividing the principal denomination of such Security by the aggregate of the
principal denominations of all Securities of the same class. As to any Residual
Certificate, the percentage set forth on the face of such Residual Certificate.

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

     Policy: The financial guaranty insurance policy No. 00010638 with respect
to the Class A Securities, dated September 26, 2000, issued by the Insurer to
the Trustee for the benefit of the Securityholders.

     Pool: Pool I or Pool II.

     Pool Balance: With respect to any date, the Pool I Balance or the Pool II
Balance, as applicable, as of such date.

     Pool Delinquency Rate: With respect to each Pool separately and with
respect to any Collection Period, the fraction, expressed as a percentage, equal
to (x) the aggregate Principal Balances of all related Mortgage Loans 60 or more
days delinquent (including all foreclosures and REO properties) as of the close
of business on the last day of such Collection Period over (y) the related Pool
Balance as of the close of business on the last day of such Collection Period.

     Pool Factor: A seven-digit decimal which the Servicer shall compute monthly
expressing the related Security Principal Balance as of each Payment Date (after
giving effect to

                                       20
<PAGE>

any distribution of principal on such Payment Date) as a proportion of the
Original Security Principal Balance for the related Class. On the Closing Date,
the Pool Factor for each Pool will be 1.0000000. Thereafter, the Pool Factor
shall decline to reflect reductions in the related Security Principal Balance
resulting from distributions of principal to the related Securities.

     Pool I: The pool of Mortgage Loans identified in the related Mortgage Loan
Schedule as having been assigned to Pool I, including any Eligible Substitute
Mortgage Loan delivered in the replacement thereof.

     Pool I Available Funds: With respect to any Payment Date, the amount then
on deposit in the Collection Account with respect to Pool I, after taking into
account the deposits thereto made pursuant to Section 8.7(a) of the Pooling
Agreement, if any (exclusive of the amount of any related Insured Payment then
on deposit in the Collection Account and any deposits from the Reserve Fund),
less the sum of the amounts described in clauses (i), (ii) and (iii) of Section
8.7(d) of the Pooling Agreement with respect to Pool I on such Payment Date.

     Pool I Balance: With respect to any date the aggregate of the Principal
Balances of all Pool I Mortgage Loans as of such date.

     Pool I Closed-End Mortgage Loans: The Mortgage Loans in Pool I which are
Closed-End Mortgage Loans.

     Pool I Deficiency Amount: Has the meaning specified in Section 8.6(b)(i) of
the Pooling Agreement.

     Pool I HELOC Mortgage Loans: The Mortgage Loans in Pool I which are HELOC
Mortgage Loans.

     Pool I Mortgage Loans: With respect to any date, those Mortgage Loans
contained in Pool I.

     Pool I Net Principal Collections: The excess of (x) Pool I Principal
Collections over (y) the aggregate amount of all related Additional Balances
arising during the related Collection Period; provided, however, that, in no
event will Pool I Net Principal Collections be less than zero with respect to
any Payment Date.

     Pool I Overcollateralization Amount: As of any Payment Date, the excess, if
any, of (x) the Pool I Balance as of such Payment Date over (y) the Class A-1
Certificate Principal Balance as of such Payment Date (after taking into account
any reductions to such Class A-1 Certificate Principal Balance resulting from
payments made pursuant to clauses (v) and (vi) of Section 8.7(d) of the Pooling
Agreement on such Payment Date).

     Pool I Overcollateralization Deficiency Amount: With respect to any Payment
Date, the difference, if any, between (i) the Pool I Specified
Overcollateralization Amount applicable to such Payment Date and (ii) the Pool I
Overcollateralization Amount applicable to such Payment Date.

                                       21
<PAGE>

     Pool I Overcollateralization Deficit: With respect to any Payment Date on
or after the Insured Undercollateralization Payment Date, the amount, if any, by
which (i) the aggregate Class A-1 Certificate Principal Balance, after taking
into account the payment to the Class A-1 Securityholders of all principal from
sources other than the Policy and the Guarantee on such Payment Date, exceeds
(ii) the Pool I Balance as of such Payment Date.

     Pool I Overcollateralization Reduction Amount: With respect to any Payment
Date, the excess of (x) the Pool I Overcollateralization Amount over (y) the
Pool I Specified Overcollateralization Amount assuming that the Class A-1
Maximum Principal Payment had been distributed to the Class A-1 Securityholders
on such Payment Date.

     Pool I Principal Collections: The Principal Collections relating to Pool I.

     Pool I Specified Overcollateralization Amount: With respect to any Payment
Date, the amount equal to the greater of: (I) the sum of (a) the related Spread
Squeeze Amount plus (b) 90.00% of the Principal Balance of Mortgage Loans in
Pool I which are 180 or more days Delinquent as of the close of business of the
last day of the related Collection Period plus (c)(i) prior to the 36th Payment
Date, the greater of (x) 2.25% of the Initial Pool I Balance and (y) the Pool I
Step-Up Overcollateralization Amount and (ii) on or after the 36th Payment Date,
the greater of (x) the lesser of 2.25% of the Initial Pool I Balance and 4.50%
of the Pool I Balance as of the current Payment Date and (y) the Pool I Step-Up
Overcollateralization Amount; or (II) the sum of the related Spread Squeeze
Amount and 0.50% of the Initial Pool I Balance; provided, however, that no
reduction in clause (c)(ii) shall occur unless (i) aggregate cumulative
Liquidation Loss Amounts with respect to Pool I as a percentage of the Initial
Pool I Balance are less than 3.75% and (ii) the Six Month Rolling Pool
Delinquency Rate for Pool I is less than 3.00%.

     Pool I Step-Up Overcollateralization Amount: If aggregate cumulative
Liquidation Loss Amounts with respect to Pool I as a percentage of the Initial
Pool I Balance exceed the following percentages on the specified Payment Dates,

            Payment Dates                 Percentage
            -------------                 ----------
            1st - 12th                    1.50%
            13th - 24th                   2.75%
            25th - 36th                   4.00%
            37th - 48th                   5.00%
            49th +                        6.00%

the Pool I Step-Up Overcollateralization Amount will equal (a) 4.50% of the
Initial Pool I Balance, prior to the 36th Payment Date, and (b) on or after the
36th Payment Date, the lesser of (x) 4.50% of the Initial Pool I Balance and (y)
9.00% of the Pool I Balance as of current Payment Date. Otherwise, the Pool I
Step-Up Overcollateralization Amount is zero.

     Pool I Total Available Funds: With respect to any Payment Date, the sum of
(i) the Pool I Available Funds, (ii) any Crossover Amount available from Pool
II, (iii) amounts

                                       22
<PAGE>

realized from the Pool I Overcollateralization Amount, (iv) amounts on deposit
in the Reserve Fund (but only to the extent that Pool I Available Funds, plus
any Crossover Amount available from Pool II, are insufficient to pay the amounts
specified in clauses (iv), (vi) and (vii) of Section 8.7(d) of the Pooling
Agreement with respect to the Class A-1 Certificates), and (v) amounts available
from the Demand Note with respect to Pool I, in each case as of such Payment
Date.

     Pool II: The pool of Mortgage Loans identified in the related Mortgage Loan
Schedule as having been assigned to Pool II, including any Eligible Substitute
Mortgage Loans delivered in replacement thereof.

     Pool II Available Funds: With respect to any Payment Date, the amount then
on deposit in the Collection Account with respect to Pool II, after taking into
account the deposits thereto made pursuant to Section 8.7(b) of the Pooling
Agreement, if any (exclusive of the amount of any related Insured Payment then
on deposit in the Collection Account and any deposits from the Reserve Fund),
less the sum of the amounts described in clauses (i) and (ii) of Section 8.7(d)
of the Pooling Agreement with respect to Pool II on such Payment Date.

     Pool II Balance: With respect to any date the aggregate of the Principal
Balances of all Pool II Mortgage Loans as of such date.

     Pool II Closed-End Mortgage Loans: Mortgage Loans in Pool II which are
Closed-End Mortgage Loans.

     Pool II Deficiency Amount: As defined in Section 8.6(b)(ii) of the Pooling
Agreement.

     Pool II HELOC Mortgage Loans: The Mortgage Loans in Pool II which are HELOC
Mortgage Loans.

     Pool II Mortgage Loans: With respect to any date, those Mortgage Loans
contained in Pool II.

     Pool II Net Principal Collections: The excess of (x) Pool II Principal
Collections over (y) the aggregate amount of all related Additional Balances
arising during the related Collection Period; provided, however, that, in no
event will Pool II Net Principal Collections be less than zero with respect to
any Payment Date.

     Pool II Overcollateralization Amount: As of any Payment Date, the excess,
if any, of (x) the Pool II Balance as of such Payment Date over (y) the Class
A-2 Note Principal Balance as of such Payment Date (after taking into account
any reductions to such Class A-2 Note Principal Balance resulting from payments
made pursuant to clauses (v) and (vi) of Section 8.7(d) of the Pooling Agreement
on such Payment Date).

     Pool II Overcollateralization Deficiency Amount: With respect to any
Payment Date, the difference, if any, between (i) the Pool II Specified
Overcollateralization Amount applicable to such Payment Date and (ii) the Pool
II Overcollateralization Amount applicable to such Payment Date.

                                       23
<PAGE>

     Pool II Overcollateralization Deficit: With respect to any Payment Date on
or after the Insured Undercollateralization Payment Date, the amount, if any, by
which (i) the aggregate Class A-2 Note Principal Balance, after taking into
account the payment to the Class A-2 Securityholders of all principal from
sources other than the Policy on such Payment Date, exceeds (ii) the Pool II
Balance as of such Payment Date.

     Pool II Overcollateralization Reduction Amount: With respect to any Payment
Date, the excess of (x) the Pool II Overcollateralization Amount over (y) the
Pool II Specified Overcollateralization Amount assuming that the Class A-2
Maximum Principal Payment had been distributed to the Class A-2 Securityholders
on such Payment Date.

     Pool II Principal Collections: The Principal Collections relating to Pool
II.

     Pool II Specified Overcollateralization Amount: With respect to any Payment
Date, the amount equal to the greater of: (I) the sum of (a) the related Spread
Squeeze Amount, (b) 90.00% of the Principal Balance of Mortgage Loans in Pool II
which are 180 or more days Delinquent as of the close of business of the last
day of the related Collection Period, plus (c)(i) prior to the 36th Payment
Date, the greater of (x) 2.25% of the Initial Pool II Balance and (y) the Pool
II Step-Up Overcollateralization Amount, (ii) on or after the 36th Payment Date,
the greater of (x) the lesser of 2.25% of the Initial Pool II Balance and 4.50%
of the Pool II Balance as of the current Payment Date, and (y) the Pool II
Step-Up Overcollateralization Amount, or (II) the sum of the related Spread
Squeeze Amount and 0.50% of the Initial Pool II Balance; provided, however, that
no reduction in clause (c)(ii) shall occur unless (i) aggregate cumulative
Liquidation Loss Amounts with respect to Pool II as a percentage of the Initial
Pool II Balance are less than 3.75% and (ii) the Six Month Rolling Pool
Delinquency Rate for Pool II is less than 3.00%.

     Pool II Step-Up Overcollateralization Amount: If aggregate cumulative
Liquidation Loss Amounts with respect to Pool II as a percentage of the Initial
Pool II Balance exceed the following percentages on the specified Payment Dates,

               Payment Dates                Percentage
               -------------                ----------
               1st - 12th                   1.50%
               13th - 24th                  2.75%
               25th - 36th                  4.00%
               37th - 48th                  5.00%
               49th +                       6.00%

the Pool II Step-Up Overcollateralization Amount will equal (a) 4.50% of the
Initial Pool II Balance, prior to the 36th Payment Date and (b) on or after 36th
Payment Date, the lesser of (x) 4.50% of the Initial Pool II Balance and (y)
9.00% of the Pool II Balance as of the current Payment Date. Otherwise, the Pool
II Step-Up Overcollateralization Amount is zero.

     Pool II Total Available Funds: With respect to any Payment Date, the sum of
(i) the Pool II Available Funds, (ii) any Crossover Amount available from Pool
I, (iii) amounts

                                       24
<PAGE>

realized from the Pool II Overcollateralization Amount, (iv) amounts on deposit
in the Reserve Fund (but only to the extent that Pool II Available Funds, plus
any Crossover Amount available from Pool I, are insufficient to pay the amounts
specified in clauses (iv), (vi) and (vii) of Section 8.7(d) of the Pooling
Agreement with respect to the Class A-2 Notes), and (v) amounts available from
the Demand Note with respect to Pool II, in each case as of such Payment Date.

     Pooling Agreement: The Pooling Agreement and Indenture, dated as of
September 1, 2000, by and between the Issuer, the Trustee and Freddie Mac, as
the same may be amended and supplemented from time to time.

     Predecessor Security: With respect to any particular Security, every
previous Security evidencing all or a portion of the same interest as that
evidenced by such particular Security; and, for the purpose of this definition,
any Security authenticated and delivered under Section 3.4 of the Trust
Agreement in lieu of a mutilated, lost, destroyed or stolen Security shall be
deemed to evidence the same debt as the mutilated, lost, destroyed or stolen
Security.

     Preference Amount: As defined in the Policy.

     Preference Claim: As defined in Section 5.13(b) of the Pooling Agreement.

     Premium Amount: With respect to the Class A-1 Certificates and as to any
Payment Date, the product of (x) one-twelfth of the applicable Premium
Percentage and (y) the Class A-1 Certificate Principal Balance on such Payment
Date (before taking into account any principal to be paid to the Holders of the
Class A-1 Certificates on such Payment Date). With respect to the Class A-2
Notes and as to any Payment Date, the product of (x) one-twelfth of the
applicable Premium Percentage and (y) the Class A-2 Note Principal Balance on
such Payment Date (before taking into account any principal to be paid to the
Holders of the Class A-2 Notes on such Payment Date).

     Premium Percentage: As defined in the Insurance Agreement.

     Prime Rate: The interest rate entitled "Prime Rate" in the published Money
Rates table of The Wall Street Journal.

     Principal Balance: As of any date and with respect to any Mortgage Loan,
the HELOC Principal Balance or the Closed-End Principal Balance, as applicable.
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 immediately prior to the final recovery of related Liquidation Proceeds and
a Principal Balance of zero thereafter.

     Principal Collections: With respect to a Pool and as to any Payment Date,
the sum of all payments by or on behalf of Mortgagors and any other amounts
constituting principal (including, but not limited to, Substitution Amounts and
any portion of Insurance Proceeds or Net Liquidation Proceeds allocable to
principal of the applicable Mortgage Loan, but excluding Foreclosure Profits)
collected by the Servicer with respect to such Pool under the related Mortgage
Loans during the related Collection Period. The terms of the related Loan
Agreements shall determine the portion of each payment in respect of a Mortgage
Loan that constitutes principal or interest.

                                       25
<PAGE>

     Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.

     Purchase Agreement: The Mortgage Loan Purchase Agreement, dated as of
September 1, 2000, by and between the Company and the Sponsor with respect to
the Mortgage Loans.

     Purchase Price: At least 100% of the Principal Balance of the Mortgage
Loans as of the Cut-Off Date (and any Eligible Substitute Mortgage Loan as of
the date delivered).

     Purchaser Note: As defined in Section 10.02 of the Purchase Agreement.

     Rapid Amortization Event: Any of those "Rapid Amortization Events"
described in Section 12.1 of the Pooling Agreement.

     Rapid Amortization Period: With respect to each Class of Securities, the
period which immediately follows the end of the Managed Amortization Period with
respect to such Class of Securities.

     Rating Agency: Each of Moody's and Standard & Poor's. If such 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 Sponsor and
the Insurer, notice of which designation shall be given to the Trustee.
References in any Basic Document to the highest short term unsecured rating
category of a Rating Agency shall means A1+ or better in the case of Standard &
Poor's and P1 or better in the case of Moody's, and in the case of any other
Rating Agency shall mean the ratings such other Rating Agency deems equivalent
to the foregoing ratings. References in any Basic Document to the highest
long-term rating category of a Rating Agency shall mean "AAA" in the case of
Standard & Poor's and "Aaa" in the case of Moody's, and in the case of any other
Rating Agency, the rating such other Rating Agency deems equivalent to the
foregoing ratings.

     Record Date: For the Class A-1 Certificates, the last Business Day of the
calendar month preceding the month in which the Payment Date occurs. For the
Class A-2 Notes, the last Business Day preceding the related Payment Date;
provided, however, that following the date on which Definitive Securities are
available, the Record Date for the Class A-2 Notes shall be the last Business
Day of the calendar month preceding the month in which the related Payment Date
occurs.

     Redemption Date: In the case of a redemption of any Securities pursuant to
Section 10.1 of the Pooling Agreement, the Payment Date specified by the Sponsor
pursuant to Section 7.01(b) of the Sale and Servicing Agreement.

     Redemption Price: In the case of a redemption of any Securities pursuant to
Section 10.1 of the Pooling Agreement, an amount equal to the unpaid principal
amount of the then outstanding principal amount of each class of the related
Class of Securities being redeemed, plus accrued and unpaid interest thereon to
but excluding the Redemption Date, plus any outstanding, related Reimbursement
Amount.

                                       26
<PAGE>

     Reimbursement Amount: Either of the Class A-1 Reimbursement Amount or Class
A-2 Reimbursement Amount, as appropriate.

     Related Documents: As defined in Section 2.01(c) of the Sale and Servicing
Agreement.

     Relief Act Shortfall: Shortfalls in interest collections resulting from the
application of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended.

     Removal Date: As defined in Section 2.07 of the Sale and Servicing
Agreement.

     Removal Notice Date: As defined in Section 2.07 of the Sale and Servicing
Agreement.

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

     Repurchase Price: The sum of (a) the outstanding principal balance of the
related Mortgage Loan as of such date of repurchase plus (b) any accrued
interest as of such date.

     Required Payments: For either Class of Class A Securities (a) for any
Payment Date other than the Final Scheduled Payment Date, the sum of (i) the
related Interest Payment Amount (excluding any Relief Act Shortfalls) and (ii)
the related Overcollateralization Deficit and (b) on the related Final Scheduled
Payment Date, the related Security Principal Balance.

     Reserve Fund: That account designated as the "Reserve Fund" that is created
and maintained for the benefit of the Securityholders, Freddie Mac and the
Insurer pursuant to Section 8.3 of the Pooling Agreement.

     Residual Certificate: As defined in Section 1.1 of the Trust Agreement.

     Residual Certificateholder: Holder of the Residual Certificate.

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

     SAIF: The Savings Association Insurance Fund, as from time to time
constituted, created under the Financial Institutions Reform, Recovery and
Enhancement Act of 1989, or if at any time after the execution of the Pooling
Agreement, the Savings Association Insurance Fund is not existing and performing
duties now assigned to it, the body performing such duties on such date.

     Sale and Servicing Agreement: The Sale and Servicing Agreement, dated as of
September 1, 2000, by and among the Issuer, the Sponsor, the Servicer and the
Trustee, as the same may be amended or supplemented from time to time.

                                       27
<PAGE>

     SEC: The Securities and Exchange Commission and any successor thereto.

     Security: A Class A-1 Certificate or a Class A-2 Note, but not any Residual
Certificate.

     Securityholders: The Class A-1 Securityholders and the Class A-2
Securityholders.

     Security Owner: With respect to a Book-Entry Security, the Person who is
the owner of such Book-Entry Security, with respect to a Definitive Security,
the registered owner of such Definitive Security.

     Security Paying Agent: The Trustee or any other Person that meets the
eligibility standards for the Trustee specified in Section 6.11 of the Pooling
Agreement and is authorized by the Issuer to make payments to and distributions
from the Collection Account, including payment of principal of or interest on
the Securities on behalf of the Issuer.

     Security Principal Balance: The Class A-1 Certificate Principal Balance
and/or the Class A-2 Note Principal Balance, as applicable.

     Security Rate: The Class A-1 Certificate Rate and/or the Class A-2 Note
Rate, as applicable.

     Security Register: As defined in Section 3.3 of the Trust Agreement.

     Security Registrar: As defined in Section 3.3 of the Trust Agreement.

     Servicer: GreenPoint Mortgage Funding, Inc., a New York corporation, any
successor thereto and, after its termination as Servicer, any successor.

     Servicing Certificate: A certificate completed and executed by a Servicing
Officer in accordance with Section 4.01 of the Sale and Servicing Agreement.

     Servicing Fee: With respect to any Payment Date and each Pool, the product
of (i) one-twelfth of 0.50% and (ii) the aggregate Principal Balance of the
Mortgage Loans in such Pool on the first day of the Collection Period preceding
such Payment Date (or at the Cut-Off Date with respect to the first Payment
Date).

     Servicing Fee Rate: 0.50% per annum.

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

     Six Month Rolling Pool Delinquency Rate: With respect to each Pool, as of
any Payment Date beginning with the sixth Payment Date, a number equal to the
average of the related Pool Delinquency Rates for each of the six immediately
preceding Collection Periods.

                                       28
<PAGE>

     Specified Overcollateralization Amount: As applicable, the Pool I Specified
Overcollateralization Amount or the Pool II Specified Overcollateralization
Amount.

     Sponsor: GreenPoint Mortgage Securities Inc. or its successors-in-interest.

     Spread Holiday Termination Date: With respect to each Class of Securities,
the earlier to occur of (A) the eleventh Payment Date after the related Parity
Date or (B) January 2002, the sixteenth Payment Date.

     Spread Squeeze Amount: With respect to Pool I and Pool II, (A) as of any
Payment Date on or prior to the twelfth Payment Date, $0 and (B) as of any
Payment Date after the twelfth Payment Date, a number equal to the product of
(I) two times the positive difference, if any of (x) 1.75% and (y) the related
Spread Squeeze Percentage and (II) the related Pool Balance as of such Payment
Date.

     Spread Squeeze Percentage: With respect to Pool I and Pool II and as of any
Payment Date after the twelfth Payment Date, a fraction (expressed as a
percentage), the numerator of which is the product of 12 and the related
Available Funds with respect to such Pool for such Payment Date which remain on
deposit in the Collection Account after taking into account the distributions
listed in clauses (i) through (vii) of Section 8.7(d) of the Pooling Agreement
with respect to such Pool and such Payment Date and the denominator of which is
the related Pool Balance as of such Payment Date.

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

     Substitute Cut-Off Date: With respect to any Eligible Substitute Mortgage
Loan, the opening of business on the first day of the calendar month in which
such Eligible Substitute Mortgage Loan is conveyed to the Trust.

     Substitution Amounts: In connection with the delivery of any Eligible
Substitute Mortgage Loan, if the outstanding principal amount of such Eligible
Substitute Mortgage Loan as of the applicable Substitute Cut-Off Date is less
than the related Principal Balance of the Mortgage Loan being replaced as of
such Substitute Cut-Off Date, an amount equal to such difference together with
accrued and unpaid interest on such amount calculated at the Loan Rate net of
the Servicing Fee, if any, of the Mortgage Loan being replaced.

     Termination Date: The latest of (i) the termination of the Policy and the
return of the Policy to the Insurer for cancellation, (ii) the date on which the
Insurer shall have received payment and performance of all Insurer Issuer
Secured obligations owing to it, (iii) the date on which the Trustee shall have
received payment and performance of all Trustee Issuer Secured Obligations and
(iv) the date on which Freddie Mac shall have received payment and performance
of all Insurer Issuer Secured Obligations owing to it.

     Total Available Funds: The Pool I Total Available Funds and/or the Pool II
Total Available Funds.

                                       29
<PAGE>

     Transfer Date: With respect to each Eligible Substitute Mortgage Loan, the
date on which such Eligible Substitute Mortgage Loan shall have been transferred
to the Trust.

     Trust Agreement: The Trust Agreement, dated as of September 1, 2000, by and
between the Sponsor and the Owner Trustee, as the same may be amended and
supplemented from time to time.

     Trust Property: All property and proceeds conveyed pursuant to Section 2.01
of the Sale and Servicing Agreement, and certain other rights under that
Agreement.

     Trustee: Bank One, National Association, a national banking association,
not in its individual capacity but as trustee under the Pooling Agreement, or
any successor trustee under the Pooling Agreement.

     Trustee Fee: A fee which is separately agreed to between the Servicer and
the Trustee.

     Trustee Fee Rate: The per annum rate at which the Trustee Fee is
calculated.

     Trustee Issuer Secured Obligations: All amounts and obligations which the
Issuer may at any time owe to the Trustee for the benefit of the Securityholders
under the Pooling Agreement or the Securities.

     UCC: Unless the context otherwise requires, the Uniform Commercial Code, as
in effect in the relevant jurisdiction, as amended from time to time.

     Undercollateralization Amount: An amount initially equal to $3,533,933.16.
For each Class and the related Pool on any Payment Date, the
Undercollateralization Amount shall equal the excess, if any, of the related
Security Principal Balance over the related Pool Balance (after taking into
account all payments of principal through and including such Payment Date, other
than payments made with funds drawn from the Demand Note, the Policy or (with
respect to the Class A-1 Certificates only) the Guarantee).

     Weighted Average Net Loan Rate: As to any Collection Period and with
respect to each Pool, the average of the daily Net Loan Rate for each Mortgage
Loan in such Pool for each day during the related Billing Cycle, weighted on the
basis of the daily average of the related Principal Balances for each day in
such Billing Cycle for each Mortgage Loan as determined by the Servicer in
accordance with the Servicer's normal servicing procedures.

                                       30

<PAGE>

                                                                      EXHIBIT A

                                 [Form of Note]

             GREENPOINT HOME EQUITY LOAN TRUST 2000-2 CLASS A-2 NOTE

REGISTERED                                                       $ ____________

No. A-2-__                                               CUSIP NO. ____________

     Unless this Class A-2 Note is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to the Issuer or
its agent for registration of transfer, exchange or payment, and any Class A-2
Note 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.

     THE PRINCIPAL OF THIS CLASS A-2 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-2
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

<PAGE>

                    GREENPOINT HOME EQUITY LOAN TRUST 2000-2

                   CLASS A-2 VARIABLE RATE ASSET BACKED NOTES

     GreenPoint Home Equity Loan Trust 2000-2, a business trust organized
and existing under the laws of the State of Delaware (herein referred to as
the "Issuer"), for value received, hereby promises to pay to CEDE & CO.,
or registered assigns, the principal sum of _____________________ ($________ ),
such amount payable on each Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $_________ and
the denominator of which is $________ by (ii) the aggregate amount, if any,
payable from the Collection Account in respect of principal on the Class A-2
Notes pursuant to Section 8.6 of the Pooling Agreement; provided, however,
that the entire unpaid principal amount of this Class A-2 Note shall be due
and payable on the Payment Date in ______________ (the "Final Scheduled Payment
Date"). The Issuer will pay interest on this Certificate at the rate per annum
provided in the Pooling Agreement on each Payment Date on the principal amount
of this Class A-2 Note outstanding on the preceding Payment Date (after giving
effect to all payments of principal made on the preceding Payment Date).
Interest on this Class A-2 Note will accrue for each Payment Date from the most
recent Payment Date on which interest has been paid to but excluding such
Payment Date or, if no interest has yet been paid, from September 26, 2000.
Interest will be computed on the basis of the actual number of days elapsed in
a 360-day year. Such principal of and interest on this Class A-2 Note shall be
paid in the manner specified on the reverse hereof.

     The principal of and interest on this Class A-2 Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. All payments made by the
Issuer with respect to this Class A-2 Note shall be applied first to interest
due and payable on this Class A-2 Note as provided above and then to the unpaid
principal of this Class A-2 Note.

     The Securities are entitled to the benefits of a financial guaranty
insurance policy (the "Policy") issued by Financial Guaranty Insurance
Company (the "Insurer"), pursuant to which the Insurer has unconditionally
guaranteed payments of the Insured Payments with respect to the Class A-2 Notes
on each Payment Date, all as more fully set forth in the Pooling Agreement.

     For purposes of federal income, state and local income and franchise
and any other income taxes, the Issuer will treat the Securities as
indebtedness of the Sponsor and hereby instructs the Trustee to treat the
Securities as indebtedness of the Sponsor for federal and state tax reporting
purposes. Each Securityholder by acceptance of a Security (and each owner of a
beneficial interest in a Security by acceptance of such beneficial interest)
agrees to treat the Securities for federal income, state and local income and
franchise and any other income taxes as indebtedness of the Sponsor.

     Each Securityholder or Security Owner, by acceptance of this Class A-2
Note or, in the case of a Security Owner, a beneficial interest in a Security,
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the Trustee
on the Class A-2 Notes or under the Pooling Agreement or any

<PAGE>

certificate or other writing delivered in connection therewith, against (i) the
Sponsor, the Servicer, the Trustee, or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
owner, beneficiary, agent, officer, director or employee of the Sponsor, the
Servicer, the Trustee, or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Sponsor, the Servicer, the
Owner Trustee or the Trustee or of any successor or assign of the Sponsor, the
Servicer, the Trustee, or the Owner Trustee in its individual capacity, except
as any such Person may have expressly agreed (it being understood that the
Trustee and the Owner Trustee have no such obligations in their individual
capacity) and except that any such owner or beneficiary shall be fully liable,
to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

     Reference is made to the further provisions of this Class A-2 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-2 Note.

     Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Class A-2 Note
shall not be entitled to any benefit under the Pooling Agreement referred to
on the reverse hereof, or be valid or obligatory for any purpose.

     This Class A-2 Note is one of a duly authorized issue of Securities of
the Issuer, designated as its Class A-2 Variable Rate Asset Backed Notes
(herein called the "Class A-2 Notes"), all issued under a Pooling and
Indenture Agreement dated as of September 1, 2000 (such agreement, as
supplemented or amended, is herein called the "Pooling Agreement"), between the
Issuer and Bank One, N.A., as Trustee (the "Trustee"), which term includes any
successor Trustee under the Pooling Agreement. Certain rights of Securityholders
in the Class A-2 Notes are additionally described in the Trust Agreement dated
as of September 1, 2000 (such trust agreement, as supplemented or amended is
herein called the "Trust Agreement"), between GreenPoint Mortgage Securities,
Inc., as sponsor, and Wilmington Trust Company, as Owner Trustee (the "Owner
Trustee," which term includes any successor Owner Trustee under the Trust
Agreement).

     All terms used in this Class A-2 Note that are defined in the Pooling
Agreement, as supplemented or amended, shall have the meanings assigned
to them in or pursuant to the Pooling Agreement, as so supplemented or amended.
If any such terms are not defined in the Pooling Agreement, as supplemented or
amended, then such terms shall have the meanings assigned to them in or pursuant
to the Trust Agreement, as so supplemented or amended.

     The Class A-1 Certificates and the Class A-2 Notes (together, the
"Securities") are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Pooling Agreement.

     Principal of the Class A-2 Notes will be payable on each Payment Date in
an amount described in the Pooling Agreement. "Payment Date" means the fifteenth
day of each month, or, if any such date is not a Business Day, the next
succeeding Business Day,

<PAGE>

commencing October 16, 2000. The term "Payment Date," shall be deemed to
include the Final Scheduled Payment Date.

     As described above, the entire unpaid principal amount of this Class A-2
Note shall be due and payable on the earlier of the Final Scheduled Payment
Date and the Redemption Date, if any, pursuant to Section 10.1 of the
Pooling Agreement. Notwithstanding the foregoing, on the date on which a Rapid
Amortization Period as described in Section 5.1(a) shall have occurred and be
continuing and the Trustee or the Holders representing more than 50% of the
Outstanding Amount of the Class A-2 Notes, with the prior written consent of the
Insurer (so long as there is no continuing default by the Insurer in the
performance of its obligations under the Policy) shall have the right among
others to direct the Trustee to sell or liquidate the Pool II Mortgage Loans as
provided in Section 12.1 of the Pooling Agreement and pay such amounts to the
Holders of the Class A-2 Notes. All principal payments on the Class A-2 Notes
shall be made pro rata to the Holders of the Class A-2 Notes entitled thereto.
The Policy will cover any amounts by which such remaining net proceeds are
insufficient to pay the Class A-2 Principal Balance, together with all accrued
and unpaid interest thereon.

     Payments of interest on this Class A-2 Note due and payable on each
Payment Date, together with the installment of principal, if any, to the
extent not in full payment of this Class A-2 Note, shall be made by check mailed
to the Person whose name appears as the Holder of this Class A-2 Note (or one or
more Predecessor Securities) on the Security Register as of the close of
business on each Record Date, except that with respect to Class A-2 Note
registered on the Record Date in the name of the nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payments will be made by wire
transfer in immediately available funds to the account designated by such
nominee. Such checks shall be mailed to the Person entitled thereto at the
address of such Person as it appears on the Security Register as of the
applicable Record Date without requiring that this Security be submitted for
notation of payment. Any reduction in the principal amount of this Security (or
any one or more Predecessor Securities) effected by any payments made on any
Payment Date shall be binding upon all future Holders of this Class A-2 Note and
of any Class A-2 Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Pooling Agreement, for payment in
full of the then remaining unpaid principal amount of this Class A-2 Note on a
Payment Date, then the Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Holder hereof as of the Record Date preceding such
Payment Date by notice mailed prior to such Payment Date and the amount then due
and payable shall be payable only upon presentation and surrender of this Class
A-2 Note at the office designated by the Trustee for such purposes located in
The City of New York.

     The Issuer shall pay interest on overdue installments of interest at the
Class A-2 Interest Rate to the extent lawful.

     As provided in the Pooling Agreement, the Class A-2 Notes may be redeemed
pursuant to Section 10.1 of the Pooling Agreement, in whole, but not in part,
at the option of the Sponsor (with the consent of the Insurer and Freddie Mac
under certain circumstances), on any Payment Date on or after the date on which
the Class A-2 Note Principal Balance is less than 10% of the Original Class A-2
Note Principal Balance.

<PAGE>

     As provided in the Pooling Agreement and subject to certain limitations
set forth therein, the transfer of this Class A-2 Note may be registered on the
Security Register upon surrender of this Class A-2 Note for registration of
transfer at the office or agency designated by the Issuer
pursuant to the Pooling Agreement, (i) duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Trustee duly executed
by, the Holder hereof or his attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Security Registrar which requirements include membership or
participation in Securities Transfer Agents Medallion Program ("Stamp") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, Stamp, all in accordance with the Exchange
Act, and (ii) accompanied by such other documents as the Trustee may require,
and thereupon one or more new Securities of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of transfer
or exchange of this Class A-2 Note, but the transferor may be required to pay a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange.

     Each Securityholder or Security Owner, by acceptance of a Security or,
in the case of a Security Owner, a beneficial interest in a Security covenants
and agrees that no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer, the Owner Trustee or the Trustee on the
Securities or under the Pooling Agreement or any certificate or other writing
delivered in connection therewith, against (i) the Sponsor, the Servicer,
the Trustee or the Owner Trustee in its individual capacity, (ii) any owner
of a beneficial interest in the Issuer or (iii) any owner, beneficiary,
agent, officer, director or employee of the Sponsor, the Servicer, the Trustee
or the Owner Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer, the Sponsor, the Servicer, the Owner Trustee or the
Trustee or of any successor or assign of the Sponsor, the Servicer, the Trustee
or the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that
any such owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

     Each Securityholder or Security Owner, by acceptance of a Security or,
in the case of a Security Owner, a beneficial interest in a Security covenants
and agrees that by accepting the benefits of the Pooling Agreement and the
Trust Agreement that such Securityholder will not at any time institute against
the Sponsor, or the Issuer or join in any institution against the Sponsor,
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings, under any United States Federal
or state bankruptcy or similar law in connection with any obligations relating
to the Securities, the Trust Agreement, the Pooling Agreement or the Basic
Documents.

     Prior to the due presentment for registration of transfer of this Security,
the Issuer, the Trustee, the Insurer and Freddie Mac and any agent of the
Issuer, the Trustee, the Insurer or Freddie Mac may treat the Person in whose
name this Security (as of the day of determination or as of such other date as
may be specified in the Pooling Agreement) is registered as the owner

<PAGE>

hereof for all purposes, whether or not this Security be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Pooling Agreement permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Security under
the Pooling Agreement at any time by the Issuer with the consent of the Insurer,
Freddie Mac and of the Holders of Securities representing a majority of the
Outstanding Amount of all Securities at the time Outstanding. Any such consent
or waiver by the Holder of this Security (or any one of more Predecessor
Securities) shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Security. The Pooling Agreement also
permits the Trustee to amend or waive certain terms and conditions set forth in
the Pooling Agreement without the consent of Holders of the Securities issued
thereunder but with the consent of the Insurer and Freddie Mac.

     The term "Issuer" as used in this Security includes any successor to the
Issuer under the Pooling Agreement or the Trust Agreement.

     The Class A-2 Notes are issuable only in registered form in denominations
as provided in the Pooling Agreement, subject to certain limitations therein
set forth.

     This Security, the Trust Agreement and the Pooling Agreement shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

     No reference herein to the Trust Agreement or the Pooling Agreement and
no provision of this Security, the Trust Agreement or of the Pooling Agreement
shall alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Security at the
times, place, and rate, and in the coin or currency herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Trust Agreement, the Pooling Agreement or the Basic
Documents, neither Wilmington Trust Company in its individual capacity, any
owner of a beneficial interest in the Issuer, nor any of their respective
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in this
Security or the Pooling Agreement, it being expressly understood that said
covenants, obligations and indemnifications have been made by the Issuer for the
sole purposes of binding the interests of the Issuer in the assets of the
Issuer. The Holder of this Security by the acceptance hereof agrees that except
as expressly provided in the Pooling Agreement or the Basic Documents in the
case of a Rapid Amortization Event with respect to the Class A-2 Notes under the
Pooling Agreement, the Holder shall have no claim against any of the foregoing
for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Pooling Agreement or in this Security.

<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  September 26, 2000            GREENPOINT HOME EQUITY
                                     LOAN TRUST 2000-2

                                     By: Wilmington Trust Company, not in its
                                         individual capacity but solely as
                                         Owner Trustee

                                     By: _____________________________________
                                         Name:
                                         Title:

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the
within-mentioned Pooling Agreement and Indenture.

Date:  September 26, 2000            BANK ONE, NATIONAL ASSOCIATION, not in
                                     its individual capacity but solely as
                                     Trustee,

                                     By: ______________________________________
                                                Authorized Signatory<PAGE>

                                                               EXECUTION COPY

                        MORTGAGE LOAN PURCHASE AGREEMENT

                                     Between

                       GREENPOINT MORTGAGE FUNDING, INC.,

                                    as Seller

                                       and

                      GREENPOINT MORTGAGE SECURITIES INC.,

                                  as Purchaser

                          Dated as of September 1, 2000

<PAGE>

                                Table of Contents
<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                          <C>

ARTICLE I Definitions ...........................................................................................1

ARTICLE II Procedures for Purchase of Mortgage Loans; Conditions Precedent; Settlements...........................1

   Section 2.01.      Purchase and Sale...........................................................................1
   Section 2.02.      Delivery of Documents; Purchase of Mortgage Loans...........................................1
   Section 2.03.      Survival of Representations.................................................................2
   Section 2.04.      Proceeds of Mortgage Loans..................................................................2
   Section 2.05.      Defective Mortgage Loans....................................................................3

ARTICLE III Intent of Parties; Security Interest..................................................................3

   Section 3.01.      Intent of Parties; Security Interest........................................................3

ARTICLE IV Representations and Warranties.........................................................................3

   Section 4.01.      Representations and Warranties of Seller....................................................3
   Section 4.02.      Representations and Warranties Regarding Mortgage Loans.....................................5
   Section 4.03.      Representations and Warranties of Purchaser................................................16
   Section 4.04.      Remedies for Breach of Representations and Warranties; Repurchase Obligation...............17

ARTICLE V Covenants and Warranties of Seller.....................................................................18

   Section 5.01.      Affirmative Covenants......................................................................18
   Section 5.02.      Negative Covenants.........................................................................20

ARTICLE VI Sale of Mortgage Loans from the Purchaser to the Trust................................................20

   Section 6.01.      Sale and Servicing Agreement...............................................................20

ARTICLE VII Seller's Servicing Obligations.......................................................................22

   Section 7.01.      Seller's Servicing Obligations.............................................................22

ARTICLE VIII Fees and Expenses...................................................................................22

ARTICLE IX Termination; Additional Remedies......................................................................22

ARTICLE X Payment of Purchase Price..............................................................................23

   Section 10.01.     Purchase Price Payments....................................................................23
   Section 10.02.     The Purchaser Note.........................................................................23

ARTICLE XI Confidentiality.......................................................................................24

ARTICLE XII Term ................................................................................................24

ARTICLE XIII Exclusive Benefit of Parties; Assignment............................................................24

                                                     i

<PAGE>

ARTICLE XIV Amendment; Waivers...................................................................................25

ARTICLE XV Execution in Counterparts.............................................................................25

ARTICLE XVI Effect of Invalidity of Provisions...................................................................25

ARTICLE XVII Governing Law.......................................................................................25

ARTICLE XVIII Notices............................................................................................26

ARTICLE XIX Entire Agreement.....................................................................................26

ARTICLE XX Indemnities...........................................................................................26

ARTICLE XXI RESPA Obligations....................................................................................27

ARTICLE XXII Survival ...........................................................................................28

ARTICLE XXIII Right of Set-off...................................................................................28

ARTICLE XXIV Consent to Service..................................................................................28

ARTICLE XXV Submission to Jurisdiction; Waiver of Trial by Jury..................................................28

ARTICLE XXVI Construction........................................................................................29

ARTICLE XXVII Further Agreements.................................................................................29

EXHIBIT A             Form of Non-Negotiable GreenPoint Mortgage Securities Inc.
                      Promissory Note

SCHEDULE I:           Mortgage Loan Schedule
</TABLE>

                                                        ii

<PAGE>

  MORTGAGE LOAN PURCHASE AGREEMENT ("Agreement") dated as of September 1, 2000
between GreenPoint Mortgage Funding, Inc., a New York corporation ("Seller"),
and GreenPoint Mortgage Securities Inc., a Delaware corporation ("Purchaser").

  WHEREAS, Seller desires to sell to Purchaser the Mortgage Loans (as
hereinafter defined), and Purchaser desires to purchase such Mortgage
Loans in accordance with the terms and conditions set forth in this Agreement.

  NOW, THEREFORE, the parties, in consideration of good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
and intending to be legally bound, hereby agree as follows:

                                    ARTICLE I

                                   Definitions

   All capitalized terms used in this Agreement and not otherwise defined
herein, shall have the meanings assigned thereto in Annex A to the
Pooling Agreement dated as of September 1, 2000, between the Issuer and the
Trustee, as the same may be amended and supplemented from time to time.

                                    ARTICLE II

  Procedures for Purchase of Mortgage Loans; Conditions Precedent; Settlements

  Section 2.01. Purchase and Sale. (a) On the Closing Date in consideration for
the Purchase Price the Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Purchaser, without recourse, all of its right, title
and interest in, to and under, whether now existing or hereafter created, (i)
each Mortgage Loan, including its Principal Balance (and any Additional
Balances) and all collections in respect thereof received on or after the
Cut-Off Date; (ii) property that secured a Mortgage Loan that is acquired by
foreclosure or deed in lieu of foreclosure; (iii) the Seller's rights under the
hazard insurance policies; and (iv) all proceeds with respect to the foregoing.
The Purchase Price on the Closing Date shall be payable in a combination of cash
and credit for a capital contribution made to the Purchaser by the Seller.

     (b) To the extent that the fair market value of any Additional Balance
is greater than the cash consideration paid by the Purchaser for such Additional
Balance, the difference between such fair market value and the amount of such
cash consideration shall be deemed to be a combination of a credit for a capital
contribution made to the Purchaser by the Seller and an increase in the
principal amount of the Purchaser Notes pursuant to Article X.

  Section 2.02. Delivery of Documents; Purchase of Mortgage Loans.  Prior to the
purchase of the Mortgage Loans:

     (a) Seller shall have delivered to the Purchaser or any agent appointed
by the Purchaser the Mortgage File for each of the Mortgage Loans.

<PAGE>

     (b) Purchaser shall have received a Mortgage Loan Schedule pertaining to
the related Mortgage Loans.

     (c) Purchaser shall have received copies of the resolutions of the Board of
Directors of Seller, certified by its respective Secretary, approving this
Agreement.

     (d) Purchaser shall have received the Certificate of Incorporation of
Seller certified by the Secretary of State of the State of New York.

     (e) Purchaser shall have received a certificate of the Secretary or
Assistant Secretary of Seller certifying (i) the names and signatures of the
officers authorized on its behalf to execute this Agreement, and any other
documents to be delivered by it hereunder and (ii) a copy of Seller's By-laws.

     (f) Purchaser shall have received an opinion of counsel to Seller as to
the due authorization, execution and delivery by the Seller of this Agreement
and as to the validity and enforceability of the transfers contemplated
hereunder and addressing such other matters as the Purchaser may reasonably
request.

     (g) Seller shall have instructed the applicable debtor, trustee, paying
agent, authenticating agent, transfer agent, registrar, predecessor in interest,
owner (if the Mortgage Loans are in the form of a security agreement), or
servicer, if any, in respect of the related Mortgage Loans to reflect on their
books and records the transfer of such Mortgage Loans to Purchaser, as owner or
secured party (if the Mortgage Loans are in the form of a security agreement).

     (h) Purchaser shall have received the most recent available standard
servicing or lien reports in summary form, if any, with respect to all of the
mortgages in Seller's portfolio similar to the Mortgage Loans.

     (i) The Purchaser shall be permitted to perform its standard loan review
of each Mortgage Loan to be purchased.

     (j) UCC-1 financing statements duly executed by Seller as debtor shall
have been filed in California and New York naming the Purchaser as secured party
and the Trustee on behalf of the Trust as assignee.

  Section 2.03. Survival of Representations. The terms and conditions of the
purchase of each Mortgage Loan shall be as set forth in this Agreement. Seller
will be deemed on the Closing Date to have made to Purchaser the representations
and warranties set forth in Article IV hereof and such representations and
warranties of Seller shall be true and correct on and as of the Closing Date.

  Section 2.04. Proceeds of Mortgage Loans. The transfer and sale hereby of all
of the Seller's right, title and interest in and to each Mortgage Loan shall
include all proceeds, products and profits derived therefrom, including, without
limitation, all scheduled payments of principal of and interest on such Mortgage
Loans and other amounts due or payable or to become

                                       2

<PAGE>

due or payable in respect thereof and proceeds thereof, including, without
limitation, all moneys, goods and other tangible or intangible property received
upon the liquidation or sale thereof.

  Section 2.05. Defective Mortgage Loans. If any Mortgage Loan is re-transferred
to the Purchaser pursuant to Section 2.03 of the Sale and Servicing Agreement,
the Seller shall, at the Purchaser's option, either (a) repurchase such Mortgage
Loan at the Repurchase Price, or (b) provide an Eligible Substitute Mortgage
Loan if the Seller has any such loans available for sale at the time, subject to
the terms and conditions of the Sale and Servicing Agreement.

                                ARTICLE III

                      Intent of Parties; Security Interest

  Section 3.01. Intent of Parties; Security Interest. Purchaser and Seller
confirm that the transactions contemplated herein are intended as purchases and
sales rather than as loan transactions. In the event, for any reason, and solely
in such event, any transaction hereunder is construed by any court or regulatory
authority as a loan or other purchase and sale of the related Mortgage Loans,
Seller shall be deemed to have hereby pledged to Purchaser as security for the
performance by Seller of all of its obligations from time to time arising
hereunder and under any and all Purchases effected pursuant thereto, and shall
be deemed to have granted to Purchaser a security interest in, the related
Mortgage Loans and all distributions in respect thereof, and the proceeds of any
and all of the foregoing whether now owned or hereafter acquired, (collectively,
the "Collateral"). In furtherance of the foregoing, (i) this Agreement shall
constitute a security agreement, (ii) Purchaser shall have all of the rights of
a secured party with respect to the Collateral pursuant to applicable law and
(iii) Seller shall execute all documents, including, but not limited to,
financing statements under the Uniform Commercial Code as in effect in any
applicable jurisdictions, as the Purchaser may reasonably require to effectively
perfect and evidence Purchaser's first priority security interest in the
Collateral. Seller also covenants not to pledge, assign or grant any security
interest to any other party in any Mortgage Loan sold to Purchaser.

                               ARTICLE IV

                         Representations and Warranties

  Section 4.01. Representations and Warranties of Seller. The Seller represents,
warrants and covenants to the Purchaser (i) as of the Closing Date and (ii) on
each date on which any Mortgage Loans are transferred from the Seller to the
Purchaser pursuant to Article II hereof, that:

      (i) the Seller is duly organized, validly existing and in good standing
   under the laws of the State of New York and is duly authorized and qualified
   to transact any and all business contemplated by this Agreement to be
   conducted by the Seller in any state in which a Mortgaged Property is located
   to the extent necessary to ensure the enforceability of each Mortgage Loan
   and the servicing of the Mortgage Loan in accordance with the terms of this
   Agreement;

                                        3

<PAGE>

      (ii) the Seller has the full corporate power and authority to service each
   Mortgage Loan, and to execute, deliver and perform, and to enter into and
   consummate the transactions contemplated by this Agreement and the execution,
   delivery and performance of this Agreement by the Seller has been duly
   authorized by all necessary corporate action on the part of the Seller; and
   this Agreement, assuming the due authorization, execution and delivery
   thereof by the Purchaser, constitutes a legal, valid and binding obligation
   of the Seller, enforceable against the Seller in accordance with its
   respective terms, except to the extent that (a) the enforceability thereof
   may be limited by federal or state bankruptcy, insolvency, moratorium,
   receivership and other similar laws relating to creditors' rights generally
   and (b) the remedy of specific performance and injunctive and other forms of
   equitable relief may be subject to the equitable defenses and to the
   discretion of the court before which any proceeding therefor may be brought;

      (iii)the execution and delivery of this Agreement by the Seller, the
   servicing of the Mortgage Loans by the Seller hereunder, the consummation by
   the Seller of the transactions herein contemplated, and the fulfillment by
   the Seller of or compliance by the Seller with the terms hereof will not (A)
   result in a breach of any term or provision of the charter or by-laws of the
   Seller or (B) conflict with, result in a breach, violation or acceleration
   of, or result in a default under, the terms of any other material agreement
   or instrument to which the Seller is a party or by which it may be bound, or
   any statute, order or regulation applicable to the Seller of any court,
   regulatory body, administrative agency or governmental body having
   jurisdiction over the Seller, which breach, violation, default or
   non-compliance would have a material adverse effect on (a) the business,
   operations, financial condition, properties or assets of the Seller taken as
   a whole or (b) the ability of the Seller to perform its obligations under
   this Agreement; and the Seller is not a party to, bound by, or in breach or
   violation of any material indenture or other material agreement or
   instrument, or subject to or in violation of any statute, order or regulation
   of any court, regulatory body, administrative agency or governmental body
   having jurisdiction over it, which materially and adversely affects or, to
   the Seller's knowledge, would in the future reasonably be expected to
   materially and adversely affect, (x) the ability of the Seller to perform its
   obligations under this Agreement or (y) the business, operations, financial
   condition, properties or assets of the Seller taken as a whole;

      (iv) the Seller is, and currently intends to remain, in good standing and
   qualified to do business in each jurisdiction where failure to be so
   qualified or licensed would have a material adverse effect on (a) the
   business, operations, financial condition, properties or assets of the Seller
   taken as a whole or (b) the enforceability of any Mortgage Loan or the
   servicing of the Mortgage Loans in accordance with the terms of this
   Agreement;

      (v) there is no litigation pending or, to the Seller's best knowledge,
   threatened against the Seller that would materially and adversely affect the
   execution, delivery or enforceability of this Agreement or the ability of the
   Seller to service the Mortgage Loans or for the Seller to perform any of its
   other obligations hereunder in accordance with the terms hereof;

      (vi) no consent, approval, authorization or order of any court or
   governmental agency or body is required for the execution, delivery and
   performance by the Seller of, or

                                        4

<PAGE>

    compliance by the Seller with, this Agreement or the consummation of
    the transactions contemplated hereby, or if any such consent,
    approval, authorization or order not relating to a future transaction
    is required, the Seller has obtained the same;

      (vii)the Seller has caused to be performed any and all acts required to
   preserve the rights and remedies of the Purchaser in any insurance policies
   of the Seller or a mortgagee applicable to the Mortgage Loans sold by the
   Seller; and

      (viii) the Seller is solvent and will not be rendered insolvent by the
   transactions described herein and, after giving effect to the transactions
   described herein, the Seller will not be left with an unreasonably small
   amount of capital with which to engage in the ordinary course of its
   business, and the Seller does not intend to incur, nor does the Seller
   believe that it has incurred, debts beyond its ability to pay as they mature.
   The Seller does not contemplate the commencement of insolvency, liquidation
   or consolidation proceedings or the appointment of a receiver, liquidator,
   conservator, trustee or similar official in respect of the Seller or any of
   its respective assets.

  Section 4.02. Representations  and Warranties  Regarding  Mortgage  Loans.
(a) Seller  represents and warrants to  Purchaser  with respect to each
Mortgage Loan (i) as of the Closing Date and (ii) on the  applicable  Transfer
Date as follows:

      (i) As of the Closing Date with respect to the Mortgage Loans and as of
   the related Transfer Date with respect to any Eligible Substitute Mortgage
   Loans and with respect to any HELOC Mortgage Loan, as of the date any
   Additional Balance is created, the information set forth in the Mortgage Loan
   Schedule for such Mortgage Loans is true and correct in all material
   respects;

      (ii) Each Mortgage Loan is being serviced by the Servicer;

      (iii)The applicable Cut-Off Date Principal Balance has not been assigned
   or pledged, and the Seller is the sole owner and holder of such Cut-Off Date
   Principal Balance free and clear of any and all liens, claims, encumbrances,
   participation interests, equities, pledges, charges or security interests of
   any nature, and has full right and authority, under all governmental and
   regulatory bodies having jurisdiction over the ownership of the applicable
   Mortgage Loans, to sell, assign or transfer the same pursuant to this
   Agreement and upon its acquisition of the Mortgage Loans, the Purchaser will
   be the sole owner of the Cut-Off Date Principal Balance free and clear of any
   and all liens claims, encumbrances, participating interests, equities,
   pledges, charges, or security interests of any nature;

      (iv) Except with respect to liens released immediately prior to the
   transfer herein contemplated, each Credit Line Agreement and each Mortgage
   Note and related Mortgage has not been assigned or pledged and immediately
   prior to the transfer and assignment herein contemplated, the Seller held
   good, marketable and indefeasible title to, and was the sole owner and holder
   of, each Mortgage Loan subject to no liens, charges, mortgages, claims,
   participation interests, equities, pledges or security interests of any
   nature, encumbrances or rights of others (collectively, a "Lien"); the Seller
   has full right and authority under all governmental and regulatory bodies
   having jurisdiction over the Seller,

                                     5

<PAGE>

   subject to no interest or participation of, or agreement with, any party,
   to sell and assign the same pursuant to this Agreement; and immediately upon
   the transfers and assignments herein contemplated, the Seller shall have
   transferred all of its right, title and interest in and to each Mortgage Loan
   and the Purchaser will hold good, marketable and indefeasible title, to, and
   be the sole owner of, each Mortgage Loan subject to no Liens;

      (v) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, the related Mortgage is a valid and subsisting first or second lien,
   as set forth on the Mortgage Loan Schedule with respect to each related
   Mortgaged Property, and as of the applicable Cut-Off Date the related
   Mortgaged Property is free and clear of all encumbrances and liens having
   priority over the first or second lien, as applicable, of such Mortgage
   except for liens for (i) real estate taxes and special assessments not yet
   delinquent; (ii) any first mortgage loan secured by such Mortgaged Property
   and specified on the Mortgage Loan Schedule; (iii) covenants, conditions and
   restrictions, rights of way, easements and other matters of public record as
   of the date of recording that are acceptable to mortgage lending institutions
   generally or specifically reflected in the appraisals; and (iv) other matters
   to which like properties are commonly subject which do not materially
   interfere with the benefits of the security intended to be provided by such
   Mortgage;

      (vi) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, there is no valid right to rescission offset, defense (including the
   defense of usury) or counterclaim of any obligor under any Loan Agreement or
   Mortgage;

      (vii)As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, there is no delinquent recording or other tax or fee or assessment
   lien against any related Mortgaged Property;

      (viii) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, there is no proceeding pending or threatened for the total or partial
   condemnation of any Mortgaged Property, nor is such a proceeding currently
   occurring, and such property is in good repair and is undamaged by waste,
   fire, earthquake or earth movement, windstorm, flood, tornado or other
   casualty, so as to affect adversely the value of the Mortgaged Property as
   security for the Mortgage Loan or the use for which the premises were
   intended;

      (ix) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, there are no mechanics' or similar liens or claims which have been
   filed for work, labor or material affecting the related Mortgaged Property
   which are, or may be, liens prior or equal to the lien of the related
   Mortgage, except liens which are fully insured against by the title insurance
   policy or other title protection referred to in clause (xiv);

      (x) No Minimum Monthly Payment is more than 59 days delinquent (measured
   on a contractual basis);

                                      6

<PAGE>

      (xi) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, for each Mortgage Loan, the related Mortgage File contains each of the
   documents and instruments specified to be included therein;

      (xii)The related Loan Agreement and the related Mortgage at origination
   complied in all material respects with applicable state and federal laws,
   including, without limitation, usury, truth-in-lending, real estate
   settlement procedures, consumer credit protection, equal credit opportunity,
   recording or disclosure laws applicable to the Mortgage Loans and
   consummation of the transactions contemplated hereby, including without
   limitation the receipt of interest, will not involve the violation or such
   laws;

      (xiii) On the Closing Date with respect to the Mortgage Loans and to the
   extent not already included in such filing, on the applicable Transfer Date
   with respect to any Eligible Substitute Mortgage Loans, the Seller has filed
   UCC-1 financing statements with respect to such Mortgage Loans;

      (xiv)A lender's policy of title insurance, expressClose.com lender master
   protection program (standard mortgage guaranty) or a commitment (binder) to
   issue the same or an attorney's certificate or opinion of title was effective
   on the date of the origination of each mortgage loan and each such policy or
   certificate or opinion of title is valid and remains in full force and
   effect;

      (xv) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, none of the Mortgaged Properties is a mobile home or a manufactured
   housing unit;

      (xvi)As of the Cut-Off Date for the Mortgage Loans no more than (a) 0.83%
   of the Pool I Mortgage Loans (by Pool I Balance), or (b) 2.58% of the Pool II
   Mortgage Loans (by Pool II Balance) are secured by Mortgaged Properties
   located in one United States postal zip code;

      (xvii) The Combined Loan-to-Value Ratio for each Pool I Mortgage Loan was
   not in excess of 100% and the Combined Loan-to-Value Ratio for each Pool II
   Mortgage Loan was not in excess of 100%;

      (xviii) Each Pool I Mortgage Loan conforms to all applicable loan
   origination standards with respect to loan balances as of the date of
   origination set forth by Freddie Mac.

      (xix)No selection procedure reasonably believed by the Seller to be
   adverse to the interests of the Securityholders, the Insurer or Freddie Mac
   was utilized in selecting the Mortgage Loans for sale to the Purchaser,
   provided, however, that the Mortgage Loans were selected from the pool of
   mortgage loans originated in connection with the Seller's mortgage loan
   origination program;

      (xx) The Seller has not transferred the Mortgage Loans to the Purchaser
   with any intent to hinder, delay or defraud any of its creditors;

                                    7

<PAGE>

      (xxi)The Minimum Monthly Payment with respect to any Mortgage Loan is not
   less than the interest accrued at the applicable Loan Rate on the average
   daily Principal Balance during the interest period relating to the date on
   which such Minimum Monthly Payment is due;

      (xxii) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, each Loan Agreement and each Mortgage Loan is genuine and is a legal,
   valid and binding obligation and is an enforceable obligation of the related
   Mortgagor, except as the enforceability thereof may be limited by the
   bankruptcy, insolvency or similar laws affecting creditors' rights generally;

      (xxiii) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, there has been no default, breach, violation or event of acceleration
   of any senior mortgage loan related to a Mortgaged Property that has not been
   cured by a party other than the Servicer;

      (xxiv) The terms of each Mortgage Note and each Mortgage have not been
   impaired, altered or modified in any respect, except by a written instrument
   which (if such instrument is secured by real property) has been recorded, if
   necessary, to protect the interest of the Securityholders and which has been
   delivered to the Trustee. The substance of any such alteration or
   modification is reflected on the related Mortgage Loan Schedule and has been
   approved by the primary mortgage guaranty insurer, if any;

      (xxv)The definition of "prime rate" in each Credit Line Agreement relating
   to a HELOC Mortgage Loan does not differ materially from the definition in
   the form of Credit Line Agreement in Exhibit D to the Sale and Servicing
   Agreement;

      (xxvi) The weighted average remaining term to maturity of the Pool I
   Mortgage Loans on a contractual basis as of the related Cut-Off Date is
   approximately 205 months and for the Pool II Mortgage Loans is approximately
   203 months. On each date that the Loan Rates relating to HELOC Mortgage Loans
   have been adjusted, interest rate adjustments on the HELOC Mortgage Loans
   were made in compliance with the related Mortgages and Credit Line Agreement
   and applicable law. Over the term of each HELOC Mortgage Loan, the Loan Rate
   may not exceed the related Loan Rate Cap, if any. With respect to the Pool I
   HELOC Mortgage Loans, the weighted average Loan Rate Cap is approximately
   18.00%. With respect to the Pool II HELOC Mortgage Loans, the weighted
   average Loan Rate Cap is approximately 18.00%. With respect to the Pool I
   HELOC Mortgage Loans, the margins range between 0.00% and 8.00% and the
   weighted average margin is approximately 2.96% as of the related Cut-Off
   Date. With respect to the Pool II HELOC Mortgage Loans, the margins range
   between 0.00% and 6.52% and the weighted average margin is approximately
   3.01% as of the related Cut-Off Date. The Loan Rates on the Pool I Mortgage
   Loans range between 2.48% and 16.27%, the Loan Rates on the Pool II Mortgage
   Loans range between 5.85% and 16.02% and the weighted average Loan Rate is
   approximately 9.15% for Pool I and 9.95% for Pool II;

                                         8

<PAGE>

      (xxvii) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loans, each Mortgaged Property consists of a single parcel of real property
   with a one-to-four unit single family residence erected thereon, or an
   individual condominium unit, planned unit development unit or townhouse;

      (xxviii) No more than 27.91% (by Pool I Balance) of the Pool I Mortgage
   Loans are secured by real property improved by individual condominium units,
   planned development units or two-to-four family residences erected thereon,
   and approximately 72.09% (by Pool I Balance) of the Pool I Mortgage Loans are
   secured by real property with a one-family residence erected thereon. No more
   than 28.89% (by Pool II Balance) of the Pool II Mortgage Loans are secured by
   real property improved by individual condominium units, planned development
   units or two-to-four family residences erected thereon, and approximately
   71.11% (by Pool II Balance) of the Pool II Mortgage Loans are secured by real
   property with a one-family residence erected thereon;

      (xxix) Each Mortgage Note evidencing a Closed End Mortgage Loan is
   comprised of one original promissory note and each such promissory note
   constitutes an "instrument" for purposes of Section 9-105(1)(i) of the UCC.
   There is no obligation on the part of the Seller or any other party to make
   payments in addition to those made by the Mortgagor with respect to the
   Closed End Mortgage Loans;

      (xxx)The Credit Limits on the Pool I HELOC Mortgage Loans range between
   $7,500.00 and $316,000.00 with an average of approximately $66,400.00. The
   Credit Limits on the Pool II HELOC Mortgage Loans range between $3,800.00 and
   $700,000.00 with an average of approximately $99,760.00. The Principal
   Balances on the Pool I HELOC Mortgage Loans range between $0.00 and
   $280,197.00 with an average of approximately $50,800.00. The Principal
   Balances on the Pool II HELOC Mortgage Loans range between $0.00 and
   $700,000.00 with an average of approximately $63,000.00. The Principal
   Balances on the Pool I Closed End Mortgage Loans range between $9,900.00 and
   $125,000.00 with an average of approximately $41,000.00. The average Credit
   Limit Utilization Rate (weighted by credit line) of the Pool I HELOC Mortgage
   Loans is approximately 76.96% and of the Pool II HELOC Mortgage Loans is
   approximately 69.42%;

      (xxxi) Substantially all of the Mortgage Loans are second liens, and
   either (A) no consent for each Mortgage Loan was required by the holder of
   the related senior lien, if any, prior to the making of such Mortgage Loan or
   (B) such consent has been obtained and is contained in the related Mortgage
   File;

      (xxxii) This Agreement constitutes a valid transfer and assignment to the
   Purchaser of all right, title and interest of the Seller in and to the
   Cut-Off Date Principal Balances with respect to the applicable Mortgage
   Loans, all monies due or to become due with respect thereto and all proceeds
   of such Cut-Off Date Principal Balances with respect to the Mortgage Loans
   and such funds as are from time to time deposited in the Collection Account
   (excluding any investment earnings thereon) and all other property specified
   in the definition of "Trust" as being part of the corpus of the Trust
   conveyed to the Trust, and upon payment for the Additional Balances, will
   constitute a valid transfer and assignment to the

                                      9

<PAGE>

   Purchaser of all right, title and interest of the Seller in and to the
   Additional Balances, all monies due or to become due with respect thereto,
   and all proceeds of such Additional Balances and all other property specified
   in the definition of "Trust" relating to the Additional Balances;

      (xxxiii) As of the Closing Date, no Mortgage Loan is the subject of
   foreclosure proceedings and, to the best of the Seller's knowledge, no
   obligor of any of the Mortgage Loans has filed for bankruptcy protection;

      (xxxiv) The proceeds of each Closed End Mortgage Loan have been fully
   disbursed, and there is no obligation on the part of the mortgagee to make
   future advances thereunder. Any and all requirements as to completion of any
   on-site or off-site improvements and as to disbursements of any escrow funds
   therefor have been complied with. All costs, fees and expenses incurred in
   making or closing or recording such Closed End Mortgage Loans were paid;

      (xxxv) Each Mortgage contains customary and enforceable provisions which
   render the rights and remedies of the holder thereof adequate for the
   realization against the related Mortgaged Property of the benefits of the
   security, including (A) in the case of a Mortgage designated as a deed of
   trust, by trustee's sale and (B) otherwise by judicial foreclosure. Subject
   to applicable state law, there is no homestead or other exemption available
   to the Mortgagor which would materially interfere with the rights to sell the
   Mortgaged Property at a trustee's sale or the right to foreclose upon the
   related Mortgage;

      (xxxvi) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loan, except for events permissible under Section 4.02(a)(x) of this
   Agreement, there is no default, breach, violation or event of acceleration
   existing under any Mortgage or the related Mortgage Note and no event which,
   with the passage of time or with notice and the expiration of any grace or
   cure period, would constitute a default, breach, violation or event of
   acceleration; and the Seller has not waived any default, breach, violation or
   event of acceleration;

      (xxxvii) To the best knowledge of the Seller, all parties to the Mortgage
   Note and the Mortgage had legal capacity to execute the Mortgage Note and the
   Mortgage and each Mortgage Note and Mortgage have been duly and properly
   executed by such parties; Each Mortgage and Mortgage Note is the legal, valid
   and binding obligation of the related Mortgagor and is enforceable by the
   Purchaser or any transferor of the Purchaser against the Mortgagor in
   accordance with its terms, except only as such enforcement may be limited by
   bankruptcy, insolvency, reorganization, moratorium or other similar laws
   affecting the enforcement of creditors' rights generally and by law;

      (xxxviii) As of the Cut-Off Date no more than 0.10% of the Principal
   Balance of the Pool I Mortgage Loans nor more than 0.45% of the Principal
   Balance of the Pool II Mortgage Loans represents Mortgage Loans with respect
   to which the related Mortgagor had a Credit Score of 600 or less at the time
   of origination or whose Credit Score was unavailable.

                                   10

<PAGE>

      (xxxix) As of the Closing Date with respect to the Mortgage Loans and the
   applicable Transfer Date with respect to any Eligible Substitute Mortgage
   Loan, no Mortgagor has been released, in whole or in part, except in
   connection with an assumption agreement which has been approved by the
   applicable title insurer (to the extent required by such title insurer) and
   which is part of the Mortgage File delivered to the Trustee;

      (xl) At the time of origination of each Mortgage Loan, the related prior
   lien was not more than 30 days delinquent. Additionally, as of the Closing
   Date, no senior mortgage loan on the related Mortgaged Property was more than
   59 days delinquent;

      (xli)All required inspections, licenses and certificates with respect to
   the use and occupancy of all occupied portions of all property securing the
   Mortgages have been made, obtained or issued, as applicable;

      (xlii) If the improvements securing a Mortgage Loan were in a federally
   designated special flood hazard area as of the date of origination, flood
   insurance to the extent required in Section 3.04 of the Sale and Servicing
   Agreement covers the related Mortgaged Property (either by coverage under the
   federal flood insurance program or by coverage by private insurers);

      (xliii) With respect to each Mortgage Loan, the related prior lien does
   not provide for negative amortization;

      (xliv) With respect to each Mortgage Loan, the maturity date of the
   Mortgage Loan is prior to the maturity date of the related prior lien if such
   prior lien provides for a balloon payment;

      (xlv)All amounts received after the Cut-Off Date with respect to the
   Mortgage Loans to which the Seller is not entitled will be deposited into the
   Collection Account within one Business Day after the Closing Date;

      (xlvi) Each Pool I Mortgage Loan is secured by a property having an
   appraised value as of origination of $3,600,000 or less and each Pool II
   Mortgage Loan is secured by a property having an appraised value as of
   origination of $5,300,000 or less;

      (xlvii) Except for events permissible under Section 4.02(a)(x) of this
   Agreement, there are no defaults in complying with the terms of the Mortgage,
   and either (1) any taxes, governmental assessments, insurance premiums,
   water, sewer and municipal charges or ground rents which previously became
   due and owing have been paid, or (2) an escrow of funds has been established
   in an amount sufficient to pay for every such item which remains unpaid and
   which has been assessed but is not yet due and payable. There are no defaults
   in complying with the terms of any senior mortgage on the related Mortgaged
   Property that have not been cured by anyone other than the Servicer. Except
   for payments in the nature of escrow payments, including without limitation,
   taxes and insurance payments, the Seller has not advanced funds, or induced,
   solicited or knowingly received any advance of funds by a party other than
   the Mortgagor, directly or indirectly, for the payment of any amount required
   by the Mortgage Note, except for interest accruing from the date of the
   Mortgage Note or

                                        11

<PAGE>

   date of disbursement of the Mortgage proceeds, whichever is greater, to
   the day which precedes by one month the Due Date of the first installment of
   principal and interest;

      (xlviii) With respect to each Mortgage Loan, the improvements upon each
   Mortgaged Property are covered by a valid and existing hazard insurance
   policy with a carrier generally acceptable to the Servicer that provides for
   fire and extended coverage representing coverage not less than (a) the Credit
   Limit of such HELOC Mortgage Loan or (b) the Cut-Off Date Principal Balance
   of such Closed End Mortgage Loan or (c) the maximum insurable value of the
   Mortgaged Property;

      (xlix) No misrepresentation of a material fact or fraud in respect of the
   origination, modification or amendment of any Mortgage Loan has taken place
   on the part of any person, including, without limitation, the related
   Mortgagor, any appraiser, any builder or developer or any party involved in
   the origination of such Mortgage Loan;

      (l) With respect to the Pool I Mortgage Loans, the terms of the Mortgage
   Note and the Mortgage have not been impaired, altered or modified in any
   material respect, except by a written instrument which has been recorded or
   is in the process of being recorded, if necessary, to protect the interests
   of the Purchaser and which has been or will be delivered to the Trustee on
   behalf of the Purchaser;

      (li) As of the Cut-Off Date, no Mortgage Loan is 30 or more days
   delinquent in payment of principal and interest. In addition, none of the
   Mortgage Loans have been 30 or more days delinquent in the last 12 months and
   none of the Mortgage Loans have been 30 or more days delinquent for two
   payment periods in the last 12 months;

      (lii)With respect to the Pool I Mortgage Loans, approximately 15.22% of
   the Mortgage Loans, as of the Closing Date, are fixed rate fully amortizing
   Mortgage Loans having an original term to maturity from the date on which the
   first monthly payment is due of not more than 30 years. Each Mortgage Note
   with respect to a fixed rate and balloon Mortgage Note will provide for a
   schedule of substantially level and equal Monthly Payments which are
   sufficient to amortize fully the principal balance of such Mortgage Loan over
   a period of time equal to the amortization period of such Mortgage Note;
   provided, however, that certain Mortgage Loans constituting approximately
   7.91% of the Cut-Off Date Aggregate Loan Balance are balloon loans that
   provide for final monthly payment substantially greater than the preceding
   monthly payments. All such balloon loans provide for monthly payment based
   upon a 30 year amortization schedule with a final balloon payment no later
   than the 15th year.

      (liii) Except for Mortgage Loans that are delinquent for a time period
   less than that set forth in (li) above, there is no default, breach,
   violation or event of acceleration existing under any Mortgage or the related
   Mortgage Note and no event which, with the passage of time or with notice and
   the expiration of any grace or cure period, would constitute a default,
   breach, violation or event of acceleration; and neither the Seller, nor any
   other entity involved in originating or servicing a Mortgage Loan, has waived
   any default, breach, violation or event of acceleration;

                                      12

<PAGE>

      (liv) None of the Mortgage Loans are cooperative share mortgages;

      (lv) Each appraisal of a Mortgage Loan that was used to determine the
   appraised value of the related Mortgaged Property was conducted generally in
   accordance with the Seller's mortgage loan origination program(s) and
   customary industry standards and included an assessment of the fair market
   value of the related mortgaged property at the time of the appraisal. The
   Mortgage File contains an appraisal of the applicable Mortgaged Property;

      (lvi)All individual insurance policies contain a standard mortgagee clause
   naming the Seller, its successors and assigns, as mortgagee. All premiums
   thereon have been paid. Each Mortgage obligates the Mortgagor thereunder to
   maintain all such insurance at the Mortgagor's cost and expense, and upon the
   Mortgagor's failure to do so, authorizes the holder of the Mortgage to obtain
   and maintain such insurance at the Mortgagor's cost and expense and to seek
   reimbursement therefor from the Mortgagor;

      (lvii) Any advances made after the date of origination of a Mortgage Loan
   but prior to the Cut-Off Date have been consolidated with the outstanding
   principal amount secured by the related Mortgage, and the secured principal
   amount, as consolidated, bears a single interest rate and single repayment
   term reflected on the Mortgage Loan Schedule. The consolidated principal
   amount does not exceed the original principal amount of the related Mortgage
   Loan;

      (lviii) No improvement located on or being part of any Mortgaged Property
   is in violation of any applicable zoning law or regulation. All inspections,
   licenses and certificates required to be made or issued with respect to all
   occupied portions of each Mortgaged Property and, with respect to the use and
   occupancy of the same, including but not limited to certificates of occupancy
   and fire underwriting certificates, have been made or obtained from the
   appropriate authorities and such Mortgaged Property is lawfully occupied
   under the applicable law and all improvements which were included for the
   purpose of determining the appraised value of the Mortgaged Property lie
   wholly within the boundaries and building restriction lines of such property,
   and no improvements on adjoining property encroach upon the Mortgage
   Property;

      (lix)The proceeds of each fixed rate and balloon Mortgage Loan have been
   fully disbursed and there is no obligation on the part of the mortgagee to
   make future advances thereunder and any and all requirements as to completion
   of any on-site or off-site improvements and as to disbursement of any escrow
   funds therefor have been complied with. All costs, fees and expenses incurred
   in making, closing or recording the Mortgage Loans were paid and the
   Mortgagor is not entitled to any refund of amounts paid or due under the
   Mortgage Note;

      (lx) No Mortgage Loan has a shared appreciation feature, or other
   contingent interest feature;

      (lxi)All parties which have had any interest in the Mortgage Loan, whether
   as originator, mortgagee, assignee, pledgee or otherwise, are (or, during the
   period in which

                                     13

<PAGE>

   they held and disposed of such interest, were): (A) organized under the
   laws of such state, or (B) qualified to do business in such state, or (C)
   federal savings and loan associations or national banks having principal
   offices in such state, or (D) not doing business in such state so as to
   require qualification or licensing, or (E) not otherwise required or licensed
   in such state. To the best of Seller's knowledge, all parties which have had
   any interest in the Mortgage Loan were in compliance with any and all
   applicable licensing requirements of the laws of the state wherein the
   Mortgaged Property is located or were not required to be licensed in such
   state;

      (lxii) Each document or instrument in the related Mortgage File is in a
   form generally acceptable to prudent mortgage lenders that regularly
   originate or purchase mortgage loans comparable to the Mortgage Loans for
   sale to prudent investors in the secondary market that invest in mortgage
   loans such as the Mortgage Loans;

      (lxiii) Each original Mortgage was recorded and all subsequent assignments
   of the original Mortgage (other than the assignment to the Purchaser) have
   been recorded in the appropriate jurisdictions wherein such recordation is
   necessary to perfect the lien thereof as against creditors of the Seller, or
   is in the process of being recorded;

      (lxiv) No Mortgage Loan was originated under a buydown plan;

      (lxv)No Mortgage Loan is subject to the requirements of the Home Ownership
   and Equity Protection Act of 1994 ("HOEPA") or is in violation of any state
   or municipal law comparable to HOEPA;

      (lxvi) The Servicer for each Mortgage Loan has accurately and fully
   reported its borrower credit files to each of the credit repositories in a
   timely manner;

      (lxvii) No proceeds from any Mortgage Loan were used to purchase
   single-premium credit insurance policies;

      (lxviii) No Mortgage Loan has a prepayment penalty term longer than three
   years after its origination;

      (lxix) Each Mortgage Loan conforms, and all Mortgage Loans in the
   aggregate conform, in all material respects, to the descriptions thereof set
   forth in the Information Circular and the Prospectus Supplement;

      (lxx) Each Mortgage Loan was originated on or after December 23, 1998;

      (lxxi) The Seller represents and warrants that the Seller currently
   operates or actively participates in an on-going business (A) to originate
   single family mortgage loans ("Loans"), and/or (B) to make periodic purchases
   of Loans from originators or sellers, and/or (C) to issue and/or purchase
   securities or bonds supported by the Loans, a portion of which Loans are made
   to borrowers who are:

                (a) low-income families (families with incomes of 80% or less of
                area median income) living in low-income areas (a census
                tract or

                                       14

<PAGE>

                block numbering area in which the median income
                does not exceed 80 percent of the area median income); or

                (b) very low-income families (families with incomes of 60% or
                less of area median income).

      (lxxii) Each Mortgage contains a provision for the acceleration of the
   payment of the unpaid principal balance of the related Mortgage Loan in the
   event the related Mortgaged Property is sold without the prior consent of the
   mortgagee thereunder;

      (lxxiii) With respect to the Pool I Mortgage Loans, to the best of
   Seller's knowledge, no Mortgage Loan that is a second-lien Mortgage Loan has
   a principal balance as of the applicable Cut-Off Date in excess of half of
   Freddie Mac's loan limits for such type of residence;

      (lxxiv) To the best of Seller's knowledge, the pool of Mortgages backing
   the Class A-1 Certificates does not contain the first and second lien
   mortgage loans relating to a single Mortgaged Property if the aggregate
   original principal balance of such mortgage loans exceeds Freddie Mac's loan
   limits. To the best of Seller's knowledge, the pool of Mortgages backing the
   Securities will not result in a violation of Freddie Mac's loan limitations;

      (lxxv) Each Mortgage Loan was originated substantially in accordance with
   Seller's underwriting criteria, which conform to the underwriting criteria
   set forth in the Information Circular (for the Pool I loans) or the
   Prospectus Supplement (for the Pool II loans).

      (lxxvi) There exists no violation of any local, state or federal
   environmental law, rule or regulation in respect of any Mortgaged Property
   which violation has or could have a material adverse effect on the market
   value of such Mortgaged Property. Sponsor has no knowledge of any pending
   action or proceeding directly involving any such Mortgaged Property in which
   compliance with any environmental law, rule or regulation is in issue; and,
   to the best of Sponsor's knowledge, nothing further remains to be done to
   satisfy in full all requirements of each such law, rule or regulation
   constituting a prerequisite to the use and enjoyment of any such Mortgaged
   Property;

      (lxxvii) The Sponsor has caused or will cause to be performed any and all
   acts required to be performed to preserve the rights and remedies of the
   Trustee in any insurance policies applicable to the Mortgage Loans including,
   without limitation, any necessary notifications of insurers, assignment of
   policies or interests therein, and establishments of co-insured, joint loss
   payee and mortgagee rights in favor of the Trustee;

      (lxxviii) The related Mortgage Note is not and has not been secured by any
   collateral, pledged account or other security except the lien of the
   corresponding Mortgage;

      (lxxix) There is no obligation on the part of the Sponsor or any other
   party to make payments in addition to those made by the Mortgagor;

                                  15

<PAGE>

      (lxxx) With respect to each Mortgage constituting a deed of trust, a
   trustee, duly qualified under existing law to serve as such, has been
   properly designated and currently so serves and is named in such Mortgage,
   and no fees or expenses are or will become payable by the Securityholders or
   the Trust to the trustee under the deed of trust, except in connection with a
   trustee's sale after default by the Mortgagor;

      (lxxxi) Each Mortgagor has executed a statement to the effect that such
   Mortgagor has received all disclosure materials including the notice of the
   right of cancellation or rescission required by applicable law with respect
   to the making of the Mortgage Loan and any waiver of any right of
   cancellation or rescission exercised by the Mortgagor was in accordance with
   applicable law and is binding on the Mortgagor.

With respect to the representations and warranties set forth in this Section
4.02 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 Purchaser, the Servicer, the
Insurer, Freddie Mac or a Responsible Officer of 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 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.

  Section 4.03. Representations and Warranties of Purchaser. Purchaser hereby
makes the following representations and warranties, each of which
representations and warranties (i) is material and being relied upon by Seller
and (ii) is true in all respects as of the date of this Agreement:

      (i) Purchaser has been duly organized and is validly existing as a
   corporation under the laws of the State of Delaware.

      (ii) Purchaser has the requisite power and authority and legal right to
   execute and deliver, engage in the transactions contemplated by, and perform
   and observe the terms and conditions of, this Agreement to be performed by
   it.

      (iii)This Agreement has been duly authorized and executed by Purchaser, is
   valid, binding and enforceable against Purchaser in accordance with its
   terms, and the execution, delivery and performance by Purchaser of this
   Agreement does not conflict with any material term or provision of any other
   agreement to which Purchaser is a party or any term or provision of the
   Certificate of Incorporation or the By-laws of the Purchaser, or any law,
   rule, equation, order, judgment, writ, injunction or decree applicable to
   Purchaser of any court, regulatory body, administrative agency or
   governmental body having jurisdiction over Purchaser.

      (iv) No consent, approval, authorization or order of, registration or
   filing with, or notice to any governmental authority or court is required
   under applicable law in connection with the execution and delivery by
   Purchaser of this agreement.

      (v) There is no action, proceeding or investigation pending or, to the
   best knowledge of Purchaser, threatened against Purchaser before any court,
   administrative

                               16

<PAGE>

   agency or other tribunal (i) asserting the invalidity of this
   Agreement, (ii) seeking to prevent the consummation of any of the
   transactions contemplated by this Agreement, or (iii) which is likely to
   materially and adversely affect the performance by Purchaser of its
   obligations under, or the validity or enforceability of, this Agreement.

      (vi) By the purchase of Mortgage Loans, Purchaser represents to Seller
   that Purchaser understands, and that Purchaser has such knowledge and
   experience in financial and business matters that it is capable of evaluating
   the merits and risks of, its investment in the Mortgage Loans.

  Section 4.04. Remedies for Breach of Representations and Warranties;
Repurchase Obligation. It is understood and agreed that the representations and
warranties set forth in Sections 4.01 and 4.02 shall survive each sale of
Mortgage Loans to the Purchaser and shall inure to the benefit of the Purchaser
and subsequent transferees notwithstanding any restrictive or qualified
endorsement on any Mortgage Note or Assignment of Mortgage or the examination or
failure to examine any Mortgage File. With respect to the representations and
warranties contained in Sections 4.01 and 4.02 which are made to the best of the
Seller's knowledge or to the actual knowledge of the Seller, if it is discovered
by either the Seller or the Purchaser that the substance of such representation
and warranty is inaccurate and such inaccuracy materially and adversely affects
the value of the related Mortgage Loan or the Purchaser's interest therein, then
notwithstanding the Seller's lack of knowledge with respect to the inaccuracy at
the time the representation or warranty was made, the Seller shall repurchase
the related Mortgage Loan in accordance with this Section 4.04 as if the
applicable representation or warranty was breached, subject to the terms and
conditions of the Sale and Servicing Agreement. Upon discovery by either the
Seller or the Purchaser of a breach of any of the foregoing representations and
warranties which materially and adversely affects the value of the Mortgage
Loans or the interest of the Purchaser (or which materially and adversely
affects the interests of the Purchaser in the related Mortgage Loan in the case
of a representation and warranty relating to a particular Mortgage Loan), the
party discovering such breach shall give prompt written notice to the others.

  Within 60 days of the earlier of either discovery by or notice to the Seller
of any breach of a representation or warranty which materially and adversely
affects the value of any Mortgage Loan or the Purchaser's interest therein, the
Seller shall use its best efforts promptly to cure such breach in all material
respects and, if such breach cannot be cured or is not cured or is not being
diligently pursued as evidenced by a notice acceptable to the Purchaser, as
evidenced by the Purchaser's agreement thereto, at the end of such 60-day
period, the Seller shall, at the Purchaser's option, either (a) repurchase such
Mortgage Loan at the Repurchase Price or (b) provide an Eligible Substitute
Mortgage Loan, if the Seller has any such loans available for sale at the time
subject to the terms and conditions of the Sale and Servicing Agreement.

  At the time of repurchase or substitution, the Purchaser and the Seller shall
arrange for the assignment of such Mortgage Loan to the Seller and the delivery
by the Purchaser to the Seller of the related Mortgage Files.

  In addition to such cure and repurchase obligation, the Seller shall
indemnify the Purchaser and hold it harmless against any losses, damages,
penalties, fines, forfeitures,

                                      17

<PAGE>

reasonable and necessary legal fees and related costs, judgments, and other
costs and expenses resulting from any claim, demand, defense or assertion based
on or grounded upon, or resulting from, a breach of the representations and
warranties contained in this Article IV (notwithstanding any limitation in such
representation and warranty as to the Seller's knowledge). It is understood and
agreed that the obligations of the Seller set forth in this Section 4.04 to cure
or repurchase a defective Mortgage Loan and to indemnify the Purchaser as
provided in this Section 4.04 constitute the sole remedies of the Purchaser
respecting a breach of the foregoing representations and warranties.

  Any cause of action against the Seller relating to or arising out of the
breach of any representations and warranties made in Sections 4.01 or 4.02
shall accrue as to any Mortgage Loan upon (i) discovery of such breach by
the Purchaser or notice thereof by the Seller to the Purchaser, (ii) failure by
the Seller to cure such breach or repurchase such Mortgage Loan as specified
above, and (iii) demand upon the Seller by the Purchaser for compliance with the
relevant provisions of this Agreement.

                                ARTICLE V

                       Covenants and Warranties of Seller

  So long as this Agreement remains in effect or Seller shall have any
obligations hereunder, Seller hereby covenants and agrees with Purchaser as
follows:

  Section 5.01. Affirmative Covenants.

  (a) Until the later to occur of (i) the discharge and payment of all of
Seller's obligations under this Agreement and (ii) the Termination Date of this
Agreement, Seller shall, promptly upon preparation, but in no event later than
60 days following the end of each such party's first three fiscal quarters,
deliver to Purchaser its unaudited company-prepared financial statements as of
the end of each such fiscal quarter, prepared in accordance with GAAP. Seller
shall, promptly upon preparation, but in no event later than 90 days following
the end of such party's fourth fiscal quarter, deliver to Purchaser its audited
and certified financial statements, prepared in accordance with GAAP, as of the
end of the most recently ended fiscal year, which audits and certifications
shall each be prepared by a nationally recognized independent accounting firm or
by a regionally recognized independent accounting firm with the prior written
consent of Purchaser, which consent shall not be unreasonably withheld. In all
cases, financial statements shall include, without limitation, a balance sheet,
a profit and loss statement and a statement of cash flows. Notwithstanding
anything in this Agreement to the contrary, if (x) the audited and certified
financial statements described in the immediately preceding sentence are not
delivered within the above-specified 90 days, (y) Seller is diligently using its
best efforts to deliver such financial statements, and (z) Seller provides
Purchaser with a notice specifying the reason for the delay and a date, within a
reasonable time period (as determined by Purchaser), on which such financial
statements will be delivered, and they are so delivered; then failure to deliver
such financial statements within the above-specified 90 days, as the case may
be, shall not be deemed to be an Event of Termination of this Agreement.

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<PAGE>

  (b) Upon request of Purchaser, Seller shall, to the extent lawful, promptly
upon filing, deliver to Purchaser copies of all material public filings made by
Seller with any governmental or quasi-governmental body.

  (c) Seller shall (i) with respect to any Mortgage Loans serviced by Seller or
any of its affiliates or otherwise use its best efforts to cause to be delivered
to Purchaser monthly, the report, if any, prepared by the relevant trustee or
servicer setting forth payment activity, defaults and delinquencies with respect
to each Mortgage Loan acquired by Purchaser and (ii) prepare and deliver reports
each month, detailing, with respect to all Purchases, such information as the
Purchaser may from time to time reasonably request.

  (d) Seller shall do all things necessary to remain duly incorporated, validly
existing and in good standing as a domestic corporation in its jurisdiction of
incorporation and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted except where failure to
maintain such authority would not have a material adverse effect on the ability
of Seller to conduct its business or to perform its obligations under this
Agreement.

  (e) At all times during this Agreement, Seller shall possess sufficient net
capital and liquid assets (or ability to access the same) to satisfy its
obligations as they become due in the normal course of business.

  (f) Seller will notify Purchaser in writing of any of the following promptly
upon learning of the occurrence thereof, describing the same and, if applicable,
any remedial steps being taken with respect thereto;

      (i) The occurrence or likelihood of occurrence of an Event of Termination
   hereunder;

      (ii) The institution of any litigation, arbitration proceeding or
   governmental proceeding which, in the opinion of counsel to Seller, will have
   a material adverse effect on Seller or the Mortgage Loans;

      (iii)The entry of any judgment or decree against Seller if the aggregate
   amount of all judgments and decrees then outstanding against Seller exceeds
   $10,000,000 after deducting (A) the amount with respect to which Seller is
   insured and with respect to which the insurer has assumed responsibility in
   writing, and (B) the amount for which Seller is otherwise indemnified if the
   terms of such indemnification are reasonably satisfactory to Purchaser; or

      (iv) The occurrence or likelihood of any event which would allow the
   obligee under any material loan agreement to which Seller is bound to declare
   an event of default or accelerate the obligations of Seller thereunder.

  (g) Seller shall permit the Purchaser or its accountants, attorneys or other
agents access to all of the books and records relating to Mortgage Loans
purchased and retained by Purchaser for inspection and copying during normal
business hours at all places where Seller conducts business.

                                  19

<PAGE>

  Section 5.02.     Negative Covenants.

  (a) Seller shall not assign or attempt to assign this Agreement or any rights
hereunder, without first obtaining the specific written consent of Purchaser.

  (b) Seller shall not amend its Articles of Incorporation or By-laws, which
amendment shall have or is likely to have an adverse effect upon Purchaser or
its interests under this Agreement, without the prior written consent of
Purchaser.

  (c) During the term of this Agreement, Seller shall not engage in any business
other than as a consumer and mortgage finance lender and servicer, except with
the prior written consent of Purchaser.

  (d) Seller shall not (i) dissolve or terminate its existence or (ii) transfer
any assets to any affiliate except as otherwise expressly permitted or
contemplated hereby.

  (e) Except with the written consent of the Purchaser, the Seller shall not
guarantee, endorse or otherwise in any way become or be responsible for any
obligations of any other person, entity or affiliate, including, without
limitation, whether directly or indirectly by agreement to purchase the
indebtedness of any other person or through the purchase of goods, supplies or
services, or maintenance of working capital or other balance sheet covenants or
conditions, or by way of stock purchase, capital contribution, advance or loan
for the purposes of paying or discharging any indebtedness or obligation of such
other person or otherwise; provided, however, that nothing contained herein
shall prevent Seller from indemnifying its officers, directors and agents
pursuant to its By-laws and its Articles of Incorporation.

  (f) Seller will not commit any act in violation of applicable laws, or
regulations promulgated pursuant thereto that relate to the Mortgage Loans or
that materially and adversely affect the operations or financial conditions of
Seller.

  (g) Seller, by entering into this Agreement, hereby covenants and agrees that
it will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings under any United States federal
or State bankruptcy or similar law in connection with any obligations relating
to the Securities or any of the Basic Documents.

                                   ARTICLE VI

             Sale of Mortgage Loans from the Purchaser to the Trust

  Section 6.01. Sale and Servicing Agreement. It is the intent of the Seller and
the Purchaser that with respect to the Mortgage Loans, the Purchaser shall
concurrently sell all of its right, title and interest to the Mortgage Loans and
all other property conveyed to it hereunder to the Trust pursuant to the Sale
and Servicing Agreement.

  With respect to such sale, the Seller agrees:

                                  20

<PAGE>

      (i) to cooperate fully with the Purchaser and the Trust with respect to
   all reasonable requests and due diligence procedures including participating
   in meetings with Rating Agencies, the Insurer, Freddie Mac and such other
   parties as the Purchaser shall designate and participating in meetings with
   the Trust and providing information reasonably requested by the Trust;

      (ii) to execute the Sale and Servicing Agreement and all other necessary
   documents to effect the transactions contemplated therein;

      (iii)the Seller shall make the representations and warranties set forth
   herein regarding the Seller and the Mortgage Loans as of the date of the
   transfer to the Trust;

      (iv) to deliver to the Purchaser for inclusion in any prospectus or other
   offering material such publicly available information regarding the Seller,
   its financial condition and the mortgage loan delinquency, foreclosure and
   loss experience of its portfolio as is customarily set forth in a prospectus
   supplement with respect to a comparable mortgage pool, the underwriting of
   mortgage loans, the servicer, the servicing and collection of mortgage loans,
   lending activities and loan sales of the servicer, regulatory matters and
   delinquency and loss experience and any additional information reasonably
   requested by the Purchaser, and to deliver to the Purchaser unaudited
   consolidated financial statements of the Seller, in which case the Purchaser
   shall bear the cost of having such statements audited by certified public
   accountants if the Purchaser desires such an audit, or as is otherwise
   reasonably requested by the Purchaser and which the Seller is capable of
   providing without unreasonable effort or expense, and to indemnify the
   Purchaser and its affiliates for material misstatements or omissions
   contained in such information;

      (v) to deliver to the Purchaser and to any person designated by the
   Purchaser, at the Purchaser's expense, such statements and audit letters
   issued by reputable, certified public accountants pertaining to information
   provided by the Seller pursuant to clause (iv) above as shall be reasonably
   requested by the Purchaser (it being acknowledged by Purchaser that the
   delivery of such statements and letters is subject to the consent of such
   accountants);

      (vi) to deliver to the Purchaser, and to any Person designated by the
   Purchaser, such legal documents and in-house opinions of counsel as are
   customarily delivered by originators or servicers, as the case may be, and
   reasonably determined by the Purchaser to be necessary in connection with the
   transactions contemplated by the Sale and Servicing Agreement, it being
   understood that the cost of any opinions of outside special counsel that may
   be required shall be the responsibility of the Seller;

      (vii)to cooperate fully with the Purchaser and any prospective Purchaser
   with respect to the preparation of Mortgage Loan documents and other
   documents and with respect to servicing requirements reasonably requested by
   the Rating Agencies, the Insurer and Freddie Mac; and

      (viii) to negotiate and execute one or more custodial and servicing
   agreements among the Purchaser, the Seller and a third party
   custodian/trustee which is generally considered to be a prudent
   custodian/trustee in the secondary mortgage market designated by

                                     21

<PAGE>

   the Purchaser in its sole discretion after consultation with the Seller,
   in either case for the purpose of securitizing the Mortgage Loans.

                                  ARTICLE VII

                         Seller's Servicing Obligations

  Section 7.01. Seller's Servicing Obligations. The Seller, as an independent
contract servicer, shall service and administer the Mortgage Loans in accordance
with the terms and provisions set forth in Articles III, IV, V, VII and VIII of
the Sale and Servicing Agreement which sections are hereby incorporated in this
Agreement in their entirety (with, however, the changes and adjustments as
provided in this Agreement) as if the same were contained in this Article VII.

   To the extent any provision of any definition set forth in the Sale and
Servicing Agreement shall conflict with any provision set forth in this
Agreement, the provision or definition in this Agreement shall govern.

                                  ARTICLE VIII

                                Fees and Expenses

  The Purchaser shall pay any salaries and other compensation due its employees
and the legal fees and expenses of its attorneys and accountants. All other
costs and expenses incurred in connection with the transfer and delivery of the
Mortgage Loans pursuant to this Agreement or the Sale and Servicing Agreement,
including, without limitation, recording fees, fees for title policy
endorsements and continuations, and fees for recording intervening assignments
of Mortgage, shall be paid by the Seller. To the extent not paid out of the
Trust pursuant to Section 8.7(d)(i) of the Pooling Agreement, the Seller shall
pay the on-going fees of any custodian or trustee under the Sale and Servicing
Agreement, the Trust Agreement or the Pooling Agreement. The Seller shall pay
(i) the acceptance and file review fees of any custodian or trustee under this
Agreement, the Pooling Agreement, the Trust Agreement or the Sale and Servicing
Agreement and (ii) the costs of legal counsel and legal opinions, accounting
comfort letters and fees, printing of disclosure documents, rating agency fees,
Insurer up-front fees, SEC filing fees and the costs of any and all related
document preparations associated with the Sale and Servicing Agreement, the
Trust Agreement, the Pooling Agreement or this Agreement. The Seller also agrees
to pay the fees and other amounts for which the Seller or Servicer is obligated
under the Insurance Agreement.

                                  ARTICLE IX

                        Termination; Additional Remedies

                  Upon the occurrence of a Rapid Amortization Event due to an
act or omission of the Seller (an "Event of Termination"), the Purchaser and its
assignees shall have, in addition to all other rights and remedies under this
Agreement or otherwise, all other rights and remedies

                                     22

<PAGE>

provided under the UCC of each applicable jurisdiction and other applicable
laws, which rights shall be cumulative. Without limiting the foregoing, the
occurrence of an Event of Termination shall not deny to the Purchaser or its
assignees any remedy in addition to termination of its obligations to make
purchases hereunder to which the Purchaser or its assignee may be otherwise
appropriately entitled, whether by statute or applicable law, at law or in
equity.

                                   ARTICLE X

                            Payment of Purchase Price

  Section 10.01. Purchase Price Payments. On the Business Day following each day
other than the Closing Date on which any Mortgage Loans are purchased from the
Seller by the Purchaser pursuant to Article II hereof or Additional Balances
relating to Mortgage Loans are funded by the Seller, on the terms and subject to
the conditions of this Agreement, the Purchaser shall pay to the Seller the
applicable Purchase Price by (i) making or causing to be made a cash payment to
the Seller or its designee in such amount determined by the Purchaser, (ii)
crediting the Seller with an additional capital contribution to the Purchaser,
(iii) automatically increasing the principal amount outstanding under the
Purchaser Note by the amount of the excess of the Purchase Price to be paid to
the Seller for such purchased assets over the amount of any cash payment made on
such day to the Seller and/or any capital contribution made by the Seller to the
Purchaser, subject to a cap on such note at any time equal to $35 million or
(iv) any combination of the foregoing.

  Section 10.02.    The Purchaser Note.

  (a) On the Closing Date, the Purchaser shall deliver to the Seller a
promissory note, substantially in the form of Exhibit A, payable to the order of
the Seller (such promissory note, as the same has been or hereafter may be
amended, supplemented, endorsed or otherwise modified from time to time,
together with any promissory note issued from time to time in substitution
therefor or renewal thereof in accordance with this Agreement, being herein
called the "Purchaser Note"), which Purchaser Note shall, in accordance with its
terms, be subordinated to all interests of the Trust, all claims to the cash
flows from Trust assets and all obligations of the Purchaser, of any nature, now
or hereafter arising under or in connection with the Sale and Servicing
Agreement. The Purchaser Note shall evidence all amounts outstanding thereunder
as of the Closing Date in addition to amounts subsequently incurred thereunder
as provided in this Agreement. Subject to the foregoing, the Purchaser Note
shall be payable in full on the date which is one year and one day after the
Termination Date. The Purchaser Note shall bear interest at the "prime rate" as
determined by the Trustee from time to time in effect. The Purchaser may prepay
all or part of the outstanding balance of the Purchaser Note and interest
accrued thereon from time to time without any premium or penalty, unless an
Event of Default has occurred and is continuing or would result from such
prepayment or payment.

  (b) The Servicer shall hold the Purchaser Note for the benefit of the Seller,
and shall make all appropriate recordkeeping entries with respect to the
Purchaser Note or otherwise to reflect the payments on and adjustments of the
Purchaser Note. The Servicer's books and records shall constitute rebuttable
presumptive evidence of the principal amount of and accrued interest on the
Purchaser Note at any time. The Seller hereby irrevocably authorizes

                                    23

<PAGE>

the Servicer to mark the Purchaser Note "CANCELLED" and to return the Purchaser
Note to the Purchaser upon the full and final payment thereof after the
Termination Date.

  (c) The Seller hereby agrees not to transfer, assign, exchange or otherwise
convey or pledge, hypothecate or otherwise grant a security interest in the
Purchaser Note or any interest represented thereby, and any attempt to transfer,
assign, exchange, convey, pledge, hypothecate or grant a security interest in
the Purchaser Note or any interest represented thereby shall be void and of no
effect.

                                   ARTICLE XI

                                 Confidentiality

   Purchaser and Seller each acknowledges that the information heretofore
provided to them pursuant to the operation of this Agreement, is highly
confidential, proprietary information of Seller or Purchaser, as the case
may be. Purchaser and Seller each agrees that it will hold such information in
strict confidence and will not disclose any part of such information to any
person or entity, other than to its accountants and lawyers to the extent
necessary for the performance of their duties and as required by law and other
than to such other persons to the extent necessary, as determined by the
Purchaser in its sole discretion, to complete the transactions contemplated
hereunder and in the Sale and Servicing Agreement including the offering and
issuance of the Class A-1 Certificates and Class A-2 Notes; provided, however,
that copies of this Agreement may be included as part of any filing made
pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934
and any regulations promulgated thereunder. In furtherance of the foregoing,
Purchaser and Seller each covenants that it will adhere to its established
procedures for the maintenance of confidentiality with respect to such
information. Purchaser and Seller each further agrees that it will not
distribute such information within its own organization except to persons with a
need to know such information in connection with the transactions contemplated
by this Agreement.

                                  ARTICLE XII

                                      Term

  This Agreement shall terminate on the Termination Date.

                                 ARTICLE XIII

  Exclusive Benefit of Parties; Assignment

  This Agreement is for the exclusive benefit of the parties hereto and their
respective successors and assigns and shall not be deemed to give any legal or
equitable right to any other person except the Sponsor, the Trust, the holders
of the Class A-1 Certificates and Class A-2 Notes, the Insurer and Freddie Mac.
Notwithstanding the foregoing, the Seller covenants and agrees that the
representations and warranties contained in this Agreement and the rights of the
Purchaser hereunder are intended to benefit the Trust, the holders of the Class
A-1

                                   24

<PAGE>

Certificates and Class A-2 Notes, the Insurer and Freddie Mac. This Agreement
may not be assigned by any party hereto without the prior written consent of the
other party hereto except to the Trust.

                                  ARTICLE XIV

                               Amendment; Waivers

  This Agreement may be amended from time to time only by written agreement
of Seller and Purchaser with the prior written consent of the Insurer and of
Freddie Mac, which consent shall not be unreasonably withheld by either. Any
forbearance, failure, or delay by a party in exercising any right, power, or
remedy hereunder shall not be deemed to be a waiver thereof, and any single or
partial exercise by a party of any right, power or remedy hereunder shall not
preclude the further exercise thereof. Every right, power and remedy of a party
shall continue in full force and effect until specifically waived by it in
writing. No right, power or remedy shall be exclusive, and each such right,
power or remedy shall be cumulative and in addition to any other right, power or
remedy, whether conferred hereby or hereafter available at law or in equity or
by statute or otherwise.

                                  ARTICLE XV

                            Execution in Counterparts

  This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, and all of which shall constitute one and the
same instrument.

                                   ARTICLE XVI

                       Effect of Invalidity of Provisions

  In case any one or more of the provisions contained in this Agreement should
be or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall
in no way be affected, prejudiced or disturbed thereby.

                                  ARTICLE XVII

                                  Governing Law

  This Agreement shall be governed by and construed in accordance with the laws
of the State of New York, without regard to its rules regarding conflict of
laws.

                                    25

<PAGE>

                                 ARTICLE XVIII

                                     Notices

  Any notices, consents, directions, demands and other communications given
under this Agreement (unless otherwise specified herein) shall be in writing and
shall be deemed to have been duly given when personally delivered at or
telecopied to the respective addresses or facsimile numbers, as the case may be,
set forth on the signature page hereof for Seller and Purchaser, or to such
other address or facsimile number as either party shall give notice to the other
party pursuant to this Section. Notices, consents, etc., may also be effected by
first class mail, postage prepaid sent to the foregoing addresses and will be
effective upon receipt by the intended recipient.

                                  ARTICLE XIX

                                Entire Agreement

  This Agreement, including the Exhibits and Schedules hereto, contains the
entire agreement of the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements between them,
whether oral or written, of any nature whatsoever with respect to the subject
matter hereof.

                                   ARTICLE XX

                                   Indemnities

  Without limiting any other rights which Purchaser or Seller may have
hereunder or under applicable law, and in addition to any other indemnity
provided hereunder, Seller hereby agrees to indemnify Purchaser and its
respective officers, directors, agents and employees (each, an "Indemnified
Party") from and against any and all Losses incurred by any of them relating to
or resulting from:

      (1) any representation or warranty made by Seller (or any officers,
   employees or agents of Seller) under or in connection with this Agreement,
   any periodic report required to be furnished thereunder or any other
   information or document delivered by Seller pursuant hereto, which shall have
   been false or incorrect in any material respect when made or deemed made;

      (2) the failure by Seller to (a) comply with any applicable law, rule or
   regulation with respect to any Purchase or (b) perform or observe any
   material obligation or covenant hereunder; or

      (3) the failure by Seller (if so requested by Purchaser) to execute and
   properly file, or any delay in executing and properly filing, financing
   statements or other similar instruments or documents under the Uniform
   Commercial Code of any applicable jurisdiction or other applicable laws with
   respect to the Mortgage Loans.

                                      26

<PAGE>

  Promptly after receipt by an Indemnified Party under this Article XX of
notice of the commencement of any action, such Indemnified Party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Article XX, notify the indemnifying party in writing of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability that it may have to any Indemnified Party otherwise than
under this Article XX. In case any such action is brought against any
Indemnified Party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein, and to
the extent that it may elect by written notice delivered to the Indemnified
Party promptly after receiving the aforesaid notice from such Indemnified Party,
to assume the defense thereof, with counsel satisfactory to such Indemnified
Party; provided, however, that if the defendants in any such action include both
the Indemnified Party and the indemnifying party and the Indemnified Party or
parties shall have reasonably concluded that there may be legal defenses
available to it or them and/or other Indemnified Parties that are different from
or additional to those available to the indemnifying party, the Indemnified
Party or parties shall have the right to elect separate counsel to assert such
legal defenses and to otherwise participate in the defense of such action on
behalf of such Indemnified Party or parties. Upon receipt of notice from the
indemnifying party to such Indemnified Party of its election so to assume the
defense of such action and approval by the Indemnified Party of counsel, the
indemnifying party will not be liable for any legal or other expenses
subsequently incurred by such Indemnified Party in connection with the defense
thereof, unless (i) the Indemnified Party shall have employed separate counsel
in connection with the assertion of legal defenses in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel, approved by you in the case of Article XX, representing the
Indemnified Parties under this Article XX, who are parties to such action), (ii)
the indemnifying party shall not have employed counsel satisfactory to the
Indemnified Party to represent the Indemnified Party within a reasonable time
after notice of commencement of the action or (iii) the indemnifying party has
authorized the employment of counsel for the Indemnified Party at the expense of
the indemnifying party; and except that, if clause (i) or (iii) is applicable,
such liability shall only be in respect of the counsel referred to in such
clause (i) or (iii).

                                    ARTICLE XXI

                                RESPA Obligations

  Seller agrees to discharge on Purchaser's behalf all obligations, including,
without limitation, all disclosure obligations, which Purchaser may have under
the Real Estate Settlement Procedures Act of 1974, as amended, in connection
with Purchaser's purchases of Mortgage Loans hereunder. Purchaser agrees to
provide Seller with such information as is reasonably necessary for Seller to
discharge such obligations and hereby appoints Seller as its agent in its name
for the purposes of, and only for the purposes of, performing such obligations.
Seller hereby agrees to indemnify Purchaser and its respective officers,
directors, agents and employees from any losses suffered by any such party in
connection with Seller's obligations under this Article XXI.

                                    27

<PAGE>

                                  ARTICLE XXII

                                    Survival

  All indemnities and undertakings of Seller and Purchaser hereunder shall
survive the termination of this Agreement.

                                 ARTICLE XXIII

                                Right of Set-off

  Upon the occurrence of any event or circumstance which requires Seller to
make a payment hereunder, Purchaser is hereby authorized then or at any time or
times thereafter, without notice to Seller (any such notice being expressly
waived by Seller), to set-off and apply any and all deposits (general or
special, time or demand, provisional or final), at any time held and other
indebtedness at any time owing by Purchaser to or for the credit or the account
of Seller against any and all of the obligations of Seller now or hereafter
existing hereunder, irrespective of whether or not Purchaser shall have made any
demand hereunder. Purchaser agrees promptly to notify Seller after any such
set-off and application made by Purchaser; provided that the failure to give
such notice shall not affect the validity of such set-off and application. The
rights of Purchaser under this Article XXIII are in addition to other rights and
remedies which Purchaser may have.

                                  ARTICLE XXIV

                               Consent to Service

  Each party irrevocably consents to the service of process by registered or
certified mail, postage prepaid, to it at its address given pursuant to
Article XVIII hereof.

                                    ARTICLE XXV

               Submission to Jurisdiction; Waiver of Trial by Jury

  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, 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 court,
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 is made as set
forth in Article XXIV hereof, or by any other lawful means. To the extent
permitted by applicable law, Purchaser and Seller each irrevocably waive all
right of trial by jury in any action, proceeding or

                                     28

<PAGE>

counterclaim arising out of or in connection with this Agreement or any matter
arising hereunder.

                                  ARTICLE XXVI

                                  Construction

  The headings in this Agreement are for convenience only and are not intended
to influence its construction. References to Articles, Sections, Schedules and
Exhibits in this Agreement are to the Articles, Sections of and Schedules and
Exhibits to this Agreement. The Schedules and Exhibits are hereby incorporated
into and form a part of this Agreement. In this Agreement, the singular includes
the plural, the plural the singular, the words "and" and "or" are used in the
conjunctive or disjunctive as the sense and circumstances may require and the
word "including" means "including, but not limited to." Unless otherwise stated
in this Agreement, in the computation of a period of time from a specified date
to a later specified date, the word "from" means "from and including" and the
words "to" and "until" each means "to but excluding."

                                 ARTICLE XXVII

                               Further Agreements

  The Seller and the Purchaser each agree to execute and deliver to the other
such reasonable and appropriate additional documents, instruments or agreements
as may be necessary or appropriate to effectuate the purposes of this Agreement.

                                   29

<PAGE>

  IN WITNESS WHEREOF, the Purchaser and the Seller have caused their names
to be signed hereto by their respective officers thereunto duly authorized,
all as of the date first written above.

                                  GREENPOINT MORTGAGE SECURITIES INC.,
                                   as Purchaser

                                  700 Larkspur Landing
                                  Circle, Suite 240
                                  Larkspur, California 94939

                                  By:  /s/ David W. Molumby
                                      -----------------------------
                                      Name:  David Molumby
                                      Title:  Vice President

                                  GREENPOINT MORTGAGE FUNDING, INC.,
                                   as Seller

                                  700 Larkspur Landing
                                  Circle, Suite 250
                                  Larkspur, California 94939

                                 By:  /s/ Gilbert J. MacQuarrie
                                     --------------------------------
                                     Name:  Gilbert J. MacQuarrie
                                     Title:  Executive Vice President/Chief
                                             Financial Officer

                       [Mortgage Loan Purchase Agreement]

<PAGE>

                                                                      EXHIBIT A

                             FORM OF NON-NEGOTIABLE
                       GREENPOINT MORTGAGE SECURITIES INC.
                                 PROMISSORY NOTE

                                                             September 26, 2000

EXCEPT TO THE EXTENT PROVIDED IN THE PURCHASE AGREEMENT REFERRED TO BELOW, THIS
PROMISSORY NOTE AND ANY INTEREST REPRESENTED HEREBY SHALL NOT BE TRANSFERRED,
ASSIGNED, EXCHANGED, CONVEYED, PLEDGED, HYPOTHECATED OR OTHERWISE THE SUBJECT OF
THE GRANT OF A SECURITY INTEREST AND ANY ATTEMPT TO TRANSFER, ASSIGN, EXCHANGE,
CONVEY, PLEDGE, HYPOTHECATE OR GRANT A SECURITY INTEREST IN THIS PROMISSORY NOTE
OR ANY INTEREST REPRESENTED HEREBY SHALL BE VOID AND OF NO EFFECT.

         For VALUE RECEIVED, the undersigned, GREENPOINT MORTGAGE SECURITIES
INC., a Delaware corporation (the "Purchaser"), promises to pay to GREENPOINT
MORTGAGE FUNDING, INC., a California corporation (the "Seller"), on the terms
and subject to the conditions set forth herein and in the Purchase Agreement
referred to below, the aggregate unpaid Purchase Price of all assets purchased
and to be purchased by the Purchaser pursuant to the Purchase Agreement,
provided that such amount shall in no event exceed $35,000,000. Such amount as
shown in the records of the Seller will be rebuttable presumptive evidence of
the principal amount owing under this Note.

         1. Purchase and Sale Agreement. This Note is the Purchaser Note
described in, and is subject to the terms and conditions set forth in, that
certain Mortgage Loan Purchase Agreement dated as of September 1, 2000 (as the
same may be amended, supplemented, restated or otherwise modified in accordance
with its terms, the "Purchase Agreement"), between the Seller and the Purchaser.
Reference is hereby made to the Purchase Agreement for a statement of certain
other rights and obligations of the Purchaser and the Seller.

         2. Definitions. Capitalized terms used (but not defined) herein have
the meanings ascribed thereto in the Purchase Agreement. In addition, as used
herein, the following terms have the following meanings:

         "Bankruptcy Proceedings" has the meaning set forth in clause (a) of
paragraph 7 hereof."

         "Final Maturity Date" means the date that falls one year and
one day after the Termination Date.

         "Junior Liabilities" means all obligations of the Purchaser to
the Seller under this Note and under all similar notes issued by the Purchaser
to the Seller in connection with any previous or future securitization
transactions.

                                      A-1

<PAGE>

         "Senior Liabilities" means all obligations of the Purchaser to the
Trust and any other obligations of the Purchaser arising under or in connection
with the Sale and Servicing Agreement, howsoever created, arising or evidenced,
whether direct or indirect, absolute or contingent, now or thereafter existing,
or due or to become due on or before the Final Maturity Date.

         "Subordination Provisions" means, collectively, clauses (a) through
(i) of paragraph 7 hereof.

         3. Interest. Subject to the Subordination Provisions and paragraph 10
hereof, the Purchaser promises to pay interest on the aggregate unpaid principal
amount of this Note outstanding on each day, at a variable rate equal to the
rate publicly announced by the Trustee from time to time as its "prime lending
rate."

         4. Interest Payment Dates. Subject to the Subordination Provisions,
paragraph 10 hereof and Section 10.02 of the Purchase Agreement, the Purchaser
shall pay accrued interest on this Note on each Payment Date and on the Final
Maturity Date. The Purchaser also shall pay accrued interest on the principal
amount of each prepayment hereof on the date of each such prepayment.

         5. Basis of Computation. Interest accrued hereunder shall be computed
for the actual number of days elapsed on the basis of a 360-day year.

         6. Principal Payment Dates. Subject to the Subordination Provisions,
any unpaid principal of this Note shall be paid on the Final Maturity Date (or,
if such date is not a Business Day, the next succeeding Business Day). Subject
to the Subordination Provisions, paragraph 10 hereof and Section 10.02 of the
Purchase Agreement, the principal amount of and accrued interest on this Note
may be prepaid on any Business Day without premium or penalty.

         7. Subordination Provisions. The Purchaser covenants and agrees, and
the Seller, by its acceptance of this Note, likewise covenants and agrees, that
the payment of all Junior Liabilities is hereby expressly subordinated in right
of payment to the payment and performance of the Senior Liabilities to the
extent and in the manner set forth in the following clauses of this paragraph 7:

            (a) (i) In the event of any dissolution, winding up, liquidation,
readjustment, reorganization or other similar event relating to the Purchaser,
whether voluntary or involuntary, partial or complete, and whether in
bankruptcy, insolvency, receivership or other similar proceedings, or upon an
assignment for the benefit of creditors, or any other marshalling of the assets
and liabilities of the Purchaser or any sale of all or substantially all of the
assets of the Purchaser except pursuant to the Sale and Servicing Agreement
(such proceedings being herein collectively called "Bankruptcy Proceedings"),
and (ii) on and after the occurrence of an Event of Default, the Senior
Liabilities shall first be paid and performed in full and in cash before the
Seller shall be entitled to receive and to retain any payment or distribution in
respect of the Junior Liabilities. In order to implement the foregoing: (x) all
payments and distributions of any kind or character in respect of the Junior
Liabilities to which the Seller would be entitled except for this clause (a)
shall be made directly to the Trustee (for the benefit of the Noteholders); and

                                   A-2

<PAGE>

(y) the Seller hereby irrevocably agrees that the Trustee (on behalf of the
Noteholders), in the name of the Seller or otherwise, may demand, sue for,
collect, receive and receipt for any and all such payments or distributions, and
file, prove and vote or consent in any such Bankruptcy Proceedings with respect
to any and all claims of the Seller relating to the Junior Liabilities, in each
case until the Senior Liabilities shall have been paid and performed in full and
in cash.

        (b) following the occurrence of any of the events described in clause
(a)(i) or (ii), in the event that the Seller receives any payment or other
distribution of any kind or character from the Purchaser or from any other
source whatsoever, in respect of the Junior Liabilities, such payment or other
distribution shall be received in trust for the Trustee and shall be turned over
by the Seller to the Trustee (for the benefit of the Noteholders) forthwith. All
payments and distributions received by the Trustee in respect of this Note, to
the extent received in or converted into cash, may be applied by the Trustee
(for the benefit of the Noteholders) first to the payment of any and all
reasonable expenses (including reasonable attorneys' fees and legal expenses)
paid or incurred by the Trustee or the Noteholders in enforcing these
Subordination Provisions, or in endeavoring to collect or realize upon the
Junior Liabilities, and any balance thereof shall, solely as between the Seller
and the Noteholders, be applied by the Trustee toward the payment of the Senior
Liabilities in a manner determined by the Trustee to be in accordance with the
Pooling Agreement; but as between the Purchaser and its creditors, no such
payments or distributions of any kind or character shall be deemed to be
payments or distributions in respect of the Senior Liabilities.

            (c) Upon the final payment in full and in cash of all Senior
Liabilities, the Seller shall be subrogated to the rights of the Trustee to
receive payments or distributions from the Purchaser that are applicable to the
Senior Liabilities until the Junior Liabilities are paid in full.

            (d) These Subordination Provisions are intended solely for the
purpose of defining the relative rights of the Seller, on the one hand, and the
Trustee (on behalf of Noteholders), on the other hand. Nothing contained in
these Subordination Provisions or elsewhere in this Note (subject to paragraph
10 hereof) is intended to or shall impair, as between the Purchaser, its
creditors (other than the Noteholders) and the Seller, the Purchaser's
obligation, which is unconditional and absolute, to pay the Junior Liabilities
as and when the same shall become due and payable in accordance with the terms
hereof (subject to paragraph 10 hereof) and of the Purchase Agreement or to
affect the relative rights of the Seller and creditors of the Purchaser (other
than the Noteholders).

           (e) The Seller shall not, until the Senior Liabilities have been
finally paid and performed in full and in cash, (i) cancel, waive, forgive,
transfer or assign, or commence legal proceedings to enforce or collect, or
subordinate to any obligation of the Purchaser, howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, or now or
thereafter existing, or due or to become due (other than the Senior
Liabilities), the Junior Liabilities or any rights in respect hereof or (ii)
convert the Junior Liabilities into an equity interest in the Purchaser, unless,
in the case of each of clauses (i) and (ii) above, the Seller shall have
received the prior written consent of the Trustee , the Insurer and Freddie Mac
in each case.

                                    A-3

<PAGE>

            (f) The Seller shall not, except without the advance written
consent of the Trustee and the Controlling Party commence, or join with any
other Person in commencing, any Bankruptcy Proceedings with respect to the
Purchaser until at least one year and one day have passed since the Termination
Date.

            (g) If, at any time, any of the payment (in whole or in part) made
with respect to any Senior Liabilities is rescinded or must be restored or
returned by the Trustee or Noteholders (whether in connection with any
Bankruptcy Proceedings or otherwise), these Subordination Provisions shall
continue to be effective or shall be reinstated, as the case may be, as though
such payment had not been made.

            (h) The Trustee (on behalf of Noteholders) may, from time to time,
with the consent of the Controlling Party without notice to the Seller, and
without waiving any of its rights under these Subordination Provisions, take any
or all of the following actions: retain or obtain an interest in any property to
secure any of the Senior Liabilities; (ii) retain or obtain the primary or
secondary obligations of any other obligor or obligors with respect to any of
the Senior Liabilities; (iii) extend or renew for one or more periods (whether
or not longer than the original period), alter or exchange any of the Senior
Liabilities, or release or compromise any obligation of any nature with respect
to any of the Senior Liabilities; (iv) amend, supplement, amend and restate, or
otherwise modify the Sale and Servicing Agreement or any related document; and
(v) release its security interest in or surrender, release or permit any
substitution or exchange for all or any part of any rights or property securing
any of the Senior Liabilities, or extend or renew for one or more periods
(whether or not longer than the original period) or release, compromise, alter
or exchange any obligations of any nature of any obligor with respect to any
such rights or property.

           (i) The Seller hereby waives: (i) notice of acceptance of these
Subordination Provisions by any of the Noteholders, (ii) notice of the
existence, creation, non-payment or non-performance of all or any of the Senior
Liabilities; and (iii) all diligence in enforcement, collection or protection
of, or realization upon, the Senior Liabilities, or any thereof, or any security
therefor.

            (j) These Subordination Provisions constitute a continuing offer
from the Purchaser to all Persons who become the holders of, or who continue to
hold, Senior Liabilities; and these Subordination Provisions are made for the
benefit of the Noteholders, the Insurer and the Guarantor, and the Trustee may
proceed to enforce such provisions on behalf of each of such Persons.

        8. General. No failure or delay on the part of the Seller in exercising
any power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power or right preclude any other or
further exercise thereof or the exercise of any other power or right. No
amendment, modification or waiver of, or consent with respect to, any provision
of this Note shall in any event be effective unless (a) the same shall be in
writing and signed and delivered by the Purchaser and the Seller, and (b) all
consents required for such actions under the Purchase Agreement and the Sale and
Servicing Agreement shall have been received by the appropriate Persons. The
rights and remedies granted hereunder to the Trustee and the Noteholders are
subject to exercise as provided in the Purchase Agreement and the Sale and
Servicing Agreement.

                                        A-4
<PAGE>

        9. Limitation on Interest. Notwithstanding anything in this Note to the
contrary, the Purchaser shall never be required to pay unearned interest on any
amount outstanding hereunder, and shall never be required to pay interest on the
principal amount outstanding hereunder at a rate in excess of the maximum
interest rate that may be contracted for, charged or received without violation
of applicable federal or state law.

        10. Acknowledgment. The Seller acknowledges and agrees that it has no
rights to payment under this Note, and will not make any claim for payment
hereunder, unless funds are available for payment by the Purchaser in excess of
amounts due and payable by it at the time under the Sale and Servicing Agreement
and under all similar notes issued by the Purchaser to the Seller in connection
with any previous or future securitizations.

        11. No Negotiation.  This Note is not negotiable.

        12. GOVERNING LAW. THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES.

        13. Captions. Paragraph captions used in this Note are provided solely
for convenience of reference only and shall not affect the meaning or
interpretation of any provision of this Note.

                                   GREENPOINT MORTGAGE SECURITIES INC.

                                   By:_________________________________

                                   Name:______________________________

                                   Title:_______________________________

                                   A-5
<PAGE>

                                                                    SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

                             [On file with Trustee]

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