Document:

GMACM HOME LOAN TRUST 2000-CL1,

                                     Issuer,

                                       and

                        WELLS FARGO BANK MINNESOTA, N.A.,

                                Indenture Trustee

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

                                    INDENTURE

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

                         Dated as of September 28, 2000

                        GMACM HOME LOAN-BACKED TERM NOTES

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                                Table of Contents

                                                                                                           Page

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ARTICLE I         Definitions...............................................................2

        Section 1.01 Definitions............................................................2

        Section 1.02 Incorporation by Reference of Trust Indenture Act......................2

        Section 1.03 Rules of Construction..................................................2

ARTICLE II        Original Issuance of Notes................................................3

        Section 2.01 Form...................................................................3

        Section 2.02 Execution, Authentication and Delivery.................................3

ARTICLE III       Covenants.................................................................4

        Section 3.01 Collection of Payments with Respect to the Home Loans..................4

        Section 3.02 Maintenance of Office or Agency........................................4

        Section 3.03 Money for Payments to Be Held in Trust; Paying Agent...................4

        Section 3.04 Existence..............................................................6

        Section 3.05 Priority of Distributions..............................................6

        Section 3.06 Protection of Trust Estate............................................10

        Section 3.07 Opinions as to Trust Estate...........................................10

        Section 3.08 Performance of Obligations; Servicing Agreement.......................11

        Section 3.09 Negative Covenants....................................................11

        Section 3.10 Annual Statement as to Compliance.....................................12

        Section 3.11 Recordation of Assignments............................................12

        Section 3.12 Representations and Warranties Concerning the Home Loans..............12

        Section 3.13 Assignee of Record of the Home Loans..................................12

        Section 3.14 Servicer as Agent and Bailee of the Indenture Trustee.................13

        Section 3.15 Investment Company Act................................................13

        Section 3.16 Issuer May Consolidate, etc...........................................13

        Section 3.17 Successor or Transferee...............................................15

        Section 3.18 No Other Business.....................................................15

        Section 3.19 No Borrowing..........................................................15

        Section 3.20 Guarantees, Loans, Advances and Other Liabilities.....................15

        Section 3.21 Capital Expenditures..................................................16

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        Section 3.22 Owner Trustee Not Liable for Certificates or Related Documents........16

        Section 3.23 Restricted Payments...................................................16

        Section 3.24 Notice of Events of Default...........................................16

        Section 3.25 Further Instruments and Acts..........................................16

        Section 3.26 Statements to Noteholders.............................................16

        Section 3.27 Determination of Note Rate............................................17

        Section 3.28 Payments under the Policy.............................................17

        Section 3.29 Replacement Enhancement...............................................17

ARTICLE IV        The Notes; Satisfaction and Discharge of Indenture.......................18

        Section 4.01 The Notes.............................................................18

        Section 4.02 Registration of and Limitations on Transfer and Exchange of Notes;

               Appointment of Certificate Registrar........................................19

        Section 4.03 Mutilated, Destroyed, Lost or Stolen Notes............................20

        Section 4.04 Persons Deemed Owners.................................................21

        Section 4.05 Cancellation..........................................................21

        Section 4.06 Book-Entry Notes......................................................21

        Section 4.07 Notices to Depository.................................................22

        Section 4.08 Definitive Notes......................................................22

        Section 4.09 Tax Treatment.........................................................22

        Section 4.10 Satisfaction and Discharge of Indenture...............................23

        Section 4.11 Application of Trust Money............................................24

        Section 4.12 Subrogation and Cooperation...........................................24

        Section 4.13 Repayment of Monies Held by Paying Agent..............................25

        Section 4.14 Temporary Notes.......................................................25

ARTICLE V         Default And Remedies.....................................................25

        Section 5.01 Events of Default.....................................................25

        Section 5.02 Acceleration of Maturity; Rescission and Annulment....................26

        Section 5.03 Collection of Indebtedness and Suits for Enforcement by

               Indenture Trustee...........................................................26

        Section 5.04 Remedies; Priorities..................................................29

        Section 5.05 Optional Preservation of the Trust Estate.............................31

        Section 5.06 Limitation of Suits...................................................31

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        Section 5.07 Unconditional Rights of Noteholders to Receive Principal and Interest.32

        Section 5.08 Restoration of Rights and Remedies....................................32

        Section 5.09 Rights and Remedies Cumulative........................................32

        Section 5.10 Delay or Omission Not a Waiver........................................32

        Section 5.11 Control by Credit Enhancer or Noteholders.............................33

        Section 5.12 Waiver of Past Defaults...............................................33

        Section 5.13 Undertaking for Costs.................................................34

        Section 5.14 Waiver of Stay or Extension Laws......................................34

        Section 5.15 Sale of Trust Estate..................................................34

        Section 5.16 Action on Notes.......................................................36

        Section 5.17 Performance and Enforcement of Certain Obligations....................36

ARTICLE VI        The Indenture Trustee....................................................37

        Section 6.01 Duties of Indenture Trustee...........................................37

        Section 6.02 Rights of Indenture Trustee...........................................39

        Section 6.03 Individual Rights of Indenture Trustee................................40

        Section 6.04 Indenture Trustee's Disclaimer........................................40

        Section 6.05 Notice of Event of Default............................................40

        Section 6.06 Reports by Indenture Trustee to Noteholders...........................40

        Section 6.07 Compensation and Indemnity............................................41

        Section 6.08 Replacement of Indenture Trustee......................................41

        Section 6.09 Successor Indenture Trustee by Merger.................................42

        Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.....43

        Section 6.11 Eligibility; Disqualification.........................................44

        Section 6.12 Preferential Collection of Claims Against Issuer......................45

        Section 6.13 Representations and Warranties........................................45

        Section 6.14 Directions to Indenture Trustee.......................................45

        Section 6.15 Indenture Trustee May Own Securities..................................46

ARTICLE VII       Noteholders' Lists and Reports...........................................46

        Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders46

        Section 7.02 Preservation of Information; Communications to Noteholders............46

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        Section 7.03 Reports by Issuer.....................................................46

        Section 7.04 Reports by Indenture Trustee..........................................47

ARTICLE VIII      Accounts, Disbursements and Releases.....................................47

        Section 8.01 Collection of Money...................................................47

        Section 8.02 Trust Accounts........................................................48

        Section 8.03 Officer's Certificate.................................................48
        Section 8.04 Termination Upon Distribution to Noteholders..........................48

        Section 8.05 Release of Trust Estate...............................................49

        Section 8.06 Surrender of Notes Upon Final Payment.................................49

ARTICLE IX        Supplemental Indentures..................................................49

        Section 9.01 Supplemental Indentures Without Consent of Noteholders................49

        Section 9.02 Supplemental Indentures With Consent of Noteholders...................51

        Section 9.03 Execution of Supplemental Indentures..................................52

        Section 9.04 Effect of Supplemental Indenture......................................52

        Section 9.05 Conformity with Trust Indenture Act...................................53

        Section 9.06 Reference in Notes to Supplemental Indentures.........................53

ARTICLE X         Miscellaneous............................................................53

        Section 10.01 Compliance Certificates and Opinions, etc............................53

        Section 10.02 Form of Documents Delivered to Indenture Trustee.....................55

        Section 10.03 Acts of Noteholders..................................................56

        Section 10.04 Notices, etc., to Indenture Trustee, Issuer, Credit Enhancer

               and Rating Agencies.........................................................56

        Section 10.05 Notices to Noteholders; Waiver.......................................57

        Section 10.06 Alternate Payment and Notice Provisions..............................58

        Section 10.07 Conflict with Trust Indenture Act....................................58

        Section 10.08 Effect of Headings...................................................58

        Section 10.09 Successors and Assigns...............................................58

        Section 10.10 Severability.........................................................58

        Section 10.11 Benefits of Indenture................................................58

        Section 10.12 Legal Holidays.......................................................59

        Section 10.13 GOVERNING LAW........................................................59

        Section 10.14 Counterparts.........................................................59

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        Section 10.15 Recording of Indenture...............................................59

        Section 10.16 Issuer Obligation....................................................59

        Section 10.17 No Petition..........................................................59

        Section 10.18 Inspection...........................................................60
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                                    EXHIBITS

Exhibit A      -      Form of Notes
Appendix A     -      Definitions

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        This  Indenture,  dated as of September  28, 2000, is between GMACM Home
Loan Trust 2000-CL1,  a Delaware  business trust, as issuer (the "Issuer"),  and
Wells Fargo Bank Minnesota,  N.A., a national banking association,  as indenture
trustee (the "Indenture Trustee").

                                   WITNESSETH:

        Each party  hereto  agrees as follows for the benefit of the other party
and for the equal and ratable  benefit of the Noteholders of the Issuer's Series
2000-CL1 GMACM Home Loan-Backed Term Notes (the "Notes").

                                GRANTING CLAUSE:

        The Issuer hereby  Grants to the Indenture  Trustee on the Closing Date,
as trustee for the benefit of the  Noteholders and the Credit  Enhancer,  all of
the Issuer's  right,  title and interest in and to all accounts,  chattel paper,
general intangibles, contract rights, certificates of deposit, deposit accounts,
instruments,  documents, letters of credit, money, advices of credit, investment
property,  goods and other  property  consisting of, arising under or related to
whether  now  existing or  hereafter  created in any of the  following:  (a) the
Initial  Home  Loans and any  Subsequent  Home  Loans,  and all monies due or to
become due thereunder; (b) the Note Payment Account, and all funds on deposit or
credited thereto from time to time and all proceeds thereof; (c) the Capitalized
Interest Account, and all funds on deposit or credited thereto from time to time
(other than any income thereon),  and the Pre-Funding  Account, and all funds on
deposit or  credited  thereto  from time to time;  (d) the  Policy;  and (e) all
present and future  claims,  demands,  causes and choses in action in respect of
any or all of the  foregoing  and all payments on or under,  and all proceeds of
every kind and nature  whatsoever in respect of, any or all of the foregoing and
all payments on or under,  and all proceeds of every kind and nature  whatsoever
in the conversion thereof,  voluntary or involuntary,  into cash or other liquid
property,  all cash proceeds,  accounts,  accounts  receivable,  notes,  drafts,
acceptances,  checks, deposit accounts, rights to payment of any and every kind,
and other forms of obligations and  receivables,  instruments and other property
which at any time  constitute  all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Trust Estate" or the "Collateral").

        The foregoing  Grant is made in trust to secure the payment of principal
of and  interest  on,  and any other  amounts  owing in  respect  of, the Notes,
equally and ratably without  prejudice,  priority or distinction,  and to secure
compliance  with the  provisions  of this  Indenture,  all as  provided  in this
Indenture.

        The foregoing Grant shall inure to the benefit of the Credit Enhancer in
respect of draws made on the Policy and amounts owing from time to time pursuant
to the Insurance  Agreement  (regardless  of whether such amounts  relate to the
Class A Notes or the Certificates),  and such Grant shall continue in full force
and effect for the benefit of the Credit  Enhancer  until all such amounts owing
to it have been repaid in full.

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        The  Indenture  Trustee,  as  trustee  on  behalf  of  the  Noteholders,
acknowledges  such Grant,  accepts the trust under this  Indenture in accordance
with the provisions hereof and agrees to perform its duties as Indenture Trustee
as required herein.

ARTICLE I

                                   Definitions

Section  1.01  Definitions.  For all  purposes  of  this  Indenture,  except  as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such  terms in the  Definitions  attached  hereto  as  Appendix  A,  which is
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

Section 1.02  Incorporation  by Reference of Trust Indenture Act.  Whenever this
Indenture  refers to a provision of the Trust  Indenture  Act (the "TIA"),  such
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:

               "Commission" means the Securities and Exchange Commission.

               "indenture securities" means the Notes.

               "indenture security holder" means a Noteholder.

               "indenture to be qualified" means this Indenture.

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

               "obligor" on the  indenture  securities  means the Issuer and any
                    other obligor on the indenture securities.

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

Section 1.03   Rules of Construction. Unless the context otherwise requires:

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

(b)  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;

(c)     "or" includes "and/or";

(d)     "including" means "including without limitation";

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(e)  words in the  singular  include the plural and words in the plural  include
     the singular;

(f)     the term "proceeds" has the meaning ascribed thereto in the UCC; and

(g) any agreement, instrument or statute defined or referred to herein or in any
instrument or certificate delivered in connection herewith means such agreement,
instrument or statute as from time to time amended, modified or supplemented and
includes  (in  the  case  of  agreements  or  instruments)   references  to  all
attachments thereto and instruments incorporated therein; references to a Person
are also to its permitted successors and assigns.

ARTICLE II

                           Original Issuance of Notes

Section 2.01 Form. The Notes,  together with the Indenture Trustee's certificate
of  authentication,  shall be in substantially  the form set forth in Exhibit A,
with such appropriate insertions, omissions,  substitutions and other variations
as are  required  or  permitted  by this  Indenture  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
the Notes, as evidenced by their execution  thereof.  Any portion of the text of
any Note may be set forth on the reverse thereof,  with an appropriate reference
thereto on the face of such Note.

        The Notes shall be  typewritten,  printed,  lithographed  or engraved or
produced by any  combination  of these methods  (with or without steel  engraved
borders),  all as determined by the Authorized Officers executing such Notes, as
evidenced by their execution of such Notes.

        The terms of the  Notes set forth in  Exhibit A are part of the terms of
this Indenture.

Section 2.02 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 manual or facsimile.

        Notes bearing the manual 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 Indenture Trustee shall upon Issuer Request authenticate and deliver
Notes  for  original  issue  in  an  aggregate   initial   principal  amount  of
$322,000,000.  The Class A-1 Notes,  Class A-2 Notes, Class A-3 Notes, Class A-4
Notes,  Class M Notes and Class B Notes shall have initial  principal amounts of
$139,004,000,    $23,853,000,    $66,581,000,   $37,753,000,   $34,256,000   and
$20,553,000, respectively.

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        Each Note shall be dated the date of its authentication. The Notes shall
be  issuable  as  registered  Notes,  and the Class A Notes shall be issuable in
minimum  denominations  of $25,000 and  integral  multiples  of $1,000 in excess
thereof.  The Class M Notes and the Class B Notes  shall be  issuable in minimum
denominations of $250,000 and integral multiples of $1,000 in excess thereof.

        No Note shall be  entitled  to any benefit  under this  Indenture  or be
valid or  obligatory  for any  purpose,  unless  there  appears  on such  Note a
certificate  of  authentication  substantially  in the form  provided for herein
executed  by  the  Indenture  Trustee  by  the  manual  signature  of one of its
authorized  signatories,  and such certificate upon any Note shall be conclusive
evidence, and the only evidence,  that such Note has been duly authenticated and
delivered hereunder.

                                  ARTICLE III

                                    Covenants

Section  3.01  Collection  of  Payments  with  Respect  to the Home  Loans.  The
Indenture  Trustee  shall  establish  and maintain  with itself the Note Payment
Account  in which the  Indenture  Trustee  shall,  subject  to the terms of this
paragraph,  deposit,  on the same day as it is received from the Servicer,  each
remittance received by the Indenture Trustee with respect to the Home Loans. The
Indenture  Trustee  shall make all  payments of principal of and interest on the
Notes, subject to Section 3.03 as provided in Section 3.05 herein from monies on
deposit in the Note Payment Account.

Section 3.02  Maintenance  of Office or Agency.  The Issuer will maintain in the
City of  Minneapolis,  an office or agency  where,  subject to  satisfaction  of
conditions  set forth  herein,  Notes may be  surrendered  for  registration  of
transfer  or  exchange,  and where  notices and demands to or upon the Issuer in
respect  of the  Notes and this  Indenture  may be  served.  The  Issuer  hereby
initially appoints the Indenture Trustee to serve as its agent for the foregoing
purposes.  If at any time the Issuer  shall fail to maintain  any such office or
agency or shall fail to furnish the Indenture  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 Indenture Trustee as its agent
to receive all such surrenders, notices and demands.

Section 3.03 Money for Payments to Be Held in Trust;  Paying Agent.  As provided
in Section  3.01,  all  payments of amounts due and payable  with respect to any
Notes that are to be made from amounts  withdrawn from the Note Payment  Account
pursuant to Section 3.01 shall be made on behalf of the Issuer by the  Indenture
Trustee  or by the Paying  Agent,  and no  amounts  so  withdrawn  from the Note
Payment Account for payments of Notes shall be paid over to the Issuer except as
provided in this Section 3.03. The Issuer hereby appoints the Indenture  Trustee
to act as initial  Paying  Agent  hereunder.  The Issuer  will cause each Paying
Agent other than the  Indenture  Trustee to execute and deliver to the Indenture
Trustee an  instrument in which such Paying Agent shall agree with the Indenture
Trustee  (and if the  Indenture  Trustee  acts as  Paying  Agent,  it  hereby so
agrees),  subject to the provisions of this Section 3.03, that such Paying Agent
will:

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(a) hold all sums held by it for the payment of amounts due with  respect to the
Notes 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;

(b) give the Indenture  Trustee and the Credit  Enhancer  written  notice of any
default  by the  Issuer of which it has  actual  knowledge  in the making of any
payment required to be made with respect to the Notes;

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

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

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

(f) deliver to the  Indenture  Trustee a copy of the  statement  to  Noteholders
prepared  with respect to each Payment Date by the Servicer  pursuant to Section
4.01 of the Servicing Agreement.

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

        Subject to applicable  laws with respect to escheat of funds,  any money
held by the  Indenture  Trustee or any Paying  Agent in trust for the payment of
any amount due with  respect to any Note and  remaining  unclaimed  for one year
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer  Request;  and the  Noteholder  of such Note
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 Indenture  Trustee or such Paying Agent with respect to
such trust money shall thereupon cease;  provided,  however,  that the Indenture
Trustee or such Paying Agent,  before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published  once, in
an  Authorized  Newspaper,  notice that such money  remains  unclaimed and that,
after a date  specified  therein,  which shall not be less than 30 days from the
date of such  publication,  any unclaimed  balance of such money then  remaining
will be repaid to the Issuer.  The Indenture  Trustee may also adopt and employ,
at the  expense  and  direction  of the Issuer,  any other  reasonable  means of

<PAGE>

notification of such repayment (including, but not limited to, mailing notice of
such repayment to Noteholders the Notes which have been called but have not been
surrendered  for  redemption  or whose  right to or  interest  in monies due and
payable  but not  claimed is  determinable  from the  records  of the  Indenture
Trustee  or of any  Paying  Agent,  at the last  address of record for each such
Noteholder).

Section  3.04  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 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  Indenture,  the  Notes,  the Home  Loans and each other
instrument or agreement included in the Trust Estate.

Section 3.05   Priority of Distributions .

(a) In accordance with Section 3.03(a) of the Servicing Agreement,  the priority
of  distributions  on each Payment Date from Principal  Collections and Interest
Collections in the Note Payment  Account,  any advances of delinquent  principal
and/or interest on the Home Loans made by the Servicer in respect of the related
Collection Period, in the case of the amounts payable to the Class A Noteholders
pursuant to clauses (ii),  (vi) and on the Final  Payment Date,  (v), any Policy
Draw Amount deposited into the Note Payment Account pursuant to Section 3.28(a),
and any amounts  transferred  to the Note Payment  Account from the  Pre-Funding
Account and/or the Capitalized  Interest  Account  pursuant to Sections 3.17 and
3.18 of the Servicing Agreement, is as follows:

(i)  to pay to the Credit Enhancer,  the Premium for the Policy for such Payment
     Date and any previously unpaid Premiums,  with interest thereon as provided
     in the Insurance Agreement;

(ii)    for  payment by the  Paying  Agent to the  Noteholders  of each Class of
        Class A Notes,  on a pro rata basis,  in  accordance  with the amount of
        interest  accrued  thereon,  interest for the related Interest Period at
        the related Note Rate on the related Note Balance  immediately  prior to
        such Payment Date;

(iii)   for payment by the Paying Agent to the Noteholders of the Class M Notes,
        interest for the related Interest Period at the related Note Rate on the
        related Note Balance immediately prior to such Payment Date

(iv)    for payment by the Paying Agent to the Noteholders of the Class B Notes,
        interest for the related Interest Period at the related Note Rate on the
        related Note Balance immediately prior to such Payment Date

<PAGE>

(v)     for payment by the Paying Agent to the Noteholders, as a distribution of
        principal on the Notes, the Principal Collection Distribution Amount for
        such Payment Date, to be allocated as follows:

                             (i)  first,  the  amount  necessary  to reduce  the
                      aggregate Note Balance of the Class A Notes to the Class A
                      Optimal Principal  Balance,  to the Class A-1 Notes, Class
                      A-2 Notes,  Class A-3 Notes and Class A-4  Notes,  in that
                      order,  in each case until the respective  Note Balance of
                      that Class of Notes is reduced to zero;

                             (ii)  second,  to the  Class M  Notes,  the  amount
                      necessary  to reduce the Note Balance of the Class M Notes
                      to the Class M Optimal Principal Balance; and

                             (iii)  third,  to the  Class B  Notes,  the  amount
                      necessary  to reduce the Note Balance of the Class B Notes
                      to the Class B Optimal Principal Balance;

(vi)    for  payment by the  Paying  Agent to the  Noteholders  of the Class A-1
        Notes,  Class A-2 Notes,  Class A-3 Notes and Class A-4  Notes,  in that
        order,  in each case until the respective  Note Balance of that Class of
        Notes is reduced to zero,  until the aggregate Note Balance of the Class
        A Notes has been reduced to the Class A Optimal  Principal  Balance,  an
        amount equal to any Liquidation  Loss Amounts incurred on the Home Loans
        during the related  Collection  Period and any Liquidation  Loss Amounts
        allocated  to the  Class A Notes on any  previous  Payment  Date and not
        previously paid plus interest on any previously unpaid amount;

(vii)   to the Credit  Enhancer,  to  reimburse  it for prior  draws made on the
        Policy, with interest thereon as provided in the Insurance Agreement;

(viii)  for payment by the Paying Agent to the Noteholders of the Class M Notes,
        until the Note  Balance  of the Class M Notes  has been  reduced  to the
        Class M Optimal  Principal  Balance,  an amount equal to any Liquidation
        Loss Amounts  incurred on the Home Loans  during the related  Collection
        Period and not  distributed  to the  Holders of the Class A Notes  under
        clause (vi) above;

(ix)    for payment by the Paying Agent to the Noteholders of the Class B Notes,
        until the Note  Balance  of the Class B Notes  has been  reduced  to the
        Class B Optimal  Principal  Balance,  an amount equal to any Liquidation
        Loss Amounts  incurred on the Home Loans  during the related  Collection
        Period and not  distributed  to the  Holders of the Class A Notes  under
        clause (vi) above or the Class M Notes under clause (viii) above;

(x)     for  payment  by the  Paying  Agent  to the  Class  A  Noteholders,  the
        Overcollateralization  Increase Amount,  if any, to reduce the aggregate
        Note  Balance  of the  Class A Notes to the  Class A  Optimal  Principal
        Balance,  to the Class A-1 Notes,  Class A-2 Notes,  Class A-3 Notes and
        Class A-4 Notes,  in that order,  in each case until the respective Note
        Balances of that Class of Notes is reduced to zero;

<PAGE>

(xi)    to pay to the  Credit  Enhancer,  any other  amounts  owed to the Credit
        Enhancer pursuant to the Insurance  Agreement,  with interest thereon as
        provided in the Insurance Agreement;

(xii)   for  payment  by the  Paying  Agent  to the  Class  M  Noteholders,  the
        Overcollateralization  Increase  Amount,  if  any,  to  the  extent  not
        distributed to the Class A Notes pursuant to clause (x) above, to reduce
        the Note  Balance of the Class M Notes to the Class M Optimal  Principal
        Balance;

(xiii)  for  payment  by the  Paying  Agent  to the  Class  B  Noteholders,  the
        Overcollateralization  Increase  Amount,  if  any,  to  the  extent  not
        distributed  to the Class A Notes  pursuant  to clause  (x) above or the
        Class M Notes pursuant to clause (xii) above, to reduce the Note Balance
        of the Class B Notes to the Class B Optimal Principal Balance;

(xiv)   for  payment  by the  Paying  Agent  to the  Class  M  Noteholders,  any
        Liquidation Loss Amounts  allocated to the Class M Notes on any previous
        Payment Dates and not previously paid plus interest thereon;

(xv)    for  payment  by the  Paying  Agent  to the  Class  B  Noteholders,  any
        Liquidation Loss Amounts  allocated to the Class B Notes on any previous
        Payment Dates and not previously paid plus interest thereon;

(xvi)to the  Indenture  Trustee,  any  amounts  owing to the  Indenture  Trustee
     pursuant to Section 6.07 to the extent remaining unpaid; and

(xvii) any remaining  amount, to the Distribution  Account,  for distribution to
     the Certificateholders by the Certificate Paying Agent;

provided,  that in the event that on a Payment  Date a Credit  Enhancer  Default
shall have occurred and be  continuing,  then the  priorities  of  distributions
described above will be adjusted such that payments of any amounts to be paid to
the Credit  Enhancer  will not be paid  until the full  amount of  interest  and
principal  in  accordance  with clauses (ii) through (ix) above that are due and
required  to be paid by the Credit  Enhancer on the Notes on such  Payment  Date
have been paid and provided, further, that on the Final Payment Date, the amount
to be paid  pursuant  to  clause  (v) above  shall be equal to the Note  Balance
immediately prior to such Payment Date. For purposes of the foregoing,  required
payments of principal on the Notes on each Payment Date will include the portion
allocable to the Notes of all Liquidation Loss Amounts for such Payment Date and
for all previous Collection Periods until paid or covered in full, to the extent
not  otherwise  covered  by a draw on the  Policy  (up to the  outstanding  Note
Balance).

<PAGE>

        On each Payment  Date,  the Paying  Agent shall  apply,  from amounts on
deposit  in the Note  Payment  Account,  and in  accordance  with the  Servicing
Certificate,  the amounts  set forth  above in the order of  priority  set forth
above.

        Amounts paid to  Noteholders of each Class in respect of interest on the
Notes shall be paid in accordance  with the priorities set forth above and among
the  Noteholders  of a Class in  accordance  with  their  respective  Percentage
Interests.  Interest on the Class A-1 Notes will be computed on the basis of the
actual  number of days in each Interest  Period and a 360-day year.  Interest on
the Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class M Notes and Class B
Notes  will be  computed  on the basis of a 360-day  year  consisting  of twelve
30-day months. Any installment of interest or principal payable on any Note that
is punctually paid or duly provided for by the Issuer on the applicable  Payment
Date  shall be paid to the  Noteholder  of  record  thereof  on the  immediately
preceding  Record Date by wire  transfer to an account  specified  in writing by
such Noteholder reasonably satisfactory to the Indenture Trustee, or by check or
money order mailed to such Noteholder at such Noteholder's  address appearing in
the Note Register,  the amount  required to be distributed to such Noteholder on
such  Payment  Date  pursuant to such  Noteholder's  Notes;  provided,  that the
Indenture  Trustee shall not pay to any such Noteholder any amounts  required to
be withheld from a payment to such Noteholder by the Code.

(b) Principal of each Note shall be due and payable in full on the Final Payment
Date as  provided  in the  applicable  form of Note set forth in  Exhibit A. All
principal  payments on the Notes of each Class shall be made in accordance  with
the  priorities  set forth in paragraph  (a) above to the  Noteholders  entitled
thereto in accordance with the related Percentage Interests represented thereby.
Upon  written  notice to the  Indenture  Trustee by the  Issuer,  the  Indenture
Trustee shall notify the Person in the name of which a Note is registered at the
close of business on the Record Date  preceding  the Final Payment Date or other
final Payment Date, as applicable. Such notice shall be mailed or faxed no later
than five  Business  Days prior to the Final  Payment  Date or such other  final
Payment Date and, unless such Note is then a Book-Entry Note, shall specify that
payment of the  principal  amount and any interest due with respect to such Note
at the Final  Payment Date or such other final Payment Date will be payable only
upon  presentation and surrender of such Note, and shall specify the place where
such Note may be presented and surrendered for such final payment.

(c) On each  Payment  Date,  the amount of any  Liquidation  Loss  Amounts  with
respect to the related  Collection  Period that was not distributed  pursuant to
Sections  3.05(a)(vi),  (viii) or (ix),  will be applied as follows:  first,  to
reduce  any   Overcollateralization   Amount  (after   allocation  of  Principal
Collections  and Interest  Collections  on the Home Loans for such Payment Date)
until such amount has been reduced to zero;  second,  to reduce the Note Balance
of the Class B Notes,  until the Note Balance  thereof has been reduced to zero;
third to reduce the Note  Balance of the Class M Notes,  until the Note  Balance
thereof has been  reduced to zero;  and fourth will be  allocated to the Class A
Notes,  and among the Class A Notes,  to the Class A-1  Notes,  Class A-2 Notes,
Class  A-3 Notes and Class A-4  Notes,  in that  order,  in each case  until the
respective  Note  Balance has been  reduced to zero;  provided  that if a Credit
Enhancer Default has occurred, Liquidation Loss Amounts allocated to the Class A
Notes  will be  allocated  among  the  Class  A Notes  on a pro  rata  basis  in
accordance with their respective Note Balances immediately prior to such Payment
Date. Liquidation Loss Amounts will not be applied to reduce the Note Balance of
the Class A Notes.

<PAGE>
Section 3.06   Protection of Trust Estate.

(a) The Issuer shall from time to time 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)  maintain or  preserve  the lien and  security  interest  (and the  priority
     thereof)  of this  Indenture  or carry out more  effectively  the  purposes
     hereof;

(ii) perfect,  publish notice of or protect the validity of any Grant made or to
     be made by this Indenture;

(iii)   cause the Trust to enforce any of the Home Loans; or

(iv)    preserve  and  defend  title to the Trust  Estate  and the rights of the
        Indenture  Trustee and the  Noteholders in such Trust Estate against the
        claims of all persons and parties.

(b) Except as otherwise provided in this Indenture,  the Indenture Trustee shall
not  remove  any  portion  of the  Trust  Estate  that  consists  of money or is
evidenced by an instrument,  certificate or other writing from the  jurisdiction
in which it was held at the date of the most recent Opinion of Counsel delivered
pursuant  to  Section  3.07 (or from  the  jurisdiction  in which it was held as
described in the Opinion of Counsel  delivered  at the Closing Date  pursuant to
Section  3.07(a),  if no Opinion of Counsel has yet been  delivered  pursuant to
Section  3.07(b))  unless the  Trustee  shall have first  received an Opinion of
Counsel  to the  effect  that the lien and  security  interest  created  by this
Indenture  with respect to such property  will  continue to be maintained  after
giving effect to such action or actions.

        The  Issuer  hereby  designates  the  Indenture  Trustee  its  agent and
attorney-in-fact to execute any financing statement,  continuation  statement or
other instrument required to be executed pursuant to this Section 3.06.

Section 3.07   Opinions as to Trust Estate.

        On the Closing Date,  the Issuer shall furnish to the Indenture  Trustee
and the Owner Trustee an Opinion of Counsel at the expense of the Issuer stating
that,  upon delivery of the Mortgage Notes relating to the Initial Home Loans to
the  Indenture  Trustee  or the  Custodian  in the  State of  Pennsylvania,  the
Indenture  Trustee will have a perfected,  first priority  security  interest in
such Home Loans.

<PAGE>

        On or before December 31st in each calendar year, beginning in 2000, the
Issuer  shall  furnish  to the  Indenture  Trustee  an Opinion of Counsel at the
expense of the Issuer either  stating  that, in the opinion of such counsel,  no
further  action is necessary to maintain a perfected,  first  priority  security
interest in the Home Loans until December 31 in the following  calendar year or,
if any such action is required to maintain  such  security  interest in the Home
Loans,  such  Opinion of Counsel  shall also  describe  the  recording,  filing,
re-recording and refiling of this Indenture,  any indentures 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 security  interest in the Home Loans until
December 31 in the following calendar year.

Section 3.08   Performance of Obligations; Servicing Agreement.

(a) The Issuer shall  punctually  perform and observe all of its obligations and
agreements  contained  in  this  Indenture,  the  Basic  Documents  and  in  the
instruments and agreements included in the Trust Estate.

(b) The Issuer may contract with other  Persons to assist it in  performing  its
duties  under this  Indenture,  and any  performance  of such duties by a Person
identified to the Indenture  Trustee in an Officer's  Certificate  of the Issuer
shall be deemed to be action taken by the Issuer.

(c) The  Issuer  shall not take any  action or permit  any action to be taken by
others  that would  release any Person from any of such  Person's  covenants  or
obligations  under any of the documents  relating to the Home Loans or under any
instrument  included in the Trust Estate, or that would result in the amendment,
hypothecation,  subordination,  termination  or  discharge  of,  or  impair  the
validity or effectiveness of, any of the documents relating to the Home Loans or
any such instrument,  except such actions as the Servicer is expressly permitted
to take in the Servicing Agreement.

(d) The Issuer may retain an  administrator  and may enter into  contracts  with
other Persons for the  performance of the Issuer's  obligations  hereunder,  and
performance  of  such  obligations  by  such  Persons  shall  be  deemed  to  be
performance of such obligations by the Issuer.

Section 3.09  Negative  Covenants.  So long as any  Notes are  Outstanding,  the
     Issuer shall not:

(a) except as expressly permitted by this Indenture, sell, transfer, exchange or
otherwise dispose of the Trust Estate, unless directed to do so by the Indenture
Trustee pursuant to Section 5.04 hereof;

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

<PAGE>

(c) (i) permit the validity or  effectiveness  of this Indenture to be impaired,
or permit the lien of this Indenture to be amended, hypothecated,  subordinated,
terminated or discharged, or permit any Person to be released from any covenants
or obligations  with respect to the Notes under this Indenture  except as may be
expressly  permitted  hereby,  (ii)  permit  any lien,  charge,  excise,  claim,
security  interest,  mortgage or other encumbrance  (other than the lien of this
Indenture)  to be created on or extend to or otherwise  arise upon or burden the
Trust Estate or any part thereof or any interest therein or the proceeds thereof
or (iii)  permit the lien of this  Indenture  not to  constitute  a valid  first
priority security interest in the Trust Estate; or

(d) impair or cause to be impaired the Issuer's  interest in the Home Loans, the
Purchase  Agreement  or in any other Basic  Document,  if any such action  would
materially and adversely  affect the interests of the  Noteholders or the Credit
Enhancer.

Section 3.10 Annual Statement as to Compliance.  The Issuer shall deliver to the
Indenture  Trustee,  within  120 days after the end of each  fiscal  year of the
Issuer  (commencing  with the fiscal  year  ending on  December  31,  2000),  an
Officer's  Certificate  stating,  as to  the  Authorized  Officer  signing  such
Officer's Certificate, that:

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

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

Section 3.11 Recordation of Assignments. The Issuer shall enforce the obligation
of the Sellers  under the Purchase  Agreement to submit or cause to be submitted
for  recordation  all  Assignments  of  Mortgages  within 60 days of  receipt of
recording information by the Servicer.

Section 3.12  Representations  and  Warranties  Concerning  the Home Loans.  The
Indenture  Trustee,  as pledgee of the Home Loans, shall have the benefit of the
representations  and  warranties  made by GMACM in Section  3.1(a)  and  Section
3.1(b) of the  Purchase  Agreement  and the benefit of the  representations  and
warranties  made by WG  Trust  in  Section  3.1(c)  of the  Purchase  Agreement,
concerning  the Home Loans and the right to enforce the  remedies  against  such
Seller  provided in such Section 3.1(a),  Section 3.1(b) or Section  3.1(c),  as
applicable,  to the same extent as though such  representations  and  warranties
were made directly to the Indenture Trustee.

Section 3.13 Assignee of Record of the Home Loans. As pledgee of the Home Loans,
the Indenture Trustee shall hold title to the Home Loans by being named as payee
in the  endorsements  of the Mortgage  Notes and assignee in the  Assignments of
Mortgage to be delivered under Section 2.1 of the Purchase Agreement.  Except as

<PAGE>

expressly provided in the Purchase Agreement or in the Servicing  Agreement with
respect to any specific Home Loan,  the Indenture  Trustee shall not execute any
endorsement or assignment or otherwise  release or transfer such title to any of
the Home Loans  until such time as the  remaining  Trust  Estate may be released
pursuant to Section 8.05(b). The Indenture Trustee's holding of such title shall
in all  respects  be subject to its  fiduciary  obligations  to the  Noteholders
hereunder.

Section 3.14 Servicer as Agent and Bailee of the Indenture  Trustee.  Solely for
purposes  of  perfection  under  Section  9-305  of  the  UCC or  other  similar
applicable  law,  rule or regulation of the state in which such property is held
by the Servicer,  the Issuer and the Indenture  Trustee hereby  acknowledge that
the Servicer is acting as agent and bailee of the  Indenture  Trustee in holding
amounts on deposit in the  Custodial  Account  pursuant  to Section  3.02 of the
Servicing  Agreement that are allocable to the Home Loans,  as well as the agent
and bailee of the Indenture Trustee in holding any Related Documents released to
the Servicer  pursuant to Section  3.06(c) of the Servicing  Agreement,  and any
other items constituting a part of the Trust Estate which from time to time come
into the  possession of the  Servicer.  It is intended  that, by the  Servicer's
acceptance of such agency  pursuant to Section 3.02 of the Servicing  Agreement,
the Indenture  Trustee,  as a pledgee of the Home Loans,  will be deemed to have
possession  of such  Related  Documents,  such  monies and such other  items for
purposes of Section 9-305 of the UCC of the state in which such property is held
by the Servicer.

Section 3.15 Investment  Company Act. The Issuer shall not become an "investment
company" or under the  "control"  of an  "investment  company" as such terms are
defined in the  Investment  Company Act of 1940, as amended (or any successor or
amendatory  statute),  and the rules and  regulations  thereunder  (taking  into
account not only the general  definition  of the term  "investment  company" but
also any available  exceptions to such general definition);  provided,  however,
that the Issuer shall be in  compliance  with this Section 3.15 if it shall have
obtained an order  exempting it from  regulation as an  "investment  company" so
long as it is in compliance with the conditions imposed in such order.

Section 3.16   Issuer May Consolidate, etc.

(a)  The Issuer shall not  consolidate  or merge with or into any other  Person,
     unless:

(i)  the  Person  (if  other  than  the  Issuer)  formed  by or  surviving  such
     consolidation  or merger shall be a Person organized and existing under the
     laws of the  United  States  of  America  or any state or the  District  of
     Columbia and shall expressly assume, by an indenture  supplemental  hereto,
     executed  and  delivered  to the  Indenture  Trustee,  in  form  reasonably
     satisfactory to the Indenture Trustee,  the due and punctual payment of the
     principal of and interest on all Notes and to the Certificate Paying Agent,
     on behalf of the  Certificateholders  and the  performance or observance of
     every agreement and covenant of this Indenture on the part of the Issuer to
     be performed or observed, all as provided herein;

<PAGE>
(ii) immediately  after giving effect to such  transaction,  no Event of Default
     shall have occurred and be continuing;

(iii)   the Credit Enhancer shall have consented  thereto and each Rating Agency
        shall have  notified the Issuer that such  transaction  will not cause a
        Rating Event, without taking into account the Policy;

(iv)    the Issuer  shall have  received  an Opinion of Counsel  (and shall have
        delivered  copies  thereof  to the  Indenture  Trustee  and  the  Credit
        Enhancer) to the effect that such transaction will not have any material
        adverse  tax   consequence   to  the  Issuer,   any  Noteholder  or  any
        Certificateholder;

(v)  any action that is necessary  to maintain  the lien and  security  interest
     created by this Indenture shall have been taken; and

(vi)    the Issuer shall have  delivered to the  Indenture  Trustee an Officer's
        Certificate   and  an  Opinion  of  Counsel   each   stating  that  such
        consolidation or merger and such supplemental indenture comply with this
        Article  III and that  all  conditions  precedent  herein  provided  for
        relating to such  transaction  have been  complied with  (including  any
        filing required by the Exchange Act).

(b) The Issuer  shall not convey or transfer  any of its  properties  or assets,
including those included in the Trust Estate, to any Person, unless:

(i)  the Person that  acquires by  conveyance  or transfer  the  properties  and
     assets  of the  Issuer  the  conveyance  or  transfer  of which  is  hereby
     restricted  shall (A) be a United States citizen or a Person  organized and
     existing  under the laws of the United States of America or any state,  (B)
     expressly  assumes,  by an  indenture  supplemental  hereto,  executed  and
     delivered to the Indenture  Trustee,  in form satisfactory to the Indenture
     Trustee,  the due and punctual  payment of the principal of and interest on
     all Notes and the performance or observance of every agreement and covenant
     of this  Indenture  on the part of the Issuer to be  performed or observed,
     all as provided herein,  (C) expressly agrees by means of such supplemental
     indenture  that all right,  title and  interest so conveyed or  transferred
     shall be subject and subordinate to the rights of Noteholders of the Notes,
     (D) unless otherwise  provided in such  supplemental  indenture,  expressly
     agrees to indemnify,  defend and hold harmless the Issuer  against and from
     any loss,  liability or expense  arising under or related to this Indenture
     and the  Notes  and (E)  expressly  agrees  by means  of such  supplemental
     indenture  that such Person (or if a group of Persons,  then one  specified
     Person)  shall  make  all  filings  with  the  Commission  (and  any  other
     appropriate  Person)  required by the Exchange Act in  connection  with the
     Notes;

(ii)    immediately after giving effect to such transaction, no Default or Event
        of Default shall have occurred and be continuing;

<PAGE>

(iii)   the Credit Enhancer shall have consented thereto, and each Rating Agency
        shall have  notified the Issuer that such  transaction  will not cause a
        Rating Event, if determined without regard to the Policy;

(iv)    the Issuer  shall have  received  an Opinion of Counsel  (and shall have
        delivered  copies  thereof to the Indenture  Trustee) to the effect that
        such  transaction  will not have any material adverse tax consequence to
        the Issuer or any Noteholder;

(v)  any action that is necessary  to maintain  the lien and  security  interest
     created by this Indenture shall have been taken; and

(vi)    the Issuer shall have  delivered to the  Indenture  Trustee an Officer's
        Certificate  and an Opinion of Counsel each stating that such conveyance
        or transfer and such supplemental indenture comply with this Article III
        and that all conditions  precedent  herein provided for relating to such
        transaction  have been complied with  (including any filing  required by
        the Exchange Act).

Section 3.17   Successor or Transferee.

(a) Upon any  consolidation  or merger of the Issuer in accordance  with Section
3.16(a),  the Person  formed by or surviving  such  consolidation  or merger (if
other than the  Issuer)  shall  succeed  to,  and be  substituted  for,  and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.

(b) Upon a conveyance or transfer of all the assets and properties of the Issuer
pursuant to Section  3.16(b),  the Issuer shall be released from every  covenant
and  agreement of this  Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written notice
to the Indenture Trustee of such conveyance or transfer.

Section  3.18 No Other  Business.  The Issuer  shall not engage in any  business
other than financing, purchasing, owning and selling and managing the Home Loans
and the issuance of the Notes and  Certificates  in the manner  contemplated  by
this Indenture and the Basic Documents and all activities incidental thereto.

Section 3.19 No Borrowing.  The Issuer shall not issue, incur, assume, guarantee
or otherwise become liable, directly or indirectly,  for any indebtedness except
for the Notes.

Section  3.20  Guarantees,  Loans,  Advances  and Other  Liabilities.  Except as
contemplated  by this Indenture or the other Basic  Documents,  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 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.

<PAGE>

Section 3.21 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 3.22 Owner Trustee Not Liable for Certificates or Related Documents. The
recitals  contained  herein shall be taken as the statements of the Issuer,  and
the Owner Trustee and the Indenture  Trustee  assume no  responsibility  for the
correctness  of the  recitals  contained  herein.  The  Owner  Trustee  and  the
Indenture Trustee make no  representations  as to the validity or sufficiency of
this Indenture or any other Basic Document,  of the Certificates (other than the
signatures of the Owner Trustee or the Indenture Trustee on the Certificates) or
the Notes,  or of any Related  Documents.  The Owner  Trustee and the  Indenture
Trustee shall at no time have any  responsibility  or liability  with respect to
the  sufficiency  of the Trust Estate or its ability to generate the payments to
be  distributed  to   Certificateholders   under  the  Trust  Agreement  or  the
Noteholders under this Indenture,  including, the compliance by the Depositor or
the Sellers with any warranty or representation made under any Basic Document or
in any related document or the accuracy of any such warranty or  representation,
or any action of the Certificate Paying Agent, the Certificate  Registrar or any
other person taken in the name of the Owner Trustee or the Indenture Trustee.

Section 3.23 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,  (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,  (x)  distributions  to the Owner Trustee and the
Certificateholders as contemplated by, and to the extent funds are available for
such  purpose  under,  the Trust  Agreement  and (y)  payments  to the  Servicer
pursuant to the terms of the Servicing Agreement.  The Issuer will not, directly
or  indirectly,  make payments to or  distributions  from the Custodial  Account
except in accordance with this Indenture and the other Basic Documents.

Section 3.24 Notice of Events of Default.  The Issuer  shall give the  Indenture
Trustee,  the Credit  Enhancer and the Rating  Agencies prompt written notice of
each Event of Default hereunder and under the Trust Agreement.

Section  3.25  Further  Instruments  and Acts.  Upon  request  of the  Indenture
Trustee,  the Issuer shall execute and deliver such further  instruments  and do
such  further  acts as may be  reasonably  necessary or proper to carry out more
effectively the purposes of this Indenture.

Section  3.26  Statements  to  Noteholders.  On each Payment  Date,  each of the
Indenture  Trustee and the  Certificate  Registrar  shall forward by mail to the
Credit Enhancer,  the Depositor,  the Owner Trustee and each Rating Agency,  and
shall  make   available   to  each   Noteholder   and  each   Certificateholder,
respectively, the Servicing Certificate provided to the Indenture Trustee by the
Servicer relating to such Payment Date and delivered pursuant to Section 4.01 of
the Servicing Agreement.

<PAGE>

        The Indenture Trustee will make the monthly statement to Securityholders
(and, at its option,  any additional files containing the same information in an
alternative  format) available each month to  Securityholders  and the Enhancer,
and other parties to this Indenture via the Indenture Trustee's internet website
and its fax-on-demand service. The Indenture Trustee's fax-on-demand service may
be accessed by calling (301) 815-6610.  The Indenture Trustee's internet website
shall initially be located at "www.ctslink.com". Assistance in using the website
or the fax-on-demand  service can be obtained by calling the Indenture Trustee's
customer  service  desk at (301)  815-6600.  Parties  that are unable to use the
above distribution  options are entitled to have a paper copy mailed to them via
first  class mail by  calling  Mortgage  Backed  Securities  Administration  and
indicating  such.  The Indenture  Trustee shall have the right to change the way
the  statement  to  Securityholders  are  distributed  in  order  to  make  such
distribution more convenient and/or more accessible to the above parties and the
Indenture  Trustee shall provide timely and adequate  notification  to all above
parties regarding any such changes.

Section  3.27  Determination  of Note Rate.  On the second  LIBOR  Business  Day
immediately  preceding  (i) the Closing  Date in the case of the first  Interest
Period and (ii) the first day of each succeeding  Interest Period, the Indenture
Trustee shall  determine  LIBOR and the  applicable  Note Rate for such Interest
Period and shall inform the Issuer, the Servicer and the Depositor.

Section 3.28 Payments under the Policy.

(a) If the Servicing  Certificate specifies a Policy Draw Amount for any Payment
Date,  the Indenture  Trustee  shall make a draw on the Policy in an amount,  if
any,  equal to the Policy  Draw  Amount for such  Payment  Date.  The  Indenture
Trustee shall deposit or cause to be deposited  such Policy Draw Amount into the
Note Payment  Account on such Payment Date. For purposes of the  foregoing,  the
amount on deposit in the Note Payment Account and available to be distributed as
interest  on any  Payment  Date  shall  include  all  amounts on deposit in such
account with respect to such Payment Date,  other than the Principal  Collection
Distribution Amount to be distributed on such Payment Date.

(b) The Indenture  Trustee shall submit, if a Policy Draw Amount is specified in
any  statement  to  Securityholders  prepared  pursuant  to Section  4.01 of the
Servicing Agreement,  the Notice of Nonpayment and Demand for Payment of Insured
Amounts (in the form attached as Exhibit A to the Policy) to the Credit Enhancer
no later than 12:00 noon,  New York City time, on the second (2nd)  Business Day
prior to the applicable Payment Date.

Section 3.29 Replacement Enhancement. The Issuer (or the Servicer on its behalf)
may, at its expense,  in accordance with and upon satisfaction of the conditions
set forth herein,  but shall not be required to, obtain a surety bond, letter of
credit,  guaranty or reserve  account as a Permitted  Investment  for amounts on
deposit in the Capitalized  Interest Account,  or may arrange for any other form
of additional credit enhancement;  provided, that after prior notice thereto, no
Rating  Agency shall have informed the Issuer that a Rating Event would occur as

<PAGE>

a result thereof (without taking the Policy into account); and provided further,
that the issuer of any such  instrument or facility and the timing and mechanism
for drawing on such additional  enhancement shall be acceptable to the Indenture
Trustee and the Credit  Enhancer.  It shall be a condition to procurement of any
such  additional  credit  enhancement  that there be delivered to the  Indenture
Trustee and the Credit Enhancer (a) an Opinion of Counsel, acceptable in form to
the Indenture  Trustee and the Credit Enhancer,  from counsel to the provider of
such additional credit  enhancement with respect to the  enforceability  thereof
and such other  matters as the  Indenture  Trustee  or the Credit  Enhancer  may
require and (b) an Opinion of Counsel to the effect that the procurement of such
additional  enhancement  would not (i) adversely  affect in any material respect
the tax status of the Notes or the  Certificates  or (ii) cause the Issuer to be
taxable as an association (or a publicly traded  partnership) for federal income
tax purposes or to be classified  as a taxable  mortgage pool within the meaning
of Section 7701(i) of the Code.

                                   ARTICLE IV

               The Notes; Satisfaction and Discharge of Indenture

Section 4.01 The Notes;.  The Notes shall be registered in the name of a nominee
designated by the Depository. Beneficial Owners will hold interests in the Notes
through the  book-entry  facilities of the  Depository  in minimum  initial Note
Balances of $25,000 and integral multiples of $1,000 in excess thereof,  for the
Class A Notes,  and minimum  initial  Note  Balances of  $250,000  and  integral
multiples of $1,000 in excess thereof, for the Class M Notes and Class B Notes.

        The  Indenture  Trustee may for all  purposes  (including  the making of
payments  due  on  the  Notes)  deal  with  the  Depository  as  the  authorized
representative  of the  Beneficial  Owners  with  respect  to the  Notes for the
purposes of exercising the rights of Noteholders  hereunder.  Except as provided
in the next succeeding  paragraph of this Section 4.01, the rights of Beneficial
Owners with  respect to the Notes shall be limited to those  established  by law
and agreements  between such Beneficial Owners and the Depository and Depository
Participants. Except as provided in Section 4.08, Beneficial Owners shall not be
entitled  to  definitive  certificates  for the  Notes as to which  they are the
Beneficial Owners. Requests and directions from, and votes of, the Depository as
Noteholder of the Notes shall not be deemed  inconsistent  if they are made with
respect to different  Beneficial  Owners.  The Indenture Trustee may establish a
reasonable  record date in  connection  with  solicitations  of consents from or
voting by  Noteholders  and give notice to the  Depository  of such record date.
Without  the  consent of the Issuer and the  Indenture  Trustee,  no Note may be
transferred by the Depository  except to a successor  Depository  that agrees to
hold such Note for the account of the Beneficial Owners.

        In the event the  Depository  Trust  Company  resigns  or is  removed as
Depository,  the Indenture Trustee,  at the request of the Servicer and with the
approval of the Issuer,  may appoint a  successor  Depository.  If no  successor
Depository  has  been  appointed  within  30 days of the  effective  date of the

<PAGE>

Depository's  resignation or removal, each Beneficial Owner shall be entitled to
certificates   representing  the  Notes  it  beneficially  owns  in  the  manner
prescribed in Section 4.08.

        The Notes shall,  on original issue, be executed on behalf of the Issuer
by the Owner Trustee, not in its individual capacity but solely as Owner Trustee
and upon Issuer Order,  authenticated by the Note Registrar and delivered by the
Indenture Trustee to or upon the order of the Issuer.

Section 4.02  Registration of and Limitations on Transfer and Exchange of Notes;
Appointment of Certificate  Registrar.  The Issuer shall cause to be kept at the
Indenture Trustee's Corporate Trust Office a Note Register in which,  subject to
such  reasonable  regulations  as it may  prescribe,  the Note  Registrar  shall
provide for the registration of Notes and of transfers and exchanges of Notes as
herein provided. The Issuer hereby appoints the Indenture Trustee as the initial
Note Registrar.

        Subject  to the  restrictions  and  limitations  set forth  below,  upon
surrender  for  registration  of  transfer  of any Note at the  Corporate  Trust
Office, the Issuer shall execute,  and the Note Registrar shall authenticate and
deliver,  in the name of the designated  transferee or transferees,  one or more
new Notes in authorized  initial Note  Balances  evidencing  the same  aggregate
Percentage Interests.

        Subject to the foregoing, at the option of the Noteholders, Notes may be
exchanged for other Notes of like tenor, in each case in authorized initial Note
Balances evidencing the same aggregate Percentage  Interests,  upon surrender of
the Notes to be exchanged at the Corporate  Trust Office of the Note  Registrar.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute and
the Note Registrar shall authenticate and deliver the Notes which the Noteholder
making the exchange is entitled to receive.  Each Note  presented or surrendered
for  registration  of  transfer  or  exchange  shall (if so required by the Note
Registrar) be duly  endorsed by, or be  accompanied  by a written  instrument of
transfer in form reasonably satisfactory to the Note Registrar duly executed by,
the  Noteholder  thereof or his attorney  duly  authorized  in writing with such
signature  guaranteed by a commercial  bank or trust company located or having a
correspondent  located in The City of New York.  Notes  delivered  upon any such
transfer or exchange will evidence the same obligations, and will be entitled to
the same rights and privileges, as the Notes surrendered.

        No service charge shall be imposed for any  registration  of transfer or
exchange  of  Notes,  but the Note  Registrar  shall  require  payment  of a sum
sufficient  to cover  any tax or  governmental  charge  that may be  imposed  in
connection with any registration of transfer or exchange of Notes.

        All Notes surrendered for registration of transfer and exchange shall be
cancelled  by the Note  Registrar  and  delivered to the  Indenture  Trustee for
subsequent destruction without liability on the part of either.

<PAGE>
        The  Issuer  hereby  appoints  the  Indenture   Trustee  as  Certificate
Registrar to keep at its Corporate Trust Office a Certificate  Register pursuant
to Section  3.09 of the Trust  Agreement  in which,  subject to such  reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges  thereof pursuant to
Section 3.05 of the Trust Agreement.  The Indenture  Trustee hereby accepts such
appointment.

        Each purchaser of a Note, by its acceptance of the Note, shall be deemed
to have  represented that the acquisition of such Note by the purchaser does not
constitute or give rise to a prohibited  transaction  under Section 406 of ERISA
or  Section  4975  of  the  Code,   for  which  no   statutory,   regulatory  or
administrative exemption is available.

Section 4.03  Mutilated,  Destroyed,  Lost or Stolen Notes. If (i) any mutilated
Note is surrendered to the Indenture Trustee,  or the Indenture Trustee receives
evidence to its satisfaction of the destruction,  loss or theft of any Note, and
(ii) there is delivered to the  Indenture  Trustee such security or indemnity as
may be required  by it to hold the Issuer and the  Indenture  Trustee  harmless,
then,  in the  absence  of  notice  to the  Issuer,  the Note  Registrar  or the
Indenture Trustee that such Note has been acquired by a bona fide purchaser, and
provided that the  requirements  of Section 8-405 of the UCC are met, the Issuer
shall execute, and upon its request the Indenture Trustee shall authenticate and
deliver,  in exchange for or in lieu of any such mutilated,  destroyed,  lost or
stolen Note, a replacement Note of the same class;  provided,  however,  that if
any such destroyed,  lost or stolen Note, but not a mutilated  Note,  shall have
become or within  seven  days  shall be due and  payable,  instead  of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or  payable  without  surrender  thereof.  If,  after the  delivery  of such
replacement Note or payment of a destroyed,  lost or stolen Note pursuant to the
proviso to the preceding sentence, a bona fide purchaser of the original Note in
lieu of which  such  replacement  Note was  issued  presents  for  payment  such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any  Person  taking  such  replacement  Note  from  such  Person to whom such
replacement  Note was  delivered or any  assignee of such Person,  except a bona
fide purchaser,  and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Indenture Trustee in connection therewith.

        Upon the issuance of any  replacement  Note under this Section 4.03, the
Issuer  may  require  the  payment  by the  Noteholder  of  such  Note  of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation  thereto  and any other  reasonable  expenses  (including  the fees and
expenses of the Indenture Trustee) connected therewith.

        Every   replacement  Note  issued  pursuant  to  this  Section  4.03  in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original  additional  contractual  obligation of the Issuer,  whether or not the
mutilated,  destroyed,  lost or stolen Note shall be at any time  enforceable by
anyone,  and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

<PAGE>
        The provisions of this Section 4.03 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

Section 4.04 Persons Deemed Owners. Prior to due presentment for registration of
transfer of any Note,  the Issuer,  the  Indenture  Trustee and any agent of the
Issuer or the  Indenture  Trustee may treat the Person in whose name any Note is
registered  (as of the day of  determination)  as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such Note
and for all other purposes whatsoever,  whether or not such Note be overdue, and
none of the  Issuer,  the  Indenture  Trustee  or any agent of the Issuer or the
Indenture Trustee shall be affected by notice to the contrary.

Section 4.05  Cancellation.  All Notes surrendered for payment,  registration of
transfer,  exchange or redemption shall, if surrendered to any Person other than
the  Indenture  Trustee,  be  delivered  to the  Indenture  Trustee and shall be
promptly cancelled by the Indenture Trustee.  The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Indenture Trustee.
No  Notes  shall  be  authenticated  in lieu  of or in  exchange  for any  Notes
cancelled as provided in this  Section  4.05,  except as expressly  permitted by
this Indenture.  All cancelled Notes may be held or disposed of by the Indenture
Trustee in  accordance  with its  standard  retention  or disposal  policy as in
effect at the time unless the Issuer shall direct by an Issuer Request that they
be destroyed or returned to it; provided,  however,  that such Issuer Request is
timely  and the Notes  have not been  previously  disposed  of by the  Indenture
Trustee.

Section 4.06  Book-Entry  Notes.  Each Class of Notes,  upon original  issuance,
shall be issued in the form of  typewritten  Notes  representing  the Book-Entry
Notes, to be delivered to The Depository Trust Company,  the initial Depository,
by, or on behalf of, the Issuer. Such Notes shall initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial  Depository,
and no  Beneficial  Owner shall  receive a  Definitive  Note  representing  such
Beneficial  Owner's  interest in such Note,  except as provided in Section 4.08.
Unless and until  definitive,  fully registered  Notes (the "Definitive  Notes")
have been issued to Beneficial Owners pursuant to Section 4.08:

(a)     the provisions of this Section 4.06 shall be in full force and effect;

(b) the Note Registrar and the Indenture  Trustee shall be entitled to deal with
the  Depository  for all purposes of this  Indenture  (including  the payment of
principal  of and  interest  on the Notes  and the  giving  of  instructions  or
directions  hereunder)  as the sole  holder  of the  Notes,  and  shall  have no
obligation to the Beneficial Owners;

(c) to the extent that the  provisions  of this Section 4.06  conflict  with any
other  provisions of this  Indenture,  the provisions of this Section 4.06 shall
control;

<PAGE>

(d) the  rights  of  Beneficial  Owners  shall be  exercised  only  through  the
Depository  and shall be  limited  to those  established  by law and  agreements
between  such  Owners  of  Notes  and  the  Depository   and/or  the  Depository
Participants.  Unless and until  Definitive Notes are issued pursuant to Section
4.08, the initial Depository will make book-entry transfers among the Depository
Participants  and receive and transmit  payments of principal of and interest on
the Notes to such Depository Participants; and

(e) whenever this Indenture  requires or permits  actions to be taken based upon
instructions  or  directions  of  Noteholders  of Notes  evidencing  a specified
percentage of the Note Balances of the Notes,  the Depository shall be deemed to
represent such percentage  only to the extent that it has received  instructions
to such effect from Beneficial Owners and/or Depository  Participants  owning or
representing,  respectively, such required percentage of the beneficial interest
in the Notes and has delivered such instructions to the Indenture Trustee.

Section 4.07 Notices to Depository.  Whenever a notice or other communication to
the Noteholders of the Notes is required under this Indenture,  unless and until
Definitive Notes shall have been issued to Beneficial Owners pursuant to Section
4.08,  the  Indenture  Trustee  shall give all such  notices and  communications
specified herein to be given to Noteholders of the Notes to the Depository,  and
shall have no obligation to the Beneficial Owners.

Section 4.08 Definitive Notes. If (i) the Indenture Trustee  determines that the
Depository   is  no  longer   willing  or  able  to   properly   discharge   its
responsibilities  with respect to the Notes and, if  requested by the  Servicer,
the  Indenture  Trustee  is  unable to locate a  qualified  successor,  (ii) the
Indenture  Trustee  elects  to  terminate  the  book-entry  system  through  the
Depository,  or (iii) after the  occurrence  of an Event of Default,  Beneficial
Owners  of  Notes  representing  beneficial  interests  aggregating  at  least a
majority of the  aggregate  Note Balance of the Notes advise the  Depository  in
writing that the  continuation of a book-entry  system through the Depository is
no longer in the best  interests of the Beneficial  Owners,  then the Depository
shall notify all Beneficial  Owners and the Indenture  Trustee of the occurrence
of any such event and of the  availability  of  Definitive  Notes to  Beneficial
Owners  requesting  the same.  Upon  surrender to the  Indenture  Trustee of the
typewritten  Notes  representing  the  Book-Entry  Notes by the  Depository  (or
Percentage Interest of the Book-Entry Notes being transferred pursuant to clause
(iii) above), accompanied by registration instructions, the Issuer shall execute
and the Indenture Trustee shall  authenticate the Definitive Notes in accordance
with the instructions of the Depository.  None of the Issuer, the Note Registrar
or the  Indenture  Trustee  shall be liable  for any delay in  delivery  of such
instructions,  and each may  conclusively  rely on,  and shall be  protected  in
relying on,  such  instructions.  Upon the  issuance of  Definitive  Notes,  the
Indenture  Trustee shall  recognize the  Noteholders of the Definitive  Notes as
Noteholders.

Section 4.09 Tax Treatment.  The Issuer has entered into this Indenture, and the
Notes will be issued,  with the  intention  that,  for federal,  state and local
income,  single  business and franchise tax purposes,  the Notes will qualify as
indebtedness.  The Issuer, by entering into this Indenture, and each Noteholder,
by its acceptance of its Note (and each Beneficial Owner by its acceptance of an
interest  in the  applicable  Book-Entry  Note),  agree to treat  the  Notes for
federal,  state and local income,  single business and franchise tax purposes as
indebtedness.

<PAGE>

Section 4.10 Satisfaction and Discharge of Indenture. This Indenture shall cease
to be of further  effect  with  respect to the Notes  except as to (i) rights of
registration  of  transfer  and  exchange,   (ii)   substitution  of  mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee  hereunder  (including the rights of the Indenture Trustee under Section
6.07 and the  obligations of the Indenture  Trustee under Section 4.11) and (vi)
the rights of Noteholders as  beneficiaries  hereof with respect to the property
so deposited with the Indenture  Trustee  payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer,  shall execute
proper  instruments  acknowledging  satisfaction and discharge of this Indenture
with respect to the Notes, when

                      (A)    either

(1)                   all Notes  theretofore  authenticated and delivered (other
                      than (i) Notes  that have been  destroyed,  lost or stolen
                      and that have been replaced or paid as provided in Section
                      4.03  and  (ii)   Notes  for  whose   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
                      3.03) have been  delivered  to the  Indenture  Trustee for
                      cancellation; or

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

a)      have become due and payable,

b)    will become due and payable at the Final Payment Date within one year, or

c)      have been declared immediately due and payable pursuant to Section 5.02.

        and the Issuer, in the case of a. or b. above, has irrevocably deposited
        or caused to be irrevocably deposited with the Indenture 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  indebtedness on such Notes and Certificates then outstanding
        not theretofore delivered to the Indenture Trustee for cancellation when
        due on the Final Payment Date;

<PAGE>

(3)  the Issuer has paid or caused to be paid all other sums  payable  hereunder
     and under the Insurance Agreement by the Issuer; and

(4)  the Issuer has delivered to the Indenture  Trustee and the Credit  Enhancer
     an  Officer's  Certificate  and an Opinion of  Counsel,  each  meeting  the
     applicable  requirements  of  Section  10.01  and  each  stating  that  all
     conditions  precedent  herein provided for relating to the satisfaction and
     discharge of this  Indenture have been complied with and, if the Opinion of
     Counsel relates to a deposit made in connection  with Section  4.10(A)(2)b.
     above,  such opinion  shall further be to the effect that such deposit will
     not  have  any  material  adverse  tax  consequences  to  the  Issuer,  any
     Noteholders or any Certificateholders.

Section 4.11 Application of Trust Money. All monies deposited with the Indenture
Trustee  pursuant to Section  4.10 hereof  shall be held in trust and applied by
it, in accordance  with the provisions of the Notes and this  Indenture,  to the
payment,  either  directly or through  any Paying  Agent or  Certificate  Paying
Agent,  as the  Indenture  Trustee  may  determine,  to the  Securityholders  of
Securities,  of all  sums  due and to  become  due  thereon  for  principal  and
interest;  but such monies need not be segregated from other funds except to the
extent required herein or required by law.

Section 4.12   Subrogation and Cooperation.

(a) The Issuer and the Indenture Trustee  acknowledge that (i) to the extent the
Credit  Enhancer  makes  payments under the Policy on account of principal of or
interest on the Home Loans,  the Credit Enhancer will be fully subrogated to the
rights the  Noteholders  to receive  such  principal of and interest on the Home
Loans,  and (ii) the Credit  Enhancer  shall be paid such principal and interest
only from the sources  and in the manner  provided  herein and in the  Insurance
Agreement for the payment of such principal and interest.

        The  Indenture   Trustee  shall  cooperate  in  all  respects  with  any
reasonable  request by the Credit Enhancer for action to preserve or enforce the
Credit  Enhancer's  rights or interest  under this  Indenture  or the  Insurance
Agreement, consistent with this Indenture and without limiting the rights of the
Noteholders  as  otherwise  set  forth  in the  Indenture,  including  upon  the
occurrence and continuance of a default under the Insurance Agreement, a request
(which  request  shall be in writing)  to take any one or more of the  following
actions:

(i)     institute  Proceedings for the collection of all amounts then payable on
        the  Notes or under  this  Indenture  in  respect  to the  Notes and all
        amounts  payable  under  the  Insurance  Agreement  and to  enforce  any
        judgment obtained and collect from the Issuer monies adjudged due;

(ii)    sell the  Trust  Estate or any  portion  thereof  or rights or  interest
        therein,  at one or more public or private  Sales (as defined in Section
        5.15 hereof) called and conducted in any manner permitted by law;

<PAGE>

(iii)   file or record all assignments that have not previously been recorded;

(iv) institute  Proceedings  from  time to  time  for the  complete  or  partial
     foreclosure of this Indenture; and

(v)     exercise  any  remedies  of a secured  party  under the UCC and take any
        other appropriate  action to protect and enforce the rights and remedies
        of the Credit Enhancer hereunder.

        Following the payment in full of the Notes,  the Credit  Enhancer  shall
continue to have all rights and privileges provided to it under this Section and
in all other provisions of this Indenture, until all amounts owing to the Credit
Enhancer have been paid in full.

Section 4.13  Repayment of Monies Held by Paying Agent.  In connection  with the
satisfaction  and  discharge of this  Indenture  with respect to the Notes,  all
monies then held by any Paying Agent (other than the  Indenture  Trustee)  under
the provisions of this  Indenture with respect to such Notes shall,  upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section  3.05;  and  thereupon,  such Paying Agent shall be released from all
further liability with respect to such monies.

Section 4.14 Temporary Notes.  Pending the preparation of any Definitive  Notes,
the Issuer may execute and upon its written direction, the Indenture Trustee may
authenticate and make available for delivery,  temporary Notes that are printed,
lithographed,   typewritten,   photocopied   or  otherwise   produced,   in  any
denomination,  substantially  of the  tenor of the  Definitive  Notes in lieu of
which  they  are  issued  and  with  such  appropriate  insertions,   omissions,
substitutions  and other  variations  as the officers  executing  such Notes may
determine, as evidenced by their execution of such Notes.

        If temporary Notes are issued, the Issuer will cause Definitive Notes to
be prepared without  unreasonable delay. After the preparation of the Definitive
Notes,  the temporary  Notes shall be  exchangeable  for  Definitive  Notes upon
surrender  of the  temporary  Notes at the  office or  agency  of the  Indenture
Trustee,  without charge to the Noteholder.  Upon surrender for  cancellation of
any one or more  temporary  Notes,  the Issuer shall  execute and the  Indenture
Trustee  shall  authenticate  and  make  available  for  delivery,  in  exchange
therefor,  Definitive  Notes of authorized  denominations  and of like tenor and
aggregate  principal amount.  Until so exchanged,  such temporary Notes shall in
all respects be entitled to the same benefits under this Indenture as Definitive
Notes.

                                   ARTICLE V

                              Default And Remedies

Section  5.01  Events of  Default.  The Issuer  shall  deliver to the  Indenture
Trustee  and the  Credit  Enhancer,  within  five  days  after  learning  of the
occurrence  of any event  that with the  giving of notice  and the lapse of time
would become an Event of Default under clause (c) of the definition of "Event of
Default"  written  notice in the form of an Officer's  Certificate of its status
and what action the Issuer is taking or proposes to take with respect thereto.

<PAGE>

Section 5.02 Acceleration of Maturity;  Rescission and Annulment. If an Event of
Default shall occur and be continuing, then and in every such case the Indenture
Trustee,  acting at the direction of the Credit  Enhancer or the  Noteholders of
Notes representing not less than a majority of the aggregate Note Balance of the
Notes, with the written consent of the Credit Enhancer, may declare the Notes to
be immediately  due and payable by a notice in writing to the Issuer (and to the
Indenture Trustee if given by Noteholders);  and upon any such declaration,  the
unpaid principal amount of the Notes,  together with accrued and unpaid interest
thereon  through the date of  acceleration,  shall  become  immediately  due and
payable.

        At any time after such  declaration  of  acceleration  of maturity  with
respect to an Event of Default has been made and before a judgment or decree for
payment  of the  money  due  has  been  obtained  by the  Indenture  Trustee  as
hereinafter  provided in this Article V, the Credit  Enhancer or the Noteholders
of Notes  representing  a majority of the  aggregate  Note Balance of the Notes,
with the written consent of the Credit Enhancer, by written notice to the Issuer
and the Indenture Trustee, may in writing waive the related Event of Default and
rescind and annul such declaration and its consequences if:

(a)  the  Issuer  has  paid  or  deposited  with  the  Indenture  Trustee  a sum
     sufficient to pay:

(i)     all  payments of  principal  of and  interest on the Notes and all other
        amounts that would then be due  hereunder or upon the Notes if the Event
        of Default giving rise to such acceleration had not occurred;

(ii)    all sums paid or advanced by the  Indenture  Trustee  hereunder  and the
        reasonable  compensation,  expenses,  disbursements  and advances of the
        Indenture Trustee and its agents and counsel; and

(iii)   all Events of Default, other than the nonpayment of the principal of the
        Notes that has become due solely by such  acceleration,  have been cured
        or waived as provided in Section 5.12.

        No such  rescission  shall affect any  subsequent  default or impair any
right consequent thereto.

Section 5.03 Collection of  Indebtedness  and Suits for Enforcement by Indenture
     Trustee.

(a) The Issuer  covenants  that if default in the payment of (i) any interest on
any Note when the same becomes due and payable, and such default continues for a
period  of five  days,  or  (ii)  the  principal  of or any  installment  of the

<PAGE>

principal of any Note when the same becomes due and payable,  the Issuer  shall,
upon  demand  of the  Indenture  Trustee,  pay to it,  for  the  benefit  of the
Noteholders,  the entire  amount then due and payable on the Notes for principal
and interest,  with interest on the overdue  principal,  and in addition thereto
such further  amount as shall be  sufficient  to cover the costs and expenses of
collection,  including the reasonable compensation,  expenses, disbursements and
advances of the Indenture Trustee and its agents and counsel.

(b) In case the  Issuer  shall  fail  forthwith  to pay such  amounts  upon such
demand,  the  Indenture  Trustee,  in its own name and as  trustee of an express
trust,  subject to the  provisions  of Section  10.17  hereof,  may  institute a
Proceeding for the  collection of the sums so due and unpaid,  and may prosecute
such  Proceeding to judgment or final  decree,  and may enforce the same against
the Issuer or other  obligor on the Notes and collect in the manner  provided by
law out of the  property of the Issuer or other  obligor on the Notes,  wherever
situated, the monies adjudged or decreed to be payable.

(c) If an Event of Default shall occur and be continuing, the Indenture Trustee,
subject to the  provisions of Section 10.17  hereof,  may, as more  particularly
provided in Section 5.04, in its  discretion  proceed to protect and enforce its
rights and the rights of the Noteholders by such appropriate  Proceedings as the
Indenture  Trustee  shall deem most  effective  to protect  and enforce any such
rights,  whether for the  specific  enforcement  of any covenant or agreement in
this  Indenture or in aid of the  exercise of any power  granted  herein,  or to
enforce  any other  proper  remedy  or legal or  equitable  right  vested in the
Indenture Trustee by this Indenture or by law.

(d) If there  shall be pending,  relative to the Issuer or any other  obligor on
the Notes or any Person  having or claiming an  ownership  interest in the Trust
Estate,  Proceedings  under  Title 11 of the  United  States  Code or any  other
applicable federal or state bankruptcy, insolvency or other similar law, or if a
receiver,  assignee  or trustee in  bankruptcy  or  reorganization,  liquidator,
sequestrator  or  similar  official  shall  have  been  appointed  for or  taken
possession of the Issuer or its property or such other obligor or Person,  or if
there shall be any other comparable judicial  Proceedings relative to the Issuer
or other any other  obligor  on the  Notes,  or  relative  to the  creditors  or
property  of the  Issuer or such  other  obligor,  then the  Indenture  Trustee,
irrespective of whether the principal of any Notes shall then be due and payable
as therein expressed or by declaration or otherwise, and irrespective of whether
the Indenture  Trustee shall have made any demand  pursuant to the provisions of
this  Section,  shall  be  entitled  and  empowered,  by  intervention  in  such
Proceedings or otherwise:

(i)     to file and prove a claim or claims for the entire  amount of  principal
        and  interest  owing and unpaid in respect of the Notes and to file such
        other  papers or  documents as may be necessary or advisable in order to
        have the  claims  of the  Indenture  Trustee  (including  any  claim for
        reasonable  compensation to the Indenture  Trustee and each  predecessor
        Indenture Trustee,  and their respective agents,  attorneys and counsel,
        and for reimbursement of all expenses and liabilities incurred,  and all
        advances made, by the Indenture  Trustee and each predecessor  Indenture
        Trustee,  except as a result of  negligence,  willful  misconduct or bad
        faith) and of the Noteholders allowed in such Proceedings;

<PAGE>

(ii)    unless  prohibited by applicable law and regulations,  to vote on behalf
        of the  Noteholders in any election of a trustee,  a standby  trustee or
        Person performing similar functions in any such Proceedings;

(iii)   to  collect  and  receive  any  monies  or  other  property  payable  or
        deliverable  on any such claims and to distribute  all amounts  received
        with  respect  to the  claims of the  Noteholders  and of the  Indenture
        Trustee on their behalf; and

(iv)    to file such  proofs of claim and other  papers or  documents  as may be
        necessary  or  advisable  in order to have the  claims of the  Indenture
        Trustee or the Noteholders allowed in any judicial  proceedings relative
        to the Issuer, its creditors and its property;

and any trustee,  receiver,  liquidator,  custodian or other similar official in
any such  Proceeding is hereby  authorized by each of such  Noteholders  to make
payments to the Indenture Trustee, and, in the event the Indenture Trustee shall
consent to the making of payments  directly to such  Noteholders,  to pay to the
Indenture  Trustee  such  amounts  as shall be  sufficient  to cover  reasonable
compensation to the Indenture  Trustee,  each predecessor  Indenture Trustee and
their  respective  agents,  attorneys  and counsel,  and all other  expenses and
liabilities  incurred,  and all advances made, by the Indenture Trustee and each
predecessor  Indenture  Trustee,  except  as a  result  of  negligence,  willful
misconduct or bad faith.

(e) Nothing herein contained shall be deemed to authorize the Indenture  Trustee
to  authorize  or  consent  to or vote for or  accept  or adopt on behalf of any
Noteholder any plan of  reorganization,  arrangement,  adjustment or composition
affecting the Notes or the rights of any Noteholder  thereof or to authorize the
Indenture  Trustee to vote in respect of the claim of any Noteholder in any such
proceeding  except,  as  aforesaid,  to vote for the  election  of a trustee  in
bankruptcy or similar Person.

(f) All rights of action and of asserting claims under this Indenture,  or under
any  of the  Notes,  may  be  enforced  by the  Indenture  Trustee  without  the
possession of any of the Notes or the  production  thereof in any trial or other
Proceedings relative thereto,  and any such action or proceedings  instituted by
the Indenture  Trustee shall be brought in its own name as trustee of an express
trust,  and any  recovery of judgment,  subject to the payment of the  expenses,
disbursements  and  compensation  of the  Indenture  Trustee,  each  predecessor
Indenture  Trustee and their respective  agents and attorneys,  shall be for the
ratable benefit of the Noteholders.

(g) In  any  Proceedings  to  which  the  Indenture  Trustee  shall  be a  party
(including any Proceedings involving the interpretation of any provision of this
Indenture),  the Indenture  Trustee shall be held to represent all  Noteholders,
and it  shall  not be  necessary  to make  any  Noteholder  a party  to any such
Proceedings.

<PAGE>

Section 5.04   Remedies; Priorities.

(a) If an Event of  Default  shall have  occurred  and be  continuing,  then the
Indenture Trustee,  subject to the provisions of Section 10.17 hereof,  with the
written consent of the Credit Enhancer may, or, at the written  direction of the
Credit Enhancer, shall, do one or more of the following, in each case subject to
Section 5.05:

(i)     institute Proceedings in its own name and as trustee of an express trust
        for the  collection  of all amounts  then  payable on the Notes or under
        this  Indenture  with  respect   thereto,   whether  by  declaration  or
        otherwise,  and all  amounts  payable  under  the  Insurance  Agreement,
        enforce any judgment obtained, and collect from the Issuer and any other
        obligor on the Notes monies adjudged due;

(ii)    institute  Proceedings  from time to time for the  complete  or  partial
        foreclosure of this Indenture with respect to the Trust Estate;

(iii)   exercise  any  remedies  of a secured  party  under the UCC and take any
        other appropriate  action to protect and enforce the rights and remedies
        of the Indenture Trustee and the Noteholders; and

(iv)    sell the  Trust  Estate or any  portion  thereof  or rights or  interest
        therein,  at one or more public or private sales called and conducted in
        any manner permitted by law;

provided,  however,  that  the  Indenture  Trustee  may not  sell  or  otherwise
liquidate  the  Trust  Estate  following  an Event of  Default,  unless  (A) the
Indenture Trustee obtains the consent of the Credit Enhancer, which consent will
not be unreasonably  withheld, and the Noteholders of 100% of the aggregate Note
Balance of the Notes, (B) the proceeds of such sale or liquidation distributable
to  Noteholders  are  sufficient  to  discharge in full all amounts then due and
unpaid upon the Notes for  principal  and interest  and to reimburse  the Credit
Enhancer  for any amounts  drawn under the Policy and any other  amounts due the
Credit  Enhancer  under the  Insurance  Agreement or (C) the  Indenture  Trustee
determines that the Home Loans will not continue to provide sufficient funds for
the payment of  principal of and interest on the Notes as they would have become
due if the  Notes  had not been  declared  due and  payable,  and the  Indenture
Trustee  obtains the consent of the Credit  Enhancer,  which consent will not be
unreasonably  withheld,  and the  Noteholders  of 66 2/3% of the aggregate  Note
Balance of the Notes.  In determining  such  sufficiency or  insufficiency  with
respect to clause (B) and (C) above,  the  Indenture  Trustee may, but need not,
obtain  and rely,  and shall be  protected  in relying  in good  faith,  upon an
opinion of an  Independent  investment  banking or  accounting  firm of national
reputation  as to  the  feasibility  of  such  proposed  action  and  as to  the
sufficiency of the Trust Estate for such purpose. Notwithstanding the foregoing,
provided that a Servicing Default shall not have occurred,  any Sale (as defined
in  Section  5.15  hereof)  of the Trust  Estate  shall be made  subject  to the
continued  servicing  of the  Home  Loans by the  Servicer  as  provided  in the
Servicing Agreement. Notwithstanding any sale of the Home Loans pursuant to this
Section  5.04(a),  the Indenture  Trustee shall, for so long as any principal or
accrued  interest on the Notes  remains  unpaid,  continue  to act as  Indenture
Trustee  hereunder  and to draw amounts  payable  under the Policy in accordance
with its terms of the Policy.

<PAGE>

(b) If the  Indenture  Trustee  collects any money or property  pursuant to this
Article V, it shall pay out such money or property in the following order:

             FIRST: to the Indenture Trustee for amounts due under Section 6.07;

               SECOND:to the  Noteholders of the Class A Notes,  for amounts due
               and unpaid on the related  Class A Notes for  interest,  ratably,
               without  preference  or  priority of any kind,  according  to the
               amounts due and payable on such Class A Notes for  interest  from
               amounts available in the Trust Estate for such Noteholders;

               THIRD: to the  Noteholders of the Class A Notes,  for amounts due
               and unpaid on the related Class A Notes for  principal,  ratably,
               without  preference  or  priority of any kind,  according  to the
               amounts due and payable on such Class A Notes for principal, from
               amounts available in the Trust Estate for such Noteholders, until
               the  respective  Note  Balances  of such  Class A Notes have been
               reduced to zero;

               FOURTH:to  the  payment of all  amounts  due and owing the Credit
               Enhancer under the Insurance Agreement;

               FIFTH: to the  Noteholders of the Class M Notes,  for amounts due
               and unpaid on the Class M Notes for  interest,  ratably,  without
               preference or priority of any kind,  according to the amounts due
               and  payable  on such  Class M Notes for  interest  from  amounts
               available in the Trust Estate for such Noteholders;

               SIXTH: to the  Noteholders of the Class M Notes,  for amounts due
               and unpaid on the Class M Notes for principal,  ratably,  without
               preference or priority of any kind,  according to the amounts due
               and  payable on such Class M Notes for  principal,  from  amounts
               available  in the Trust  Estate for such  Noteholders,  until the
               respective  Note Balances of such Class M Notes have been reduced
               to zero;

               SEVENTH: to the Noteholders of the Class B Notes, for amounts due
               and unpaid on the Class B Notes for  interest,  ratably,  without
               preference or priority of any kind,  according to the amounts due
               and  payable  on such  Class B Notes for  interest  from  amounts
               available in the Trust Estate for such Noteholders;

               EIGHTH:to the  Noteholders of the Class B Notes,  for amounts due
               and unpaid on the Class B Notes for principal,  ratably,  without
               preference or priority of any kind,  according to the amounts due
               and  payable on such Class B Notes for  principal,  from  amounts
               available  in the Trust  Estate for such  Noteholders,  until the
               respective  Note Balances of such Class B Notes have been reduced
               to zero;

<PAGE>

               NINTH:  to the  Certificate  Paying  Agent for  amounts due under
               Article VIII of the Trust Agreement; and

               TENTH: to the payment of the remainder,  if any, to the Issuer or
               any other person legally entitled thereto.

        The  Indenture  Trustee may fix a record  date and payment  date for any
payment to  Noteholders  pursuant to this Section  5.04. At least 15 days before
such record date, the Indenture  Trustee shall mail to each  Noteholder a notice
that states the record date, the payment date and the amount to be paid.

Section 5.05 Optional  Preservation of the Trust Estate.  If the Notes have been
declared due and payable  under  Section 5.02  following an Event of Default and
such declaration and its consequences have not been rescinded and annulled,  the
Indenture  Trustee may, but need not (but shall at the written  direction of the
Credit Enhancer),  elect to take and maintain possession of the Trust Estate. It
is the desire of the  parties  hereto and the  Noteholders  that there be at all
times sufficient funds for the payment of principal of and interest on the Notes
and other  obligations of the Issuer  including  payment to the Credit Enhancer,
and the Indenture  Trustee shall take such desire into account when  determining
whether  or not  to  take  and  maintain  possession  of the  Trust  Estate.  In
determining  whether to take and maintain  possession of the Trust  Estate,  the
Indenture  Trustee may, but need not, obtain and rely, and shall be protected in
relying in good faith, upon an opinion of an Independent  investment  banking or
accounting  firm of national  reputation as to the  feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

Section  5.06  Limitation  of  Suits.  No  Noteholder  shall  have any  right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture,
or for the  appointment  of a  receiver  or  trustee,  or for any  other  remedy
hereunder, unless and subject to the provisions of Section 10.17 hereof:

               (a) such Noteholder shall have previously given written notice to
               the Indenture Trustee of a continuing Event of Default;

(b) the  Noteholders  of not less than 25% of the aggregate  Note Balance of the
Notes shall have made written request to the Indenture Trustee to institute such
Proceeding  in respect  of such  Event of  Default in its own name as  Indenture
Trustee hereunder;

(c) such  Noteholder or  Noteholders  shall have offered the  Indenture  Trustee
reasonable indemnity against the costs,  expenses and liabilities to be incurred
by it in complying with such request;

(d) the Indenture Trustee for 60 days after its receipt of such notice,  request
and offer of indemnity shall have failed to institute such Proceedings; and

<PAGE>

(e) no direction inconsistent with such written request shall have been given to
the Indenture Trustee during such 60-day period by the Noteholders of a majority
of the aggregate Note Balance of the Notes or by the Credit Enhancer.

        It is understood and intended that no Noteholder shall have any right in
any manner  whatever  by virtue of, or by  availing  of, any  provision  of this
Indenture to affect, disturb or prejudice the rights of any other Noteholders or
to obtain or to seek to obtain priority or preference over any other Noteholders
or to enforce  any right  under  this  Indenture,  except in the  manner  herein
provided.

        In  the  event  the  Indenture  Trustee  shall  receive  conflicting  or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing  less than a majority of the  aggregate  Note Balance of the Notes,
the Indenture  Trustee  shall act at the  direction of the group of  Noteholders
with the greater Note  Balance.  In the event that the  Indenture  Trustee shall
receive  conflicting  or  inconsistent  requests and indemnity  from two or more
groups of  Noteholders  representing  the same Note Balance,  then the Indenture
Trustee in its sole  discretion  may  determine  what action,  if any,  shall be
taken, notwithstanding any other provisions of this Indenture.

Section  5.07  Unconditional  Rights of  Noteholders  to Receive  Principal  and
Interest.  Subject to the  provisions of this  Indenture,  the Noteholder of any
Note shall have the  right,  which is  absolute  and  unconditional,  to receive
payment of the principal of and  interest,  if any, on such Note on or after the
respective due dates thereof  expressed in such Note or in this Indenture and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Noteholder.

Section 5.08 Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder  has  instituted  any Proceeding to enforce any right or remedy under
this Indenture and such  Proceeding has been  discontinued  or abandoned for any
reason or has been  determined  adversely  to the  Indenture  Trustee or to such
Noteholder,  then and in every such case the Issuer,  the Indenture  Trustee and
the Noteholders  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 Indenture  Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

Section 5.09 Rights and Remedies Cumulative. No right or remedy herein conferred
upon  or  reserved  to  the  Indenture  Trustee,  the  Credit  Enhancer  or  the
Noteholders 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, 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  5.10  Delay or  Omission  Not a  Waiver.  No delay or  omission  of the
Indenture  Trustee,  the Credit Enhancer or any Noteholder to exercise any right
or remedy  accruing  upon any Event of  Default  shall  impair any such right or

<PAGE>

remedy or  constitute  a waiver of any such Event of Default or an  acquiescence
therein.  Every  right  and  remedy  given  by this  Article  V or by law to the
Indenture  Trustee or to the Noteholders may be exercised from time to time, and
as  often  as may  be  deemed  expedient,  by the  Indenture  Trustee  or by the
Noteholders, as the case may be.

Section 5.11 Control by Credit Enhancer or Noteholders.  The Credit Enhancer (so
long as no Credit  Enhancer  Default exists) or the Noteholders of a majority of
the  aggregate  Note  Balance of Notes with the consent of the Credit  Enhancer,
shall have the right to direct  the time,  method  and place of  conducting  any
Proceeding for any remedy available to the Indenture Trustee with respect to the
Notes or  exercising  any trust or power  conferred  on the  Indenture  Trustee,
provided that:

(a) such  direction  shall not be in conflict  with any rule of law or with this
Indenture;

(b) subject to the express terms of Section 5.04, any direction to the Indenture
Trustee to sell or liquidate  the Trust  Estate shall be by the Credit  Enhancer
(so long as no Credit  Enhancer  Default  exists) or by the Noteholders of Notes
representing  not less than 100% of the aggregate Note Balance of the Notes with
the consent of the Credit Enhancer;

(c) if the  conditions  set forth in Section 5.05 shall have been  satisfied and
the  Indenture  Trustee  elects to  retain  the Trust  Estate  pursuant  to such
Section,  then any direction to the Indenture  Trustee by  Noteholders  of Notes
representing  less than 100% of the aggregate  Note Balance of the Notes to sell
or liquidate the Trust Estate shall be of no force and effect; and

(d) the  Indenture  Trustee  may take any  other  action  deemed  proper  by the
Indenture Trustee that is not inconsistent with such direction.

Notwithstanding the rights of Noteholders set forth in this Section,  subject to
Section 6.01, the Indenture  Trustee need not take any action that it determines
(in its sole  discretion)  might  involve it in  liability  or might  materially
adversely  affect the rights of any  Noteholders  not consenting to such action,
unless the Trustee has received satisfactory  indemnity from the Credit Enhancer
or a Noteholder.

Section  5.12  Waiver  of  Past  Defaults.  Prior  to  the  declaration  of  the
acceleration  of the  maturity  of the Notes as provided  in Section  5.02,  the
Credit  Enhancer  (so  long  as  no  Credit  Enhancer  Default  exists)  or  the
Noteholders  of not less than a majority of the  aggregate  Note  Balance of the
Notes,  with the  consent  of the Credit  Enhancer,  may waive any past Event of
Default and its  consequences,  except an Event of Default  (a) with  respect to
payment of  principal  of or interest on any of the Notes or (b) in respect of a
covenant or  provision  hereof  that  cannot be modified or amended  without the
consent of the  Noteholder  of each Note.  In the case of any such  waiver,  the
Issuer,  the Indenture  Trustee and the  Noteholders  shall be restored to their
respective  former  positions  and rights  hereunder;  but no such waiver  shall
extend  to any  subsequent  or other  Event  of  Default  or  impair  any  right
consequent thereto.

<PAGE>

        Upon any such waiver,  any Event of Default  arising  therefrom shall be
deemed to have been cured and not to have  occurred,  for every  purpose of this
Indenture;  but no such waiver shall extend to any  subsequent or other Event of
Default or impair any right consequent thereto.

Section 5.13  Undertaking for Costs.  All parties to this Indenture  agree,  and
each  Noteholder  by such  Noteholder's  acceptance of the related Note shall be
deemed to have  agreed,  that any court may in its  discretion  require,  in any
Proceeding for the enforcement of any right or remedy under this  Indenture,  or
in any Proceeding  against the Indenture Trustee for any action taken,  suffered
or omitted by it as Indenture Trustee,  the filing by any party litigant in such
Proceeding of an undertaking to pay the costs of such Proceeding,  and that such
court  may in its  discretion  assess  reasonable  costs,  including  reasonable
attorneys'  fees,  against  any party  litigant in such  Proceeding,  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 5.13 shall not apply to (a) any
Proceeding instituted by the Indenture Trustee, (b) any Proceeding instituted by
any Noteholder,  or group of Noteholders,  in each case holding in the aggregate
more than 10% of the aggregate  Note Balance of the Notes or (c) any  Proceeding
instituted by any Noteholder for the  enforcement of the payment of principal of
or interest on any Note on or after the respective  due dates  expressed in such
Note and in this Indenture.

Section  5.14 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 Indenture;  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 shall not
hinder,  delay or impede  the  execution  of any  power  herein  granted  to the
Indenture Trustee,  but will suffer and permit the execution of every such power
as though no such law had been enacted.

Section 5.15   Sale of Trust Estate.

(a) The power to effect any sale or other  disposition (a "Sale") of any portion
of the Trust  Estate  pursuant  to  Section  5.04 is  expressly  subject  to the
provisions of Section 5.05 and this Section  5.15.  The power to effect any such
Sale shall not be  exhausted  by any one or more Sales as to any  portion of the
Trust Estate remaining  unsold,  but shall continue  unimpaired until the entire
Trust Estate shall have been sold or all amounts  payable on the Notes and under
this  Indenture  and under the  Insurance  Agreement  shall have been paid.  The
Indenture  Trustee  may from time to time  postpone  any  public  Sale by public
announcement  made at the time and place of such  Sale.  The  Indenture  Trustee
hereby expressly waives its right to any amount fixed by law as compensation for
any Sale.

(b)  The Indenture  Trustee shall not in any private Sale sell the Trust Estate,
     or any portion thereof, unless:

(i)  the  Noteholders of all Notes and the Credit  Enhancer direct the Indenture
     Trustee to make, such Sale,

<PAGE>

(ii)    the proceeds of such Sale would be not less than the entire  amount that
        would  be   payable   to  the   Noteholders   under   the   Notes,   the
        Certificateholders  under the  Certificates  and the Credit  Enhancer in
        respect of amounts  drawn under the Policy and any other amounts due the
        Credit Enhancer under the Insurance  Agreement,  in full payment thereof
        in accordance with Section 5.02, on the Payment Date next succeeding the
        date of such Sale, or

(iii)   the  Indenture  Trustee  determines,  in its sole  discretion,  that the
        conditions  for  retention of the Trust Estate set forth in Section 5.05
        cannot be satisfied  (in making any such  determination,  the  Indenture
        Trustee may rely and shall be protected in relying in good faith upon an
        opinion of an Independent investment banking firm obtained and delivered
        as provided in Section 5.05),  and the Credit Enhancer  consents to such
        Sale  (which  consent  shall  not be  unreasonably  withheld),  and  the
        Noteholders of Notes representing at least 66 2/3% of the aggregate Note
        Balance of the Notes consent to such Sale.

The purchase by the Indenture  Trustee of all or any portion of the Trust Estate
at a private  Sale shall not be deemed a Sale or other  disposition  thereof for
purposes of this Section 5.15(b).

(c)  Unless  the  Noteholders  and the  Credit  Enhancer  shall  have  otherwise
consented or directed the  Indenture  Trustee,  at any public Sale of all or any
portion of the Trust  Estate at which a minimum bid equal to or greater than the
amount  described in paragraph  (ii) of subsection  (b) of this Section 5.15 has
not been established by the Indenture Trustee and no Person bids an amount equal
to or greater than such amount,  then the Indenture  Trustee shall bid an amount
at least  $1.00 more than the highest  other bid,  which bid shall be subject to
the provisions of Section 5.15(d)(ii).

(d)     In connection with a Sale of all or any portion of the Trust Estate:

(i)     any Noteholder may bid for and, with the consent of the Credit Enhancer,
        purchase the property  offered for sale,  and upon  compliance  with the
        terms of sale may hold, retain and possess and dispose of such property,
        without  further  accountability,  and may, in paying the purchase money
        therefor,  deliver any Notes or claims for  interest  thereon in lieu of
        cash up to the amount which shall, upon distribution of the net proceeds
        of such sale, be payable thereon, and such Notes, in case the amounts so
        payable  thereon  shall be less than the  amount due  thereon,  shall be
        returned to the Noteholders thereof after being appropriately stamped to
        show such partial payment;

(ii) the Indenture Trustee may bid for and acquire the property offered for Sale
     in connection with any Sale thereof and,  subject to any  requirements  of,
     and to the extent permitted by, applicable law in connection therewith, may
     purchase all or any portion of the Trust Estate in a private  sale. In lieu
     of paying cash therefor,  the Indenture Trustee may make settlement for the
     purchase price by crediting the gross Sale price against the sum of (A) the
     amount   that  would  be   distributable   to  the   Noteholders   and  the
     Certificateholders  and amounts owing to the Credit Enhancer as a result of
     such Sale in  accordance  with  Section  5.04(b) on the  Payment  Date next
     succeeding  the date of such Sale and (B) the  expenses  of the Sale and of
     any  Proceedings  in  connection  therewith  that are  reimbursable  to it,

<PAGE>

     without  being  required to produce the Notes in order to complete any such
     Sale or in order for the net Sale price to be credited  against such Notes,
     and any  property so acquired by the  Indenture  Trustee  shall be held and
     dealt with by it in accordance with the provisions of this Indenture;

(iii)   the  Indenture   Trustee  shall  execute  and  deliver  an   appropriate
        instrument of conveyance transferring its interest in any portion of the
        Trust Estate in connection with a Sale thereof;

(iv)    the  Indenture  Trustee is hereby  irrevocably  appointed  the agent and
        attorney-in-fact  of the Issuer to transfer  and convey its  interest in
        any portion of the Trust Estate in connection  with a Sale thereof,  and
        to take all action necessary to effect such Sale; and

(v)     no  purchaser or  transferee  at such a Sale shall be bound to ascertain
        the Indenture Trustee's authority,  inquire into the satisfaction of any
        conditions precedent or see to the application of any monies.

Section 5.16 Action on Notes. The Indenture  Trustee's right to seek and recover
judgment  on the Notes or under  this  Indenture  shall not be  affected  by the
seeking,  obtaining or  application of any other relief under or with respect to
this Indenture. Neither the lien of this Indenture nor any rights or remedies of
the Indenture  Trustee or the  Noteholders  shall be impaired by the recovery of
any judgment by the Indenture  Trustee  against the Issuer or by the levy of any
execution  under such  judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer.  Any money or property  collected by the  Indenture
Trustee shall be applied in accordance with Section 5.04(b).

Section 5.17   Performance and Enforcement of Certain Obligations.

(a)  Promptly  following  a written  request  from the  Credit  Enhancer  or the
Indenture Trustee (with the written consent of the Credit Enhancer), the Issuer,
in its capacity as owner of the Home Loans,  shall,  with the written consent of
the Credit  Enhancer,  take all such lawful action as the Indenture  Trustee may
request to cause the Issuer to compel or secure the  performance  and observance
by the Sellers and the Servicer, as applicable,  of each of their obligations to
the Issuer under or in connection with the Purchase  Agreement and the Servicing
Agreement, and to exercise any and all rights,  remedies,  powers and privileges
lawfully  available  to the  Issuer  under or in  connection  with the  Purchase
Agreement and the Servicing  Agreement to the extent and in the manner  directed
by  the  Indenture  Trustee,  as  pledgee  of  the  Home  Loans,  including  the
transmission  of notices of default on the part of the  Sellers or the  Servicer
thereunder and the institution of legal or administrative actions or proceedings
to compel or secure  performance by the Sellers or the Servicer of each of their
obligations under the Purchase Agreement and the Servicing Agreement.

<PAGE>

(b) If an Event of Default shall have occurred and be continuing,  the Indenture
Trustee,  as  pledgee  of the Home  Loans,  subject  to the rights of the Credit
Enhancer  under  the  Servicing  Agreement,  may,  and at the  direction  (which
direction  shall be in writing or by telephone  (confirmed  in writing  promptly
thereafter))  of the Noteholders of 66 2/3% of the aggregate Note Balance of the
Notes, shall, exercise all rights,  remedies,  powers,  privileges and claims of
the Issuer against the Sellers or the Servicer  under or in connection  with the
Purchase Agreement and the Servicing Agreement,  including the right or power to
take any action to compel or secure  performance or observance by the Sellers or
the  Servicer,  as the case may be, of each of their  obligations  to the Issuer
thereunder  and to give  any  consent,  request,  notice,  direction,  approval,
extension or waiver under the Purchase Agreement and the Servicing Agreement, as
the case may be,  and any right of the Issuer to take such  action  shall not be
suspended.  In connection therewith, as determined by the Indenture Trustee, the
Issuer shall take all actions necessary to effect the transfer of the Home Loans
to the Indenture Trustee.

                                   ARTICLE VI

                              The Indenture Trustee

Section 6.01   Duties of Indenture Trustee.

(a) If an Event of Default shall have occurred and be continuing,  the Indenture
Trustee shall  exercise the rights and powers vested in it by this Indenture and
use the same  degree of care and  skill in their  exercise  as a prudent  Person
would  exercise or use under the  circumstances  in the conduct of such Person's
own affairs.

(b)     Except during the continuance of an Event of Default:

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

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

(c)  The  Indenture  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  (a) of this
Section 6.01;

<PAGE>

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

(iii)   the Indenture  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 5.11 or any direction from the Credit
        Enhancer  that the Credit  Enhancer is entitled to give under any of the
        Basic Documents.

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

(e) Money held in trust by the  Indenture  Trustee need not be  segregated  from
other funds except to the extent  required by law or the terms of this Indenture
or the Trust Agreement.

(f) No provision of this Indenture shall require the Indenture 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 adequate  indemnity  against such risk or  liability is not  reasonably
assured to it.

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

(h) With respect to each Payment Date, on the Business Day following the related
Determination Date, the Indenture Trustee shall forward or cause to be forwarded
by mail, or other mutually  agreed-upon  method,  to the Credit Enhancer and the
Servicer,  a  statement  setting  forth,  to the extent  applicable,  during the
Pre-Funding  Period,  the  Pre-Funded  Amount  as of such  Payment  Date and any
transfers of funds in connection therewith.

(i) The Indenture Trustee hereby accepts appointment as Certificate Paying Agent
under the Trust  Agreement and agrees to be bound by the provisions of the Trust
Agreement relating to the Certificate Paying Agent. The Indenture Trustee hereby
agrees to be bound by the provisions of Article IX of the Trust Agreement.

(j) The  Indenture  Trustee shall not be required to take notice or be deemed to
have notice or knowledge of any Event of Default (except for an Event of Default
specified in clause (a) of the definition  thereof) unless a Responsible Officer
of the  Indenture  Trustee  shall have  received  written  notice or have actual
knowledge  thereof.  In the absence of receipt of such notice or such knowledge,
the Indenture Trustee may conclusively  assume that there is no default or Event
of D
<PAGE>

(k) The  Indenture  Trustee shall have no duty to see to any recording or filing
of any  financing  statement  or  continuation  statement  evidencing a security
interest or to see to the  maintenance of any such recording or filing or to any
rerecording or refiling of any thereof.

Section 6.02   Rights of Indenture Trustee.

(a) The  Indenture  Trustee  may  rely and  shall  be  protected  in  acting  or
refraining from acting in good faith upon any resolution, Officer's Certificate,
opinion  of  counsel,   certificate  of  auditors,  or  any  other  certificate,
statement,  instrument, report, notice, consent or other document believed by it
to be genuine and to have been signed or  presented  by the proper  person.  The
Indenture  Trustee need not  investigate  any fact or matter  stated in any such
document.

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

(c) The Indenture  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,  and the  Indenture  Trustee  shall not be
responsible  for  any  misconduct  or  negligence  on the  part  of,  or for the
supervision of, any such agent,  attorney,  custodian or nominee  appointed with
due care by it hereunder.

(d) The  Indenture  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  Indenture  Trustee's  conduct  does not
constitute willful misconduct, negligence or bad faith.

(e) The Indenture Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters  relating to this  Indenture and the Notes
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 Indenture  Trustee shall not be personally  liable for any action taken,
suffered or omitted by it in good faith and believed by it to be  authorized  or
within the discretion or rights or powers  conferred upon it by this  Agreement,
unless  it  shall  be  proved  that  the  Indenture  Trustee  was  negligent  in
ascertaining the pertinent facts.

(g) Prior to the  occurrence  of an Event of  Default  hereunder,  and after the
curing or waiver of all Events of Default that may have occurred,  the Indenture
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 Credit  Enhancer  or  Noteholders
representing a majority of the aggregate Note Balance;  provided,  however, that
if the payment within a reasonable  time to the Indenture  Trustee of the costs,

<PAGE>

expenses  or  liabilities  likely  to be  incurred  by it in the  making of such
investigation  is, in the opinion of the Indenture  Trustee,  not assured to the
Indenture Trustee by the security afforded to it by the terms of this Indenture,
the  Indenture  Trustee  may require  indemnity  satisfactory  to the  Indenture
Trustee  against  such cost,  expense or  liability as a condition to taking any
such action.

(h) The  Indenture  Trustee  shall be under no obligation to exercise any of the
trusts or powers  vested in it by this  Agreement  or to  institute,  conduct or
defend any litigation  hereunder or in relation hereto at the request,  order or
direction  of any of the  Noteholders  or the Credit  Enhancer,  pursuant to the
provisions of this  Agreement,  unless the  Noteholders  or the Credit  Enhancer
shall have offered to the  Indenture  Trustee  reasonable  security or indemnity
against the costs,  expenses and  liabilities  which may be incurred  therein or
thereby;  nothing contained herein shall, however, relieve the Indenture Trustee
of the  obligation,  upon the  occurrence of an Event of Default  (which has not
been cured or waived), to exercise such of the rights and powers vested in it by
this  Agreement,  and to use the same degree of care and skill in their exercise
as a prudent  investor  would  exercise  or use under the  circumstances  in the
conduct of such investor's own affairs.

Section 6.03 Individual  Rights of Indenture  Trustee.  The Indenture Trustee in
its  individual  or any other  capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Indenture Trustee. Any Note Registrar, co-registrar or
co-paying agent may do the same with like rights. However, the Indenture Trustee
must comply with Sections 6.11 and 6.12.

Section 6.04 Indenture Trustee's Disclaimer.  The Indenture Trustee shall not be
(i) responsible for and makes no  representation  as to the validity or adequacy
of this  Indenture or the Notes,  (ii)  accountable  for the Issuer's use of the
proceeds from the Notes or (iii)  responsible for any statement of the Issuer in
this  Indenture or in any  document  issued in  connection  with the sale of the
Notes  or in the  Notes,  other  than the  Indenture  Trustee's  certificate  of
authentication thereon.

Section 6.05 Notice of Event of Default.  If an Event of Default shall occur and
be continuing, and if such Event of Default is known to a Responsible Officer of
the Indenture  Trustee,  then the Indenture Trustee shall give notice thereof to
the Credit Enhancer.  The Indenture Trustee shall mail to each Noteholder notice
of such Event of Default  within 90 days after it occurs.  Except in the case of
an Event of Default  with  respect to the payment of principal of or interest on
any Note,  the  Indenture  Trustee may withhold  such notice if and so long as a
committee of its Responsible  Officers in good faith determines that withholding
such notice is in the interests of the Noteholders.

Section 6.06 Reports by Indenture Trustee to Noteholders.  The Indenture Trustee
shall deliver to each Noteholder  such  information as may be required to enable
such  Noteholder  to  prepare  its  federal  and state  income tax  returns.  In
addition, upon Issuer Request, the Indenture Trustee shall promptly furnish such
information  reasonably  requested by the Issuer that is reasonably available to
the  Indenture  Trustee to enable the Issuer to perform  its  federal  and state
income tax reporting obligations.

<PAGE>

Section  6.07  Compensation  and  Indemnity.  The  Indenture  Trustee  shall  be
compensated  and  indemnified by the Servicer in accordance with Section 6.06 of
the Servicing  Agreement.  All amounts owing the Indenture  Trustee hereunder in
excess of such amount,  as well as any amount owed to the  Indenture  Trustee in
accordance  with  Section  6.06 of the  Servicing  Agreement,  to the extent the
Servicer  has failed to pay such  amount,  shall be paid  solely as  provided in
Section 3.05 hereof (subject to the priorities set forth therein). The Indenture
Trustee's  compensation  shall not be  limited by any law on  compensation  of a
trustee of an express trust.  The Issuer shall  reimburse the Indenture  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,  expenses, disbursements and
advances of the Indenture  Trustee's agents,  counsel,  accountants and experts.
The Issuer  shall  indemnify  the  Indenture  Trustee  against any and all loss,
liability or expense  (including  attorneys'  fees) incurred by it in connection
with  the  administration  of this  trust  and  the  performance  of its  duties
hereunder.  The Indenture  Trustee shall notify the Issuer promptly of any claim
for which it may seek indemnity.  Failure by the Indenture  Trustee to so notify
the Issuer shall not relieve the Issuer of its obligations hereunder. The Issuer
shall defend any such claim, and the Indenture Trustee may have separate counsel
and the Issuer  shall pay the fees and expenses of such  counsel.  The Issuer is
not obligated to reimburse any expense or indemnify against any loss,  liability
or expense incurred by the Indenture Trustee through the Indenture Trustee's own
willful misconduct, negligence or bad faith.

        The Issuer's  payment  obligations to the Indenture  Trustee pursuant to
this  Section  6.07 shall  survive the  discharge  of this  Indenture.  When the
Indenture  Trustee  incurs  expenses after the occurrence of an Event of Default
specified  in clause (c) or (d) of the  definition  thereof  with respect to the
Issuer,  such  expenses are intended to  constitute  expenses of  administration
under  Title 11 of the United  States  Code or any other  applicable  federal or
state bankruptcy, insolvency or similar law.

Section 6.08 Replacement of Indenture Trustee.  No resignation or removal of the
Indenture  Trustee and no  appointment  of a successor  Indenture  Trustee shall
become effective until the acceptance of appointment by the successor  Indenture
Trustee  pursuant to this Section 6.08. The Indenture  Trustee may resign at any
time by so notifying the Issuer and the Credit Enhancer.  The Credit Enhancer or
the  Noteholders  of a majority of the  aggregate  Note Balance of the Notes may
remove the  Indenture  Trustee by so  notifying  the  Indenture  Trustee and the
Credit  Enhancer  (if given by such  Noteholders)  and may  appoint a  successor
Indenture Trustee. Unless a Servicer Default has occurred and is continuing, the
appointment  of any  successor  Indenture  Trustee shall be subject to the prior
written approval of the Servicer.  The Issuer shall remove the Indenture Trustee
if:

(a)     the Indenture Trustee fails to comply with Section 6.11;

(b)     the Indenture Trustee is adjudged a bankrupt or insolvent;

<PAGE>

(c)  a receiver or other public officer takes charge of the Indenture Trustee or
     its property; or

(d)  the Indenture  Trustee otherwise becomes incapable of fulfilling its duties
     under the Basic Documents.

        If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of the  Indenture  Trustee for any reason (the  Indenture  Trustee in
such event being  referred to herein as the  retiring  Indenture  Trustee),  the
Issuer shall promptly appoint a successor  Indenture Trustee with the consent of
the Credit  Enhancer,  which  consent  shall not be  unreasonably  withheld.  In
addition,  the  Indenture  Trustee  shall  resign  to avoid  being  directly  or
indirectly controlled by the Issuer.

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

        If a successor  Indenture  Trustee  does not take office  within 60 days
after the retiring  Indenture  Trustee resigns or is removed,  then the retiring
Indenture Trustee, the Issuer or the Noteholders of a majority of aggregate Note
Balance of the Notes may petition any court of  competent  jurisdiction  for the
appointment of a successor Indenture Trustee.

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

        Notwithstanding  the  replacement of the Indenture  Trustee  pursuant to
this Section, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.

Section 6.09 Successor  Indenture  Trustee by Merger.  If the Indenture  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, then the resulting, surviving or transferee corporation without any
further  act  shall be the  successor  Indenture  Trustee;  provided,  that such
corporation  or banking  association  shall be otherwise  qualified and eligible
under Section 6.11. The Indenture Trustee shall provide the Rating Agencies with
written notice of any such transaction occurring after the Closing Date.

        If at  the  time  of  any  such  succession  by  merger,  conversion  or
consolidation, any of the Notes shall have been authenticated but not delivered,
then any such  successor to the Indenture  Trustee may adopt the  certificate of
authentication   of  any  predecessor   trustee,   and  deliver  such  Notes  so
authenticated.   If  at  such  time  any  of  the  Notes  shall  not  have  been

<PAGE>

authenticated,  any successor to the  Indenture  Trustee may  authenticate  such
Notes  either  in the name of any  predecessor  hereunder  or in the name of the
successor to the Indenture  Trustee;  and in all such cases,  such  certificates
shall have the full force that it is anywhere in the Notes or in this  Indenture
provided that the certificate of the Indenture Trustee shall have.

Section 6.10  Appointment of Co-Indenture Trustee or Separate Indenture Trustee.

(a) Notwithstanding any other provisions of this Indenture, at any time, for the
purpose of meeting any legal  requirement of any  jurisdiction in which any part
of the Trust Estate may at such time be located,  the  Indenture  Trustee  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 Issuer, and to vest in such Person
or Persons, in such capacity and for the benefit of the Noteholders,  such title
to the Trust Estate,  or any part thereof,  and, subject to the other provisions
of this  Section,  such powers,  duties,  obligations,  rights and trusts as the
Indenture Trustee may consider necessary or desirable. No co-trustee or separate
trustee  hereunder  shall be  required  to meet the  terms of  eligibility  as a
successor  trustee  under  Section  6.11,  and no notice to  Noteholders  of the
appointment  of any  co-trustee  or separate  trustee  shall be  required  under
Section 6.08 hereof.

(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
     Indenture  Trustee  shall be  conferred  or imposed  upon and  exercised or
     performed by the Indenture  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 Indenture  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 Indenture  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 Estate 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 Indenture Trustee;

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

(iii)   the  Indenture  Trustee  may at any time  accept the  resignation  of or
        remove any separate trustee or co-trustee.

(c) Any notice, request or other writing given to the Indenture Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as  effectively  as if given to each of them.  Every  instrument  appointing any
separate  trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VI. Each separate trustee and co-trustee, upon its acceptance of

<PAGE>

the trusts conferred,  shall be vested with the estates or property specified in
its  instrument of  appointment,  either  jointly with the Indenture  Trustee or
separately,  as may be provided  therein,  subject to all the provisions of this
Indenture,  specifically including every provision of this Indenture relating to
the conduct of,  affecting  the liability  of, or affording  protection  to, the
Indenture  Trustee.  Every such  instrument  shall be filed  with the  Indenture
Trustee.

(d) Any separate  trustee or co-trustee may at any time constitute the Indenture
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
Indenture on its behalf and in its name.  If any separate  trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties,  rights,  remedies  and trusts shall vest in and be exercised by the
Indenture Trustee,  to the extent permitted by law, without the appointment of a
new or successor trustee.

Section 6.11 Eligibility;  Disqualification.  The Indenture Trustee shall at all
times satisfy the  requirements of TIA ss. 310(a).  The Indenture  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 and it or its parent shall have
a long-term debt rating of A or better by Moody's.  The Indenture  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.

        Within 90 days after  ascertaining the occurrence of an Event of Default
which shall not have been cured or waived,  unless authorized by the Commission,
the Indenture  Trustee shall resign with respect to the Class A Notes, the Class
M Notes  and/or  the  Class B Notes  in  accordance  with  Section  6.08 of this
Indenture,  and the Issuer shall appoint a successor  Indenture Trustee for one,
two or all of such  Classes,  as  applicable,  so that  there  will be  separate
Indenture  Trustees  for the  Class A Notes,  the  Class M Notes and the Class B
Notes. In the event the Indenture  Trustee fails to comply with the terms of the
preceding  sentence,  the  Indenture  Trustee shall comply with clauses (ii) and
(iii) of TIA ss. 310(b).

        In the  case  of the  appointment  hereunder  of a  successor  Indenture
Trustee with respect to any Class of Notes  pursuant to this Section  6.11,  the
Issuer, the retiring Indenture Trustee and the successor  Indenture Trustee with
respect  to  such  Class  of  Notes  shall  execute  and  deliver  an  indenture
supplemental  hereto wherein each successor  Indenture Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary or
desirable  to transfer and confirm to, and to vest in, the  successor  Indenture
Trustee  all the rights,  powers,  trusts and duties of the  retiring  Indenture
Trustee with respect to the Notes of the Class to which the  appointment of such
successor  Indenture Trustee relates,  (ii) if the retiring Indenture Trustee is
not retiring with respect to all Classes of Notes, shall contain such provisions
as shall be deemed  necessary  or  desirable  to  confirm  that all the  rights,
powers,  trusts and duties of the retiring Indenture Trustee with respect to the
Notes of each Class as to which the retiring  Indenture  Trustee is not retiring

<PAGE>

shall continue to be vested in the Indenture Trustee,  and (iii) shall add to or
change any of the  provisions of this Indenture as shall be necessary to provide
for or facilitate the  administration  of the trusts  hereunder by more than one
Indenture  Trustee,   it  being  understood  that  nothing  herein  or  in  such
supplemental  indenture shall constitute such Indenture Trustees  co-trustees of
the same trust and that each such Indenture  Trustee shall be trustee of a trust
or  trusts  hereunder  separate  and apart  from any  trust or trusts  hereunder
administered  by any other such Indenture  Trustee;  and upon the removal of the
retiring  Indenture  Trustee  shall  become  effective  to the  extent  provided
therein.

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

Section 6.13  Representations  and  Warranties.  The  Indenture  Trustee  hereby
     represents and warrants that:

(a) The  Indenture  Trustee  is duly  organized,  validly  existing  and in good
standing as a national  banking  association with power and authority to own its
properties and to conduct its business as such  properties  are currently  owned
and such business is currently conducted.

(b) The  Indenture  Trustee has the power and  authority  to execute and deliver
this  Indenture  and to carry out its terms;  and the  execution,  delivery  and
performance of this Indenture have been duly authorized by the Indenture Trustee
by all necessary corporate action.

(c) The consummation of the transactions  contemplated by this Indenture and the
fulfillment  of the terms hereof do not conflict  with,  result in any breach of
any of the terms and  provisions  of, or constitute  (with or without  notice or
lapse of time) a default under,  the articles of  organization  or bylaws of the
Indenture  Trustee or any  agreement or other  instrument to which the Indenture
Trustee is a party or by which it is bound.

(d) To the Indenture  Trustee's  best  knowledge,  there are no  Proceedings  or
investigations  pending  or  threatened  before  any  court,   regulatory  body,
administrative agency or other governmental  instrumentality having jurisdiction
over the Indenture  Trustee or its  properties  (A) asserting the  invalidity of
this  Indenture,  (B)  seeking  to  prevent  the  consummation  of  any  of  the
transactions  contemplated by this Indenture or (C) seeking any determination or
ruling  that  might  materially  and  adversely  affect the  performance  by the
Indenture  Trustee of its obligations  under, or the validity or  enforceability
of, this Indenture.

(e) The  Indenture  Trustee  does not have notice of any adverse  claim (as such
terms are used in Section  8-302 of the UCC in effect in the State of  Delaware)
with respect to the Home Loans.

Section 6.14 Directions to Indenture  Trustee.  The Indenture  Trustee is hereby
     directed:

 <PAGE>

(a)  to accept  the pledge of the Home Loans and hold the assets of the Trust in
     trust for the Noteholders and the Credit Enhancer;

(b)  to authenticate and deliver the Notes  substantially in the form prescribed
     by Exhibit A in accordance with the terms of this Indenture; and

(c)  to take all other  actions as shall be required to be taken by the terms of
     this Indenture.

Section 6.15 Indenture Trustee May Own Securities. The Indenture Trustee, in its
individual or any other capacity,  may become the owner or pledgee of Securities
with the same rights it would have if it were not Indenture Trustee.

                                  ARTICLE VII

                         Noteholders' Lists and Reports

Section  7.01  Issuer  to  Furnish  Indenture  Trustee  Names and  Addresses  of
Noteholders.  The Issuer shall furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after each Record Date, a list, in such form
as the Indenture Trustee may reasonably  require,  of the names and addresses of
the  Noteholders  as of such  Record  Date,  and (b) at such other  times as the
Indenture Trustee and the Credit Enhancer 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 for so long as the Indenture Trustee is the
Note Registrar, no such list need be furnished.

Section 7.02   Preservation of Information; Communications to Noteholders.

(a) The Indenture Trustee shall preserve,  in as current a form as is reasonably
practicable,  the names and addresses of the  Noteholders  contained in the most
recent list  furnished to the Indenture  Trustee as provided in Section 7.01 and
the names and addresses of the Noteholders  received by the Indenture Trustee in
its  capacity  as Note  Registrar.  The  Indenture  Trustee may destroy any list
furnished  to it as provided in such  Section 7.01 upon receipt of a new list so
furnished.

(b)  Noteholders  may  communicate   pursuant  to  TIA  ss.  312(b)  with  other
Noteholders  with  respect to their  rights  under this  Indenture  or under the
Notes.

(c)  The Issuer,  the Indenture  Trustee and the Note  Registrar  shall have the
     protection of TIAss. 312(c).

Section 7.03   Reports by Issuer.

(a)     The Issuer shall:

<PAGE>

(i)     file with the  Indenture  Trustee,  within 15 days  after the  Issuer is
        required  to file the same with the  Commission,  copies  of the  annual
        reports and 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) that 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 Indenture  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
        Indenture  as may be  required  from  time to time  by  such  rules  and
        regulations; and

(iii)   supply  to the  Indenture  Trustee  (and  the  Indenture  Trustee  shall
        transmit by mail to all  Noteholders  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  7.03(a)
        and 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 7.04 Reports by Indenture Trustee. If required by TIA ss. 313(a), within
60 days after each  January 1,  beginning  with January 1, 2001,  the  Indenture
Trustee  shall make  available to each  Noteholder as required by TIA ss. 313(c)
and to the Credit  Enhancer a brief report  dated as of such date that  complies
with TIA ss.  313(a).  The  Indenture  Trustee  also shall  comply  with TIA ss.
313(b).

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

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

Section 8.01 Collection of Money. Except as otherwise expressly provided herein,
the Indenture  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
Indenture Trustee pursuant to this Indenture.  The Indenture Trustee shall apply
all such money received by it as provided in this Indenture. Except as otherwise
expressly provided in this Indenture, if any default occurs in the making of any
payment or  performance  under any agreement or  instrument  that is part of the
Trust Estate,  the Indenture  Trustee may take such action as may be appropriate
to  enforce  such  payment  or   performance,   including  the  institution  and
prosecution  of  appropriate  Proceedings.  Any such  action  shall  be  without
prejudice  to any  right to claim a  Default  or Event  of  Default  under  this
Indenture and any right to proceed thereafter as provided in Article V.

<PAGE>

Section 8.02   Trust Accounts.

(a) On or prior to the  Closing  Date,  the  Issuer  shall  cause the  Indenture
Trustee to establish and maintain, in the name of the Indenture Trustee, for the
benefit of the  Noteholders,  the  Certificate  Paying  Agent,  on behalf of the
Certificateholders,  and the  Credit  Enhancer,  the  Note  Payment  Account  as
provided in Section 3.01 of this Indenture.

(b) All monies  deposited from time to time in the Note Payment Account pursuant
to the Servicing  Agreement and all deposits  therein pursuant to this Indenture
are for the benefit of the Noteholders,  the Credit Enhancer and the Certificate
Paying Agent, on behalf of the Certificateholders, and all investments made with
such monies,  including all income or other gain from such investments,  are for
the  benefit  of the  Servicer  as  provided  in Section  5.01 of the  Servicing
Agreement.

        On each Payment Date, the Indenture Trustee shall distribute all amounts
on deposit in the Note  Payment  Account  to the  Noteholders  in respect of the
Notes   and,   in  its   capacity   as   Certificate   Paying   Agent,   to  the
Certificateholders  from the  Distribution  Account in the order of priority set
forth in Section 3.05 (except as otherwise  provided in Section  5.04(b)) and in
accordance with the Servicing Certificate.

        The Indenture Trustee shall invest any funds in the Note Payment Account
in Permitted  Investments  selected in writing by the Servicer maturing no later
than the Business Day  preceding the next  succeeding  Payment Date (except that
any  investment  in the  institution  with  which the Note  Payment  Account  is
maintained may mature on such Payment Date) and shall not be sold or disposed of
prior to the maturity.  In addition,  such  Permitted  Investments  shall not be
purchased  at a price in excess of par.  The  Indenture  Trustee  shall  have no
liability  whatsoever for investment  losses on Permitted  Investments,  if such
investments are made in accordance with the provisions of this Indenture.

Section 8.03 Officer's Certificate. The Indenture Trustee shall receive at least
seven days' notice when  requested by the Issuer to take any action  pursuant to
Section  8.05(a),  accompanied by copies of any instruments to be executed,  and
the  Indenture  Trustee shall also  require,  as a condition to such action,  an
Officer's  Certificate,  in form and  substance  satisfactory  to the  Indenture
Trustee,  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.

Section 8.04  Termination Upon  Distribution to Noteholders.  This Indenture and
the respective  obligations and responsibilities of the Issuer and the Indenture
Trustee created hereby shall terminate upon the distribution to the Noteholders,
the  Certificate  Paying  Agent  on  behalf  of the  Certificateholders  and the
Indenture Trustee of all amounts required to be distributed  pursuant to Article
III; provided, however, that in no event shall the trust created hereby continue
beyond  the  expiration  of 21 years  from  the  death  of the  survivor  of the
descendants  of Joseph P. Kennedy,  the late  ambassador of the United States to
the Court of St. James's, living on the date hereof.

<PAGE>

Section 8.05   Release of Trust Estate.

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

(b) The  Indenture  Trustee  shall,  at  such  time as (i)  there  are no  Notes
Outstanding,  (ii) all sums due the Indenture Trustee pursuant to this Indenture
have  been  paid and  (iii) all sums due the  Credit  Enhancer  have been  paid,
release any  remaining  portion of the Trust  Estate that secured the Notes from
the lien of this Indenture.

(c) The Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.05 only upon receipt of an Issuer Request accompanied
by an Officers'  Certificate and a letter from the Credit Enhancer  stating that
the Credit Enhancer has no objection to such request from the Issuer.

(d) The Indenture  Trustee shall, at the request of the Issuer or the Depositor,
surrender the Policy to the Credit Enhancer for cancellation, upon final payment
of principal of and interest on the Notes.

Section 8.06 Surrender of Notes Upon Final  Payment.  By acceptance of any Note,
the Noteholder  thereof  agrees to surrender such Note to the Indenture  Trustee
promptly, prior to such Noteholder's receipt of the final payment thereon.

                                   ARTICLE IX

                             Supplemental Indentures

Section 9.01   Supplemental Indentures Without Consent of Noteholders.

(a) Without the consent of the Noteholders of any Notes but with prior notice to
the Rating  Agencies  and the  Credit  Enhancer,  the  Issuer and the  Indenture
Trustee,  when  authorized  by an Issuer  Request,  at any time and from time to
time,  may enter into one or more  indentures  supplemental  hereto (which shall
conform to the provisions of the Trust  Indenture Act as in force at the date of
the execution thereof),  in form satisfactory to the Indenture Trustee,  for any
of the following purposes:

<PAGE>

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

(iii)   to  add  to  the  covenants  of  the  Issuer,  for  the  benefit  of the
        Noteholders or the Credit  Enhancer,  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
     Indenture Trustee;

(v)     to cure any ambiguity,  to correct any error or to correct or supplement
        any  provision  herein  or in any  supplemental  indenture  that  may be
        inconsistent  with any other  provision  herein  or in any  supplemental
        indenture;

(vi)    to make any other  provisions  with  respect  to  matters  or  questions
        arising under this Indenture or in any supplemental indenture; provided,
        that such action shall not materially and adversely affect the interests
        of the Noteholders or the Credit Enhancer (as evidenced by an Opinion of
        Counsel);

(vii)   to evidence and provide for the acceptance of the appointment  hereunder
        by a successor trustee with respect to the Notes and to add to or change
        any of the  provisions  of this  Indenture  as  shall  be  necessary  to
        facilitate the  administration  of the trusts hereunder by more than one
        trustee, pursuant to the requirements of Article VI; or
(viii)  to modify,  eliminate or add to the provisions of this Indenture to such
        extent  as  shall be  necessary  to  effect  the  qualification  of this
        Indenture  under  TIA or under any  similar  federal  statute  hereafter
        enacted and to add to this  Indenture  such other  provisions  as may be
        expressly required by TIA;

provided,  however,  that no such  supplemental  indenture shall be entered into
unless the  Indenture  Trustee  shall have received an Opinion of Counsel to the
effect that the execution of such  supplemental  indenture will not give rise to
any material adverse tax consequence to the Noteholders.

<PAGE>

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

(b) The Issuer and the Indenture Trustee,  when authorized by an Issuer Request,
may,  without the consent of any  Noteholder but with prior notice to the Rating
Agencies  and the  Credit  Enhancer,  enter  into  an  indenture  or  indentures
supplemental  hereto for the purpose of adding any provisions to, or changing in
any  manner or  eliminating  any of the  provisions  of,  this  Indenture  or of
modifying  in any  manner the rights of the  Noteholders  under this  Indenture;
provided,  however,  that such action  shall not, as  evidenced by an Opinion of
Counsel,  (i)  adversely  affect in any  material  respect the  interests of any
Noteholder  or the Credit  Enhancer or (ii) cause the Issuer to be subject to an
entity level tax.

Section 9.02 Supplemental Indentures With Consent of Noteholders. The Issuer and
the Indenture  Trustee,  when authorized by an Issuer  Request,  may, with prior
notice to the Rating  Agencies  and with the consent of the Credit  Enhancer and
the  Noteholders  of not less than a majority of the Note Balances of each Class
of Notes affected  thereby,  by Act (as defined in Section 10.03 hereof) of such
Noteholders  delivered to the Issuer and the  Indenture  Trustee,  enter into an
indenture  or  indentures  supplemental  hereto  for the  purpose  of adding any
provisions  to, or changing in any manner or  eliminating  any of the provisions
of, this  Indenture or of modifying in any manner the rights of the  Noteholders
under this Indenture;  provided,  however,  that no such supplemental  indenture
shall, without the consent of the Noteholder of each Note affected thereby:

(a) change the date of payment of any installment of principal of or interest on
any Note,  or reduce the  principal  amount  thereof  or the Note Rate  thereon,
change  the  provisions  of  this  Indenture  relating  to  the  application  of
collections  on, or the  proceeds of the sale of, the Trust Estate to payment of
principal of or interest on the Notes,  or change any place of payment where, or
the coin or currency in which, any Note or the interest  thereon is payable,  or
impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor,  as provided in
Article V, to the  payment  of any such  amount due on the Notes on or after the
respective due dates thereof;

(b) reduce the  percentage of the Note  Balances of any Class of the Notes,  the
consent  of the  Noteholders  of which  is  required  for any such  supplemental
indenture, or the consent of the Noteholders of which is required for any waiver
of  compliance  with certain  provisions of this  Indenture or certain  defaults
hereunder and their consequences provided for in this Indenture;

(c) modify or alter the  provisions of the proviso to the definition of the term
"Outstanding"  or modify or alter the  exception in the  definition  of the term
"Noteholder";

(d) reduce the percentage of the aggregate Note Balance of the Notes required to
direct the Indenture Trustee to direct the Issuer to sell or liquidate the Trust
Estate pursuant to Section 5.04;

<PAGE>

(e) modify any provision of this Section 9.02 except to increase any  percentage
specified  herein or to  provide  that  certain  additional  provisions  of this
Indenture or the other Basic Documents  cannot be modified or waived without the
consent of the Noteholder of each Note affected thereby;

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

(g) permit the  creation  of any lien  ranking  prior to or on a parity with the
lien of this  Indenture  with respect to any part of the Trust Estate or, except
as  otherwise  permitted  or  contemplated  herein,  terminate  the lien of this
Indenture on any property at any time subject  hereto or deprive the  Noteholder
of any Note of the security provided by the lien of this Indenture; and provided
further,  that such  action  shall not, as  evidenced  by an Opinion of Counsel,
cause the Issuer to be subject to an entity level tax.

        The Indenture Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture and any such determination
shall be conclusive  upon the Noteholders of all Notes,  whether  theretofore or
thereafter  authenticated and delivered  hereunder.  The Indenture Trustee shall
not be liable for any such determination made in good faith.

        It shall not be  necessary  for any Act (as  defined  in  Section  10.03
hereof) of Noteholders under this Section 9.02 to approve the particular form of
any proposed  supplemental  indenture,  but it shall be  sufficient  if such Act
shall approve the substance thereof.

        Promptly after the execution by the Issuer and the Indenture  Trustee of
any supplemental  indenture pursuant to this Section 9.02, the Indenture Trustee
shall  mail  to  the  Noteholders  of the  Notes  to  which  such  amendment  or
supplemental  indenture  relates a notice  setting  forth in  general  terms the
substance of such supplemental  indenture.  Any failure of the Indenture Trustee
to mail such  notice,  or any defect  therein,  shall not,  however,  in any way
impair or affect the validity of any such supplemental indenture.

Section 9.03 Execution of Supplemental  Indentures.  In executing, or permitting
the additional trusts created by, any supplemental  indenture  permitted by this
Article IX or the modification  thereby of the trusts created by this Indenture,
the Indenture Trustee shall be entitled to receive and, subject to Sections 6.01
and 6.02,  shall be fully  protected  in  relying  upon,  an  Opinion of Counsel
stating that the  execution of such  supplemental  indenture  is  authorized  or
permitted  by this  Indenture.  The  Indenture  Trustee  may,  but  shall not be
obligated  to,  enter into any such  supplemental  indenture  that  affects  the
Indenture  Trustee's own rights,  duties,  liabilities or immunities  under this
Indenture or otherwise.

Section  9.04  Effect  of  Supplemental  Indenture.  Upon the  execution  of any
supplemental  indenture pursuant to the provisions hereof,  this Indenture shall
be and shall be deemed to be modified and amended in accordance  therewith  with

<PAGE>

respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations,  duties, liabilities and immunities under this Indenture of
the  Indenture  Trustee,  the Issuer and the  Noteholders  shall  thereafter  be
determined,  exercised  and enforced  hereunder  subject in all respects to such
modifications  and  amendments,  and all the  terms and  conditions  of any such
supplemental  indenture  shall  be and be  deemed  to be part of the  terms  and
conditions of this Indenture for any and all purposes.

Section  9.05  Conformity  with Trust  Indenture  Act.  Every  amendment of this
Indenture and every supplemental  indenture executed pursuant to this Article IX
shall  conform  to the  requirements  of TIA as in  effect  at the  time of such
amendment or supplement so long as this Indenture  shall then be qualified under
TIA.

Section 9.06 Reference in Notes to Supplemental Indentures.  Notes authenticated
and delivered after the execution of any supplemental indenture pursuant to this
Article IX may, and if required by the Indenture Trustee, shall, bear a notation
in form approved by the Indenture  Trustee as to any matter provided for in such
supplemental  indenture.  If  the  Issuer  or the  Indenture  Trustee  shall  so
determine,  new Notes so modified as to conform, in the opinion of the Indenture
Trustee and the Issuer, to any such  supplemental  indenture may be prepared and
executed by the Issuer and  authenticated and delivered by the Indenture Trustee
in exchange for Outstanding Notes.

                                   ARTICLE X

                                  Miscellaneous

Section 10.01  Compliance Certificates and Opinions, etc.

(a) Upon any  application  or request by the Issuer to the Indenture  Trustee to
take any action under any provision of this Indenture,  the Issuer shall furnish
to the Indenture Trustee and to the Credit Enhancer (i) an Officer's Certificate
stating that all conditions  precedent,  if any,  provided for in this Indenture
relating to the proposed  action have been  complied with and (ii) an Opinion of
Counsel  stating  that  in the  opinion  of such  counsel  all  such  conditions
precedent, if any, have been complied with, except that, in the case of any such
application  or  request  as to  which  the  furnishing  of  such  documents  is
specifically  required  by  any  provision  of  this  Indenture,  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 Indenture 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;

<PAGE>

(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;

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

(v)  if the signer of such certificate or opinion is required to be Independent,
     the statement required by the definition of the term "Independent".

(b) (i) Prior to the deposit of any  Collateral or other  property or securities
with the  Indenture  Trustee that is to be made the basis for the release of any
property or securities subject to the lien of this Indenture,  the Issuer shall,
in addition to any obligation  imposed in Section  10.01(a) or elsewhere in this
Indenture,  furnish to the Indenture Trustee an Officer's Certificate certifying
or stating the opinion of each person  signing such  certificate  as to the fair
value (within 90 days of such deposit) to the Issuer of the  Collateral or other
property or securities to be so deposited.

(ii) Whenever  the Issuer is  required  to furnish to the  Indenture  Trustee an
     Officer's  Certificate  certifying  or  stating  the  opinion of any signer
     thereof as to the matters  described in clause (i) above,  the Issuer shall
     also deliver to the Indenture Trustee an Independent  Certificate as to the
     same  matters,  if the fair value to the Issuer of the  securities to be so
     deposited  and of all  other  such  securities  made the  basis of any such
     withdrawal or release since the  commencement  of the  then-current  fiscal
     year of the Issuer, as set forth in the certificates  delivered pursuant to
     clause (i) above and this clause (ii), is 10% or more of the aggregate Note
     Balance of the Notes,  but such a  certificate  need not be furnished  with
     respect to any  securities so  deposited,  if the fair value thereof to the
     Issuer  as set  forth in the  related  Officer's  Certificate  is less than
     $25,000  or less than one  percent  of the  aggregate  Note  Balance of the
     Notes.

(iii)   Whenever any property or securities  are to be released from the lien of
        this  Indenture,  the Issuer shall furnish to the  Indenture  Trustee an
        Officer's  Certificate  certifying or stating the opinion of each person
        signing such  certificate  as to the fair value  (within 90 days of such
        release) of the  property  or  securities  proposed  to be released  and
        stating that in the opinion of such person the proposed release will not
        impair  the  security  under  this  Indenture  in  contravention  of the
        provisions hereof.

(iv) Whenever  the Issuer is  required  to furnish to the  Indenture  Trustee an
     Officer's  Certificate  certifying  or  stating  the  opinion of any signer
     thereof as to the matters described in clause (iii) above, the Issuer shall

<PAGE>

     also furnish to the Indenture Trustee an Independent  Certificate as to the
     same  matters if the fair value of the  property or  securities  and of all
     other property,  other than property as contemplated by clause (v) below or
     securities  released from the lien of this Indenture since the commencement
     of the  then-current  calendar  year,  as  set  forth  in the  certificates
     required by clause (iii) above and this clause (iv),  equals 10% or more of
     the aggregate Note Balance of the Notes,  but such  certificate need not be
     furnished in the case of any release of property or  securities if the fair
     value  thereof as set forth in the related  Officer's  Certificate  is less
     than $25,000 or less than one percent of the aggregate  Note Balance of the
     Notes.

(v)  Notwithstanding  any provision of this Indenture,  the Issuer may,  without
     compliance with the  requirements  of the other  provisions of this Section
     10.01, (A) collect upon, sell or otherwise dispose of the Home Loans as and
     to the extent permitted or required by the Basic Documents or (B) make cash
     payments out of the Note Payment Account as and to the extent  permitted or
     required by the Basic Documents, so long as the Issuer shall deliver to the
     Indenture  Trustee  every six months,  commencing  December  31,  1999,  an
     Officer's  Certificate of the Issuer stating that all the  dispositions  of
     Collateral  described in clauses (A) or (B) above that occurred  during the
     preceding six calendar  months (or such longer  period,  in the case of the
     first  such  Officer's  Certificate)  were in the  ordinary  course  of the
     Issuer's  business and that the proceeds thereof were applied in accordance
     with the Basic Documents.

Section 10.02  Form of Documents Delivered to Indenture 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  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 either  Seller or
the Issuer, stating that the information with respect to such factual matters is
in the possession of either Seller 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 Indenture,  they may, but need not, be consolidated  and
form one instrument.

<PAGE>

        Whenever  in this  Indenture,  in  connection  with any  application  or
certificate or report to the Indenture  Trustee,  it is provided that the Issuer
shall  deliver any document as a 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  Indenture  Trustee's  right to rely upon the truth and
accuracy of any statement or opinion  contained in any such document as provided
in Article VI.

Section 10.03  Acts of Noteholders.

(a) Any request, demand,  authorization,  direction,  notice, consent, waiver or
other action  provided by this Indenture to be given or taken by Noteholders may
be embodied in and evidenced by one or more instruments of substantially similar
tenor  signed by such  Noteholders  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
Indenture 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  Noteholders
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  Indenture and (subject to Section 6.01)  conclusive in favor of
the  Indenture  Trustee and the Issuer,  if made in the manner  provided in this
Section 10.03.

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

(c)     The ownership of Notes shall be proved by the Note Register.

(d) Any request, demand,  authorization,  direction,  notice, consent, waiver or
other action by the  Noteholder  of any Note shall bind the  Noteholder of every
Note 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
Indenture Trustee or the Issuer in reliance thereon,  whether or not notation of
such action is made upon such Note.

Section 10.04 Notices,  etc., to Indenture Trustee,  Issuer, Credit Enhancer and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of  Noteholders or other  documents  provided or permitted by this
Indenture  shall  be in  writing  and if such  request,  demand,  authorization,
direction,  notice,  consent,  waiver or Act of  Noteholders is to be made upon,
given or furnished to or filed with:

(a) the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient
for every purpose hereunder if made, given,  furnished or filed in writing to or
with the Indenture  Trustee at its  Corporate  Trust Office with a copy to Wells
Fargo Bank  Minnesota,  N.A.,  11000  Broken Land  Parkway,  Columbia,  Maryland
21044-3562,  Attention:  GMACM  2000-CL1.  The Indenture  Trustee shall promptly
transmit any notice received by it from the Noteholders to the Issuer,

<PAGE>

(b) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient
for every  purpose  hereunder  if in  writing  and mailed  first-class,  postage
prepaid to the Issuer  addressed to: GMACM Home Loan Trust 2000-CL1,  in care of
the Owner Trustee,  or at any other address  previously  furnished in writing to
the  Indenture  Trustee by the Issuer.  The Issuer shall  promptly  transmit any
notice received by it from the Noteholders to the Indenture Trustee, or

(c)  the  Credit  Enhancer  by  the  Issuer,  the  Indenture  Trustee  or by any
Noteholders  shall be sufficient  for every purpose  hereunder to in writing and
mailed,  first-class postage pre-paid, or personally delivered or telecopied to:
Ambac Assurance  Corporation,  One State Street Plaza, 19th Floor, New York, New
York 10004,  Attention:  Consumer Asset-Backed Securities Group (GMACM Home Loan
Trust  2000-CL1),  telecopier  number (212) 363-1459.  The Credit Enhancer shall
promptly  transmit  any notice  received  by it from the Issuer,  the  Indenture
Trustee or the Noteholders to the Issuer or Indenture  Trustee,  as the case may
be.

        Notices  required to be given to the Rating Agencies by the Issuer,  the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified  mail,  return receipt  requested,  to (i) in the case of
Moody's,  at  the  following  address:  Moody's  Investors  Service,  Inc.,  ABS
Monitoring  Department,  99 Church Street, New York, New York 10007; (ii) in the
case of  Standard & Poor's,  at the  following  address:  Standard & Poor's,  26
Broadway,  15th  Floor,  New  York,  New York  10004,  Attention:  Asset  Backed
Surveillance  Department  and  (iii)  in the  case of  Fitch,  at the  following
address:  Fitch,  Inc.,  One  State  Street  Plaza,  New York,  New York  10004,
Attention:  Residential Mortgage Group, or, as to each of the foregoing Persons,
at such other  address  as shall be  designated  by written  notice to the other
foregoing Persons.

Section 10.05 Notices to Noteholders;  Waiver. Where this Indenture provides for
notice to  Noteholders  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 Noteholder affected by such event, at such
Person's  address as it appears on the Note 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 Noteholders  is given by mail,  neither the
failure  to mail  such  notice  nor any  defect  in any  notice so mailed to any
particular  Noteholder  shall affect the sufficiency of such notice with respect
to other  Noteholders,  and any  notice  that is  mailed  in the  manner  herein
provided shall  conclusively  be presumed to have been duly given  regardless of
whether such notice is in fact actually received.

        Where this Indenture 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  Noteholders  shall be filed  with the  Indenture
Trustee,  but such filing shall not be a condition  precedent to the validity of
any action taken in reliance upon such a waiver.

<PAGE>

        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  Noteholders  when such  notice is  required  to be given
pursuant  to any  provision  of this  Indenture,  then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

        Where this Indenture provides for notice to the Rating Agencies, failure
to give such notice  shall not affect any other  rights or  obligations  created
hereunder, and shall not under any circumstance constitute an Event of Default.

Section  10.06  Alternate  Payment and Notice  Provisions.  Notwithstanding  any
provision of this Indenture or any of the Notes to the contrary,  the Issuer may
enter into any agreement with any Noteholder  providing for a method of payment,
or notice by the Indenture  Trustee to such  Noteholder,  that is different from
the methods  provided for in this  Indenture for such  payments or notices.  The
Issuer shall furnish to the Indenture  Trustee a copy of each such agreement and
the Indenture Trustee shall cause payments to be made and notices to be given in
accordance with such agreements.

Section 10.07 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 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  Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

Section 10.08 Effect of Headings.  The Article and Section  headings  herein are
for convenience only and shall not affect the construction hereof.

Section 10.09  Successors  and Assigns.  All  covenants  and  agreements in this
Indenture  and the Notes by the Issuer  shall bind its  successors  and assigns,
whether so expressed or not. All  agreements  of the  Indenture  Trustee in this
Indenture shall bind its successors, co-trustees and agents.

Section 10.10  Severability.  In case any provision in this  Indenture or in the
Notes shall be held invalid, illegal or unenforceable,  the validity,  legality,
and  enforceability  of the remaining  provisions hereof shall not in any way be
affected or impaired thereby.

Section 10.11 Benefits of Indenture.  Nothing in this Indenture or in the Notes,
express or implied,  shall give to any Person, other than the parties hereto and
their successors hereunder,  and the Noteholders,  the Credit Enhancer,  and any
other party secured  hereunder,  and any other Person with an ownership interest
in any part of the Trust  Estate,  any benefit or any legal or equitable  right,
remedy or claim under this Indenture. The Credit Enhancer shall be a third party
beneficiary of this Agreement.

<PAGE>

Section 10.12 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 Notes or this  Indenture)  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 10.13  GOVERNING  LAW. THIS  INDENTURE  SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK,  WITHOUT  REFERENCE TO ITS  CONFLICTS OF
LAW  PROVISIONS,  AND  THE  OBLIGATIONS,  RIGHTS  AND  REMEDIES  OF THE  PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section  10.14  Counterparts.  This  Indenture  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 10.15 Recording of Indenture.  If this Indenture 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
counsel shall be reasonably  acceptable to the Indenture  Trustee) to the effect
that such recording is necessary either for the protection of the Noteholders or
any other Person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture.

Section  10.16  Issuer  Obligation.  No  recourse  may  be  taken,  directly  or
indirectly,  with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other  writing  delivered in connection  herewith or therewith,  against (i) the
Indenture  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  Indenture
Trustee  or the  Owner  Trustee  in its  individual  capacity,  any  holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture  Trustee or the Owner Trustee in its
individual  capacity,  except as any such Person may have  expressly  agreed (it
being  understood that the Indenture  Trustee and the Owner Trustee have no such
obligations in their respective individual capacities), and except that any such
partner,  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 Indenture,  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  10.17 No  Petition.  The  Indenture  Trustee,  by  entering  into  this
Indenture, and each Noteholder, by its acceptance of a Note, hereby covenant and
agree that they will not at any time  institute  against  the  Depositor  or the
Issuer,  or join in any institution  against the Depositor 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 Notes,  this
Indenture or any of the other Basic Documents.

<PAGE>

Section 10.18 Inspection. The Issuer agrees that, on reasonable prior notice, it
shall permit any  representative of the Indenture  Trustee,  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 Indenture 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 Indenture  Trustee may  reasonably  determine  that such  disclosure is
consistent with its obligations hereunder.

<PAGE>

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

                 GMACM HOME LOAN TRUST 2000-CL1, as Issuer

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

                 By:  /s/ Donald G. MacKelcan
                      Name:  Donald G. MacKelcan
                      Title:    Vice President

                 WELLS FARGO BANK MINNESOTA, N.A., as Indenture Trustee

                             By: /s/ Peter A. Gobell
                            Name:  Peter A. Gobell
                            Title:    Assistant Vice President

WELLS FARGO BANK MINNESOTA, N.A.,
hereby accepts the appointment as Paying
Agent pursuant to Section 3.03 hereof
and as Note Registrar pursuant to Section
4.02 hereof.

By:     /s/ Peter A. Gobell
        Name:  Peter A. Gobell
        Title:    Assistant Vice President

Signatures and Seals

<PAGE>

STATE OF DELAWARE            )
                                    )       ss.:
COUNTY OF NEW CASTLE  )

        On this 28th day of September 2000, before me personally appeared Donald
G. MacKelcan,  to me known, who being by me duly sworn, did depose and say, that
he/she  resides at Delaware,  that he/she is the Vice  President  of  Wilmington
Trust Company, the Owner Trustee, one of the corporations described in and which
executed the above  instrument;  that he/she knows the seal of said corporation;
that the seal affixed to said  instrument is such corporate seal; that it was so
affixed by order of the Board of Directors of said corporation;  and that he/she
signed his/her name thereto by like order.

        /s/ Leigh Emmi
            Notary Public

Acknowledgements

<PAGE>

STATE OF MARYLAND     )
                             ) ss.:
COUNTY OF BALTIMORE   )

        On this 28th day of September, 2000, before me personally appeared Peter
A. Gobell,  to me known,  who being by me duly sworn,  did depose and say,  that
he/she  resides  at  Columbia,  Maryland;  that  he/she  is the  Assistant  Vice
President of Wells Fargo Bank Minnesota,  N.A., as Indenture Trustee, one of the
corporations  described in and which executed the above instrument;  that he/she
knows the seal of said corporation;  that the seal affixed to said instrument is
such corporate  seal;  that it was so affixed by order of the Board of Directors
of said corporation; and that he/she signed his/her name thereto by like order.

        /s/ Sharon A. Surguy
               Notary Public

NOTORIAL SEAL

<PAGE>

                                    EXHIBIT A
                                  FORM OF NOTES

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

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR  OBLIGATION  OF THE SELLERS,  THE
DEPOSITOR,  THE  SERVICER,  THE  INDENTURE  TRUSTEE,  THE OWNER  TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES,  EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE  REPRESENTED  THAT THE  ACQUISITION OF
THIS  NOTE BY THE  HOLDER  DOES  NOT  CONSTITUTE  OR GIVE  RISE TO A  PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                        GMACM HOME LOAN TRUST 2000-CL1

                                  GMACM Home Loan-Backed Term Note, Class A-1

Registered                         Initial Note Balance:
                                   $[______________]

No. R-1                            Note Rate:  Variable

                                   CUSIP NO. [________]

        GMACM Home Loan Trust  2000-CL1,  a business  trust duly  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 its
registered assigns, the principal sum of [_______________] dollars ($[_______]),
payable  on each  Payment  Date in an  amount  equal  to the  pro  rata  portion
allocable  hereto  (based on the Initial  Note Balance  specified  above and the
Initial Note Balance of all Class A-1 Notes) of the  aggregate  amount,  if any,
payable from the Note  Payment  Account in respect of principal of the Class A-1
Notes (the  "Notes")  pursuant  to  Section  3.05 of the  indenture  dated as of

<PAGE>

September  28, 2000 (the  "Indenture"),  between the Issuer and Wells Fargo Bank
Minnesota,  N.A.,  as indenture  trustee (the  "Indenture  Trustee");  provided,
however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in June 2026, to the extent not previously paid on a
prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in Appendix A to the Indenture.

        Interest on the Notes will be paid  monthly on each  Payment Date at the
Note Rate for the  related  Interest  Period.  The Note  Rate for each  Interest
Period  will be a floating  rate equal to the lesser of (i) LIBOR plus [__]% per
annum and (ii) 10.00% per annum. LIBOR for each applicable  Interest Period will
be determined  on the second LIBOR  Business Day  immediately  preceding (i) the
Closing Date in the case of the first Interest  Period and (ii) the first day of
each  succeeding  Interest  Period by the Indenture  Trustee as set forth in the
Indenture.  All  determinations  of LIBOR by the Indenture Trustee shall, in the
absence of manifest  error,  be conclusive for all purposes,  and each holder of
this Note,  by accepting  this Note,  agrees to be bound by such  determination.
Interest  on this Note will  accrue for each  Payment  Date from the most recent
Payment Date on which  interest has been paid (in the case of the first  Payment
Date,  from the Closing Date) to but excluding such Payment Date.  Interest will
be computed on the basis of the actual  number of days in each  Interest  Period
and a year  assumed to consist of 360 days.  Principal  of and  interest on this
Note shall be paid in the manner specified on the reverse hereof.

        Principal  of and  interest  on this  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 Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

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

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

        This  Note is one of a duly  authorized  issue of  Notes of the  Issuer,
designated  as its GMACM Home  Loan-Backed  Term  Notes,  Series  2000-CL1  (the
"Series 2000-CL1 Notes"), all issued under the Indenture, to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders of the Series  2000-CL1  Notes.  The Series 2000-CL1
Notes are subject to all terms of the Indenture.

        The Series  2000-CL1 Notes  (collectively,  the "Notes") are and will be
equally and ratably  secured by the collateral  pledged as security  therefor as
provided in the Indenture.

<PAGE>

        This  Note  is  entitled  to  the   benefits  of  an   irrevocable   and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

        Principal  of and  interest on this Note will be payable on each Payment
Date,  commencing on October 25, 2000, as described in the  Indenture.  "Payment
Date"  means the  eighteenth  day of each  month,  or, if any such date is not a
Business Day, then the next succeeding Business Day.

        The entire unpaid principal amount of this Note shall be due and payable
in full on the  Payment  Date in June 2026  pursuant  to the  Indenture,  to the
extent  not  previously  paid  on a  prior  Payment  Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee,  the  Credit  Enhancer  or  the  Noteholders  of  Notes
representing  not less than a  majority  of the  aggregate  Note  Balance of the
Notes,  with the  consent of the Credit  Enhancer,  may  declare the Notes to be
immediately  due and  payable in the  manner  provided  in  Section  5.02 of the
Indenture.  All  principal  payments  on the Notes shall be made pro rata to the
Noteholders of Notes entitled thereto.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment Date shall be paid to the related  Noteholder  on the  preceding  Record
Date,  by wire  transfer to an account  specified in writing by such  Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such  instructions  have been delivered to the Indenture  Trustee,  by
check or money order to such Noteholder mailed to such  Noteholder's  address as
it appears in the Note Register,  the amount  required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's  Notes;  provided,
however,  that the Indenture Trustee shall not pay to such Noteholder any amount
required  to be  withheld  from a payment to such  Noteholder  by the Code.  Any
reduction in the principal  amount of this Note (or any one or more  predecessor
Notes)  effected by any payments  made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any 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 Indenture, for
payment in full of the then remaining  unpaid principal amount of this Note on a
Payment Date,  then the Indenture  Trustee,  in the name of and on behalf of the
Issuer,  will notify the Person who was the registered  Noteholder  hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

        As provided in the  Indenture  and  subject to certain  limitations  set
forth therein,  the transfer of this Note may be registered on the Note Register
upon surrender of this Note for  registration of transfer at the Corporate Trust
Office of the Indenture  Trustee,  duly endorsed by, or accompanied by a written
instrument  of transfer  in form  satisfactory  to the  Indenture  Trustee  duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in  writing,   with  such  signature   guaranteed  by  an  "eligible   guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program  ("STAMP")  or  such  other  "signature  guarantee  program"  as  may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in accordance  with the Exchange Act, and thereupon one or more new Notes in
authorized  denominations  and in the same  aggregate  principal  amount will be

<PAGE>

issued to the designated  transferee or  transferees.  No service charge will be
charged for any  registration of transfer or exchange of this Note, but the Note
Registrar  shall  require  payment  of a sum  sufficient  to  cover  any  tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

        Each  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Sellers,  the Servicer,  the Depositor or the Indenture Trustee on the Notes
or under  the  Indenture  or any  certificate  or  other  writing  delivered  in
connection therewith,  against (i) the Indenture 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 or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, 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  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
Noteholder  or  Beneficial  Owner  will not at any time  institute  against  the
Depositor,  the Sellers, the Servicer,  GMAC Mortgage Group, Inc. or the Issuer,
or join in any  institution  against the Depositor,  the Sellers,  the Servicer,
GMAC  Mortgage  Group,  Inc. or the Issuer of, any  bankruptcy,  reorganization,
arrangement,  insolvency  or  liquidation  proceedings  under any United  States
federal or state  bankruptcy or similar law in connection  with any  obligations
relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the  Indenture  and this Note is issued with
the intention  that, for federal,  state and local income,  single  business and
franchise tax purposes,  the Notes will qualify as  indebtedness  of the Issuer.
Each  Noteholder  of a Note, by its  acceptance  of a Note (and each  Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for  registration of transfer of this Note,
the Issuer,  the Indenture  Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of  determination  or as of such other date as may be  specified  in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

        The Indenture permits,  with certain  exceptions  therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series

<PAGE>

2000-CL1  Notes under the  Indenture at any time by the Issuer and the Indenture
Trustee  with the consent of the Credit  Enhancer and the  Noteholders  of Notes
representing  a  majority  of the  aggregate  Note  Balance  of the  Notes  then
Outstanding  and with prior notice to the Rating  Agencies.  The Indenture  also
contains provisions  permitting the Noteholders of Notes representing  specified
percentages of the Note Balances of the Series  2000-CL1 Notes, on behalf of the
Noteholders of all Series 2000-CL1 Notes, to waive compliance by the Issuer with
certain  provisions  of the  Indenture  and  certain  past  defaults  under  the
Indenture and their  consequences.  Any such consent or waiver by the Noteholder
of this Note (or any one of more  predecessor  Notes)  shall be  conclusive  and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note 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 Note.  The Indenture  also permits the Issuer and the Indenture  Trustee to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of  Noteholders of the Series  2000-CL1 Notes issued  thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

        The term  "Issuer" as used in this Note  includes  any  successor or the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture,  under certain  circumstances,
to merge or consolidate,  subject to the rights of the Indenture Trustee and the
Noteholders under the Indenture.

        The Notes are  issuable  only in  registered  form in  denominations  as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture  shall be construed in  accordance  with the
laws of the  State  of New  York,  without  reference  to its  conflicts  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 Indenture and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note 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  Basic  Documents,  none of  Wilmington  Trust  Company  in its
individual  capacity,  Wells  Fargo  Bank  Minnesota,  N.A.,  in its  individual
capacity,  any owner of a  beneficial  interest in the  Issuer,  or any of their
respective partners,  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 this Note or the
performance of, or the failure to perform, any of the covenants,  obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its
acceptance  hereof,  agrees  that,  except as  expressly  provided  in the Basic
Documents,  in the  case of an  Event  of  Default  under  the  Indenture,  such
Noteholder  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 Indenture or in this Note.

<PAGE>

        IN WITNESS WHEREOF,  the Owner Trustee,  on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.

                           GMACM HOME LOAN TRUST 2000-CL1

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

Dated:  September 28, 2000

                             By:
                              Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

                                WELLS FARGO BANK MINNESOTA, N.A.,
                                not in its individual capacity but solely as
                                Indenture Trustee

                                   By:
                                   Name:
                                   Title:

Dated: September 28, 2000

<PAGE>

                                   ASSIGNMENT

Social  Security  or  taxpayer  I.D. or other  identifying  number of  assignee:
_______________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                       _________________________________
                        (name and address of assignee)

the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints ___________________________, attorney, to transfer said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:                                                                  */
        ------------------------------      ----------------------------
                                             Signature Guaranteed:

                                             __________________________ */

--------
* NOTICE:  The signature to this assignment must correspond with the name of the
registered  owner  as it  appears  on the  face  of the  within  Note  in  every
particular,  without  alteration,  enlargement  or  any  change  whatever.  Such
signature must be guaranteed by an "eligible guarantor  institution" meeting the
requirements of the Note Registrar,  which  requirements  include  membership or
participation  in STAMP or such other  "signature  guarantee  program" as may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in  accordance  with the  Securities  Exchange  Act of 1934,  as amended.
<PAGE>

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

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR  OBLIGATION  OF THE SELLERS,  THE
DEPOSITOR,  THE  SERVICER,  THE  INDENTURE  TRUSTEE,  THE OWNER  TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES,  EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE  REPRESENTED  THAT THE  ACQUISITION OF
THIS  NOTE BY THE  HOLDER  DOES  NOT  CONSTITUTE  OR GIVE  RISE TO A  PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                        GMACM HOME LOAN TRUST 2000-CL1

                                  GMACM Home Loan-Backed Term Note, Class A-2

Registered                         Initial Note Balance:
                                   $[--------]

No. R-1                            Note Rate: [____]%

                                   CUSIP NO. [________]

        GMACM Home Loan Trust  2000-CL1,  a business  trust duly  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 its
registered  assigns,  the  principal  sum  of  [_____________________]   dollars
($[_______]),  payable on each  Payment  Date in an amount equal to the pro rata
portion  allocable hereto (based on the Initial Note Balance specified above and
the Initial Note  Balance of all Class A-2 Notes) of the  aggregate  amount,  if
any,  payable from the Note Payment Account in respect of principal of the Class
A-2 Notes (the "Notes")  pursuant to Section 3.05 of the  indenture  dated as of
September  28, 2000 (the  "Indenture"),  between the Issuer and Wells Fargo Bank
Minnesota,  N.A.,  as indenture  trustee (the  "Indenture  Trustee");  provided,

<PAGE>

however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in June 2026, to the extent not previously paid on a
prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in Appendix A to the Indenture.

        Interest on the Notes will be paid  monthly on each  Payment Date at the
Note Rate for the related Interest Period. The Note Rate for this Note will be a
fixed rate equal to [___]% per annum. Interest on this Note will accrue for each
Payment Date from the most recent  Payment Date on which  interest has been paid
(in the case of the first Payment Date,  from the Closing Date) to but excluding
such Payment  Date.  Interest will be computed on the basis of the actual number
of days in each  Interest  Period  and a year  assumed  to  consist of 360 days.
Principal of and interest on this Note shall be paid in the manner  specified on
the reverse hereof.

        Principal  of and  interest  on this  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 Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

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

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

        This  Note is one of a duly  authorized  issue of  Notes of the  Issuer,
designated  as its GMACM Home  Loan-Backed  Term  Notes,  Series  2000-CL1  (the
"Series 2000-CL1 Notes"), all issued under the Indenture, to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders of the Series  2000-CL1  Notes.  The Series 2000-CL1
Notes are subject to all terms of the Indenture.

        The Series 2000-CL1 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

        This  Note  is  entitled  to  the   benefits  of  an   irrevocable   and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

        Principal  of and  interest on this Note will be payable on each Payment
Date,  commencing on October 25, 2000, as described in the  Indenture.  "Payment
Date"  means the  eighteenth  day of each  month,  or, if any such date is not a
Business Day, then the next succeeding Business Day.

        The entire unpaid principal amount of this Note shall be due and payable
in full on the  Payment  Date in June 2026  pursuant  to the  Indenture,  to the
extent  not  previously  paid  on a  prior  Payment  Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee,  the  Credit  Enhancer  or  the  Noteholders  of  Notes

<PAGE>

representing  not less than a  majority  of the  aggregate  Note  Balance of the
Notes,  with the  consent of the Credit  Enhancer,  may  declare the Notes to be
immediately  due and  payable in the  manner  provided  in  Section  5.02 of the
Indenture.  All  principal  payments  on the Notes shall be made pro rata to the
Noteholders of Notes entitled thereto.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment Date shall be paid to the related  Noteholder  on the  preceding  Record
Date,  by wire  transfer to an account  specified in writing by such  Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such  instructions  have been delivered to the Indenture  Trustee,  by
check or money order to such Noteholder mailed to such  Noteholder's  address as
it appears in the Note Register,  the amount  required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's  Notes;  provided,
however,  that the Indenture Trustee shall not pay to such Noteholder any amount
required  to be  withheld  from a payment to such  Noteholder  by the Code.  Any
reduction in the principal  amount of this Note (or any one or more  predecessor
Notes)  effected by any payments  made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any 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 Indenture, for
payment in full of the then remaining  unpaid principal amount of this Note on a
Payment Date,  then the Indenture  Trustee,  in the name of and on behalf of the
Issuer,  will notify the Person who was the registered  Noteholder  hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

        As provided in the  Indenture  and  subject to certain  limitations  set
forth therein,  the transfer of this Note may be registered on the Note Register
upon surrender of this Note for  registration of transfer at the Corporate Trust
Office of the Indenture  Trustee,  duly endorsed by, or accompanied by a written
instrument  of transfer  in form  satisfactory  to the  Indenture  Trustee  duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in  writing,   with  such  signature   guaranteed  by  an  "eligible   guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program  ("STAMP")  or  such  other  "signature  guarantee  program"  as  may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in accordance  with the Exchange Act, and thereupon one or more new Notes in
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 Note, but the Note
Registrar  shall  require  payment  of a sum  sufficient  to  cover  any  tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

        Each  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Sellers,  the Servicer,  the Depositor or the Indenture Trustee on the Notes
or under  the  Indenture  or any  certificate  or  other  writing  delivered  in
connection therewith,  against (i) the Indenture Trustee or the Owner Trustee in
its individual  capacity,  (ii) any owner of a beneficial interest in the Issuer

<PAGE>

or (iii) any partner, owner,  beneficiary,  agent, officer, director or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, 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  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
Noteholder  or  Beneficial  Owner  will not at any time  institute  against  the
Depositor,  the Sellers, the Servicer,  GMAC Mortgage Group, Inc. or the Issuer,
or join in any  institution  against the Depositor,  the Sellers,  the Servicer,
GMAC  Mortgage  Group,  Inc. or the Issuer of, any  bankruptcy,  reorganization,
arrangement,  insolvency  or  liquidation  proceedings  under any United  States
federal or state  bankruptcy or similar law in connection  with any  obligations
relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the  Indenture  and this Note is issued with
the intention  that, for federal,  state and local income,  single  business and
franchise tax purposes,  the Notes will qualify as  indebtedness  of the Issuer.
Each  Noteholder  of a Note, by its  acceptance  of a Note (and each  Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for  registration of transfer of this Note,
the Issuer,  the Indenture  Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of  determination  or as of such other date as may be  specified  in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

        The Indenture permits,  with certain  exceptions  therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2000-CL1  Notes under the  Indenture at any time by the Issuer and the Indenture
Trustee  with the consent of the Credit  Enhancer and the  Noteholders  of Notes
representing  a  majority  of the  aggregate  Note  Balance  of the  Notes  then
Outstanding  and with prior notice to the Rating  Agencies.  The Indenture  also
contains provisions  permitting the Noteholders of Notes representing  specified
percentages of the Note Balances of the Series  2000-CL1 Notes, on behalf of the
Noteholders of all Series 2000-CL1 Notes, to waive compliance by the Issuer with
certain  provisions  of the  Indenture  and  certain  past  defaults  under  the

<PAGE>

Indenture and their  consequences.  Any such consent or waiver by the Noteholder
of this Note (or any one of more  predecessor  Notes)  shall be  conclusive  and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note 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 Note.  The Indenture  also permits the Issuer and the Indenture  Trustee to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of  Noteholders of the Series  2000-CL1 Notes issued  thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

        The term  "Issuer" as used in this Note  includes  any  successor or the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture,  under certain  circumstances,
to merge or consolidate,  subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.

        The Notes are  issuable  only in  registered  form in  denominations  as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture  shall be construed in  accordance  with the
laws of the  State  of New  York,  without  reference  to its  conflicts  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 Indenture and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note 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  Basic  Documents,  none of  Wilmington  Trust  Company  in its
individual  capacity,  Wells  Fargo  Bank  Minnesota,  N.A.,  in its  individual
capacity,  any owner of a  beneficial  interest in the  Issuer,  or any of their
respective partners,  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 this Note or the
performance of, or the failure to perform, any of the covenants,  obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its
acceptance  hereof,  agrees  that,  except as  expressly  provided  in the Basic
Documents,  in the  case of an  Event  of  Default  under  the  Indenture,  such
Noteholder  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 Indenture or in this Note.

<PAGE>

        IN WITNESS WHEREOF,  the Owner Trustee,  on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.

                          GMACM HOME LOAN TRUST 2000-CL1

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

Dated:  September 28, 2000

                            By:
                                          Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

                                WELLS FARGO BANK MINNESOTA, N.A.,
                                not in its individual capacity but solely as
                                Indenture Trustee

Dated: September 28, 2000

                                            By:
                                                Authorized Signatory

<PAGE>

                                   ASSIGNMENT

Social  Security  or  taxpayer  I.D. or other  identifying  number of  assignee:
_______________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                                         (name and address of assignee)

the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints ___________________________, attorney, to transfer said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:                                                                      */
        ------------------------------      -----------------------------
                              Signature Guaranteed:

                                              _____________________________*/

--------
* NOTICE:  The signature to this assignment must correspond with the name of the
registered  owner  as it  appears  on the  face  of the  within  Note  in  every
particular,  without  alteration,  enlargement  or  any  change  whatever.  Such
signature must be guaranteed by an "eligible guarantor  institution" meeting the
requirements of the Note Registrar,  which  requirements  include  membership or
participation  in STAMP or such other  "signature  guarantee  program" as may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in  accordance  with the  Securities  Exchange  Act of 1934,  as amended.
<PAGE>

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

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR  OBLIGATION  OF THE SELLERS,  THE
DEPOSITOR,  THE  SERVICER,  THE  INDENTURE  TRUSTEE,  THE OWNER  TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES,  EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE  REPRESENTED  THAT THE  ACQUISITION OF
THIS  NOTE BY THE  HOLDER  DOES  NOT  CONSTITUTE  OR GIVE  RISE TO A  PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                        GMACM HOME LOAN TRUST 2000-CL1

                                  GMACM Home Loan-Backed Term Note, Class A-3

Registered                        Initial Note Balance:
                                  $[------]

No. R-1                           Note Rate: [____]%

                                  CUSIP NO. [________]

        GMACM Home Loan Trust  2000-CL1,  a business  trust duly  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 its
registered  assigns,   the  principal  sum  of   [___________________]   dollars
($[______]),  payable on each  Payment  Date in an amount  equal to the pro rata
portion  allocable hereto (based on the Initial Note Balance specified above and
the Initial Note  Balance of all Class A-3 Notes) of the  aggregate  amount,  if
any,  payable from the Note Payment Account in respect of principal of the Class
A-3 Notes (the "Notes")  pursuant to Section 3.05 of the  indenture  dated as of

<PAGE>

September  28, 2000 (the  "Indenture"),  between the Issuer and Wells Fargo Bank
Minnesota,  N.A.,  as indenture  trustee (the  "Indenture  Trustee");  provided,
however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in June 2026, to the extent not previously paid on a
prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in Appendix A to the Indenture.

        Interest on the Notes will be paid  monthly on each  Payment Date at the
Note Rate for the related Interest Period. The Note Rate for this Note will be a
fixed rate equal to [___]% per annum. Interest on this Note will accrue for each
Payment Date from the most recent  Payment Date on which  interest has been paid
(in the case of the first Payment Date,  from the Closing Date) to but excluding
such Payment  Date.  Interest will be computed on the basis of the actual number
of days in each  Interest  Period  and a year  assumed  to  consist of 360 days.
Principal of and interest on this Note shall be paid in the manner  specified on
the reverse hereof.

        Principal  of and  interest  on this  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 Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

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

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

        This  Note is one of a duly  authorized  issue of  Notes of the  Issuer,
designated  as its GMACM Home  Loan-Backed  Term  Notes,  Series  2000-CL1  (the
"Series 2000-CL1 Notes"), all issued under the Indenture, to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders of the Series  2000-CL1  Notes.  The Series 2000-CL1
Notes are subject to all terms of the Indenture.

        The Series 2000-CL1 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

        This  Note  is  entitled  to  the   benefits  of  an   irrevocable   and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

        Principal  of and  interest on this Note will be payable on each Payment
Date,  commencing on October 25, 2000, as described in the  Indenture.  "Payment
Date"  means the  eighteenth  day of each  month,  or, if any such date is not a
Business Day, then the next succeeding Business Day.

        The entire unpaid principal amount of this Note shall be due and payable
in full on the  Payment  Date in June 2026  pursuant  to the  Indenture,  to the
extent  not  previously  paid  on a  prior  Payment  Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee,  the  Credit  Enhancer  or  the  Noteholders  of  Notes

<PAGE>

representing  not less than a  majority  of the  aggregate  Note  Balance of the
Notes,  with the  consent of the Credit  Enhancer,  may  declare the Notes to be
immediately  due and  payable in the  manner  provided  in  Section  5.02 of the
Indenture.  All  principal  payments  on the Notes shall be made pro rata to the
Noteholders of Notes entitled thereto.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment Date shall be paid to the related  Noteholder  on the  preceding  Record
Date,  by wire  transfer to an account  specified in writing by such  Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such  instructions  have been delivered to the Indenture  Trustee,  by
check or money order to such Noteholder mailed to such  Noteholder's  address as
it appears in the Note Register,  the amount  required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's  Notes;  provided,
however,  that the Indenture Trustee shall not pay to such Noteholder any amount
required  to be  withheld  from a payment to such  Noteholder  by the Code.  Any
reduction in the principal  amount of this Note (or any one or more  predecessor
Notes)  effected by any payments  made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any 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 Indenture, for
payment in full of the then remaining  unpaid principal amount of this Note on a
Payment Date,  then the Indenture  Trustee,  in the name of and on behalf of the
Issuer,  will notify the Person who was the registered  Noteholder  hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

        As provided in the  Indenture  and  subject to certain  limitations  set
forth therein,  the transfer of this Note may be registered on the Note Register
upon surrender of this Note for  registration of transfer at the Corporate Trust
Office of the Indenture  Trustee,  duly endorsed by, or accompanied by a written
instrument  of transfer  in form  satisfactory  to the  Indenture  Trustee  duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in  writing,   with  such  signature   guaranteed  by  an  "eligible   guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program  ("STAMP")  or  such  other  "signature  guarantee  program"  as  may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in accordance  with the Exchange Act, and thereupon one or more new Notes in
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 Note, but the Note
Registrar  shall  require  payment  of a sum  sufficient  to  cover  any  tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

        Each  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Sellers,  the Servicer,  the Depositor or the Indenture Trustee on the Notes
or under  the  Indenture  or any  certificate  or  other  writing  delivered  in
connection therewith,  against (i) the Indenture Trustee or the Owner Trustee in
its individual  capacity,  (ii) any owner of a beneficial interest in the Issuer

<PAGE>

or (iii) any partner, owner,  beneficiary,  agent, officer, director or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, 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  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
Noteholder  or  Beneficial  Owner  will not at any time  institute  against  the
Depositor,  the Sellers, the Servicer,  GMAC Mortgage Group, Inc. or the Issuer,
or join in any  institution  against the Depositor,  the Sellers,  the Servicer,
GMAC  Mortgage  Group,  Inc. or the Issuer of, any  bankruptcy,  reorganization,
arrangement,  insolvency  or  liquidation  proceedings  under any United  States
federal or state  bankruptcy or similar law in connection  with any  obligations
relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the  Indenture  and this Note is issued with
the intention  that, for federal,  state and local income,  single  business and
franchise tax purposes,  the Notes will qualify as  indebtedness  of the Issuer.
Each  Noteholder  of a Note, by its  acceptance  of a Note (and each  Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for  registration of transfer of this Note,
the Issuer,  the Indenture  Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of  determination  or as of such other date as may be  specified  in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

        The Indenture permits,  with certain  exceptions  therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2000-CL1  Notes under the  Indenture at any time by the Issuer and the Indenture
Trustee  with the consent of the Credit  Enhancer and the  Noteholders  of Notes
representing  a  majority  of the  aggregate  Note  Balance  of the  Notes  then
Outstanding  and with prior notice to the Rating  Agencies.  The Indenture  also
contains provisions  permitting the Noteholders of Notes representing  specified
percentages of the Note Balances of the Series  2000-CL1 Notes, on behalf of the
Noteholders of all Series 2000-CL1 Notes, to waive compliance by the Issuer with
certain  provisions  of the  Indenture  and  certain  past  defaults  under  the
Indenture and their  consequences.  Any such consent or waiver by the Noteholder
of this Note (or any one of more  predecessor  Notes)  shall be  conclusive  and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note 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 Note.  The Indenture  also permits the Issuer and the Indenture  Trustee to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of  Noteholders of the Series  2000-CL1 Notes issued  thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

<PAGE>

        The term  "Issuer" as used in this Note  includes  any  successor or the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture,  under certain  circumstances,
to merge or consolidate,  subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.

        The Notes are  issuable  only in  registered  form in  denominations  as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture  shall be construed in  accordance  with the
laws of the  State  of New  York,  without  reference  to its  conflicts  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 Indenture and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note 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  Basic  Documents,  none of  Wilmington  Trust  Company  in its
individual  capacity,  Wells  Fargo  Bank  Minnesota,  N.A.,  in its  individual
capacity,  any owner of a  beneficial  interest in the  Issuer,  or any of their
respective partners,  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 this Note or the
performance of, or the failure to perform, any of the covenants,  obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its
acceptance  hereof,  agrees  that,  except as  expressly  provided  in the Basic
Documents,  in the  case of an  Event  of  Default  under  the  Indenture,  such
Noteholder  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 Indenture or in this Note.

<PAGE>

        IN WITNESS WHEREOF,  the Owner Trustee,  on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.

                                  GMACM HOME LOAN TRUST 2000-CL1

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

Dated:  September 28, 2000

                                  By:
                                                Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

                               WELLS FARGO BANK MINNESOTA, N.A.,
                               not in its individual capacity but solely as
                                Indenture Trustee

Dated: September 28, 2000

                                            By:
                                                          Authorized Signatory

<PAGE>

                                   ASSIGNMENT

Social  Security  or  taxpayer  I.D. or other  identifying  number of  assignee:
_______________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                                         (name and address of assignee)

the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints ___________________________, attorney, to transfer said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:                                                                */
        ------------------------------      -----------------------
                              Signature Guaranteed:

                                                                      */

--------
* NOTICE:  The signature to this assignment must correspond with the name of the
registered  owner  as it  appears  on the  face  of the  within  Note  in  every
particular,  without  alteration,  enlargement  or  any  change  whatever.  Such
signature must be guaranteed by an "eligible guarantor  institution" meeting the
requirements of the Note Registrar,  which  requirements  include  membership or
participation  in STAMP or such other  "signature  guarantee  program" as may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in  accordance  with the  Securities  Exchange  Act of 1934,  as amended.

<PAGE>

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

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR  OBLIGATION  OF THE SELLERS,  THE
DEPOSITOR,  THE  SERVICER,  THE  INDENTURE  TRUSTEE,  THE OWNER  TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES,  EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE  REPRESENTED  THAT THE  ACQUISITION OF
THIS  NOTE BY THE  HOLDER  DOES  NOT  CONSTITUTE  OR GIVE  RISE TO A  PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                        GMACM HOME LOAN TRUST 2000-CL1

                                  GMACM Home Loan-Backed Term Note, Class A-4

Registered                         Initial Note Balance:
                                   $[-------]

No. R-1                            Note Rate: [___]%

                                   CUSIP NO. [_______]

        GMACM Home Loan Trust  2000-CL1,  a business  trust duly  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 its
registered assigns, the principal sum of [________________] dollars ($[______]),
payable  on each  Payment  Date in an  amount  equal  to the  pro  rata  portion
allocable  hereto  (based on the Initial  Note Balance  specified  above and the
Initial Note Balance of all Class A-4 Notes) of the  aggregate  amount,  if any,
payable from the Note  Payment  Account in respect of principal of the Class A-4
Notes (the  "Notes")  pursuant  to  Section  3.05 of the  indenture  dated as of

<PAGE>

September  28, 2000 (the  "Indenture"),  between the Issuer and Wells Fargo Bank
Minnesota,  N.A.,  as indenture  trustee (the  "Indenture  Trustee");  provided,
however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in June 2026, to the extent not previously paid on a
prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in Appendix A to the Indenture.

        Interest on the Notes will be paid  monthly on each  Payment Date at the
Note Rate for the related Interest Period. The Note Rate for this Note will be a
fixed rate equal to [___]% per annum.  Notwithstanding  the foregoing,  the Note
Rate on this Note will increase by 0.50% to [___]% per annum  beginning with the
first Interest Period for the Class A-4 Notes commencing after the first Payment
Date on which the  Principal  Balance  of the Home Loans is less than 10% of the
initial  Pool  Balance.  Interest on this Note will accrue for each Payment Date
from the most recent  Payment Date on which  interest has been paid (in the case
of the first Payment Date,  from the Closing Date) to but excluding such Payment
Date.  Interest  will be computed  on the basis of the actual  number of days in
each Interest Period and a year assumed to consist of 360 days. Principal of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

        Principal  of and  interest  on this  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 Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

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

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

        This  Note is one of a duly  authorized  issue of  Notes of the  Issuer,
designated  as its GMACM Home  Loan-Backed  Term  Notes,  Series  2000-CL1  (the
"Series 2000-CL1 Notes"), all issued under the Indenture, to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders of the Series  2000-CL1  Notes.  The Series 2000-CL1
Notes are subject to all terms of the Indenture.

        The Series 2000-CL1 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

        This  Note  is  entitled  to  the   benefits  of  an   irrevocable   and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

        Principal  of and  interest on this Note will be payable on each Payment
Date,  commencing on October 25, 2000, as described in the  Indenture.  "Payment
Date"  means the  eighteenth  day of each  month,  or, if any such date is not a
Business Day, then the next succeeding Business Day.

<PAGE>

        The entire unpaid principal amount of this Note shall be due and payable
in full on the  Payment  Date in June 2026  pursuant  to the  Indenture,  to the
extent  not  previously  paid  on a  prior  Payment  Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee,  the  Credit  Enhancer  or  the  Noteholders  of  Notes
representing  not less than a  majority  of the  aggregate  Note  Balance of the
Notes,  with the  consent of the Credit  Enhancer,  may  declare the Notes to be
immediately  due and  payable in the  manner  provided  in  Section  5.02 of the
Indenture.  All  principal  payments  on the Notes shall be made pro rata to the
Noteholders of Notes entitled thereto.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment Date shall be paid to the related  Noteholder  on the  preceding  Record
Date,  by wire  transfer to an account  specified in writing by such  Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such  instructions  have been delivered to the Indenture  Trustee,  by
check or money order to such Noteholder mailed to such  Noteholder's  address as
it appears in the Note Register,  the amount  required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's  Notes;  provided,
however,  that the Indenture Trustee shall not pay to such Noteholder any amount
required  to be  withheld  from a payment to such  Noteholder  by the Code.  Any
reduction in the principal  amount of this Note (or any one or more  predecessor
Notes)  effected by any payments  made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any 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 Indenture, for
payment in full of the then remaining  unpaid principal amount of this Note on a
Payment Date,  then the Indenture  Trustee,  in the name of and on behalf of the
Issuer,  will notify the Person who was the registered  Noteholder  hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

        As provided in the  Indenture  and  subject to certain  limitations  set
forth therein,  the transfer of this Note may be registered on the Note Register
upon surrender of this Note for  registration of transfer at the Corporate Trust
Office of the Indenture  Trustee,  duly endorsed by, or accompanied by a written
instrument  of transfer  in form  satisfactory  to the  Indenture  Trustee  duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in  writing,   with  such  signature   guaranteed  by  an  "eligible   guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program  ("STAMP")  or  such  other  "signature  guarantee  program"  as  may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in accordance  with the Exchange Act, and thereupon one or more new Notes in
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 Note, but the Note
Registrar  shall  require  payment  of a sum  sufficient  to  cover  any  tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

<PAGE>

        Each  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Sellers,  the Servicer,  the Depositor or the Indenture Trustee on the Notes
or under  the  Indenture  or any  certificate  or  other  writing  delivered  in
connection therewith,  against (i) the Indenture 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 or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, 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  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
Noteholder  or  Beneficial  Owner  will not at any time  institute  against  the
Depositor,  the Sellers, the Servicer,  GMAC Mortgage Group, Inc. or the Issuer,
or join in any  institution  against the Depositor,  the Sellers,  the Servicer,
GMAC  Mortgage  Group,  Inc. or the Issuer of, any  bankruptcy,  reorganization,
arrangement,  insolvency  or  liquidation  proceedings  under any United  States
federal or state  bankruptcy or similar law in connection  with any  obligations
relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the  Indenture  and this Note is issued with
the intention  that, for federal,  state and local income,  single  business and
franchise tax purposes,  the Notes will qualify as  indebtedness  of the Issuer.
Each  Noteholder  of a Note, by its  acceptance  of a Note (and each  Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for  registration of transfer of this Note,
the Issuer,  the Indenture  Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of  determination  or as of such other date as may be  specified  in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

        The Indenture permits,  with certain  exceptions  therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2000-CL1  Notes under the  Indenture at any time by the Issuer and the Indenture
Trustee  with the consent of the Credit  Enhancer and the  Noteholders  of Notes
representing  a  majority  of the  aggregate  Note  Balance  of the  Notes  then
Outstanding  and with prior notice to the Rating  Agencies.  The Indenture  also
contains provisions  permitting the Noteholders of Notes representing  specified
percentages of the Note Balances of the Series  2000-CL1 Notes, on behalf of the
Noteholders of all Series 2000-CL1 Notes, to waive compliance by the Issuer with
certain  provisions  of the  Indenture  and  certain  past  defaults  under  the

<PAGE>

Indenture and their  consequences.  Any such consent or waiver by the Noteholder
of this Note (or any one of more  predecessor  Notes)  shall be  conclusive  and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note 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 Note.  The Indenture  also permits the Issuer and the Indenture  Trustee to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of  Noteholders of the Series  2000-CL1 Notes issued  thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

        The term  "Issuer" as used in this Note  includes  any  successor or the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture,  under certain  circumstances,
to merge or consolidate,  subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.

        The Notes are  issuable  only in  registered  form in  denominations  as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture  shall be construed in  accordance  with the
laws of the  State  of New  York,  without  reference  to its  conflicts  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 Indenture and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note 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  Basic  Documents,  none of  Wilmington  Trust  Company  in its
individual  capacity,  Wells  Fargo  Bank  Minnesota,  N.A.,  in its  individual
capacity,  any owner of a  beneficial  interest in the  Issuer,  or any of their
respective partners,  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 this Note or the
performance of, or the failure to perform, any of the covenants,  obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its
acceptance  hereof,  agrees  that,  except as  expressly  provided  in the Basic
Documents,  in the  case of an  Event  of  Default  under  the  Indenture,  such
Noteholder  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 Indenture or in this Note.

<PAGE>

        IN WITNESS WHEREOF,  the Owner Trustee,  on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.

                                  GMACM HOME LOAN TRUST 2000-CL1

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

Dated:  September 28, 2000

                                  By:
                                                Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

                                WELLS FARGO BANK MINNESOTA, N.A.,
                                not in its individual capacity but solely as
                                Indenture Trustee

Dated: September 28, 2000

                                            By:
                                                          Authorized Signatory

<PAGE>

                                   ASSIGNMENT

Social  Security  or  taxpayer  I.D. or other  identifying  number of  assignee:
_______________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                                         (name and address of assignee)

the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints ___________________________, attorney, to transfer said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:                                                                    */
        ------------------------------      ------------------------------
                              Signature Guaranteed:

                                                                             */

--------
* NOTICE:  The signature to this assignment must correspond with the name of the
registered  owner  as it  appears  on the  face  of the  within  Note  in  every
particular,  without  alteration,  enlargement  or  any  change  whatever.  Such
signature must be guaranteed by an "eligible guarantor  institution" meeting the
requirements of the Note Registrar,  which  requirements  include  membership or
participation  in STAMP or such other  "signature  guarantee  program" as may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in  accordance  with the  Securities  Exchange  Act of 1934,  as amended.

<PAGE>

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

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR  OBLIGATION  OF THE SELLERS,  THE
DEPOSITOR,  THE  SERVICER,  THE  INDENTURE  TRUSTEE,  THE OWNER  TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES,  EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE  REPRESENTED  THAT THE  ACQUISITION OF
THIS  NOTE BY THE  HOLDER  DOES  NOT  CONSTITUTE  OR GIVE  RISE TO A  PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                        GMACM HOME LOAN TRUST 2000-CL1

                    GMACM Home Loan-Backed Term Note, Class M

Registered                               Initial Note Balance:
                                         $[-------]

No. R-1                                  Note Rate: [___]%

                                         CUSIP NO. [_______]

        GMACM Home Loan Trust  2000-CL1,  a business  trust duly  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 its
registered assigns, the principal sum of [________________] dollars ($[______]),
payable  on each  Payment  Date in an  amount  equal  to the  pro  rata  portion
allocable  hereto  (based on the Initial  Note Balance  specified  above and the
Initial  Note  Balance of all Class M Notes) of the  aggregate  amount,  if any,
payable  from the Note  Payment  Account in respect of  principal of the Class M
Notes (the  "Notes")  pursuant  to  Section  3.05 of the  indenture  dated as of

<PAGE>

September  28, 2000 (the  "Indenture"),  between the Issuer and Wells Fargo Bank
Minnesota,  N.A.,  as indenture  trustee (the  "Indenture  Trustee");  provided,
however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in June 2026, to the extent not previously paid on a
prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in Appendix A to the Indenture.

        Interest on the Notes will be paid  monthly on each  Payment Date at the
Note Rate for the related Interest Period. The Note Rate for this Note will be a
fixed rate equal to [___]% per annum.  Notwithstanding  the foregoing,  the Note
Rate on this Note will increase by 0.50% to [___]% per annum  beginning with the
first Interest Period for the Class M Notes  commencing  after the first Payment
Date on which the  Principal  Balance  of the Home Loans is less than 10% of the
initial  Pool  Balance.  Interest on this Note will accrue for each Payment Date
from the most recent  Payment Date on which  interest has been paid (in the case
of the first Payment Date,  from the Closing Date) to but excluding such Payment
Date.  Interest  will be computed  on the basis of the actual  number of days in
each Interest Period and a year assumed to consist of 360 days. Principal of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

        Principal  of and  interest  on this  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 Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

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

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

        This  Note is one of a duly  authorized  issue of  Notes of the  Issuer,
designated  as its GMACM Home  Loan-Backed  Term  Notes,  Series  2000-CL1  (the
"Series 2000-CL1 Notes"), all issued under the Indenture, to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders of the Series  2000-CL1  Notes.  The Series 2000-CL1
Notes are subject to all terms of the Indenture.

        The Series 2000-CL1 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

        This  Note  is  entitled  to  the   benefits  of  an   irrevocable   and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

        Principal  of and  interest on this Note will be payable on each Payment
Date,  commencing on October 25, 2000, as described in the  Indenture.  "Payment
Date"  means the  eighteenth  day of each  month,  or, if any such date is not a
Business Day, then the next succeeding Business Day.

<PAGE>

        The entire unpaid principal amount of this Note shall be due and payable
in full on the  Payment  Date in June 2026  pursuant  to the  Indenture,  to the
extent  not  previously  paid  on a  prior  Payment  Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee,  the  Credit  Enhancer  or  the  Noteholders  of  Notes
representing  not less than a  majority  of the  aggregate  Note  Balance of the
Notes,  with the  consent of the Credit  Enhancer,  may  declare the Notes to be
immediately  due and  payable in the  manner  provided  in  Section  5.02 of the
Indenture.  All  principal  payments  on the Notes shall be made pro rata to the
Noteholders of Notes entitled thereto.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment Date shall be paid to the related  Noteholder  on the  preceding  Record
Date,  by wire  transfer to an account  specified in writing by such  Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such  instructions  have been delivered to the Indenture  Trustee,  by
check or money order to such Noteholder mailed to such  Noteholder's  address as
it appears in the Note Register,  the amount  required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's  Notes;  provided,
however,  that the Indenture Trustee shall not pay to such Noteholder any amount
required  to be  withheld  from a payment to such  Noteholder  by the Code.  Any
reduction in the principal  amount of this Note (or any one or more  predecessor
Notes)  effected by any payments  made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any 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 Indenture, for
payment in full of the then remaining  unpaid principal amount of this Note on a
Payment Date,  then the Indenture  Trustee,  in the name of and on behalf of the
Issuer,  will notify the Person who was the registered  Noteholder  hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

        As provided in the  Indenture  and  subject to certain  limitations  set
forth therein,  the transfer of this Note may be registered on the Note Register
upon surrender of this Note for  registration of transfer at the Corporate Trust
Office of the Indenture  Trustee,  duly endorsed by, or accompanied by a written
instrument  of transfer  in form  satisfactory  to the  Indenture  Trustee  duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in  writing,   with  such  signature   guaranteed  by  an  "eligible   guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program  ("STAMP")  or  such  other  "signature  guarantee  program"  as  may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in accordance  with the Exchange Act, and thereupon one or more new Notes in
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 Note, but the Note
Registrar  shall  require  payment  of a sum  sufficient  to  cover  any  tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

<PAGE>

        Each  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Sellers,  the Servicer,  the Depositor or the Indenture Trustee on the Notes
or under  the  Indenture  or any  certificate  or  other  writing  delivered  in
connection therewith,  against (i) the Indenture 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 or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, 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  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
Noteholder  or  Beneficial  Owner  will not at any time  institute  against  the
Depositor,  the Sellers, the Servicer,  GMAC Mortgage Group, Inc. or the Issuer,
or join in any  institution  against the Depositor,  the Sellers,  the Servicer,
GMAC  Mortgage  Group,  Inc. or the Issuer of, any  bankruptcy,  reorganization,
arrangement,  insolvency  or  liquidation  proceedings  under any United  States
federal or state  bankruptcy or similar law in connection  with any  obligations
relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the  Indenture  and this Note is issued with
the intention  that, for federal,  state and local income,  single  business and
franchise tax purposes,  the Notes will qualify as  indebtedness  of the Issuer.
Each  Noteholder  of a Note, by its  acceptance  of a Note (and each  Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for  registration of transfer of this Note,
the Issuer,  the Indenture  Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of  determination  or as of such other date as may be  specified  in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

        The Indenture permits,  with certain  exceptions  therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2000-CL1  Notes under the  Indenture at any time by the Issuer and the Indenture
Trustee  with the consent of the Credit  Enhancer and the  Noteholders  of Notes
representing  a  majority  of the  aggregate  Note  Balance  of the  Notes  then
Outstanding  and with prior notice to the Rating  Agencies.  The Indenture  also
contains provisions  permitting the Noteholders of Notes representing  specified
percentages of the Note Balances of the Series  2000-CL1 Notes, on behalf of the

<PAGE>

Noteholders of all Series 2000-CL1 Notes, to waive compliance by the Issuer with
certain  provisions  of the  Indenture  and  certain  past  defaults  under  the
Indenture and their  consequences.  Any such consent or waiver by the Noteholder
of this Note (or any one of more  predecessor  Notes)  shall be  conclusive  and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note 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 Note.  The Indenture  also permits the Issuer and the Indenture  Trustee to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of  Noteholders of the Series  2000-CL1 Notes issued  thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

        The term  "Issuer" as used in this Note  includes  any  successor or the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture,  under certain  circumstances,
to merge or consolidate,  subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.

        The Notes are  issuable  only in  registered  form in  denominations  as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture  shall be construed in  accordance  with the
laws of the  State  of New  York,  without  reference  to its  conflicts  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 Indenture and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note 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  Basic  Documents,  none of  Wilmington  Trust  Company  in its
individual  capacity,  Wells  Fargo  Bank  Minnesota,  N.A.,  in its  individual
capacity,  any owner of a  beneficial  interest in the  Issuer,  or any of their
respective partners,  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 this Note or the
performance of, or the failure to perform, any of the covenants,  obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its
acceptance  hereof,  agrees  that,  except as  expressly  provided  in the Basic
Documents,  in the  case of an  Event  of  Default  under  the  Indenture,  such
Noteholder  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 Indenture or in this Note.

<PAGE>

        IN WITNESS WHEREOF,  the Owner Trustee,  on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.

                                GMACM HOME LOAN TRUST 2000-CL1

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

Dated:  September 28, 2000

                                By:
                                              Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

                               WELLS FARGO BANK MINNESOTA, N.A.,
                               not in its individual capacity but solely as
                                Indenture Trustee

Dated: September 28, 2000

                                            By:
                                                          Authorized Signatory

<PAGE>

                                   ASSIGNMENT

Social  Security  or  taxpayer  I.D. or other  identifying  number of  assignee:
_______________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                                         (name and address of assignee)

the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints ___________________________, attorney, to transfer said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:                                                                     */
        ------------------------------      -------------------------------
                              Signature Guaranteed:

                                            _____________________________  */

--------
* NOTICE:  The signature to this assignment must correspond with the name of the
registered  owner  as it  appears  on the  face  of the  within  Note  in  every
particular,  without  alteration,  enlargement  or  any  change  whatever.  Such
signature must be guaranteed by an "eligible guarantor  institution" meeting the
requirements of the Note Registrar,  which  requirements  include  membership or
participation  in STAMP or such other  "signature  guarantee  program" as may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in  accordance  with the  Securities  Exchange  Act of 1934,  as amended.
<PAGE>

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

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR  OBLIGATION  OF THE SELLERS,  THE
DEPOSITOR,  THE  SERVICER,  THE  INDENTURE  TRUSTEE,  THE OWNER  TRUSTEE OR GMAC
MORTGAGE GROUP, INC. OR ANY OF THEIR RESPECTIVE AFFILIATES,  EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE  REPRESENTED  THAT THE  ACQUISITION OF
THIS  NOTE BY THE  HOLDER  DOES  NOT  CONSTITUTE  OR GIVE  RISE TO A  PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, FOR WHICH NO
STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                        GMACM HOME LOAN TRUST 2000-CL1

                    GMACM Home Loan-Backed Term Note, Class B

Registered                              Initial Note Balance:
                                        $[-------]

No. R-1                                 Note Rate: [___]%

                                        CUSIP NO. [_______]

        GMACM Home Loan Trust  2000-CL1,  a business  trust duly  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 its
registered assigns, the principal sum of [________________] dollars ($[______]),
payable  on each  Payment  Date in an  amount  equal  to the  pro  rata  portion
allocable  hereto  (based on the Initial  Note Balance  specified  above and the
Initial  Note  Balance of all Class B Notes) of the  aggregate  amount,  if any,
payable  from the Note  Payment  Account in respect of  principal of the Class M
Notes (the  "Notes")  pursuant  to  Section  3.05 of the  indenture  dated as of
September  28, 2000 (the  "Indenture"),  between the Issuer and Wells Fargo Bank
Minnesota,  N.A.,  as indenture  trustee (the  "Indenture  Trustee");  provided,

<PAGE>

however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in June 2026, to the extent not previously paid on a
prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meanings ascribed thereto in Appendix A to the Indenture.

        Interest on the Notes will be paid  monthly on each  Payment Date at the
Note Rate for the related Interest Period. The Note Rate for this Note will be a
fixed rate equal to [___]% per annum.  Notwithstanding  the foregoing,  the Note
Rate on this Note will increase by 0.50% to [___]% per annum  beginning with the
first Interest Period for the Class B Notes  commencing  after the first Payment
Date on which the  Principal  Balance  of the Home Loans is less than 10% of the
initial  Pool  Balance.  Interest on this Note will accrue for each Payment Date
from the most recent  Payment Date on which  interest has been paid (in the case
of the first Payment Date,  from the Closing Date) to but excluding such Payment
Date.  Interest  will be computed  on the basis of the actual  number of days in
each Interest Period and a year assumed to consist of 360 days. Principal of and
interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

        Principal  of and  interest  on this  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 Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

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

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

        This  Note is one of a duly  authorized  issue of  Notes of the  Issuer,
designated  as its GMACM Home  Loan-Backed  Term  Notes,  Series  2000-CL1  (the
"Series 2000-CL1 Notes"), all issued under the Indenture, to which Indenture and
all indentures  supplemental thereto reference is hereby made for a statement of
the respective  rights and obligations  thereunder of the Issuer,  the Indenture
Trustee and the Noteholders of the Series  2000-CL1  Notes.  The Series 2000-CL1
Notes are subject to all terms of the Indenture.

        The Series 2000-CL1 Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

        This  Note  is  entitled  to  the   benefits  of  an   irrevocable   and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

        Principal  of and  interest on this Note will be payable on each Payment
Date,  commencing on October 25, 2000, as described in the  Indenture.  "Payment
Date"  means the  eighteenth  day of each  month,  or, if any such date is not a
Business Day, then the next succeeding Business Day.

<PAGE>

        The entire unpaid principal amount of this Note shall be due and payable
in full on the  Payment  Date in June 2026  pursuant  to the  Indenture,  to the
extent  not  previously  paid  on a  prior  Payment  Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee,  the  Credit  Enhancer  or  the  Noteholders  of  Notes
representing  not less than a  majority  of the  aggregate  Note  Balance of the
Notes,  with the  consent of the Credit  Enhancer,  may  declare the Notes to be
immediately  due and  payable in the  manner  provided  in  Section  5.02 of the
Indenture.  All  principal  payments  on the Notes shall be made pro rata to the
Noteholders of Notes entitled thereto.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment Date shall be paid to the related  Noteholder  on the  preceding  Record
Date,  by wire  transfer to an account  specified in writing by such  Noteholder
reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such  instructions  have been delivered to the Indenture  Trustee,  by
check or money order to such Noteholder mailed to such  Noteholder's  address as
it appears in the Note Register,  the amount  required to be distributed to such
Noteholder on such Payment Date pursuant to such Noteholder's  Notes;  provided,
however,  that the Indenture Trustee shall not pay to such Noteholder any amount
required  to be  withheld  from a payment to such  Noteholder  by the Code.  Any
reduction in the principal  amount of this Note (or any one or more  predecessor
Notes)  effected by any payments  made on any Payment Date shall be binding upon
all future Noteholders of this Note and of any 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 Indenture, for
payment in full of the then remaining  unpaid principal amount of this Note on a
Payment Date,  then the Indenture  Trustee,  in the name of and on behalf of the
Issuer,  will notify the Person who was the registered  Noteholder  hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

        As provided in the  Indenture  and  subject to certain  limitations  set
forth therein,  the transfer of this Note may be registered on the Note Register
upon surrender of this Note for  registration of transfer at the Corporate Trust
Office of the Indenture  Trustee,  duly endorsed by, or accompanied by a written
instrument  of transfer  in form  satisfactory  to the  Indenture  Trustee  duly
executed by, the Noteholder hereof or such Noteholder's attorney duly authorized
in  writing,   with  such  signature   guaranteed  by  an  "eligible   guarantor
institution" meeting the requirements of the Note Registrar,  which requirements
include membership or participation in the Securities Transfer Agent's Medallion
Program  ("STAMP")  or  such  other  "signature  guarantee  program"  as  may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in accordance  with the Exchange Act, and thereupon one or more new Notes in
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 Note, but the Note
Registrar  shall  require  payment  of a sum  sufficient  to  cover  any  tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

<PAGE>

        Each  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Sellers,  the Servicer,  the Depositor or the Indenture Trustee on the Notes
or under  the  Indenture  or any  certificate  or  other  writing  delivered  in
connection therewith,  against (i) the Indenture 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 or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, 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  Noteholder or Beneficial  Owner of a Note, by its  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
Noteholder  or  Beneficial  Owner  will not at any time  institute  against  the
Depositor,  the Sellers, the Servicer,  GMAC Mortgage Group, Inc. or the Issuer,
or join in any  institution  against the Depositor,  the Sellers,  the Servicer,
GMAC  Mortgage  Group,  Inc. or the Issuer of, any  bankruptcy,  reorganization,
arrangement,  insolvency  or  liquidation  proceedings  under any United  States
federal or state  bankruptcy or similar law in connection  with any  obligations
relating to the Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the  Indenture  and this Note is issued with
the intention  that, for federal,  state and local income,  single  business and
franchise tax purposes,  the Notes will qualify as  indebtedness  of the Issuer.
Each  Noteholder  of a Note, by its  acceptance  of a Note (and each  Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for  registration of transfer of this Note,
the Issuer,  the Indenture  Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in the name of which this Note is registered (as of
the day of  determination  or as of such other date as may be  specified  in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

        The Indenture permits,  with certain  exceptions  therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the Indenture Trustee and the rights of the Noteholders of the Series
2000-CL1  Notes under the  Indenture at any time by the Issuer and the Indenture
Trustee  with the consent of the Credit  Enhancer and the  Noteholders  of Notes
representing  a  majority  of the  aggregate  Note  Balance  of the  Notes  then
Outstanding  and with prior notice to the Rating  Agencies.  The Indenture  also
contains provisions  permitting the Noteholders of Notes representing  specified
percentages of the Note Balances of the Series  2000-CL1 Notes, on behalf of the
Noteholders of all Series 2000-CL1 Notes, to waive compliance by the Issuer with
certain  provisions  of the  Indenture  and  certain  past  defaults  under  the
Indenture and their  consequences.  Any such consent or waiver by the Noteholder

<PAGE>

of this Note (or any one of more  predecessor  Notes)  shall be  conclusive  and
binding upon such Noteholder and upon all future Noteholders of this Note and of
any Note 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 Note.  The Indenture  also permits the Issuer and the Indenture  Trustee to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of  Noteholders of the Series  2000-CL1 Notes issued  thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

        The term  "Issuer" as used in this Note  includes  any  successor or the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture,  under certain  circumstances,
to merge or consolidate,  subject to the rights of the Indenture Trustee and the
Noteholders of Notes under the Indenture.

        The Notes are  issuable  only in  registered  form in  denominations  as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture  shall be construed in  accordance  with the
laws of the  State  of New  York,  without  reference  to its  conflicts  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 Indenture and no provision of this Note or of
the  Indenture  shall alter or impair the  obligation  of the  Issuer,  which is
absolute and unconditional, to pay the principal of and interest on this Note 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  Basic  Documents,  none of  Wilmington  Trust  Company  in its
individual  capacity,  Wells  Fargo  Bank  Minnesota,  N.A.,  in its  individual
capacity,  any owner of a  beneficial  interest in the  Issuer,  or any of their
respective partners,  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 this Note or the
performance of, or the failure to perform, any of the covenants,  obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its
acceptance  hereof,  agrees  that,  except as  expressly  provided  in the Basic
Documents,  in the  case of an  Event  of  Default  under  the  Indenture,  such
Noteholder  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 Indenture or in this Note.

<PAGE>

        IN WITNESS WHEREOF,  the Owner Trustee,  on behalf of the Issuer and not
in its individual capacity, has caused this Note to be duly executed.

                                   GMACM HOME LOAN TRUST 2000-CL1

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

Dated:  September 28, 2000

                                   By:
                                                 Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

                                WELLS FARGO BANK MINNESOTA, N.A.,
                                not in its individual capacity but solely as
                                Indenture Trustee

Dated: September 28, 2000

                                            By:
                                                          Authorized Signatory

<PAGE>

                                   ASSIGNMENT

Social  Security  or  taxpayer  I.D. or other  identifying  number of  assignee:
_______________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                                         (name and address of assignee)

the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints ___________________________, attorney, to transfer said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:                                                                  */
        ------------------------------      ----------------------------
                              Signature Guaranteed:

                                             _____________________________ */

--------
* NOTICE:  The signature to this assignment must correspond with the name of the
registered  owner  as it  appears  on the  face  of the  within  Note  in  every
particular,  without  alteration,  enlargement  or  any  change  whatever.  Such
signature must be guaranteed by an "eligible guarantor  institution" meeting the
requirements of the Note Registrar,  which  requirements  include  membership or
participation  in STAMP or such other  "signature  guarantee  program" as may be
determined by the Note Registrar in addition to, or in substitution  for, STAMP,
all in  accordance  with the  Securities  Exchange  Act of 1934,  as amended.

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

        Addition  Notice:  With respect to the transfer of Subsequent Home Loans
to  the  Issuer   pursuant  to  Section  2.2  of  the  Purchase   Agreement  (in
substantially the form set forth in Exhibit 3 to such agreement), a notice given
to the Rating Agencies, the Indenture Trustee, the Credit Enhancer and the Owner
Trustee,  which shall be given not later than seven  Business  Days prior to the
related Subsequent  Transfer Date, of (i) GMACM's designation of Subsequent Home
Loans to be sold to the Issuer and (ii) the  aggregate  principal  balance as of
the Subsequent Cut-Off Date of such Subsequent Home Loans.

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

        Appraised Value: With respect to any Mortgaged Property,  either (x) the
value as generally set forth in an appraisal of such Mortgaged  Property used to
establish compliance with the underwriting criteria then in effect in connection
with the  application for the Home Loan secured by such Mortgaged  Property,  or
(y) if the sales price of such  Mortgaged  Property was considered in accordance
with the underwriting  criteria  applicable to the related Home Loan, the lesser
of (i) the appraised  value referred to in (x) above and (ii) the sales price of
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 conveyance of such Mortgage, which assignment,  notice of
transfer  or  equivalent  instrument  may be in the form of one or more  blanket
assignments  covering  Mortgages secured by Mortgaged  Properties located in the
same 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 or holidays.

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

        Bankruptcy Code:  The Bankruptcy Code of 1978, as amended.

        Basic  Documents:  The Trust  Agreement,  the  Indenture,  the  Purchase
Agreement,  the Insurance Agreement,  the Policy, the Servicing  Agreement,  the
Custodial  Agreement,  any Subsequent Transfer Agreement and the other documents
and certificates delivered in connection with any of the above.

<PAGE>

        Beneficial  Owner:  With  respect  to any Note,  the  Person  who is the
beneficial  owner of such Note as reflected on the books of the Depository or on
the books of a Person maintaining an account with such Depository (directly as a
Depository  Participant  or  indirectly  through a  Depository  Participant,  in
accordance with the rules of such Depository).

     Billing  Cycle:  With  respect to any Home Loan and Due Date,  the calendar
month preceding such Due Date.

        Book-Entry  Notes:  Beneficial  interests  in the Notes,  ownership  and
transfers  of which shall be made  through  book  entries by the  Depository  as
described in Section 4.06 of the Indenture.

        Business  Day:  Any day other than (i) a Saturday  or a Sunday or (ii) a
day on which  banking  institutions  in the  States of New  York,  Pennsylvania,
Delaware, Minnesota or Maryland are required or authorized by law to be closed.

     Business  Trust  Statute:  Chapter 38 of Title 12 of the Delaware  Code, 12
Del. Code ss.ss.3801 et seq., as the same may be amended from time to time.

     Capitalized  Interest  Account:  The  account  established  and  maintained
pursuant to Section 3.18 of the Servicing Agreement.

        Capitalized  Interest  Requirement:  With  respect to each  Payment Date
during the  Pre-Funding  Period,  the  excess,  if any of (i) the sum of (A) the
amount of interest  accrued at the  weighted  average  Note Rate or Rates on the
respective  Note  Balances  for the  related  Interest  Period on the  amount on
deposit in the Pre-Funding  Account as of the close of business on the preceding
Payment Date (or as of the Closing  Date, in the case of the first Payment Date)
and (B) the amount of any fees paid to the Credit Enhancer, over (ii) the amount
of reinvestment  earnings for the related Interest Period on funds on deposit in
the Pre-Funding Account.

        Certificate   Balance:   With  respect  to  any  Payment  Date  and  any
Certificate,  an  amount  equal to the then  applicable  Certificate  Percentage
Interest of such Certificate multiplied by the Overcollateralization Amount.

     Certificate  Distribution Amount: For any Payment Date, the amount, if any,
distributable  on the  Certificates  for such Payment  Date  pursuant to Section
3.05(a)(xvii) of the Indenture.

     Certificate  Paying  Agent:  The meaning  specified  in Section 3.10 of the
Trust Agreement.

     Certificate  Percentage Interest:  With respect to any Payment Date and any
Certificate, the Percentage Interest for such Certificate.

     Certificate Register:  The register maintained by the Certificate Registrar
in which  the  Certificate  Registrar  shall  provide  for the  registration  of
Certificates and of transfers and exchanges of Certificates.

<PAGE>

     Certificate of Trust: The Certificate of Trust filed for the Trust pursuant
to Section 3810(a) of the Business Trust Statute.

     Certificate Registrar: Initially, the Indenture Trustee, in its capacity as
Certificate Registrar.

        Certificateholder:  The Person in whose name a Certificate is registered
in the Certificate Register except that, any Certificate  registered in the name
of the Issuer,  the Owner Trustee or the  Indenture  Trustee or any Affiliate of
the Owner Trustee or the Indenture Trustee shall be deemed not to be outstanding
and the  registered  holder  will  not be  considered  a  Certificateholder  for
purposes  of giving  any  request,  demand,  authorization,  direction,  notice,
consent or waiver under the Indenture or the Trust Agreement;  provided that, in
determining  whether  the  Indenture  Trustee  or the  Owner  Trustee  shall  be
protected in relying upon any such request,  demand,  authorization,  direction,
notice,  consent or waiver,  only Certificates that the Indenture Trustee or the
Owner  Trustee  knows  to  be  so  owned  shall  be so  disregarded.  Owners  of
Certificates   that  have  been  pledged  in  good  faith  may  be  regarded  as
Certificateholders  if  the  pledgee  establishes  to  the  satisfaction  of the
Indenture Trustee or the Owner Trustee,  as the case may be, the pledgee's right
so to act with  respect  to such  Certificates  and that the  pledgee is not the
Issuer,  any other obligor upon the  Certificates  or any Affiliate of the Owner
Trustee or the Indenture Trustee.

     Certificates:  The  certificates  in  substantially  the form set  forth in
Exhibit A to the Trust Agreement.

        Class:  With  respect  to any Note,  all Notes  that bear the same class
designation,  (i.e.,  the Class  A-1 Notes as a group,  the Class A-2 Notes as a
group, the Class A-3 Notes as a group, the Class A-4 Notes as a group, the Class
M Notes as a group and the Class B Notes as a group).

     Class A Notes:  Collectively,  the Class A-1,  Class A-2, Class A-3 and the
Class A-4 Notes.

        Class A Optimal  Principal  Balance:  With  respect to any Payment  Date
prior to the Step-down  Date,  zero; and with respect to any other Payment Date,
an amount equal to the Pool Balance as of the preceding Determination Date minus
the sum of (a) 32.00% of the Pool Balance as of the preceding Determination Date
and (b) the Required Overcollateralization Amount for such Payment Date.

        Class B Optimal  Principal  Balance:  With  respect to any Payment  Date
prior to the Step-down  Date,  zero;  with respect to any Payment Date after the
Note  Balances  of the Class A Notes and the Class M Notes are  reduced to zero,
zero;  and with respect to any other  Payment  Date,  the Pool Balance as of the
preceding  Determination  Date  minus the sum of (a) the  aggregate  of the Note
Balances of the Class A Notes and the Class M Notes  (after  taking into account
any payments to be made on such Payment Date in reduction of such Note  Balances
other than as a result of the proviso in this  definition)  and (b) the Required
Overcollateralization  Amount for such Payment Date; provided, however, that the
Class B Optimal Principal Balance for any Payment Date will not be reduced below
the Class B Optimal  Principal  Balance  for the prior  Payment  Date unless the
Delinquency Test is satisfied.

<PAGE>

        Class M Optimal  Principal  Balance:  With  respect to any Payment  Date
prior to the Step-down  Date,  zero; and with respect to any other Payment Date,
the Pool Balance as of the preceding Determination Date minus the sum of (a) the
aggregate Note Balance of the Class A Notes (after taking into account  payments
to be made on such Payment Date in reduction of such Note  Balance),  (b) 12.00%
of the Pool Balance as of the  preceding  Determination  Date,  (c) the Required
Overcollateralization  Amount for such Payment Date, and (d) amounts not applied
to reduce the Class B Optimal Principal Balance on such Payment Date because the
Delinquency Test has not been satisfied.

        Closing Date:  September 28, 2000.

     Code:  The  Internal  Revenue Code of 1986,  as amended,  and the rules and
regulations promulgated thereunder.

     Collateral: The meaning specified in the Granting Clause of the Indenture.

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

     Collections:   With  respect  to  any  Collection   Period,   all  Interest
Collections and Principal Collections during such Collection Period.

        Combined  Loan-to-Value  Ratio or CLTV:  With respect to each Home Loan,
the ratio,  expressed as a percentage,  of the sum of (i) the initial  principal
balance  of such  Home  Loan and  (ii) any  outstanding  principal  balance,  at
origination of such Home Loan, of all other mortgage loans,  if any,  secured by
senior or subordinate liens on the related Mortgaged Property,  to the Appraised
Value, or, when not available, the Stated Value.

        Commission:  The Securities and Exchange Commission.

        Corporate  Trust  Office:   With  respect  to  the  Indenture   Trustee,
Certificate Registrar,  Certificate Paying Agent and Paying Agent, the principal
corporate  trust office of the Indenture  Trustee and Note Registrar at which at
any particular  time its corporate trust business shall be  administered,  which
office at the date of the execution of this instrument is located at Wells Fargo
Center, Sixth and Marquette,  Minneapolis, MN 55479-0070,  Attention:  Corporate
Trust-GMACM  Series 2000-CL1.  With respect to the Owner Trustee,  the principal
corporate  trust office of the Owner Trustee at which at any particular time its
corporate trust business shall be administered,  which office at the date of the
execution of this Trust Agreement is located at Rodney Square North,  1100 North
Market  Street,   Wilmington,   Delaware  19890,   Attention:   Corporate  Trust
Administration.

     Credit Enhancer: Ambac Assurance Corporation,  any successor thereto or any
replacement Credit Enhancer substituted pursuant to the Indenture.

     Credit  Enhancer  Default:  Any  failure by the Credit  Enhancer  to make a
payment required under the Policy in accordance with its terms.

<PAGE>

        Custodial Account: The account or accounts created and maintained by the
Servicer  pursuant to Section 3.02(b) of the Servicing  Agreement,  in which the
Servicer  shall deposit or cause to be deposited  certain  amounts in respect of
the Home Loans.

     Custodial  Agreement:  Any Custodial  Agreement  among the  Custodian,  the
Indenture  Trustee,  the Issuer and the Servicer  relating to the custody of the
Home Loans and the Related Documents.

        Custodian:  Escrow Bank USA, an industrial loan corporation  established
under the laws of the State of Utah,  and its  successors  and  assigns,  or any
successor  custodian for the Mortgage Files  appointed by the Indenture  Trustee
and reasonably acceptable to the Credit Enhancer and the Servicer.

        Cut-Off Date:  September 1, 2000.

        Cut-Off Date Principal Balance: With respect to any Initial Home Loan or
Subsequent  Home Loan, the unpaid  principal  balance thereof as of the close of
business on the last day of the Billing Cycle  immediately  prior to the Cut-Off
Date or Subsequent Cut-Off Date, as the case may be.

        Debt  Service  Reduction:  With respect to any Home Loan, a reduction in
the scheduled payment for such Home Loan by a court of competent jurisdiction in
a proceeding under the Bankruptcy Code,  except such a reduction  constituting a
Deficient Valuation or any reduction that results in a permanent  forgiveness of
principal.

     Default:  Any  occurrence  which is or with  notice or the lapse of time or
both would become an Event of Default.

        Deficient  Valuation:  With  respect to any Home Loan,  a valuation by a
court of competent  jurisdiction of the related Mortgaged  Property in an amount
less  than the then  outstanding  indebtedness  under  such  Home  Loan,  or any
reduction in the amount of principal to be paid in connection with any scheduled
payment that constitutes a permanent  forgiveness of principal,  which valuation
or reduction results from a proceeding under the Bankruptcy Code.

     Definitive Notes: The meaning specified in Section 4.06 of the Indenture.

     Deleted  Loan:  A Home Loan  replaced  or to be  replaced  with an Eligible
Substitute Loan.

        Delinquency Test: A test that shall be satisfied for any Payment Date if
the  aggregate  Principal  Balance of the Home Loans  (after  applying  Interest
Collections and Principal  Collections  received  during the related  Collection
Period)  delinquent by 60 days or more  (including Home Loans in foreclosure and
REO Properties),  averaged over the preceding six months, as a percentage of the
sum of (a) the outstanding Note Balance of the Class B Notes as of the preceding
Determination Date and (b) the  Overcollateralization  Amount as of such Payment
Date,  assuming,  in the  case of  clause  (a) and  clause  (b),  that  Interest
Collections  and  Principal  Collections  are  applied  without  regard  to  the
Delinquency Test, is less than 50%.

<PAGE>

     Depositor:   Residential   Asset  Mortgage   Products,   Inc.,  a  Delaware
corporation, or its successor in interest.

        Depository: The Depository Trust Company or a successor appointed by the
Indenture  Trustee  with  the  approval  of the  Issuer.  Any  successor  to the
Depository shall be an organization  registered as a "clearing  agency" pursuant
to  Section  17A of the  Exchange  Act and  the  regulations  of the  Commission
thereunder.

     Depository  Participant:  A  Person  for  whom,  from  time  to  time,  the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.

        Determination  Date:  With respect to any Payment Date,  the 20th day of
the month in which  such  Payment  Date  occurs or if such day is not a Business
Day, the next succeeding Business Day.

        Distribution  Account: The account or accounts created and maintained by
the Certificate Paying Agent pursuant to Section 3.10(c) of the Trust Agreement.
The Certificate  Paying Agent will make all  distributions  on the  Certificates
from money on deposit in the Distribution Account.

     Due Date:  With  respect to the Home  Loans,  the date on which the Monthly
Payment  thereon is due in  accordance  with the terms of the  related  Mortgage
Note.

        Eligible  Account:  An  account  that  is  any  of  the  following:  (i)
maintained  with a depository  institution  the short-term  debt  obligations of
which have been  rated by each  Rating  Agency in its  highest  rating  category
available,  or (ii) an account or accounts in a depository  institution in which
such accounts are fully insured to the limits established by the FDIC,  provided
that any deposits not so insured shall, to the extent  acceptable to each Rating
Agency,  as evidenced in writing,  be  maintained  such that (as evidenced by an
Opinion of Counsel  delivered to the Indenture  Trustee and each Rating  Agency)
the Indenture  Trustee have a claim with respect to the funds in such account or
a perfected  first  security  interest  against any  collateral  (which shall be
limited to Permitted Investments) securing such funds that is superior to claims
of any other  depositors or creditors of the depository  institution  with which
such account is maintained,  or (iii) an account or accounts  maintained  with a
depository  institution  or  trust  company,  as  long  as its  short-term  debt
obligations  are rated P-1 by  Moody's  and A-1+ by  Standard  & Poor's  (or the
equivalent) or better by each Rating Agency,  and its long term debt obligations
are rated A2 by Moody's  and AA- by  Standard & Poor's  (or the  equivalent)  or
better by each Rating  Agency,  or (iv) a segregated  trust  account or accounts
maintained in the corporate trust division of a depository  institution or trust
company,  acting in its fiduciary  capacity,  or (v) an account or accounts of a
depository institution acceptable to each Rating Agency (as evidenced in writing
by each Rating Agency that use of any such account will not cause a Rating Event
(if determined without regard to the Policy)).

        Eligible Substitute Loan: A Home Loan substituted by either Seller for a
Deleted Loan, which must, on the date of such  substitution,  as confirmed in an
Officer's   Certificate   delivered  to  the  Indenture  Trustee,  (i)  have  an
outstanding  principal balance,  after deduction of the principal portion of the
monthly  payment  due  in the  month  of  substitution  (or  in  the  case  of a
substitution  of more  than  one Home  Loan for a  Deleted  Loan,  an  aggregate
outstanding  principal  balance,  after  such  deduction),  not in excess of the
outstanding  principal  balance of the Deleted Loan (the amount of any shortfall

<PAGE>

to be  deposited  by such  Seller  in the  Custodial  Account  in the  month  of
substitution);  (ii) comply with each  representation  and warranty set forth in
Section 3.1(b) of the Purchase  Agreement,  other than clauses  (viii),  (xiii),
(xiv), (xxiv), (xxv) and (xxvii),  with respect to GMACM, or the representations
and warranties set forth in Section 3.1(c),  with respect to WG Trust, as of the
date of substitution; (iii) have a Loan Rate and Net Loan Rate no lower than and
not  more  than 1% per  annum  higher  than the  Loan  Rate  and Net Loan  Rate,
respectively,  of the Deleted Loan as of the date of  substitution;  (iv) have a
CLTV at the time of  substitution no higher than that of the Deleted Loan at the
time of  substitution;  (v) have a remaining term to stated maturity not greater
than (and not more than one year less than) that of the Deleted Loan;  (vi) is a
REMIC  Ineligible  Loan, if such Deleted Loan was a REMIC  Ineligible  Loan; and
(vii) not be 30 days or more delinquent.

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

        Event  of  Default:  With  respect  to  the  Indenture,  any  one of the
following  events  (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment,  decree or order of any court or any order,  rule or regulation
of any administrative or governmental body):

(a) a default  in the  payment  of the  principal  of,  any  installment  of the
principal of or interest on any Note when the same becomes due and payable,  and
such default shall continue for a period of five (5) days;

(b) there  occurs a default in the  observance  or  performance  in any material
respect of any covenant or agreement of the Issuer made in the Indenture, or any
representation  or  warranty  of the  Issuer  made  in the  Indenture  or in any
certificate  delivered pursuant hereto or in connection herewith proving to have
been  incorrect in any material  respect as of the time when the same shall have
been made that has a material  adverse  effect on the  Noteholders or the Credit
Enhancer,  and such default shall continue or not be cured, or the  circumstance
or condition in respect of which such  representation  or warranty was incorrect
shall not have been eliminated or otherwise cured, for a period of 30 days after
there shall have been given,  by registered or certified  mail, to the Issuer by
the Indenture  Trustee or to the Issuer and the Indenture  Trustee by the Credit
Enhancer or the Noteholders of at least 25% of the aggregate Note Balance of the
Notes, a written notice  specifying such default or incorrect  representation or
warranty  and  requiring  it to be remedied  and  stating  that such notice is a
notice of default hereunder;

(c) there  occurs the  filing of a decree or order for relief by a court  having
jurisdiction in the premises in respect of the Issuer or any substantial part of
the Trust Estate in an involuntary  case under any  applicable  federal or state
bankruptcy,  insolvency  or other  similar law now or  hereafter  in effect,  or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar  official of the Issuer or for any substantial part of the Trust Estate,
or ordering the  winding-up or  liquidation  of the Issuer's  affairs,  and such
decree  or  order  shall  remain  unstayed  and in  effect  for a  period  of 60
consecutive days; or

(d) there occurs the  commencement  by the Issuer of a voluntary  case under any
applicable  federal or state bankruptcy,  insolvency or other similar law now or

<PAGE>

hereafter  in effect,  or the consent by the Issuer to the entry of an order for
relief in an  involuntary  case under any such law, or the consent by the Issuer
to the  appointment or taking  possession by a receiver,  liquidator,  assignee,
custodian,  trustee,  sequestrator or similar  official of the Issuer or for any
substantial part of the assets of the Trust Estate,  or the making by the Issuer
of any general  assignment  for the benefit of creditors,  or the failure by the
Issuer generally to pay its debts as such debts become due, or the taking of any
action by the Issuer in furtherance of any of the foregoing.

        Excess Spread:  With respect to any Payment Date and without taking into
account any draw on the Policy for such  Payment  Date,  the excess,  if any, of
Interest  Collections  for the related  Collection  Period with  respect to Home
Loans; over the sum of (i) the Premium due on the related Payment Date; and (ii)
interest due on the Notes on such Payment Date.

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

     Existing  Lien:  The meaning  specified  in Section  3.05 of the  Servicing
Agreement.

        Expenses:  The meaning specified in Section 7.02 of the Trust Agreement.

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

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

        Final Payment Date:  The Payment Date in June 2026.

     Fiscal Year:  The fiscal year of the Trust,  which shall end on December 31
of each year.

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

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

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

        GAAP: Generally accepted accounting principles.

        Grant:  Pledge,  bargain,  sell,  warrant,  alienate,  remise,  release,
convey, assign, transfer,  create, and grant a lien upon and a security interest
in and right of set-off against,  deposit,  set over and confirm pursuant to the
Indenture.  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

<PAGE>

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 such  collateral or other  agreement or  instrument  and all other
moneys 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.

     GMAC:  General  Motors  Acceptance  Corporation,  and  its  successors  and
assigns.

        GMACM:  GMAC Mortgage Corporation, and its successors and assigns.

        Home Loan Schedule: The initial schedule of Initial Home Loans as of the
Cut-Off Date set forth in Exhibit A of the Servicing  Agreement,  and as of each
Subsequent Cut-off Date, any Subsequent Home Loans, which schedule sets forth as
to each Home  Loan the (i)  Cut-Off  Date  Principal  Balance,  (ii) name of the
related Mortgagor, (iii) loan number, (iv) address of the related Mortgagor, (v)
lien  position of the related  Mortgage,  (vi)  original term to maturity of the
related Mortgage Note, (vii) date of the related Mortgage Note,  (viii) maturity
date of the related Mortgage Note, (ix) Appraised Value of the related Mortgaged
Property,  (x) unpaid  principal  balance of a mortgage  loan  secured by a lien
senior to the Home Loan, (xi) CLTV,  (xii)  debt-to-income  ratio of the related
Mortgagor,  and (xiii)  number of  residential  units on the  related  Mortgaged
Property.

        Home Loans:  At any time,  all Initial  Home Loans and  Subsequent  Home
Loans,  if any,  that have been sold to the Issuer  pursuant  to, in the case of
Initial Home Loans,  the Trust  Agreement,  or, in the case of  Subsequent  Home
Loans,  a  Subsequent  Transfer  Agreement,  together  with all monies due or to
become due thereunder or the Related  Documents,  and that remain subject to the
terms thereof.

     Indemnified  Party:  The  meaning  specified  in Section  7.02 of the Trust
Agreement.

     Indenture:  The indenture dated as of September 28, 2000 between the Issuer
and the Indenture Trustee.

     Indenture  Trustee:  Wells Fargo Bank Minnesota,  N.A., a national  banking
association,  and its successors and assigns or any successor  indenture trustee
appointed pursuant to the terms of the Indenture.

        Independent: When used with respect to any specified Person, such Person
(i) is in fact  independent of the Issuer,  any other obligor on the Notes,  the
Sellers,  the Depositor and any Affiliate of any of the foregoing Persons,  (ii)
does not have any direct financial  interest or any material indirect  financial
interest in the Issuer,  any such other obligor,  the Sellers,  the Depositor or
any  Affiliate of any of the foregoing  Persons and (iii) is not connected  with
the Issuer, any such other obligor,  the Sellers, the Depositor 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
Indenture Trustee under the circumstances  described in, and otherwise complying

<PAGE>

with, the applicable requirements of Section 10.01 of the Indenture,  made by an
Independent  appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.

        Initial  Home  Loans:  The  Home  Loans  initially  transferred  by  the
Depositor to the Issuer on the Closing  Date,  which are listed on the Home Loan
Schedule on such date.

        Initial Aggregate Note Balance: $322,000,000.

        Initial Class A-1 Note Balance: $139,004,000.

        Initial Class A-2 Note Balance: $23,853,000.

        Initial Class A-3 Note Balance: $66,581,000.

        Initial Class A-4 Note Balance: $37,753,000.

        Initial Class M Note Balance:   $34,256,000.

        Initial Class B Note Balance:   $20,553,000.

        Insolvency Event: With respect to a specified Person,  (a) the filing of
a decree or order for relief by a court having  jurisdiction  in the premises in
respect of such Person or any substantial part of its property in an involuntary
case under any  applicable  bankruptcy,  insolvency  or other similar law now or
hereafter in effect, or appointing a receiver, liquidator,  assignee, custodian,
trustee, sequestrator or similar official for such Person or for any substantial
part of its property, or ordering the winding-up or liquidation of such Person's
affairs,  and such decree or order  shall  remain  unstayed  and in effect for a
period of 60  consecutive  days;  or (b) the  commencement  by such  Person of a
voluntary case under any applicable bankruptcy,  insolvency or other similar law
now or  hereafter  in effect,  or the  consent by such Person to the entry of an
order for relief in an  involuntary  case under any such law,  or the consent by
such  Person  to  the  appointment  of  or  taking  possession  by  a  receiver,
liquidator,  assignee,  custodian, trustee, sequestrator or similar official for
such Person or for any substantial  part of its property,  or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person in writing (as to which the Indenture  Trustee shall have notice)
of its  inability  to pay its debts  generally,  or the adoption by the Board of
Directors  or managing  member of such Person of a resolution  which  authorizes
action by such Person in furtherance of any of the foregoing.

        Insurance  Agreement:  The Insurance and Indemnity Agreement dated as of
September 28, 2000, among the Servicer, the Sellers, the Depositor,  the Issuer,
the Indenture  Trustee and the Credit  Enhancer,  including any  amendments  and
supplements thereto.

        Insurance Proceeds:  Proceeds paid by any insurer (other than the Credit
Enhancer)  pursuant  to any  insurance  policy  covering  a Home Loan  which are
required to be remitted to the Servicer,  or amounts  required to be paid by the
Servicer  pursuant to the next to last sentence of Section 3.04 of the Servicing

<PAGE>

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 related  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 Home Loan.

        Insured Amount:  As defined in the Policy.

        Interest  Collections:  With respect to any Payment Date, the sum of (i)
the portion  allocable to interest of all scheduled monthly payments on the Home
Loans received during the related Collection Period, minus the Servicing Fee for
the related Collection Period, (ii) the portion of all Net Liquidation  Proceeds
allocable to interest  pursuant to the terms of the Mortgage  Notes,  reduced by
the  Servicing  Fee for the  related  Collection  Period and (iii) the  interest
portion of the  Repurchase  Price for any  Deleted  Loans and the cash  purchase
price paid in  connection  with any  optional  purchase of the Home Loans by the
Servicer.  The terms of the related Mortgage Note shall determine the portion of
each  payment  in  respect  of each  Home  Loan that  constitutes  principal  or
interest.

        Interest  Coverage Amount:  The amount to be paid from proceeds received
from the sale of the Notes for deposit  into the  Capitalized  Interest  Account
pursuant to Section 3.18 of the Servicing  Agreement on the Closing Date,  which
amount  initially shall be  $1,942,111.91,  and thereafter,  shall be the amount
computed in accordance with Section 3.18.

        Interest  Period:  With  respect to the Class A-1 Notes and any  Payment
Date other than the first  Payment Date,  the period  beginning on the preceding
Payment Date and ending on the day preceding  such Payment Date, and in the case
of the first Payment Date, the period beginning on September 28, 2000 and ending
on the day  preceding  the first  Payment  Date.  With  respect to the Class A-2
Notes, Class A-3 Notes, Class A-4 Notes, Class M Notes and Class B Notes and any
Payment Date, the calendar month  preceding the month in which such Payment Date
occurs.

     Issuer or Trust:  The GMACM Home Loan Trust 2000-CL1,  a Delaware  business
trust, or its successor in interest.

        Issuer Order or 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
Indenture Trustee.

        LIBOR: As to any Interest Period, (a) for any Interest Period other than
the first Interest  Period,  the rate for United States dollar  deposits for one
month that  appears on the Telerate  Screen Page 3750 as of 11:00 a.m.,  London,
England  time,  on the second LIBOR  Business Day prior to the first day of that
Interest Period or (b) with respect to the first Interest  Period,  the rate for
United States dollar  deposits for one month that appears on the Telerate Screen
Page 3750 as of 11:00 a.m., London,  England time, two LIBOR Business Days prior
to the Closing  Date.  If such rate does not appear on such page,  LIBOR will be
the Reference  Bank Rate  determined by the Indenture  Trustee.  If no such rate
appears and the Indenture  Trustee is unable to determine a Reference Bank Rate,
LIBOR will be LIBOR applicable to the preceding Interest Period.

        LIBOR  Business  Day:  Any day other than (i) a Saturday  or a Sunday or
(ii) a day on which banking  institutions in the city of London,  England or New
York, New York are required or authorized by law to be closed.

<PAGE>

        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 6.02 of the Servicing Agreement
shall not be deemed to constitute a Lien.

        Liquidated Home Loan: With respect to any Payment Date, any Home Loan in
respect of which the Servicer has  determined,  in accordance with the servicing
procedures  specified in the Servicing  Agreement,  as of the end of the related
Collection  Period  that   substantially  all  Liquidation   Proceeds  which  it
reasonably  expects to recover,  if any, with respect to the  disposition of the
related REO Property have been recovered,  provided that, unless a longer period
is otherwise  agreed to in writing by the Credit  Enhancer,  the  Servicer  will
treat any Home Loan that is 180 days or more  delinquent  as having been finally
liquidated.

        Liquidation Expenses: All out-of-pocket expenses (exclusive of overhead)
incurred by or on behalf of the Servicer in connection  with the  liquidation of
any Home Loan and not recovered under any insurance policy, including legal fees
and expenses,  any unreimbursed amount expended (including,  without limitation,
amounts  advanced to correct  defaults on any  mortgage  loan which is senior to
such Home Loan and amounts  advanced to keep current or pay off a mortgage  loan
that is senior to such Home Loan)  respecting such Home Loan and any related and
unreimbursed  expenditures  for  real  estate  property  taxes  or for  property
restoration, preservation or insurance against casualty loss or damage.

        Liquidation  Loss Amount:  With respect to any Payment Date and any Home
Loan that became a Liquidated  Home Loan during the related  Collection  Period,
the  unrecovered  portion  of the  Principal  Balance  of such Home Loan and any
unpaid accrued  interest  thereon 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 but not
including amounts drawn under the Policy) if any received in connection with the
liquidation of any Home Loan or related REO Property,  whether through trustee's
sale, foreclosure sale or otherwise.

     Loan Rate: With respect to any Home Loan and any day, the per annum rate of
interest applicable under the related Mortgage Note.

        Lost  Note  Affidavit:  With  respect  to any Home  Loan as to which the
original  Mortgage Note has been  permanently lost or destroyed and has not been
replaced,  an affidavit from either Seller certifying that the original Mortgage
Note has been lost,  misplaced or destroyed (together with a copy of the related
Mortgage Note, if available).

        Monthly  Payment:  With  respect  to any Home  Loan  (including  any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization  schedule at the time applicable thereto (after

<PAGE>

adjustment,  if any,  for any  partial  Principal  Prepayments  thereon  and for
Deficient  Valuations occurring prior to such Due Date but before any adjustment
to  such  amortization  schedule  by  reason  of any  bankruptcy,  other  than a
Deficient  Valuation,  or similar proceeding or any moratorium or similar waiver
or grace period).

        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 second  lien on an  estate  in fee  simple  interest  in real  property
securing a Home Loan.

        Mortgage File: The file containing the Related Documents pertaining to a
particular Home Loan and any additional  documents  required to be added thereto
pursuant to the Purchase Agreement or the Servicing Agreement.

        Mortgage Note: With respect to a Home Loan, the promissory note pursuant
to which the related Mortgagor agrees to pay the indebtedness  evidenced thereby
and secured by the related Mortgage as modified or amended.

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

        Mortgagor:  The obligor or obligors under a Mortgage Note.

        Net  Liquidation  Proceeds:  With respect to any  Liquidated  Home Loan,
Liquidation Proceeds net of Liquidation Expenses (but not including the portion,
if any, of such amount that exceeds the  Principal  Balance of, plus accrued and
unpaid  interest  on,  such  Home  Loan  at the  end of  the  Collection  Period
immediately  preceding  the  Collection  Period in which such Home Loan became a
Liquidated Home Loan).

        Net Loan Rate:  With respect to any Home Loan, the Loan Rate of the Home
Loan as of the first day of the  calendar  month in which the  related  Interest
Period begins, net of the Servicing Fee Rate.

        Note  Balance:  With respect to any Payment Date and any Class of Notes,
the  Initial  Note  Balance  thereof  reduced by the sum of (i) all  payments of
principal  thereon  pursuant to Section 3.05(a) of the Indenture,  including any
Policy Draw Amount, except in the case of any amounts distributed to the Class M
or Class B Noteholders in respect of Liquidation Loss Amounts  allocated to such
Notes on any previous  Payment  Date,  and (ii) in the case of the Class M Notes
and the Class B Notes,  any Liquidation  Loss Amounts applied to reduce the Note
Balance of such Class of Notes  pursuant to Section  3.05(c) of the Indenture on
or prior to such Payment Date.

        Note Owner or Owner:  The Beneficial Owner of a Note.

        Note Payment Account:  The account  established by the Indenture Trustee
pursuant to Section  8.02 of the  Indenture  and Section  5.01 of the  Servicing
Agreement.  Amounts deposited in the Note Payment Account will be distributed by
the Indenture Trustee in accordance with Section 3.05 of the Indenture.

<PAGE>

        Note Rate: As to the Notes, the following rates:

     Class A-1  Notes:  a  floating  rate  equal to the lesser of (i) LIBOR plus
0.15% per annum, and (ii) 10.00% per annum;

               Class A-2 Notes: a fixed rate equal to 7.34% per annum;

               Class A-3 Notes: a fixed rate equal to 7.57% per annum;

               Class A-4 Notes:  a fixed rate equal to 7.89% per annum (or,  for
        any Interest Period for the Class A-4 Notes  commencing  after the first
        Payment Date on which the aggregate  Principal Balance of the Home Loans
        is less than 10% of the  initial  Pool  Balance,  a fixed  rate equal to
        8.39% per annum);

               Class M Notes: a fixed rate equal to 8.72% per annum (or, for any
        Interest Period for the Class M Notes commencing after the first Payment
        Date on which the aggregate  Principal Balance of the Home Loans is less
        than 10% of the initial  Pool  Balance,  a fixed rate equal to 9.22% per
        annum); and

               Class B Notes: a fixed rate equal to 9.00% per annum (or, for any
        Interest Period for the Class B Notes commencing after the first Payment
        Date on which the aggregate  Principal Balance of the Home Loans is less
        than 10% of the initial  Pool  Balance,  a fixed rate equal to 9.50% per
        annum).

     Note Register:  The register  maintained by the Note Registrar in which the
Note Registrar shall provide for the  registration of Notes and of transfers and
exchanges of Notes.

     Note Registrar: The Indenture Trustee, in its capacity as Note Registrar.

        Noteholder:  The Person in whose name a Note is  registered  in the Note
Register,  except that, any Note  registered in the name of the  Depositor,  the
Issuer or the Indenture  Trustee or any Affiliate of any of them shall be deemed
not to be  outstanding  and the  registered  holder  will  not be  considered  a
Noteholder for purposes of giving any request, demand, authorization, direction,
notice, consent or waiver under the Indenture or the Trust Agreement;  provided,
that in determining  whether the Indenture Trustee shall be protected in relying
upon any such request,  demand,  authorization,  direction,  notice,  consent or
waiver,  only Notes that the Indenture  Trustee or the Owner Trustee knows to be
so owned shall be so disregarded. Owners of Notes that have been pledged in good
faith may be regarded as Noteholders if the pledgee  thereof  establishes to the
satisfaction of the Indenture  Trustee or the Owner Trustee such pledgee's right
so to act with  respect to such Notes and that such  pledgee is not the  Issuer,
any other obligor on the Notes or any Affiliate of any of the foregoing Persons.

        Notes:  Any one of the Class A-1, Class A-2, Class A-3, Class A-4, Class
M or the  Class B Notes  issued  and  outstanding  at any time  pursuant  to the
Indenture.

        Officer's  Certificate:  With  respect to the  Servicer,  a  certificate
signed by the President,  Managing Director,  a Director, a Vice President or an
Assistant  Vice  President,  of the  Servicer  and  delivered  to the  Indenture

<PAGE>

Trustee.  With respect to the Issuer,  a  certificate  signed by any  Authorized
Officer of the  Issuer,  under the  circumstances  described  in, and  otherwise
complying  with, the applicable  requirements of Section 10.01 of the Indenture,
and  delivered  to  the  Indenture  Trustee.  Unless  otherwise  specified,  any
reference in the Indenture to an Officer's  Certificate shall be to an Officer's
Certificate of any Authorized Officer of the Issuer.

        Opinion  of  Counsel:  A  written  opinion  of  counsel  of a  law  firm
reasonably  acceptable to the recipient thereof.  Any Opinion of Counsel for the
Servicer  may be  provided by in-house  counsel for the  Servicer if  reasonably
acceptable.

        Original  Pre-Funded  Amount:  The amount deposited from the proceeds of
the sale of the  Securities  into the  Pre-Funding  Account on the Closing Date,
which amount is $85,800,968.42.

     Outstanding:  With respect to the Notes,  as of the date of  determination,
all Notes theretofore executed, authenticated and delivered under this Indenture
except:

               (i)  Notes  theretofore   cancelled  by  the  Note  Registrar  or
          delivered to the Indenture Trustee for cancellation; and

               (ii) Notes in  exchange  for or in lieu of which other Notes have
        been  executed,  authenticated  and delivered  pursuant to the Indenture
        unless proof satisfactory to the Indenture Trustee is presented that any
        such Notes are held by a holder in due course;

provided, however, that for purposes of effectuating the Credit Enhancer's right
of subrogation  as set forth in Section 4.12 of the Indenture  only, all Class A
Notes that have been paid with funds  provided  under the Policy shall be deemed
to be Outstanding  until the Credit  Enhancer has been  reimbursed  with respect
thereto.

        Overcollateralization  Amount:  With  respect to any Payment  Date,  the
amount (but not less than zero),  if any,  by which (a) the Pool  Balance  after
applying payments received in the related Collection Period (but without further
reduction  due to any Home Loan  becoming a  Liquidated  Home Loan  during  such
Collection Period),  exceeds (b) the aggregate Note Balance of the Notes on such
Payment Date (after  application of the Principal  Collections  and  Liquidation
Loss  Amounts for such  date).  The  Overcollateralization  Amount is subject to
reduction on any Payment Date as described in Section 3.05(c) of the Indenture.

        Overcollateralization Increase Amount: With respect to any Payment Date,
an amount  equal to the lesser of (i) the amount  remaining  in the Note Payment
Account following distributions pursuant to Section 3.05(a)(ix) of the Indenture
and (ii) the amount  necessary to increase the  Overcollateralization  Amount to
the Required Overcollateralization Amount.

     Overcollateralization   Release  Amount:   With  respect  to  any  date  of
determination,  the excess, if any, of the Overcollateralization Amount over the
Required Overcollateralization Amount.

     Owner Trust: GMACM Loan Trust 2000-CL1, created by the Certificate of Trust
pursuant to the Trust Agreement.

<PAGE>

        Owner Trustee:  Wilmington Trust Company, not in its individual capacity
but solely as owner  trustee,  and its  successors  and assigns or any successor
Owner Trustee appointed pursuant to the terms of the Trust Agreement.

     Paying Agent:  Any paying agent or co-paying  agent  appointed  pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.

     Payment Date: The 25th day of each month,  or if such day is not a Business
Day, then the next Business Day.

        Percentage  Interest:  With  respect to any Note and Payment  Date,  the
percentage  obtained by dividing the Note Balance of such Note by the  aggregate
Note  Balance  of all Notes  prior to such  Payment  Date.  With  respect to any
Certificate and any Payment Date, the Percentage  Interest stated on the face of
such Certificate.

        Permitted Investments:  One or more of the following:

        (i)  obligations  of or  guaranteed  as to principal and interest by the
United States or any agency or instrumentality thereof when such obligations are
backed by the full faith and credit of the United States;

        (ii) repurchase  agreements on obligations specified in clause (i) above
maturing not more than one month from the date of acquisition thereof; provided,
that  the  unsecured  short-term  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 available;

        (iii) federal funds,  certificates  of deposit,  demand  deposits,  time
deposits and bankers' acceptances (which shall each have an original maturity of
not more  than 90 days and,  in the case of  bankers'  acceptances,  shall in no
event have an original maturity of more than 365 days or a remaining maturity of
more than 30 days)  denominated in United States dollars of any U.S.  depository
institution or trust company incorporated under the laws of the United States or
any state thereof or of any domestic branch of a foreign depository  institution
or  trust  company;  provided,  that the  short-term  debt  obligations  of such
depository  institution  or trust  company  (or,  if the only  Rating  Agency is
Standard & Poor's,  in the case of the  principal  depository  institution  in a
depository  institution  holding  company,  debt  obligations  of the depository
institution  holding company) at the date of acquisition thereof have been rated
by each Rating Agency in its highest short-term rating category  available;  and
provided further, that if the only Rating Agency is Standard & Poor's and if the
depository or trust company is a principal  subsidiary of a bank holding company
and the debt  obligations  of such  subsidiary  are not  separately  rated,  the
applicable  rating shall be that of the bank holding company;  provided further,
that if the only Rating Agency is Standard & Poor's and the original maturity of
such  short-term debt  obligations of a domestic branch of a foreign  depository
institution or trust company shall exceed 30 days, the short-term rating of such
institution shall be A-1+;

        (iv) commercial paper (having  original  maturities of not more than 365
days) of any corporation incorporated under the laws of the United States or any
state  thereof  which on the date of  acquisition  has been rated by each Rating
Agency in its highest short-term rating category available;  provided, that such
commercial paper shall have a remaining maturity of not more than 30 days;

<PAGE>

        (v) a money  market  fund or a qualified  investment  fund rated by each
Rating Agency in one of its two highest  long-term rating  categories  available
including any fund advised by the Indenture Trustee or an Affiliate thereof;

        (vi) other  obligations or securities that are acceptable to each Rating
Agency as a Permitted  Investment  hereunder  and will not cause a Rating Event,
and which are  acceptable  to the Credit  Enhancer,  as  evidenced  in  writing;
provided, that if the Servicer or any other Person controlled by the Servicer is
the issuer or the obligor of any obligation or security described in this clause
(vi),  such  obligation  or security must have an interest rate or yield that is
fixed or is variable  based on an  objective  index that is not  affected by the
rate or amount of losses on the Home Loans; and

        (vii)  GMAC   Variable   Denomination   Adjustable   Rate  Demand  Notes
constituting  unsecured,  senior debt  obligations of General Motors  Acceptance
Corporation  as  outlined  in the  prospectus  dated June 17, 1998 rated by each
Rating Agency in its highest short-term rating category available;

provided,  however,  that no  instrument  shall be a Permitted  Investment if it
represents,  either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest  payments derived from  obligations  underlying such instrument and the
principal and interest payments with respect to such instrument  provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.   References  herein  to  the  highest  long-term  rating  category
available shall mean AAA in the case of Standard & Poor's and Aaa in the case of
Moody's,  and  references  herein  to the  highest  short-term  rating  category
available  shall mean A-1+ in the case of  Standard & Poor's and P-1 in the case
of Moody's.

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

        Plan:  The meaning specified in Section 3.05 of the Trust Agreement.

     Plan Assets: The meaning specified in Section 3.05 of the Trust Agreement.

     Policy: The Certificate Guaranty Insurance Policy No. AB0396BE, dated as of
the Closing Date,  issued by the Credit  Enhancer for the benefit of the holders
of the Class A Notes.

        Policy Draw  Amount:  With  respect to any  Payment  Date other than the
Final Payment Date, an amount, if any, equal to (1) the sum of (a) the amount by
which the aggregate  amount of accrued  interest on the Class A Notes (excluding
the  aggregate  Relief Act  Shortfalls,  if any, for such  Payment  Date) at the
respective  Note Rates on such Payment Date exceeds the amount on deposit in the
Note Payment Account  available for interest  distributions on the Class A Notes
on such Payment  Date,  and (b) any  Liquidation  Loss Amounts  allocated to the
Class A Notes for such Payment Date, i.e. any Liquidation  Loss Amounts incurred
on the Home  Loans  during  the  related  Collection  Period,  to the extent not
currently   covered  by  a  payment  of  Excess  Spread,   a  reduction  in  the
Overcollateralization  Amount or a reduction in the Note Balances of the Class M
Notes and the Class B Notes.  With respect to the Final Payment Date, an amount,

<PAGE>

if any, equal to (1) the sum of (a) the amount by which the aggregate  amount of
accrued  interest  on the Class A Notes  (excluding  the  aggregate  Relief  Act
Shortfalls,  if any, for such Payment Date) at the respective  Note Rates on the
Final  Payment Date  exceeds the amount on deposit in the Note  Payment  Account
available for interest  distributions  on the Final  Payment  Date,  and (b) the
aggregate  outstanding Note Balance of each Class of Class A Notes to the extent
not otherwise paid on such date.

     Pool Balance:  With respect to any date, the aggregate Principal Balance of
all  Home  Loans  as of such  date  and  (during  the  Pre-Funding  Period)  the
Pre-Funded Amount.

        Pre-Funded Amount: With respect to any date of determination  during the
Pre-Funding Period, the amount on deposit in the Pre-Funding Account.

        Pre-Funding  Account: The account established and maintained pursuant to
Section 3.17 of the Servicing Agreement.

        Pre-Funding  Period: The period commencing on the Closing Date until the
earliest  of (i) the date on which the  amount  on  deposit  in the  Pre-Funding
Account is less than $50,000,  (ii) December 27, 2000 or (iii) the occurrence of
a Servicing Default.

        Predecessor  Note:  With  respect  to  any  Note,  every  previous  Note
evidencing  all or a portion  of the same debt as that  evidenced  by such Note;
and, for the purpose of this definition,  any Note  authenticated  and delivered
under Section 4.03 of the Indenture in lieu of a mutilated,  lost,  destroyed or
stolen Note shall be deemed to evidence the same debt as such  mutilated,  lost,
destroyed or stolen Note.

     Premium:  The amount of premium calculated at the Premium Percentage due to
the Credit Enhancer in accordance with the terms of the Insurance Agreement.

        Premium Percentage:  As set forth in the Insurance Agreement.

        Principal  Balance:  With  respect  to  any  Home  Loan,  other  than  a
Liquidated  Home Loan,  and as of any day, the related  Cut-Off  Date  Principal
Balance, minus all collections credited as principal in respect of any such Home
Loan in  accordance  with the related  Mortgage Note and applied in reduction of
the Principal  Balance thereof.  For purposes of this  definition,  a Liquidated
Home Loan shall be deemed to have a  Principal  Balance  equal to the  Principal
Balance of the  related  Home Loan  immediately  prior to the final  recovery of
substantially all related  Liquidation  Proceeds and a Principal Balance of zero
thereafter.

     Principal  Collection  Distribution Amount: For any Payment Date, the total
Principal  Collections  for such  Payment  Date  less any  Overcollateralization
Release Amount for such Payment Date.

        Principal Collections: With respect to any Payment Date, an amount equal
to the sum of (i) the principal portion of all scheduled Monthly Payments on the
Home Loans received  during the related  Collection  Period,  as reported by the
Servicer or the related Subservicer;  (ii) the principal portion of all proceeds
of the  repurchase  of any Home Loans (or,  in the case of a  substitution,  any
Substitution  Adjustment  Amounts) as required by the Servicing Agreement during

<PAGE>

the  related  Collection  Period;  (iii)  the  principal  portion  of all  other
unscheduled collections received on the Home Loans during the related Collection
Period  (or  deemed  to  be  received  during  the  related  Collection  Period,
including,  without limitation,  full and partial Principal  Prepayments made by
the respective Mortgagors,  Insurance Proceeds and Net Liquidation Proceeds), to
the extent not previously distributed;  and (iv) on the Payment Date immediately
following the end of the Pre-Funding  Period,  any amount  transferred  from the
Pre-Funding  Account to the Note Payment Account in accordance with Section 3.17
of the Servicing Agreement.

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

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

     Program Guide:  The GMACM Home Equity  Servicing  Guidelines,  as in effect
from time to time.

     Prospectus Supplement:  The prospectus supplement dated September 26, 2000,
relating to the Notes.

     Purchase Agreement:  The home loan purchase agreement dated as of September
28,  2000,  among the  Sellers,  the  Purchaser,  the Issuer  and the  Indenture
Trustee.

     Purchase  Price:  The meaning  specified in Section  2.3(a) of the Purchase
Agreement.

     Purchaser:  Residential Asset Mortgage  Products,  Inc., as purchaser under
the Purchase Agreement.

        Rating Agency: Each of Moody's, Standard & Poor's, and Fitch Inc. or, if
either such organization or a successor thereto is no longer in existence,  such
nationally  recognized  statistical  rating  organization,  or other  comparable
Person, designated by the Depositor,  notice of which designation shall be given
to the  Indenture  Trustee.  References  herein to the highest short term rating
category of a Rating Agency shall mean A-1+ in the case of Standard & Poor's and
P-1 in the case of Moody's;  and in the case of any other Rating  Agency,  shall
mean such equivalent ratings.  References herein 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,
shall mean such equivalent rating.

     Rating Event: The qualification, reduction or withdrawal by a Rating Agency
of its then-current rating of the Notes.

<PAGE>

        Record Date:  With respect to the Class A-1 Notes and any Payment  Date,
unless the Class A-1 Notes are no longer held in book-entry  form,  the Business
Day next  preceding  such  Payment Date and with respect to the Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes, Class M Notes and Class B Notes, and the Class
A-1 Notes if such Class A-1 Notes are longer held in book-entry  form,  the last
Business Day of the month preceding the month of such Payment Date.

        Reference Bank Rate: With respect to any Interest Period, the arithmetic
mean  (rounded  upwards,  if  necessary,  to the  nearest one  sixteenth  of one
percent) of the offered rates for United  States  dollar  deposits for one month
which are offered by the Reference Banks as of 11:00 a.m., London, England time,
on the second LIBOR Business Day prior to the first day of such Interest  Period
to prime banks in the London interbank market in amounts  approximately equal to
the outstanding Note Balance of the Class A-1 Notes; provided, that at least two
Reference  Banks  provide such rate.  If fewer than two such rates are provided,
the Reference Bank Rate will be the  arithmetic  mean of the rates quoted by one
or more major banks in New York City,  selected by the  Indenture  Trustee after
consultation  with the Servicer and the Credit  Enhancer,  as of 11:00 a.m., New
York time, on such date for loans in U.S.  Dollars to leading European banks for
a period of one  month in  amounts  approximately  equal to the  aggregate  Note
Balance of the Class A-1 Notes.

     Reference Banks:  Barclays Bank plc, National Westminster Bank and Deutsche
Bank, A.G.

        Related  Documents:  With  respect  to each  Home  Loan,  the  documents
specified in Section 2.1(c) of the Purchase Agreement and any documents required
to be added to such  documents  pursuant to the  Purchase  Agreement,  the Trust
Agreement or the Servicing Agreement.

        Relief Act  Shortfalls:  With respect to any Payment Date,  for any Home
Loan  as to  which  there  has  been a  reduction  in  the  amount  of  interest
collectible  thereon  for the  related  Collection  Period  as a  result  of the
application  of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended,
the  shortfall,  if any,  equal to (i) one  month's  interest  on the  Principal
Balance of such Home Loan at the  applicable  Loan Rate,  over (ii) the interest
collectible on such Home Loan during such Collection Period.

        REMIC  Ineligible  Loan: A Home Loan will be a REMIC Ineligible Loan, if
(a) the value of the real property securing the Home Loan was not at least equal
to 80% of the  original  principal  balance  of the  Home  Loan,  calculated  by
subtracting  the principal  balance of any home equity loans that are secured by
liens  that are senior to the Home Loan and a  proportionate  amount of any home
equity loans that are secured by a lien of equal  priority as the Home Loan from
the Appraised  Value of the property when the Home Loan was  originated  and (b)
substantially  all of the  proceeds  of the Home Loans were not used to acquire,
improve or protect an interest in the real property securing the Home Loan.

        REO  Property:  A  Mortgaged  Property  that is acquired by the Trust in
foreclosure or by deed in lieu of foreclosure.

<PAGE>

        Repurchase  Event: With respect to any Home Loan, either (i) a discovery
that, as of the Closing Date with respect to an Initial Home Loan or the related
Subsequent  Transfer Date with respect to any Subsequent  Home Loan, the related
Mortgage was not a valid lien on the related Mortgaged  Property subject only to
(A) the lien of any prior mortgage indicated on the Home Loan Schedule,  (B) the
lien of real  property  taxes  and  assessments  not  yet due and  payable,  (C)
covenants,  conditions,  and  restrictions,  rights of way,  easements and other
matters of public  record as of the date of recording of such  Mortgage and such
other permissible title exceptions as are customarily accepted for similar loans
and (D) other matters to which like properties are commonly  subject that do not
materially  adversely affect the value,  use,  enjoyment or marketability of the
related  Mortgaged  Property  or (ii) with  respect to any Home Loan as to which
either Seller delivers an affidavit  certifying that the original  Mortgage Note
has been  lost or  destroyed,  a  subsequent  default  on such  Home Loan if the
enforcement  thereof or of the related  Mortgage  is  materially  and  adversely
affected by the absence of such original Mortgage Note.

        Repurchase  Price:  With  respect  to  any  Home  Loan  required  to  be
repurchased  on any date pursuant to the Purchase  Agreement or purchased by the
Servicer pursuant to the Servicing Agreement,  an amount equal to the sum of (i)
100% of the Principal Balance thereof (without reduction for any amounts charged
off) and (ii) unpaid  accrued  interest at the Loan Rate (or with respect to the
last day of the month in the month of repurchase, the Loan Rate will be the Loan
Rate in effect as of the  second to last day in such  month) on the  outstanding
Principal  Balance  thereof from the Due Date to which interest was last paid by
the  related  Mortgagor  to the first day of the  month  following  the month of
purchase.

        Required  Overcollateralization  Amount: As to any Payment Date prior to
the Stepdown Date, the Required  Overcollateralization  Amount will be 11.50% of
the  initial  Pool  Balance.  On  or  after  the  Stepdown  Date,  the  Required
Overcollateralization  Amount  will be equal to the  lesser of (a) the  Required
Overcollateralization  Amount as of the initial  Payment  Date and (b) 23.00% of
the  current  Pool  Balance  after  applying  payments  received  in the related
Collection  Period (but not lower than  approximately  $1,712,766  (0.50% of the
initial Pool Balance));  provided,  however, that any scheduled reduction to the
Required  Overcollateralization  Amount  described above shall not be made as of
any Payment Date unless (i)(a) the aggregate cumulative Liquidation Loss Amounts
on the Home Loans  prior to any such  Payment  Date  occurring  during the first
year,  the  second  year,  the  third  year or the  fourth  year  (or  any  year
thereafter)  after the  Stepdown  Date are less  than  6.00%,  7.00%,  8.00% and
10.00%,  respectively,  of the  initial  Pool  Balance  and  (b)  the  aggregate
Principal  Balance of the Home Loans (after  applying  Interest  Collections and
Principal  Collections received during the related Collection Period) delinquent
by 60 days or more  (including  Home Loans in foreclosure  and REO  Properties),
averaged over the  preceding six months,  is less than 5.00% of the Pool Balance
as of such Payment  Date (after  applying  Interest  Collections  and  Principal
Collections  received during the related  Collection  Period) and (ii) there has
been no draw on the Policy on such Payment Date that  remains  unreimbursed.  In
addition,  the  Required  Overcollateralization  Amount may be reduced  with the
prior written consent of the Credit Enhancer and the Rating Agencies.

     Representative:  Bear,  Stearns  &  Co.  Inc.,  as  representative  of  the
Underwriters.

<PAGE>

        Responsible Officer:  With respect to the Indenture Trustee, any officer
of the Indenture Trustee with direct  responsibility  for the  administration of
the Trust  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.

        Secretary of State:  The Secretary of State of the State of Delaware.

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

     Securities Balance: The Note Balance or Certificate Balance, as the context
may require.

        Security:  Any Certificate or a Note, as the context may require.

        Securityholder:  Any Noteholder or Certificateholder.

        Seller  or  Sellers:   GMAC   Mortgage   Corporation,   a   Pennsylvania
corporation,  and its  successors  and assigns and Walnut Grove Home Equity Loan
Trust 2000-A, a Delaware business trust, and its successors and assigns.

     Servicer: GMAC Mortgage Corporation,  a Pennsylvania  corporation,  and its
successors and assigns.

     Servicing Agreement: The servicing agreement dated as of September 28, 2000
among the Servicer, the Issuer and the Indenture Trustee.

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

     Servicing  Default:  The meaning specified in Section 7.01 of the Servicing
Agreement.

        Servicing Fee: With respect to any Home Loan and any Collection  Period,
the  product  of (i) the  Servicing  Fee  Rate  divided  by 12 and (ii) the Pool
Balance as of the first day of such Collection Period.

        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 Home Loans whose name
and specimen  signature appear on a list of servicing  officers furnished to the
Indenture Trustee (with a copy to the Credit Enhancer) by the Servicer,  as such
list may be amended from time to time.

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

        Stated  Value:  With  respect to any Home Loan,  the stated value of the
related Mortgaged  Property  determined in accordance with the Program Guide and
given by the related Mortgagor in his or her application.

<PAGE>

        Stepdown Date:  The first Payment Date occurring  after the Payment Date
in September  2003 as to which the  aggregate  Note Balance of the Class A Notes
(after applying  payments  received in the related  Collection  Period) has been
reduced  (such  determination  to be made by the  Servicer  prior to the  actual
distribution  of Collections on such Payment Date) to the excess of (a) the Pool
Balance as of such Payment Date (after applying payments received in the related
Collection Period) over (b) the greater of (i) approximately  55.00% of the Pool
Balance as of the end of the related  Collection  Period,  and (ii) 0.50% of the
initial Pool Balance.

     Subsequent Cut-Off Date: With respect to any Subsequent Home Loan, the date
specified in the related Subsequent Transfer Agreement.

        Subsequent  Cut-Off  Date  Principal   Balance:   With  respect  to  any
Subsequent Home Loan, the Principal Balance thereof as of the related Subsequent
Cut-Off Date.

        Subsequent  Home Loan: A Home Loan sold by GMACM to the Issuer  pursuant
to Section 2.2 of the Purchase Agreement, such Home Loan being identified on the
Home Loan Schedule attached to the related Subsequent Transfer Agreement, as set
forth in such Subsequent Transfer Agreement.

        Subsequent Transfer Agreement:  Each Subsequent Transfer Agreement dated
as of a Subsequent Transfer Date executed by GMACM and the Issuer  substantially
in the  form of  Exhibit  2 to the  Purchase  Agreement,  by which  the  related
Subsequent Home Loans are sold to the Issuer.

     Subsequent   Transfer  Date:  With  respect  to  each  Subsequent  Transfer
Agreement,  the date on which the related  Subsequent Home Loans are sold to the
Issuer.

     Subservicer:  Each Person that enters into a  Subservicing  Agreement  as a
subservicer of Home Loans.

        Subservicing  Agreement:  The written  contract between the Servicer and
any Subservicer  relating to servicing and  administration of certain Home Loans
as provided in Section 3.01 of the Servicing Agreement.

        Substitution  Adjustment Amount: With respect to any Eligible Substitute
Loan and any Deleted Loan, the amount, if any, as determined by the Servicer, by
which the aggregate  principal balance of all such Eligible  Substitute Loans as
of the date of substitution is less than the aggregate  Principal Balance of all
such Deleted Loans (after  application  of the principal  portion of the Monthly
Payments  due in the month of  substitution  that are to be  distributed  to the
Securityholders in the month of substitution).

        Tax Matters Partner:  GMACM, as initial Certificateholder.

        Telerate  Screen Page 3750: The display page so designated on the Bridge
Telerate  Capital Markets Report (or such other page as may replace page 3750 on
such service for the purpose of  displaying  London  interbank  offered rates of
major banks,  or, if such service is no longer  offered,  such other service for

<PAGE>

displaying London interbank offered rates or comparable rates as may be selected
by the  Indenture  Trustee after  consultation  with the Servicer and the Credit
Enhancer).

     Transfer Date: As defined in Section 3.15(c) of the Servicing Agreement.

     Transfer  Notice  Date:  As  defined in  Section  3.15(c) of the  Servicing
Agreement.

        Treasury  Regulations:  Regulations,  including  proposed  or  temporary
Regulations,   promulgated  under  the  Code.   References  herein  to  specific
provisions  of  proposed  or  temporary   regulations  shall  include  analogous
provisions  of  final   Treasury   Regulations  or  other   successor   Treasury
Regulations.

     Trust  Agreement:  The trust  agreement  dated as of  September  28,  2000,
between the Owner Trustee and the Depositor.

     Trust  Estate:  The  meaning  specified  in  the  Granting  Clause  of  the
Indenture.

        Trust  Indenture Act or TIA: The Trust Indenture Act of 1939, as amended
from time to time, as in effect on any relevant date.

     UCC:  The Uniform  Commercial  Code,  as amended  from time to time,  as in
effect in any specified jurisdiction.

     Underwriters:  Each of Bear,  Stearns & Co. Inc.,  First Union  Securities,
Inc. and Greenwich Capital Markets, Inc.

     Underwriting  Agreement:  The  underwriting  agreement  dated September 26,
2000, between the Depositor and the Representative.

        Uniform Single  Attestation  Program for Mortgage  Bankers:  The Uniform
Single  Attestation  Program for Mortgage Bankers,  as published by the Mortgage
Bankers  Association  of America and  effective  with respect to fiscal  periods
ending on or after December 15, 1995.

     WG Trust:  Walnut Grove Home Equity Loan Trust 2000-A, a Delaware  business
trust.

<PAGE>EXECUTION COPY

                   RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC.,

                                  as Purchaser,

                           GMAC MORTGAGE CORPORATION,

                             as Seller and Servicer,

                   WALNUT GROVE HOME EQUITY LOAN TRUST 2000-A,

                                   as Seller,

                         GMACM HOME LOAN TRUST 2000-CL1,

                                   as Issuer,

                                       and

                        WELLS FARGO BANK MINNESOTA, N.A.,

                              as Indenture Trustee

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

                          HOME LOAN PURCHASE AGREEMENT
                  --------------------------------------------

                         Dated as of September 28, 2000

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                            Page

                                                -I-

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

        Section 1.1   Definitions...........................................................2

        Section 1.2   Other Definitional Provisions.........................................2

ARTICLE II        SALE OF HOME LOANS AND RELATED PROVISIONS.................................3

        Section 2.1   Sale of Initial Home Loans............................................3

        Section 2.2   Sale of Subsequent Home Loans.........................................6

        Section 2.3   Payment of Purchase Price.............................................9

ARTICLE III       REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH......................10

        Section 3.1   Seller Representations and Warranties................................10

ARTICLE IV        SELLER'S COVENANTS.......................................................18

        Section 4.1   Covenants of the Seller..............................................18

ARTICLE V         SERVICING................................................................18

        Section 5.1   Servicing............................................................18

ARTICLE VI        INDEMNIFICATION BY THE SELLER WITH RESPECT TO THE MORTGAGE LOANS.........18

        Section 6.1   Indemnification with Respect to the Home Loans.......................18

        Section 6.2   Limitation on Liability of the Seller................................18

ARTICLE VII       TERMINATION..............................................................19

        Section 7.1   Termination..........................................................19

ARTICLE VIII      MISCELLANEOUS PROVISIONS.................................................19

        Section 8.1   Amendment............................................................19

        Section 8.2   GOVERNING LAW........................................................19

        Section 8.3   Notices..............................................................19

        Section 8.4   Severability of Provisions...........................................20

        Section 8.5   Relationship of Parties..............................................20

        Section 8.6   Counterparts.........................................................20

        Section 8.7   Further Agreements...................................................21

        Section 8.8   Intention of the Parties.............................................21

        Section 8.9   Successors and Assigns; Assignment of This Agreement.................21

        Section 8.10  Survival.............................................................22

        Section 8.11  Third Party Beneficiary..............................................22

<PAGE>

EXHIBIT 1  HOME LOAN SCHEDULE...............................................................1

EXHIBIT 2  FORM OF SUBSEQUENT TRANSFER AGREEMENT............................................1

EXHIBIT 3  FORM OF ADDITION NOTICE..........................................................1

</TABLE>

<PAGE>

        This  Home  Loan  Purchase  Agreement  (the  "Agreement"),  dated  as of
September 28, 2000, is made among GMAC Mortgage Corporation, as seller ("GMACM")
and as servicer (in such  capacity,  the  "Servicer"),  Walnut Grove Home Equity
Loan Trust  2000-A,  as seller  ("WG  Trust" and,  together  with GMACM,  each a
"Seller" and collectively, the "Sellers"),  Residential Asset Mortgage Products,
Inc., as purchaser (the "Purchaser"),  GMACM Home Loan Trust 2000-CL1, as issuer
(the "Issuer"), and Wells Fargo Bank Minnesota,  N.A., as indenture trustee (the
"Indenture Trustee").

                                   WITNESSETH:

        WHEREAS,  GMACM,  in the ordinary  course of its  business  acquires and
originates  home equity loans and originated all of the home equity loans listed
on the Home Loan  Schedule  attached  as  Exhibit 1 hereto  (the  "Initial  Home
Loans");

        WHEREAS,  GMACM sold a portion of the Initial  Home Loans (the "WG Trust
Initial Home Loans"), to Walnut Grove Funding,  Inc. ("Walnut Grove"),  pursuant
to a Mortgage Loan Purchase  Agreement (the "Walnut Grove Purchase  Agreement"),
dated as of June 1, 2000, among Walnut Grove, as purchaser, GMACM, as seller, WG
Trust, as Issuer and Bank One,  National  Association,  as trustee (each date of
sale, a "Prior Transfer Date");

        WHEREAS,  Walnut Grove sold the WG Trust  Initial Home Loans to WG Trust
pursuant to a Trust Agreement,  dated as of June 1, 2000,  between Walnut Grove,
as depositor and Wilmington Trust Company, as owner trustee;

        WHEREAS,  GMACM owns the Cut-Off Date Principal Balances and the Related
Documents  for the  portion of Initial  Home  Loans  indicated  on the Home Loan
Schedule -A attached as Exhibit  1-A hereto (the "GMACM  Initial  Home  Loans"),
including rights to (a) any property  acquired by foreclosure or deed in lieu of
foreclosure  or  otherwise,  and  (b) the  proceeds  of any  insurance  policies
covering the GMACM Initial Home Loans;

        WHEREAS,  WG Trust owns the  Cut-Off  Date  Principal  Balances  and the
Related Documents for the WG Trust Initial Home Loans indicated on the Home Loan
Schedule -B attached as Exhibit 1-B hereto, including rights to (a) any property
acquired by foreclosure or deed in lieu of foreclosure or otherwise, and (b) the
proceeds of any insurance policies covering the WG Trust Initial Home Loans;

        WHEREAS, the parties hereto desire that: (i) GMACM sell the Cut-Off Date
Principal  Balances  of the GMACM  Initial  Home Loans to the  Purchaser  on the
Closing Date pursuant to the terms of this  Agreement  together with the Related
Documents,  (ii) WG Trust sell the  Cut-Off  Date  Principal  Balances of the WG
Trust  Initial Home Loans to the  Purchaser on the Closing Date  pursuant to the
terms of this  Agreement  together with the Related  Documents,  (iii) GMACM may
sell  Subsequent  Home  Loans to the Issuer on one or more  Subsequent  Transfer
Dates pursuant to the terms of the related Subsequent  Transfer  Agreement,  and
(iv) each Seller make certain representations and warranties on the Closing Date
and  GMACM  make  certain  representations  and  warranties  on each  Subsequent
Transfer Date;

<PAGE>

        WHEREAS,  pursuant to the Trust  Agreement,  the Purchaser will sell the
Initial Home Loans and  transfer  all of its rights under this  Agreement to the
Issuer on the Closing Date;

     WHEREAS,  pursuant to the terms of the  Servicing  Agreement,  the Servicer
will service the Home Loans;

     WHEREAS,  pursuant  to the terms of the Trust  Agreement,  the Issuer  will
issue the Certificates;

     WHEREAS,  pursuant to the terms of the Indenture, the Issuer will issue the
Notes, secured by the Trust Estate;

        NOW,  THEREFORE,   in  consideration  of  the  mutual  covenants  herein
contained, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise
expressly provided herein or unless the context otherwise requires,  capitalized
terms not  otherwise  defined  herein shall have the  meanings  assigned to such
terms in the  Definitions  contained in Appendix A to the indenture  dated as of
September  28,  2000 (the  "Indenture"),  between  the Issuer and the  Indenture
Trustee,  which is incorporated by reference herein. All other capitalized terms
used herein shall have the meanings specified herein.

Section 1.2 Other Definitional  Provisions.  All terms defined in this Agreement
shall have the defined  meanings when used in any  certificate or other document
made or delivered pursuant hereto unless otherwise defined therein.

        As used in this Agreement and in any  certificate or other document made
or delivered  pursuant hereto or thereto,  accounting  terms not defined in this
Agreement or in any such  certificate or other  document,  and accounting  terms
partly defined in this Agreement or in any such  certificate or other  document,
to the extent not  defined,  shall have the  respective  meanings  given to them
under  generally  accepted  accounting  principles.   To  the  extent  that  the
definitions of accounting  terms in this Agreement or in any such certificate or
other document are inconsistent  with the meanings of such terms under generally
accepted accounting  principles,  the definitions contained in this Agreement or
in any such certificate or other document shall control.

        The words  "hereof,"  "herein,"  "hereunder" and words of similar import
when used in this Agreement  shall refer to this Agreement as a whole and not to
any  particular  provision  of this  Agreement;  Section and Exhibit  references
contained in this  Agreement  are  references  to Sections and Exhibits in or to
this Agreement  unless  otherwise  specified;  the term  "including"  shall mean
"including  without  limitation";  "or"  shall  include  "and/or";  and the term
"proceeds" shall have the meaning ascribed thereto in the UCC.

<PAGE>

        The  definitions  contained  in this  Agreement  are  applicable  to the
singular as well as the plural forms of such terms and to the  masculine as well
as the feminine and neuter genders of such terms.

        Any agreement, instrument or statute defined or referred to herein or in
any  instrument  or  certificate  delivered in  connection  herewith  means such
agreement,  instrument  or statute  as from time to time  amended,  modified  or
supplemented and includes (in the case of agreements or instruments)  references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.

                                   ARTICLE II

                    SALE OF HOME LOANS AND RELATED PROVISIONS

Section 2.1    Sale of Initial Home Loans.

(a) GMACM,  by the execution and delivery of this  Agreement,  does hereby sell,
assign, set over, and otherwise convey to the Purchaser,  without recourse,  all
of its right,  title and interest in, to and under the  following,  and wherever
located:  (i) the GMACM Initial Home Loans (including the Cut-Off Date Principal
Balances),  all  interest  accruing  thereon,  all  monies  due or to become due
thereon, and all collections in respect thereof received on or after the Cut-Off
Date (other than interest  thereon in respect of any period prior to the Cut-Off
Date);  (ii) the interest of GMACM in any  insurance  policies in respect of the
GMACM  Initial  Home  Loans;  and  (iii) all  proceeds  of the  foregoing.  Such
conveyance  shall be  deemed  to be  made:  with  respect  to the  Cut-Off  Date
Principal  Balances,  as of the Closing Date, subject to the receipt by GMACM of
consideration therefor as provided herein under clause (a) of Section 2.3.

(b) WG Trust, by the execution and delivery of this Agreement, does hereby sell,
assign, set over, and otherwise convey to the Purchaser,  without recourse,  all
of its right,  title and interest in, to and under the  following,  and wherever
located:  (i) the WG Trust  Initial  Home  Loans  (including  the  Cut-Off  Date
Principal Balances),  all interest accruing thereon, all monies due or to become
due thereon,  and all  collections in respect  thereof  received on or after the
Cut-Off Date (other than interest  thereon in respect of any period prior to the
Cut-Off  Date);  (ii) the  interest  of WG Trust in any  insurance  policies  in
respect  of the WG Trust  Initial  Home  Loans;  and (iii) all  proceeds  of the
foregoing.  Such  conveyance  shall be deemed to be made:  with  respect  to the
Cut-Off Date Principal Balances,  as of the Closing Date, subject to the receipt
by WG Trust of  consideration  therefor as provided  herein  under clause (a) of
Section 2.3.

               In addition,  the Issuer shall deposit with the Indenture Trustee
from  proceeds of the  issuance of the  Securities  on the Closing  Date (i) the
Original  Pre-Funded Amount for deposit in the Pre-Funding  Account and (ii) the
Interest Coverage Amount for deposit in the Capitalized Interest Account.

(c) In connection  with the  conveyance by GMACM of the GMACM Initial Home Loans
and any Subsequent Home Loans,  GMACM further agrees, at its own expense,  on or
prior to the Closing  Date with respect to the  Principal  Balances of the GMACM
Initial Home Loans and on or prior to the related Subsequent Cut-Off Date in the
case of any Subsequent Home Loans, to indicate in its books and records that the
GMACM  Initial  Home  Loans  have been sold to the  Purchaser  pursuant  to this
Agreement, and, in the case of the Subsequent Home Loans, to the Issuer pursuant

<PAGE>

to the related Subsequent  Transfer  Agreement,  and to deliver to the Purchaser
true and complete  lists of all of the Home Loans  specifying for each Home Loan
(i) its account number and (ii) its Cut-Off Date Principal Balance or Subsequent
Cut-Off Date Principal  Balance.  Home Loan Schedule -A, which forms part of the
Home Loan  Schedule,  shall be marked as Exhibit  1-A to this  Agreement  and is
hereby incorporated into and made a part of this Agreement.

(d) In connection  with the  conveyance by WG Trust of the WG Trust Initial Home
Loans, WG Trust further agrees,  at its own expense,  on or prior to the Closing
Date with respect to the Principal  Balances of the WG Trust Initial Home Loans,
to indicate in its books and records  that the WG Trust  Initial Home Loans have
been sold to the Purchaser pursuant to this Agreement. GMACM, as Servicer of the
WG Trust Initial Home Loans,  agrees,  and to deliver to the Purchaser  true and
complete  lists of all of the Home Loans  specifying  for each Home Loan (i) its
account number and (ii) its Cut-Off Date Principal  Balance.  Home Loan Schedule
-B, which forms part of the Home Loan  Schedule,  shall be marked as Exhibit 1-B
to this  Agreement  and is  hereby  incorporated  into  and  made a part of this
Agreement.

(e) In connection  with the  conveyance by GMACM of the GMACM Initial Home Loans
and any  Subsequent  Home Loans and the  conveyance  by WG Trust of the WG Trust
Initial  Home  Loans,  GMACM  shall on behalf of the  Purchaser  deliver to, and
deposit with the  Custodian,  at least five (5) Business Days before the Closing
Date in the case of an Initial  Home Loan,  and, on behalf of the Issuer,  three
(3) Business Days prior to the related Subsequent Transfer Date in the case of a
Subsequent  Home  Loan,  with  respect  to (i)  below,  or within 90 days of the
Closing Date or the  Subsequent  Transfer Date, as the case may be, with respect
to (ii) through (v) below,  the following  documents or instruments with respect
to each related Home Loan of the related Seller:

(i) the  original  Mortgage  Note  endorsed  without  recourse  in blank  (which
endorsement shall contain either an original signature or a facsimile  signature
of an  authorized  officer of the related  Seller) or, with  respect to any Home
Loan as to  which  the  original  Mortgage  Note has  been  permanently  lost or
destroyed and has not been replaced, a Lost Note Affidavit;

(ii) the  original  Mortgage  with  evidence of  recording  thereon,  or, if the
original  Mortgage has not yet been returned from the public recording office, a
copy of the original Mortgage certified by the related Seller that such Mortgage
has been sent for recording,  or a county certified copy of such Mortgage in the
event the recording office keeps the original or if the original is lost;

(iii) assignments  (which may be included in one or more blanket  assignments if
permitted by applicable law) of the Mortgage in recordable form from GMACM or WG
Trust to "Wells Fargo Bank  Minnesota,  N.A.,  as Indenture  Trustee  under that
certain  Indenture  dated as of September  28,  2000,  for GMACM Home Loan Trust
2000-CL1,  Home Loan-Backed Term Notes" c/o the Servicer at an address specified
by the Servicer;

<PAGE>

(iv)  originals  of  any  intervening  assignments  of  the  Mortgage  from  the
originator to GMACM or WG Trust, with evidence of recording thereon,  or, if the
original of any such  intervening  assignment has not yet been returned from the
public  recording  office,  a  copy  of  such  original  intervening  assignment
certified by GMACM that such original  intervening  assignment has been sent for
recording; and

(v) a true and correct copy of each assumption,  modification,  consolidation or
substitution agreement, if any, relating to such Home Loan.

        Within the time period for the review of each Mortgage File set forth in
Section 2.2 of the  Custodial  Agreement,  if a material  defect in any Mortgage
File is discovered  which may materially  and adversely  affect the value of the
related Home Loan, or the interests of the Indenture  Trustee (as pledgee of the
Home Loans), the Noteholders,  the  Certificateholders or the Credit Enhancer in
such Home Loan, including GMACM's failure to deliver any document required to be
delivered to the Custodian on behalf of the Indenture Trustee (provided,  that a
Mortgage  File  will  not be  deemed  to  contain  a  defect  for an  unrecorded
assignment  under clause (iv) above if GMACM has submitted  such  assignment for
recording  pursuant to the terms of the following  paragraph),  GMACM shall cure
such  defect,  repurchase  the  related  Home  Loan at the  Repurchase  Price or
substitute  an  Eligible  Substitute  Loan  therefor  upon  the same  terms  and
conditions set forth in Section 3.1 hereof for breaches of  representations  and
warranties as to the Home Loans.

        In  instances  where an original  Mortgage or any  original  intervening
assignment of Mortgage was not, in  accordance  with clauses (ii) or (iv) above,
delivered  by  GMACM or WG Trust  to the  Custodian  contemporaneously  with the
execution  and  delivery of this  Agreement,  GMACM or WG Trust will  deliver or
cause to be delivered the originals or certified copies of such documents to the
Custodian promptly upon receipt thereof.

        Upon sale of the Initial  Home Loans,  the  ownership  of each  Mortgage
Note, each related  Mortgage and the contents of the related Mortgage File shall
be vested in the Purchaser  and the ownership of all records and documents  with
respect to the  Initial  Home Loans that are  prepared  by or that come into the
possession of either Seller,  as a seller of the Initial Home Loans hereunder or
by GMACM in its  capacity  as  Servicer  under  the  Servicing  Agreement  shall
immediately  vest in the  Purchaser,  and  shall be  promptly  delivered  to the
Servicer in the case of  documents  in  possession  of WG Trust and retained and
maintained  in trust by GMACM as the Servicer at the will of the  Purchaser,  in
such custodial  capacity  only. In the event that any original  document held by
GMACM hereunder in its capacity as Servicer is required pursuant to the terms of
this Section to be part of a Mortgage  File,  such  document  shall be delivered
promptly to the Custodian.  Each Seller's  records will  accurately  reflect the
sale of each Seller's respective Initial Home Loan to the Purchaser.

        The Purchaser hereby acknowledges its acceptance of all right, title and
interest to the property conveyed to it pursuant to this Section 2.1.

(f) The parties hereto intend that the transactions set forth herein  constitute
a sale by the Sellers to the Purchaser of each of the Sellers' right,  title and
interest in and to their respective Initial Home Loans and other property as and
to the extent  described  above. In the event the  transactions set forth herein

<PAGE>

are  deemed not to be a sale,  each  Seller  hereby  grants to the  Purchaser  a
security  interest in all of such Seller's right,  title and interest in, to and
under all  accounts,  chattel  papers,  general  intangibles,  contract  rights,
certificates of deposit, deposit accounts,  instruments,  documents,  letters of
credit, money, advices of credit,  investment property, goods and other property
consisting of, arising under or related to the Initial Home Loans and such other
property,  to  secure  all of such  Seller's  obligations  hereunder,  and  this
Agreement shall and hereby does constitute a security agreement under applicable
law. Each Seller agrees to take or cause to be taken such actions and to execute
such  documents,  including  without  limitation the filing of any  continuation
statements with respect to the UCC-1 financing  statements filed with respect to
the Initial Home Loans by the Purchaser on the Closing Date,  and any amendments
thereto required to reflect a change in the name or corporate  structure of such
Seller or the filing of any  additional  UCC-1  financing  statements due to the
change in the principal  office or jurisdiction of incorporation of such Seller,
as are  necessary  to perfect  and  protect the  Purchaser's  interests  in each
Initial Home Loan and the proceeds thereof.

Section 2.2    Sale of Subsequent Home Loans.

(a) Subject to the  conditions  set forth in  paragraphs  (b) and (c) below (the
satisfaction of which (other than the conditions specified in paragraphs (b)(i),
(b)(ii),  (b)(iii),  (b)(vi),  (b)(vii) and  (c)(iii))  shall be evidenced by an
Officer's Certificate of GMACM dated the date of the related Subsequent Transfer
Date), in  consideration  of the Issuer's payment of the purchase price provided
for in Section 2.3 on one or more  Subsequent  Transfer  Dates using  amounts on
deposit  in the  Pre-Funding  Account,  GMACM  may,  on the  related  Subsequent
Transfer Date, sell,  transfer,  assign, set over and convey without recourse to
the Issuer but subject to the other terms and  provisions of this  Agreement all
of the right,  title and interest of GMACM in and to (i)  Subsequent  Home Loans
identified on the related Home Loan Schedule attached to the related  Subsequent
Transfer Agreement  delivered by GMACM on such Subsequent Transfer Date (ii) all
money due or to become due on such  Subsequent  Home Loan and after the  related
Subsequent Cut-Off Date and (iii) all items with respect to such Subsequent Home
Loans to be  delivered  pursuant to Section 2.1 above and the other items in the
related Mortgage Files;  provided,  however, that GMACM reserves and retains all
right,  title and interest in and to principal received and interest accruing on
any  Subsequent  Home Loan prior to the related  Subsequent  Cut-Off  Date.  Any
transfer to the Issuer by GMACM of Subsequent Home Loans shall be absolute,  and
is intended by the Issuer and GMACM to constitute and to be treated as a sale of
such  Subsequent  Home Loans by GMACM to the Issuer.  In the event that any such
transaction is deemed not to be a sale,  GMACM hereby grants to the Issuer as of
each Subsequent Transfer Date a security interest in all of GMACM's right, title
and interest in, to and under all accounts, chattel papers, general intangibles,
contract  rights,  certificates  of  deposit,  deposit  accounts,   instruments,
documents,  letters of credit,  money,  advices of credit,  investment property,
goods and other property  consisting of, arising under or related to the related
Subsequent  Home  Loans  and such  other  property,  to  secure  all of  GMACM's
obligations hereunder,  and this Agreement shall constitute a security agreement
under applicable law. GMACM agrees to take or cause to be taken such actions and
to execute such documents, including the filing of all necessary UCC-1 financing
statements  filed in the State of Delaware and the  Commonwealth of Pennsylvania
(which  shall be  submitted  for filing as of the  related  Subsequent  Transfer
Date),  any  continuation  statements  with respect  thereto and any  amendments
thereto required to reflect a change in the name or corporate structure of GMACM
or the filing of any additional UCC-1 financing  statements due to the change in
the  principal  office of GMACM,  as are  necessary  to perfect  and protect the
interests of the Issuer and its assignees in each  Subsequent  Home Loan and the
proceeds thereof.

<PAGE>

        The  Issuer on each  Subsequent  Transfer  Date  shall  acknowledge  its
acceptance of all right, title and interest to the related Subsequent Home Loans
and other  property,  existing on the  Subsequent  Transfer Date and  thereafter
created, conveyed to it pursuant to this Section 2.2.

        The Issuer  shall be entitled to all  scheduled  principal  payments due
after each  Subsequent  Cut-Off  Date,  all other  payments of principal due and
collected  after each  Subsequent  Cut-Off Date, and all payments of interest on
any related  Subsequent  Home  Loans,  minus that  portion of any such  interest
payment that is allocable to the period prior to the related  Subsequent Cut-Off
Date.  No scheduled  payments of principal  due on  Subsequent  Home Loans on or
before the related  Subsequent  Cut-Off Date and collected after such Subsequent
Cut-Off Date shall belong to the Issuer pursuant to the terms of this Agreement.

(b)  GMACM  may  transfer  to the  Issuer  Subsequent  Home  Loans and the other
property and rights related thereto described in Section 2.2(a) above during the
Pre-Funding  Period,  and the Issuer  shall cause to be released  funds from the
Pre-Funding  Account,  only  upon  the  satisfaction  of each  of the  following
conditions on or prior to the related Subsequent Transfer Date:

(i) GMACM shall have provided the Indenture Trustee, the Rating Agencies and the
Credit  Enhancer  with a timely  Addition  Notice  substantially  in the form of
Exhibit 3, which notice shall be given no later than seven  Business  Days prior
to the related Subsequent Transfer Date, and shall designate the Subsequent Home
Loans  to be  sold  to the  Issuer,  the  aggregate  Principal  Balance  of such
Subsequent  Home Loans as of the related  Subsequent  Cut-Off Date and any other
information reasonably requested by the Indenture Trustee or the Credit Enhancer
with respect to such Subsequent Home Loans;

(ii) GMACM shall have delivered to the Indenture Trustee and the Credit Enhancer
a duly  executed  Subsequent  Transfer  Agreement  substantially  in the form of
Exhibit 2, (A)  confirming  the  satisfaction  of each  condition  precedent and
representations  specified in this Section  2.2(b) and in Section  2.2(c) and in
the related Subsequent Transfer Agreement and (B) including a Home Loan Schedule
listing the Subsequent Home Loans;

(iii) as of each  Subsequent  Transfer  Date,  as  evidenced  by delivery to the
Indenture Trustee of the Subsequent Transfer Agreement in the form of Exhibit 2,
GMACM shall not be  insolvent,  made  insolvent by such transfer or aware of any
pending insolvency;

(iv)  such  sale and  transfer  shall  not  result  in a  material  adverse  tax
consequence to the Issuer or, due to any action or inaction on the part of GMACM
to the Securityholders; and

(v) the Credit  Enhancer  shall have  approved the sale of the  Subsequent  Home
Loans  (which  approval  shall not be  unreasonably  withheld)  within  five (5)
Business Days of receipt of the Home Loan  Schedule  reflecting  the  Subsequent
Home Loans; provided,  that if the Credit Enhancer shall not have notified GMACM
within five (5) Business Days that the Credit Enhancer does not so approve, such
sale of Subsequent Home Loans shall be deemed approved by the Credit Enhancer.

<PAGE>

        In addition,  GMACM shall have  delivered to the Issuer,  the  Indenture
Trustee and the Credit  Enhancer an Opinion of Counsel  with  respect to certain
bankruptcy  matters  relating to the transfers of Subsequent  Home Loans,  which
Opinion of Counsel shall be  substantially in the form of the Opinion of Counsel
delivered  to the Credit  Enhancer  and the Rating  Agencies  and the  Indenture
Trustee on the Closing Date regarding certain bankruptcy matters, within 30 days
after the end of the  Pre-Funding  Period  relating to all Subsequent Home Loans
transferred to the Trust during the Pre-Funding Period and purchased, from funds
on deposit in the Pre-Funding Account.

The  obligation  of the  Issuer  to  purchase  a  Subsequent  Home  Loan  on any
Subsequent Transfer Date is subject to the following  conditions:  (i) each such
Subsequent Home Loan must satisfy the representations  and warranties  specified
in the related Subsequent Transfer Agreement and this Agreement; (ii) GMACM will
not select such Subsequent Home Loans in a manner that it reasonably believes is
adverse to the interests of the Noteholders or the Credit Enhancer;  (iii) GMACM
will deliver to the Credit Enhancer and the Indenture  Trustee certain  Opinions
of Counsel described in Section 2.2(b) and acceptable to the Credit Enhancer and
the Indenture  Trustee with respect to the  conveyance of such  Subsequent  Home
Loans; and (iv) as of the related  Subsequent  Cut-Off Date each Subsequent Home
Loan will satisfy the following criteria:  (A) such Subsequent Home Loan may not
be 30 or more days contractually delinquent as of the related Subsequent Cut-Off
Date; (B) such  Subsequent Home Loan must be secured by a mortgage in a first or
second  lien  position;  (C)  such  Subsequent  Home  Loan  must  have a CLTV at
origination of no more than 110.00%;  (D) such Subsequent Home Loan must have an
original  term to maturity  of not more than 300 months and a remaining  term to
maturity  which does not extend beyond  September 1, 2025;  (E) such  Subsequent
Home Loan must have a Loan Rate of less than 10.00%;  (F) such  Subsequent  Home
Loan must have a principal balance not in excess of $50,000; (G) such Subsequent
Home Loan may not have a credit  score less than 580; (H) such  Subsequent  Home
Loan may not be secured by non-owner occupied investment properties or secondary
residences;  (I) such  Subsequent  Home Loan must be  underwritten in accordance
with a full documentation  underwriting  program; and (J) following the purchase
of such Subsequent Home Loans by the Issuer, as of each Subsequent Cut-Off Date,
the Home Loans  included in the Trust Estate (by  aggregate  Principal  Balance)
must have the following characteristics: (i) a weighted average Loan Rate of not
less than 15.900%,  (ii) may not include balloon loans,  (iii) the percentage of
Home Loans secured by single family residences or residences located in PUDs may
not be less  than  89%,  (iv)  may not  have a  concentration  in the  State  of
California  in  excess of  25.00%,  (v) the  percentage  of Home  Loans  made to
borrowers  with a credit score less than 580 shall not exceed 2%, (vi) will have
a weighted  average credit score  (excluding Home Loans for which a credit score
is not  available) of at least 615,  (vii) will have a weighted  average CLTV at
origination  of not more than 104.00%,  and (viii) the  percentage of Home Loans
that are REMIC  Ineligible  Loans  shall not be less than 60%.  Subsequent  Home
Loans with characteristics  materially varying from those set forth above may be
purchased by the Issuer and included in the Trust Estate if they are  acceptable
to the Credit Enhancer, in its reasonable  discretion;  provided,  however, that
the  addition  of such  Subsequent  Home  Loans will not  materially  affect the
aggregate characteristics of the Home Loans in the Trust Estate. GMACM shall not
transfer  Subsequent Home Loans with the intent to mitigate losses on Home Loans
previously transferred.

<PAGE>

(c) Within five Business Days after each Subsequent  Transfer Date,  GMACM shall
deliver to the Rating Agencies,  the Indenture Trustee and the Credit Enhancer a
copy of the updated Home Loan Schedule  reflecting the Subsequent  Home Loans in
electronic format (to be followed by a hard copy).

(d) In the  event  that a home  equity  loan  is not  acceptable  to the  Credit
Enhancer as a Subsequent  Home Loan pursuant to Section  2.2(b)(v)  hereof,  the
Credit Enhancer and GMACM may mutually agree to the transfer of such home equity
loan to the Issuer as a  Subsequent  Home Loan,  subject to any  increase in the
Overcollateralization  Amount  that may be  agreed  to by GMACM  and the  Credit
Enhancer  pursuant to the  Indenture,  in which event GMACM shall deliver to the
Issuer  and the  Indenture  Trustee,  with a copy  to the  Credit  Enhancer,  an
Officer's  Certificate   confirming  the  agreement  to  the  transfer  of  such
Subsequent  Home  Loan  and  specifying  the  amount  of  such  increase  in the
Overcollateralization Amount, which additional  Overcollateralization Amount may
not be contributed by GMACM.

Section 2.3    Payment of Purchase Price.

(a) The sale of the Initial  Home Loans  shall take place on the  Closing  Date,
subject to and  simultaneously  with the deposit of the Initial  Home Loans into
the Trust Estate, the deposit of the Original Pre-Funded Amount and the Interest
Coverage  Amount  into the  Pre-Funding  Account  and the  Capitalized  Interest
Account,  respectively,  and the issuance of the Securities.  The purchase price
(the  "Purchase  Price")  for the  GMACM  Initial  Home  Loans to be paid by the
Purchaser   to  GMACM  on  the  Closing   Date  shall  be  an  amount  equal  to
$178,739,223.85 in immediately  available funds, together with the Certificates,
in respect of the Cut-Off Date Principal  Balances  thereof.  The Purchase Price
for the WG Trust  Initial Home Loans to be paid by the  Purchaser to WG Trust on
the  Closing  Date shall be an amount  equal to  $54,100,548.35  in  immediately
available funds, in respect of the Cut-Off Date Principal Balances thereof.  The
Purchase Price paid for any Subsequent  Home Loan by the Indenture  Trustee from
funds on deposit in the  Pre-Funding  Account,  at the  direction of the Issuer,
shall be one-hundred  percent  (100%) of the  Subsequent  Cut-Off Date Principal
Balance thereof (as identified on the Home Loan Schedule attached to the related
Subsequent Transfer Agreement provided by GMACM).

(b) In consideration of the sale of the GMACM Initial Home Loans by GMACM to the
Purchaser on the Closing Date,  the Purchaser  shall pay to GMACM on the Closing
Date  by  wire  transfer  of  immediately  available  funds  to a  bank  account
designated by GMACM,  the amount specified above in paragraph (a) for each GMACM
Initial Home Loan; provided,  that such payment may be on a net funding basis if
agreed  by  GMACM  and  the  Purchaser.  In  consideration  of the  sale  of any
Subsequent  Home Loan by GMACM to the Issuer,  the Issuer  shall pay to GMACM by
wire transfer of  immediately  available  funds to a bank account  designated by
GMACM,  the amount  specified  above in paragraph (a) for each  Subsequent  Home
Loan.

<PAGE>

(c) In  consideration of the sale of the WG Trust Initial Home Loans by WG Trust
to the Purchaser on the Closing Date, the Purchaser shall pay to WG Trust on the
Closing Date by wire transfer of immediately  available  funds to a bank account
designated by WG Trust,  the amount specified above in paragraph (a) for each WG
Trust  Initial  Home Loan;  provided,  that such payment may be on a net funding
basis if agreed by WG Trust and the Purchaser.

                                  ARTICLE III

                               REPRESENTATIONS AND WARRANTIES;
                               REMEDIES FOR BREACH

Section 3.1 GMACM Representations and Warranties.  GMACM represents and warrants
to the Purchaser, as of the Closing Date and as of each Subsequent Transfer Date
(or if otherwise specified below, as of the date so specified):

(a)     As to GMACM:

(i) GMACM is a corporation duly organized, validly existing and in good standing
under the laws of the  jurisdiction  governing its creation and existence and is
or will be in  compliance  with the laws of each  state in which  any  Mortgaged
Property is located to the extent necessary to ensure the enforceability of each
Home Loan;

(ii) GMACM has the power and authority to make, execute, deliver and perform its
obligations under this Agreement and each Subsequent  Transfer Agreement and all
of the  transactions  contemplated  under  this  Agreement  and each  Subsequent
Transfer  Agreement,  and has taken all necessary  corporate action to authorize
the execution,  delivery and  performance of this Agreement and each  Subsequent
Transfer Agreement;

(iii) GMACM is not  required  to obtain the  consent of any other  Person or any
consents,  licenses,  approvals or  authorizations  from,  or  registrations  or
declarations  with, any governmental  authority,  bureau or agency in connection
with the execution,  delivery,  performance,  validity or enforceability of this
Agreement  or any  Subsequent  Transfer  Agreement,  except  for such  consents,
licenses,  approvals or  authorizations,  or registrations  or declarations,  as
shall have been obtained or filed, as the case may be;

(iv) The execution and delivery of this  Agreement by GMACM and its  performance
and  compliance  with the  terms of this  Agreement  will  not  violate  GMACM's
Certificate of  Incorporation  or Bylaws or constitute a material default (or an
event which,  with notice or lapse of time, or both, would constitute a material
default)  under,  or result in the material  breach of, any  material  contract,
agreement  or  other  instrument  to which  GMACM  is a party  or  which  may be
applicable to GMACM or any of its assets;

(v) No litigation  before any court,  tribunal or governmental body is currently
pending, or to the knowledge of GMACM threatened,  against GMACM or with respect
to this  Agreement or any Subsequent  Transfer  Agreement that in the opinion of
GMACM has a reasonable  likelihood of resulting in a material  adverse effect on
the  transactions  contemplated  by this  Agreement or any  Subsequent  Transfer
Agreement;

<PAGE>

(vi)    Reserved;

(vii) This Agreement and each Subsequent Transfer Agreement constitutes a legal,
valid and binding obligation of GMACM,  enforceable  against GMACM in accordance
with  its  terms,   except  as  enforceability  may  be  limited  by  applicable
bankruptcy, insolvency, reorganization,  moratorium or other similar laws now or
hereafter in effect  affecting the  enforcement of creditors'  rights in general
and except as such enforceability may be limited by general principles of equity
(whether  considered  in a proceeding  at law or in equity) or by public  policy
with respect to indemnification under applicable securities laws;

(viii)  This  Agreement  constitutes  a valid  transfer  and  assignment  to the
Purchaser of all right,  title and interest of GMACM in and to the GMACM Initial
Home Loans,  including the Cut-Off Date  Principal  Balances with respect to the
GMACM Initial Home 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
GMACM Initial Home Loans; and this Agreement and the related Subsequent Transfer
Agreement, when executed, will constitute a valid transfer and assignment to the
Issuer of all right,  title and interest of GMACM in and to the Subsequent  Home
Loans,  including the Cut-Off Date  Principal  Balances of the  Subsequent  Home
Loans, all monies due or to become due with respect thereto, and all proceeds of
such Subsequent  Cut-Off Date Principal Balances and such funds as are from time
to time deposited in the Custodial  Account  (excluding any investment  earnings
thereon)  as  assets  of the  Trust  and all  other  property  specified  in the
definition  of "Trust" as being part of the corpus of the Trust  conveyed to the
Purchaser by GMACM; and

(ix) GMACM is not in default with respect to any order or decree of any court or
any order, regulation or demand of any federal, state, municipal or governmental
agency,  which  default  might  have  consequences  that  would  materially  and
adversely  affect the condition  (financial or otherwise) or operations of GMACM
or its properties or might have  consequences  that would  materially  adversely
affect its performance hereunder;

(b) As to each Initial Home Loan (except as otherwise specified below) as of the
Closing  Date,  or with respect to each  Subsequent  Home Loan as of the related
Subsequent Transfer Date (except as otherwise specified below):

(i) The  information  set forth in the Home Loan  Schedule  with respect to each
Home Loan or the Home Loans is true and correct in all  material  respects as of
the date or dates respecting which such information is initially furnished;

(ii)  With  respect  to each of the WG  Trust  Initial  Home  Loans,  as of each
respective  Prior Transfer Date: (A) the related  Mortgage Note and the Mortgage
had not been assigned or pledged,  except for any  assignment or pledge that had
been  satisfied and released,  (B)  immediately  prior to the assignment of such
Home Loans to Walnut  Grove,  GMACM had good title  thereto and (C)  immediately
prior to such  assignment,  GMACM was the sole owner and holder of the Home Loan
free  and  clear  of any and  all  liens,  encumbrances,  pledges,  or  security
interests  (other than, with respect to any Home Loan in a second lien position,
the lien of the  related  first  mortgage)  of any nature and had full right and
authority, under all governmental and regulatory bodies having jurisdiction over
the ownership of the applicable  Home Loan, to sell and assign the same pursuant
to the Walnut Grove Purchase Agreement;

<PAGE>

(iii) With  respect to the GMACM  Initial Home Loans:  (A) the related  Mortgage
Note  and the  Mortgage  have not  been  assigned  or  pledged,  except  for any
assignment or pledge that has been satisfied and released, (B) immediately prior
to the  assignment  of the Home  Loans to the  Purchaser,  GMACM has good  title
thereto  and (C) GMACM is the sole  owner  and  holder of the Home Loan free and
clear of any and all liens, encumbrances,  pledges, or security interests (other
than,  with respect to any Home Loan in a second lien position,  the lien of the
related first  mortgage) of any nature and has full right and  authority,  under
all governmental and regulatory bodies having jurisdiction over the ownership of
the applicable Home Loans to sell and assign the same pursuant to this Agreement
or the related Subsequent Transfer Agreement, as applicable;

(iv) To the best of  GMACM's  knowledge,  there is no valid  offset,  defense or
counterclaim of any obligor under any Mortgage Note or Mortgage;

(v) To the best of GMACM's knowledge,  there is no delinquent recording or other
tax or fee or assessment lien against any related Mortgaged Property;

(vi) To the  best of  GMACM's  knowledge,  there  is no  proceeding  pending  or
threatened  for the  total or  partial  condemnation  of the  related  Mortgaged
Property;

(vii) To the best of GMACM's knowledge, 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, or
subordinate with, the lien of the related Mortgage, except liens which are fully
insured against by the title insurance policy referred to in clause (xi);

(viii) As of the Cut-Off Date or related  Subsequent  Cut-Off Date, no Home Loan
was 30 days or more delinquent in payment of principal or interest;

(ix) With respect to the GMACM  Initial Home Loans,  the related  Mortgage  File
contain or will contain,  in  accordance  with Section  2.1(c)(ii),  each of the
documents and instruments specified to be included therein;

(x) To the best of the  GMACM's  knowledge,  the related  Mortgage  Note and the
related Mortgage at the time it was made complied in all material  respects with
applicable local, state and federal laws;

(xi) A title  search  or other  assurance  of title  customary  in the  relevant
jurisdiction was obtained with respect to each Home Loan;

(xii)  None of the  Mortgaged  Properties  is a  mobile  home or a  manufactured
housing unit that is not permanently attached to its foundation;

<PAGE>

(xiii) As of the Cut-Off  Date, no more than  approximately  24.58% and 5.34% of
the Home Loans,  by Cut-Off  Date  Principal  Balance,  are secured by Mortgaged
Properties located in California and New Jersey, respectively;

(xiv)  As  of  the  Cut-Off  Date  or  Subsequent  Cut-Off  Date,  the  Combined
Loan-to-Value Ratio for each Home Loan was not in excess of 110%;

(xv) As of the Cut-Off Date, not less than 64.04% of the Home Loans,  by Cut-Off
Date Principal Balance, are REMIC Ineligible Loans;

(xvi) GMACM has not transferred the GMACM Initial Home Loans to the Purchaser or
any  Subsequent  Home  Loans to the Issuer  with any intent to hinder,  delay or
defraud any of its creditors;

(xvii)  Reserved;

(xviii)  Within a loan type,  and except as required  by  applicable  law,  each
Mortgage  Note and each  Mortgage is an  enforceable  obligation  of the related
Mortgagor;

(xix) To the best  knowledge  of GMACM,  the physical  property  subject to each
Mortgage is free of material damage and is in acceptable repair;

(xx) GMACM has not  received a notice of  default  of any senior  mortgage  loan
related to a Mortgaged  Property  which has not been cured by a party other than
the Servicer;

(xxi)   Reserved;

(xxii) None of the Home Loans is a reverse  mortgage loan;  (xxiii) No Home Loan
has an original term to maturity in excess of 300 months;

(xxiv) All of the Home Loans are fixed rate and are fully amortizing.  As of the
Cut-off Date,  the Loan Rates on the Home Loans range between  10.000% per annum
and 18.500% per annum. The weighted average remaining term to stated maturity of
the Home Loans as of the Cut-off Date is approximately 251 months;

(xxv) (A) Each Mortgaged  Property  consists of a single parcel of real property
with a single family or an individual  condominium unit; and (B) with respect to
the Home Loans (a) approximately  6.97% (by Cut-Off Date Principal  Balance) are
secured by real  property  improved by  individual  condominium  units,  and (b)
approximately  87.43% (by Cut-Off  Date  Principal  Balance) are secured by real
property with a single family residence erected thereon;

(xxvi) As of the Cut-Off  Date no Initial  Home Loan had a principal  balance in
excess of $64,971.01;

<PAGE>

(xxvii)  No more  than  approximately  99.60%  of the  Initial  Home  Loans,  by
aggregate Principal Balance as of the Cut-Off Date, are secured by second liens;

(xxviii) A policy of hazard  insurance and flood insurance,  if applicable,  was
required from the Mortgagor for the Home Loan when the Home Loan was originated;

(xxix)  Other  than with  respect  to a payment  default,  there is no  material
default,  breach, violation or event of acceleration existing under the terms of
any Mortgage  Note or Mortgage and, to the best of GMACM's  knowledge,  no event
which, with notice and expiration of any grace or cure period,  would constitute
a material default,  breach,  violation or event of acceleration under the terms
of any  Mortgage  Note  or  Mortgage,  and no  such  material  default,  breach,
violation  or event  of  acceleration  has been  waived  by  GMACM  involved  in
originating or servicing the related Home Loan;

(xxx) To the best  knowledge of GMACM,  no  instrument  of release or waiver has
been  executed in  connection  with the Home Loans,  and no  Mortgagor  has been
released, in whole or in part from its obligations in connection therewith;

(xxxi) With respect to each Home Loan  secured by a second  lien,  either (a) no
consent for such Home Loan was  required by the holder or holders of the related
prior lien,  (b) such consent has been  obtained and is contained in the related
Mortgage File or (c) no consent for such Home Loan was required by relevant law;
and

(xxxii) With respect to each Home Loan,  to the extent  permitted by  applicable
law, the related Mortgage contains a customary provision for the acceleration of
the  payment of the unpaid  Principal  Balance of the Home Loan in the event the
related  Mortgaged  Property is sold without the prior  consent of the mortgagee
thereunder.

               With  respect to this  Section  3.1(b),  representations  made by
GMACM with respect to the WG Trust  Initial  Home Loans,  made as of the Cut-Off
Date or the  Closing  Date,  are  made by  GMACM in its  capacity  as  Servicer.
Representations  made by GMACM with respect to the WG Trust  Initial Home Loans,
made as of any other date, are made by GMACM in its capacity as Seller.

     (c) WG  Trust  Representations  and  Warranties.  WG Trust  represents  and
warrants to the Purchaser, as of the Closing Date:

               (i)    As to WG Trust:

     (i) WG Trust is a Delaware business trust duly organized,  validly existing
and in good standing under the laws of the State of Delaware;

(ii) WG Trust has the power and authority to make, execute,  deliver and perform
its obligations  under this Agreement and all of the  transactions  contemplated
under  this  Agreement,  and has taken all  necessary  action to  authorize  the
execution, delivery and performance of this Agreement;

<PAGE>

(iii) WG Trust is not  required to obtain the consent of any other Person or any
consents,  licenses,  approvals or  authorizations  from,  or  registrations  or
declarations  with, any governmental  authority,  bureau or agency in connection
with the execution,  delivery,  performance,  validity or enforceability of this
Agreement, except for such consents, licenses,  approvals or authorizations,  or
registrations or declarations, as shall have been obtained or filed, as the case
may be;

(iv)  The  execution  and  delivery  of  this  Agreement  by WG  Trust  and  its
performance  and compliance with the terms of this Agreement will not violate WG
Trust's  organizational  documents or constitute a material default (or an event
which,  with  notice or lapse of time,  or both,  would  constitute  a  material
default)  under,  or result in the material  breach of, any  material  contract,
agreement  or other  instrument  to  which  WG Trust is a party or which  may be
applicable to WG Trust or any of its assets;

(v) No litigation  before any court,  tribunal or governmental body is currently
pending,  or to the knowledge of WG Trust  threatened,  against WG Trust or with
respect  to this  Agreement  that in the  opinion  of WG Trust has a  reasonable
likelihood  of  resulting  in a  material  adverse  effect  on the  transactions
contemplated by this Agreement;

(vi) This  Agreement  constitutes  a legal,  valid and binding  obligation of WG
Trust,  enforceable  against WG Trust in  accordance  with its terms,  except as
enforceability   may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium  or other  similar  laws now or  hereafter in effect
affecting the  enforcement  of  creditors'  rights in general and except as such
enforceability   may  be  limited  by  general  principles  of  equity  (whether
considered in a proceeding at law or in equity) or by public policy with respect
to indemnification under applicable securities laws;

(vii)  This  Agreement  constitutes  a  valid  transfer  and  assignment  to the
Purchaser  of all right,  title and  interest of WG Trust in and to the WG Trust
Initial Home Loans,  including the Cut-Off Date Principal  Balances with respect
to the WG Trust Initial Home 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 WG Trust Initial Home Loans; and

(viii) WG Trust is not in  default  with  respect  to any order or decree of any
court or any order,  regulation  or demand of any federal,  state,  municipal or
governmental agency, which default might have consequences that would materially
and adversely affect the condition  (financial or otherwise) or operations of WG
Trust or its  properties  or  might  have  consequences  that  would  materially
adversely affect its performance hereunder.

               (ii)   As to the WG Trust Initial Home Loans:

(i) With respect to the WG Trust  Initial Home Loans:  (A) The related  Mortgage
Note  and the  Mortgage  have not  been  assigned  or  pledged,  except  for any
assignment or pledge that has been satisfied and released, (B) immediately prior
to the  assignment of the Home Loans to the  Purchaser,  WG Trust had good title
thereto  and (C) WG Trust is the sole owner and holder of the Home Loan free and
clear of any and all liens, encumbrances,  pledges, or security interests (other

<PAGE>

than,  with respect to any Home Loan in a second lien position,  the lien of the
related first  mortgage) of any nature and has full right and  authority,  under
all governmental and regulatory bodies having jurisdiction over the ownership of
the  applicable  Home  Loans  to sell  and  assign  the  same  pursuant  to this
Agreement;

(ii) For each WG Trust Initial Home Loan, the related  Mortgage File contains or
will contain, in accordance with Section  2.1(c)(ii),  each of the documents and
instruments specified to be included therein;

(iii) WG  Trust  has not  transferred  the WG Trust  Initial  Home  Loans to the
Purchaser with any intent to hinder, delay or defraud any of its creditors; and

(iv) No  instrument  of  release  or  waiver  has been  executed  by WG Trust in
connection  with the WG Trust  Initial  Home Loans,  and no  Mortgagor  has been
released by WG Trust,  in whole or in part,  from its  obligations in connection
therewith.

        (d) Upon  discovery by either Seller or upon notice from the  Purchaser,
the Credit Enhancer, the Issuer, the Owner Trustee, the Indenture Trustee or the
Custodian,   as   applicable,   of  a  breach   of  such   Seller's   respective
representations  or warranties in paragraph (a) or (c)(i) above that  materially
and  adversely  affects  the  interests  of the  Securityholders  or the  Credit
Enhancer,  as applicable,  in any Home Loan,  GMACM or WG Trust,  as applicable,
shall,  within 90 days of its discovery or its receipt of notice of such breach,
either (i) cure such breach in all material  respects or (ii) to the extent that
such  breach is with  respect to a Home Loan or a Related  Document,  either (A)
repurchase  such Home  Loan from the  Issuer  at the  Repurchase  Price,  or (B)
substitute  one or more  Eligible  Substitute  Loans for such Home Loan, in each
case in the  manner and  subject to the  conditions  and  limitations  set forth
below.

        Upon discovery by either Seller or upon notice from the  Purchaser,  the
Credit Enhancer,  the Issuer,  the Owner Trustee,  the Indenture  Trustee or the
Custodian,   as   applicable,   of  a  breach   of  such   Seller's   respective
representations  or warranties in paragraphs  (b) or (c) above,  with respect to
any Home Loan, or upon the occurrence of a Repurchase Event, that materially and
adversely affects the interests of the  Securityholders,  the Credit Enhancer or
the Purchaser in such Home Loan (notice of which shall be given to the Purchaser
by the  respective  Seller,  if it  discovers  the same),  notwithstanding  such
Seller's lack of knowledge with respect to the substance of such  representation
and  warranty,  such  Seller  shall,  within 90 days  after the  earlier  of its
discovery or receipt of notice  thereof,  either cure such breach or  Repurchase
Event in all material  respects or either (i) repurchase such Home Loan from the
Issuer  at the  Repurchase  Price,  or  (ii)  substitute  one or  more  Eligible
Substitute  Loans for such Home Loan,  in each case in the manner and subject to
the  conditions  set forth below.  The  Repurchase  Price for any such Home Loan
repurchased  by such Seller  shall be deposited or caused to be deposited by the
Servicer into the Custodial Account.

        In the event  that  either  Seller  elects  to  substitute  an  Eligible
Substitute  Loan or Loans for a Deleted Loan  pursuant to this Section 3.1, such
Seller shall deliver to the  Custodian on behalf of the Issuer,  with respect to
such Eligible Substitute Loan or Loans, the original Mortgage Note and all other
documents and  agreements as are required by Section  2.1(c),  with the Mortgage
Note endorsed as required by Section 2.1(c). No substitution will be made in any
calendar month after the Determination Date for such month. Monthly Payments due
with respect to Eligible Substitute Loans in the month of substitution shall not
be part of the Trust Estate and will be retained by the Servicer and remitted by
the Servicer to such Seller on the next succeeding Payment Date, provided that a
payment equal to the applicable Monthly Payment for such month in respect of the

<PAGE>

Deleted  Loan has been  received by the Issuer.  For the month of  substitution,
distributions  to the Note Payment Account  pursuant to the Servicing  Agreement
will  include  the  Monthly  Payment  due on a Deleted  Loan for such  month and
thereafter  such Seller  shall be  entitled  to retain all  amounts  received in
respect of such Deleted  Loan.  The Servicer  shall amend or cause to be amended
the Home Loan  Schedule  to reflect  the  removal of such  Deleted  Loan and the
substitution  of the Eligible  Substitute  Loan or Loans and the Servicer  shall
deliver  the amended  Home Loan  Schedule to the Owner  Trustee,  the  Indenture
Trustee and the Credit Enhancer. Upon such substitution, the Eligible Substitute
Loan or Loans shall be subject to the terms of this  Agreement and the Servicing
Agreement  in all  respects,  such  Seller  shall  be  deemed  to have  made the
representations  and  warranties  with respect to the Eligible  Substitute  Loan
contained herein set forth in Section 3.1(b) (other than clauses (xiii),  (xiv),
(xxiv),   (xxv)  and  (xxvii)   thereof),   with   respect  to  GMACM,   or  the
representations  and warranties set forth in Section 3.1(c),  with respect to WG
Trust,  each as of the date of substitution  and a  representation  and warranty
that each Home Loan so substituted is an Eligible Substitute Loan as of the date
of substitution,  and such Seller shall be obligated to repurchase or substitute
for any Eligible  Substitute Loan as to which a Repurchase Event has occurred as
provided  herein.  In connection  with the  substitution of one or more Eligible
Substitute Loans for one or more Deleted Loans, the Servicer shall determine the
amount (such amount, a "Substitution  Adjustment Amount"),  if any, by which the
aggregate principal balance of all such Eligible Substitute Loans as of the date
of substitution is less than the aggregate principal balance of all such Deleted
Loans (after application of the principal portion of the Monthly Payments due in
the month of substitution that are to be distributed to the Note Payment Account
in the month of  substitution).  Such  Seller  shall  deposit the amount of such
shortfall into the Custodial  Account on the date of  substitution,  without any
reimbursement therefor.

        Upon  receipt by the  Indenture  Trustee on behalf of the Issuer and the
Custodian of written notification, signed by a Servicing Officer, of the deposit
of such Repurchase Price or of such substitution of an Eligible  Substitute Loan
(together with the complete related Mortgage File) and deposit of any applicable
Substitution  Adjustment  Amount as provided above, the Custodian,  on behalf of
the Indenture  Trustee,  shall release to such Seller the related  Mortgage File
for the Home Loan being repurchased or substituted for and the Indenture Trustee
on behalf of the Issuer shall execute and deliver such  instruments  of transfer
or assignment prepared by the Servicer,  in each case without recourse, as shall
be  necessary  to vest in such Seller or its  designee  such Home Loan  released
pursuant  hereto  and  thereafter  such Home  Loan  shall not be an asset of the
Issuer.
        It is understood  and agreed that the  obligation of each Seller to cure
any breach,  or to repurchase or substitute for any Home Loan as to which such a
breach  has  occurred  and is  continuing,  shall  constitute  the  sole  remedy
respecting   such  breach   available  to  the   Purchaser,   the  Issuer,   the
Certificateholders  (or the Owner  Trustee on behalf of the  Certificateholders)
and the  Noteholders  (or the  Indenture  Trustee on behalf of the  Noteholders)
against such Seller.

        It is understood and agreed that the  representations and warranties set
forth in this  Section 3.1 shall  survive  delivery of the  respective  Mortgage
Files to the Issuer or the Custodian.

<PAGE>

                                   ARTICLE IV

                               SELLERS' COVENANTS

Section 4.1 Covenants of the Sellers.  Each Seller hereby covenants that, except
for the transfer  hereunder  and,  with respect to GMACM,  as of any  Subsequent
Transfer Date, neither Seller will sell, pledge, assign or transfer to any other
Person,  or grant,  create,  incur or assume any Lien on any Home  Loan,  or any
interest  therein.  Each  Seller  shall  notify  the  Issuer (in the case of the
Initial Home Loans, as assignee of the Purchaser),  of the existence of any Lien
(other  than as  provided  above) on any Home Loan  immediately  upon  discovery
thereof;  and each  Seller  shall  defend the right,  title and  interest of the
Issuer (in the case of the Initial Home Loans, as assignee of the Purchaser) in,
to and under the Home Loans against all claims of third parties claiming through
or under such Seller; provided,  however, that nothing in this Section 4.1 shall
be deemed to apply to any Liens for  municipal  or other  local  taxes and other
governmental charges if such taxes or governmental charges shall not at the time
be due and  payable  or if either  Seller  shall  currently  be  contesting  the
validity thereof in good faith by appropriate Proceedings.

                                   ARTICLE V

                                    SERVICING

Section 5.1 Servicing.  GMACM shall service the Home Loans pursuant to the terms
and  conditions  of the  Servicing  Agreement  and the  Program  Guide and shall
service  the  Home  Loans  directly  or  through  one or more  sub-servicers  in
accordance therewith.

                                   ARTICLE VI

                         INDEMNIFICATION BY THE SELLERS
                       WITH RESPECT TO THE MORTGAGE LOANS

Section 6.1  Limitation  on  Liability of the  Sellers.  None of the  directors,
officers,  employees  or agents of either  GMACM or WG Trust  shall be under any
liability  to the  Purchaser,  it  being  expressly  understood  that  all  such
liability  is  expressly   waived  and  released  as  a  condition  of,  and  as
consideration  for, the execution of this Agreement and any Subsequent  Transfer
Agreement.  Except as and to the  extent  expressly  provided  in the  Servicing
Agreement,  GMACM and WG Trust shall not be under any  liability  to the Issuer,
the Owner Trustee, the Indenture Trustee or the Securityholders. GMACM, WG Trust
and any director,  officer,  employee or agent of GMACM or WG Trust, may rely in
good  faith on any  document  of any kind  prima  facie  properly  executed  and
submitted by any Person respecting any matters arising hereunder.

<PAGE>

                                  ARTICLE VII

                                   TERMINATION

Section 7.1  Termination.  The obligations and  responsibilities  of the parties
hereto shall terminate upon the termination of the Trust Agreement.

ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

Section 8.1  Amendment.  This  Agreement may be amended from time to time by the
parties hereto by written agreement with the prior written consent of the Credit
Enhancer (which consent shall not be unreasonably withheld).

Section 8.2 GOVERNING LAW. THIS AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK AND THE  OBLIGATIONS,  RIGHTS
AND REMEDIES OF THE PARTIES  HEREUNDER  SHALL BE DETERMINED  IN ACCORDANCE  WITH
SUCH LAWS.

Section 8.3 Notices. All demands,  notices and communications hereunder shall be
in writing and shall be deemed to have been duly given if  personally  delivered
at or mailed by registered mail, postage prepaid, addressed as follows:

(i)     if to the GMACM:

                          GMAC Mortgage Corporation
                          100 Witmer Road
                          Horsham, Pennsylvania  10944
                  Attention: Barry Bier, Senior Vice President
                       Re: GMACM Home Loan Trust 2000-CL1;

(ii)    if to WG Trust:

                          =========================
                          -------------------------
                          Attention: __________________________
                          Re:GMACM Home Loan Trust 2000-CL1;

<PAGE>

(iii)   if to the Purchaser:

                    Residential Asset Mortgage Products, Inc.
                          8400 Normandale Lake Boulevard
                          Minneapolis, Minnesota 55437
                          Attention:President
                       Re: GMACM Home Loan Trust 2000-CL1;

(iv)    if to the Indenture Trustee:

                          Wells Fargo Bank Minnesota, N.A.
                          11000 Broken Land Parkway
                          Columbia, Maryland 21044
                   Attention: GMACM Home Loan Trust 2000-CL1;

(v)     if to the Issuer:

                          c/o Wilmington Trust Company, as Owner Trustee
                          Rodney Square North
                          1100 North Market Street
                          Wilmington, Delaware 19890-0001
                     Re: GMACM Home Loan Trust 2000-CL1; or

(vi)    if to the Credit Enhancer:

                          Ambac Assurance Corporation
                          One State Street Plaza, 19th Floor
                          New York, New York  10004
                          Attention:Consumer Asset-Backed Securities Group
                       Re: GMACM Home Loan Trust 2000-CL1;

or, with respect to any of the foregoing  Persons,  at such other address as may
hereafter be furnished to the other foregoing Persons in writing.

Section 8.4  Severability  of  Provisions.  If any one or more of the covenants,
agreements,  provisions or terms of this Agreement shall be held invalid for any
reason whatsoever, then such covenants, agreements, provisions or terms shall be
deemed severable from the remaining covenants,  agreements,  provisions or terms
of this Agreement and shall in no way affect the validity of  enforceability  of
the other provisions of this Agreement.

Section 8.5 Relationship of Parties. Nothing herein contained shall be deemed or
construed to create a partnership or joint venture among the parties hereto, and
the services of the GMACM shall be rendered as an independent contractor and not
as agent for the Purchaser.

Section  8.6  Counterparts.  This  Agreement  may be  executed  in any number of
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts, together, shall constitute one and the same agreement.

<PAGE>

Section 8.7  Further  Agreements.  The parties  hereto each agree to execute and
deliver to the other such additional documents, instruments or agreements as may
be necessary or appropriate to effectuate the purposes of this Agreement.

Section 8.8 Intention of the Parties.  It is the intention of the parties hereto
that the Purchaser  will be purchasing on the Closing Date, and the Sellers will
be  selling on the  Closing  Date,  the  Initial  Home  Loans,  rather  than the
Purchaser  providing a loan to the Sellers  secured by the Initial Home Loans on
the Closing  Date;  and that the Issuer will be  purchasing  on each  Subsequent
Transfer Date, and GMACM will be selling on each  Subsequent  Transfer Date, the
related Subsequent Home Loans,  rather than the Issuer providing a loan to GMACM
secured by the related  Subsequent Home Loans on each Subsequent  Transfer Date.
Accordingly,  the  parties  hereto  each  intend to treat this  transaction  for
federal income tax purposes as (i) a sale by the Sellers,  and a purchase by the
Purchaser,  of the  Initial  Home Loans on the  Closing  Date and (ii) a sale by
GMACM,  and a purchase by the Issuer,  of the related  Subsequent  Home Loans on
each Subsequent  Transfer Date. The Purchaser and the Issuer shall each have the
right to review  the Home  Loans and the  Related  Documents  to  determine  the
characteristics  of the Home Loans  which will  affect  the  federal  income tax
consequences of owning the Home Loans,  and each Seller shall cooperate with all
reasonable  requests  made by the  Purchaser or the Issuer in the course of such
review.

Section 8.9    Successors and Assigns; Assignment of This Agreement.

(a) This Agreement  shall bind and inure to the benefit of and be enforceable by
the parties hereto and their respective  permitted  successors and assigns.  The
obligations of each Seller under this Agreement  cannot be assigned or delegated
to a third party  without the consent of the Credit  Enhancer and the  Purchaser
(and the Issuer with  respect to the  transfer of any  Subsequent  Home  Loans),
which consent shall be at the Purchaser's sole discretion (and the Issuer's sole
discretion with respect to the transfer of any Subsequent Home Loans); provided,
that each Seller may assign its  obligations  hereunder to any Affiliate of such
Seller,  to any Person  succeeding to the business of such Seller, to any Person
into which such  Seller is merged and to any Person  resulting  from any merger,
conversion or  consolidation to which such Seller is a party. The parties hereto
acknowledge  that (i) the  Purchaser is acquiring the Initial Home Loans for the
purpose of contributing  them to the GMACM Home Loan Trust 2000-CL1 and (ii) the
Issuer is acquiring  the  Subsequent  Home Loans for the purpose of pledging the
Subsequent  Home  Loans  to  the  Indenture  Trustee  for  the  benefit  of  the
Noteholders and the Credit Enhancer.

(b) As an  inducement  to the  Purchaser  and the Issuer to purchase the Initial
Home Loans and to the Issuer to purchase any Subsequent Home Loans,  each Seller
acknowledges  and consents to (i) the  assignment by the Purchaser to the Issuer
of all of the Purchaser's  rights against each Seller pursuant to this Agreement
insofar as such  rights  relate to the  Initial  Home Loans  transferred  to the
Issuer and to the  enforcement or exercise of any right or remedy against either
Seller  pursuant  to this  Agreement  by the  Issuer,  (ii) the  enforcement  or
exercise of any right or remedy against either Seller pursuant to this Agreement
by or on behalf of the Issuer and (iii) the  Issuer's  pledge of its interest in
this  Agreement to the Indenture  Trustee and the  enforcement  by the Indenture
Trustee of any such right or remedy against either Seller  following an Event of
Default  under  the  Indenture.  Such  enforcement  of a right or  remedy by the
Issuer,  the Owner Trustee,  the Credit  Enhancer or the Indenture  Trustee,  as
applicable,  shall  have the same force and effect as if the right or remedy had
been enforced or exercised by the Purchaser or the Issuer directly.

<PAGE>

Section 8.10 Survival.  The  representations  and warranties made herein by each
Seller and the provisions of Article VI hereof shall survive the purchase of the
Initial Home Loans  hereunder and any transfer of Subsequent Home Loans pursuant
to this Agreement and the related Subsequent Transfer Agreement.

Section 8.11 Third Party Beneficiary. The Credit Enhancer shall be a third party
beneficiary  hereof and shall be  entitled  to enforce  the  provisions  of this
Agreement as if a party hereto.

<PAGE>

        IN WITNESS  WHEREOF,  the parties  hereto have caused  their names to be
signed  to this  Home  Loan  Purchase  Agreement  by their  respective  officers
thereunto duly authorized as of the day and year first above written.

                                RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC., as
                                Purchaser

                                            By: /s/ Patricia C. Taylor
                                                Name:  Patricia C. Taylor
                                                Title:    Vice President

                                            GMAC MORTGAGE CORPORATION,
                                               as Seller and Servicer

                                            By: /s/ Thomas J. O'Hara
                                                Name:  Thomas J. O'Hara
                                                Title:    Vice President

                                WALNUT GROVE HOME EQUITY LOAN TRUST 2000-A, as
                         Seller

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

                                            By: /s/ Donald G. MacKelcan
                                                Name:  Donald G. MacKelcan
                                                Title:    Vice President

                          GMACM HOME LOAN TRUST 2000-CL1, as Issuer

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

                          By: /s/ Donald G. MacKelcan
                              Name:  Donald G. MacKelcan
                              Title:    Vice President

                          WELLS FARGO BANK MINNESOTA, N.A., as Indenture
                                     Trustee

                            By: /s/ Peter A. Gobell
                                Name:  Peter A. Gobell
                                Title:    Assistant Vice President

<PAGE>

                                    EXHIBIT 1

                               HOME LOAN SCHEDULE

                          [See Exhibit A to the Servicing Agreement]

<PAGE>

                                    EXHIBIT 2

                      FORM OF SUBSEQUENT TRANSFER AGREEMENT

        Pursuant to this Subsequent  Transfer  Agreement No. (the  "Agreement"),
dated as of , , between GMAC Mortgage Corporation, as seller (the "Seller"), and
GMACM Home Loan Trust 2000-CL1,  as issuer (the  "Issuer"),  and pursuant to the
loan purchase  agreement dated as of September 28, 2000 (the "Home Loan Purchase
Agreement"),  among the  Seller,  as a seller and  servicer,  Walnut  Grove Home
Equity Loan Trust 2000-A,  as a seller,  Residential  Asset  Mortgage  Products,
Inc., as purchaser (the "Purchaser"), the Issuer and Wells Fargo Bank Minnesota,
N.A., as indenture trustee (the "Indenture Trustee"),  the Seller and the Issuer
agree to the sale by the Seller and the  purchase by the Issuer of the  mortgage
loans listed on the attached  Schedule of Subsequent Home Loans (the "Subsequent
Home Loans").

        Capitalized  terms used and not  defined  herein  have their  respective
meanings as set forth in Appendix A to the  indenture  dated as of September 28,
2000,  between  the  Issuer  and  the  Indenture  Trustee,  which  meanings  are
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

        Section 1.    Sale of Subsequent Home Loans.

        (a) The Seller does hereby sell,  transfer,  assign, set over and convey
to the Issuer,  without recourse, all of its right, title and interest in and to
the Subsequent Home Loans, all principal  received and interest  accruing on the
Subsequent  Home Loans on and after the Subsequent  Cut-Off Date, all monies due
or to become  due  relating  to such  Subsequent  Home  Loans and all items with
respect to the Subsequent Home Loans to be delivered  pursuant to Section 2.2 of
the Home Loan Purchase Agreement;  provided,  however,  that the Seller reserves
and  retains all right,  title and  interest in and to  principal  received  and
interest  accruing on the Subsequent Home Loans prior to the Subsequent  Cut-Off
Date. The Seller,  contemporaneously  with the delivery of this  Agreement,  has
delivered or caused to be delivered to the Indenture Trustee each item set forth
in Section 2.2 of the Home Loan Purchase Agreement.

        The  transfer to the Issuer by the Seller of the  Subsequent  Home Loans
identified  on the Home Loan  Schedule  shall be absolute and is intended by the
parties  hereto  to  constitute  a sale  by the  Seller  to  the  Issuer  on the
Subsequent Transfer Date of all the Seller's right, title and interest in and to
the Subsequent  Home Loans,  and other  property as and to the extent  described
above,  and the  Issuer  hereby  acknowledges  such  transfer.  In the event the
transactions  set forth  herein  shall be deemed  not to be a sale,  the  Seller
hereby  grants  to the  Issuer as of the  Subsequent  Transfer  Date a  security
interest in all of the Seller's  right,  title and interest in, to and under all
accounts, chattel papers, general intangibles,  contract rights, certificates of
deposit,  deposit accounts,  instruments,  documents,  letters of credit, money,
advices of credit,  investment property, goods and other property consisting of,
arising under or related to the Subsequent Home Loans,  and such other property,
to secure all of the Issuer's  obligations  hereunder,  and this Agreement shall
constitute a security  agreement under applicable law. The Seller agrees to take
or cause to be taken such  actions  and to  execute  such  documents,  including
without limitation the filing of all necessary UCC-1 financing  statements filed
in the State of Delaware and the  Commonwealth of  Pennsylvania  (which shall be
submitted  for filing as of the  Subsequent  Transfer  Date),  any  continuation
statements with respect thereto and any amendments thereto required to reflect a
change in the name or  corporate  structure  of the  Seller or the filing of any
additional UCC-1 financing  statements due to the change in the principal office
of the Seller, as are necessary to perfect and protect the Issuer's interests in
each Subsequent Home Loan and the proceeds thereof.

<PAGE>

        (b) The  expenses and costs  relating to the delivery of the  Subsequent
Home Loans,  this Agreement and the Home Loan Purchase  Agreement shall be borne
by the Seller.

     (c) Additional terms of the sale are set forth on Attachment A hereto.

        Section 2.    Representations and Warranties; Conditions Precedent.

        (a) The Seller hereby  affirms the  representations  and  warranties set
forth in Section  3.1 of the Home Loan  Purchase  Agreement  that  relate to the
Seller or the  Subsequent  Home Loans as of the date hereof.  The Seller  hereby
confirms  that each of the  conditions  set forth in Section  2.2(b) of the Home
Loan  Purchase  Agreement  are  satisfied  as of the  date  hereof  and  further
represents  and  warrants  that  each  Subsequent  Home Loan  complies  with the
requirements  of this  Agreement  and Section  2.2(c) of the Home Loan  Purchase
Agreement.

        (b) The Seller is  solvent,  is able to pay its debts as they become due
and has  capital  sufficient  to  carry  on its  business  and  its  obligations
hereunder;  it will not be rendered  insolvent by the  execution and delivery of
this  Instrument or by the  performance of its  obligations  hereunder nor is it
aware  of  any  pending  insolvency;  no  petition  of  bankruptcy  (or  similar
insolvency proceeding) has been filed by or against the Seller prior to the date
hereof.

        (c) All  terms  and  conditions  of the  Home  Loan  Purchase  Agreement
relating  to the  Subsequent  Home  Loans are  hereby  ratified  and  confirmed;
provided,  however,  that in the event of any  conflict the  provisions  of this
Agreement  shall  control  over the  conflicting  provisions  of the  Home  Loan
Purchase Agreement.

        Section  3.  Recordation  of  Instrument.  To the  extent  permitted  by
applicable law or a memorandum  thereof if permitted under  applicable law, this
Agreement is subject to recordation in all  appropriate  public offices for real
property  records in all of the counties or other  comparable  jurisdictions  in
which  any or all  of the  properties  subject  to  the  related  Mortgages  are
situated,  and in any other  appropriate  public  recording office or elsewhere,
such recordation to be effected by the Servicer at the  Noteholders'  expense on
direction  of the Majority  Noteholders  or the Credit  Enhancer,  but only when
accompanied  by an  Opinion  of  Counsel  to the  effect  that such  recordation
materially  and  beneficially  affects the interests of the  Noteholders  or the
Credit  Enhancer or is  necessary  for the  administration  or  servicing of the
Subsequent Home Loans.

        Section  4.  GOVERNING  LAW.  THIS  INSTRUMENT  SHALL  BE  CONSTRUED  IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK AND THE  OBLIGATIONS,  RIGHTS
AND REMEDIES OF THE PARTIES  HEREUNDER  SHALL BE DETERMINED  IN ACCORDANCE  WITH
SUCH LAWS.

<PAGE>

     Section 5.  Counterparts.  This Instrument may be executed in counterparts,
each of which, when so executed,  shall be deemed to be an original and together
shall constitute one and the same instrument.

     Section 6.  Successors  and  Assigns.  This  Agreement  shall  inure to the
benefit  of and be binding  upon the Seller and the Issuer and their  respective
successors and assigns.

                        GMAC MORTGAGE CORPORATION,
                           as Seller

                        By:
                            Name:
                            Title:

                        GMACM HOME LOAN TRUST 2000-CL1, as Issuer

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

                        By:
                            Name:
                            Title:

                      Attachments

A. Additional terms of sale.
B. Schedule of Subsequent Home Loans.
C. Seller's Officer's Certificate.
D. Seller's Officer's Certificate (confirmation of Credit Enhancer approval).

<PAGE>

3

                                GMACM HOME LOAN TRUST 2000-CL1

                    ATTACHMENT A TO FORM OF SUBSEQUENT TRANSFER AGREEMENT

                                      ------------, ----

A.
      1.   Subsequent Cut-Off Date:
      2.   Pricing Date:
      3.   Subsequent Transfer Date:
      4.   Aggregate Principal Balance of the Subsequent Home Loans as of
           the Subsequent Cut-Off Date:
      5.   Purchase Price:                                100.00%
B.
As to all Subsequent Home Loans:
      1.   Longest stated term to maturity:                          months
                                                          ----------
      2.   Minimum Loan Rate:                                        %
                                                          ----------
      3.   Maximum Loan Rate:                                        %
                                                          ----------
      4.   WAC of all Subsequent Home Loans:                         %
                                                          ----------
      5.   WAM of all Subsequent Home Loans:                         %
                                                          ----------
      6.   Largest Principal Balance:                     $
      7.   Non-owner occupied Mortgaged Properties:                  %
                                                          ----------
      8.   California zip code concentrations:                % and      %
                                                          ----      ----
      9.   Condominiums:                                             %
                                                          ----------
      10.  Single-family:                                            %
                                                          ----------
      11.  Weighted average term since origination:                 %
                                                          ----------
      12.  Principal balance of Subsequent Home Loans with respect to        $
           which the Mortgagor is an employee of GMACM or an affiliate of
           GMACM:
      13.  Number of Subsequent Home Loans with respect to which the
           Mortgagor is an employee of GMACM or an affiliate of GMACM:

<PAGE>

                                    EXHIBIT 3

                             FORM OF ADDITION NOTICE

DATE:

Wells Fargo Bank Minnesota, N.A.                 Moody's Investors Service, Inc.
11000 Broken Land Parkway                         99 Church Street
Columbia, Maryland 21044                          New York, New York 10007

Ambac Assurance Corporation                       Fitch, Inc.
One State Street Plaza, 19th Floor                One State Street Plaza
New York, New York  10004                         New York, New York 10004
Attention: Consumer Asset-Backed Securities
Group
Re: GMACM Home Loan Trust 2000-CL1;

Standard & Poor's, a division of The              Wilmington Trust Company
McGraw-Hill Companies, Inc.                       1100 North Market Street
26 Broadway                                       Wilmington, Delaware 19890
New York, New York 10004-1064

                       Re: GMACM Home Loan Trust 2000-CL1

Ladies and Gentlemen:

        Pursuant to Section 2.2 of the home loan purchase  agreement dated as of
September 28, 2000 (the "Purchase Agreement"),  among GMAC Mortgage Corporation,
as Seller and Servicer,  Walnut Grove Home Equity Loan Trust 2000-A,  as Seller,
Residential Asset Mortgage Products,  Inc., as Purchaser,  GMACM Home Loan Trust
2000-CL1, as Issuer and Wells Fargo Bank Minnesota,  N.A., as Indenture Trustee,
the Seller has designated the Subsequent Home Loans  identified on the Home Loan
Schedule  attached  hereto  to be sold to the  Issuer  on , , with an  aggregate
Principal Balance of $ . Capitalized terms not otherwise defined herein have the
meaning set forth in the Appendix A to the  indenture  dated as of September 28,
2000, between the Issuer and the Indenture Trustee.

        Please  acknowledge  your receipt of this notice by  countersigning  the
enclosed copy in the space  indicated below and returning it to the attention of
the undersigned.

                                            Very truly yours,

                                            GMAC MORTGAGE CORPORATION,
                                               as Seller

                                            By:
                                                Name:
                                                Title:

ACKNOWLEDGED AND AGREED:

WELLS FARGO BANK MINNESOTA, N.A.,
    as Indenture Trustee

By:
    Name:
    Title:

<PAGE>

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