Document:

Placement Agt  (N0000931.DOC;1)

SJ&H DRAFT

5/6/04

UNIVERSAL GUARDIAN HOLDINGS INC.

PLACEMENT AGENT AGREEMENT

Dated as of: January 12, 2005

Hunter World Markets, Inc

9300 Wilshire Boulevard

Penthouse Suite

Beverly Hills, CA 90212

Ladies and Gentlemen:

The undersigned, Universal Guardian Holdings Inc. (the “Company”), hereby agrees with Hunter World Markets, Inc. (“Hunter”) as follows:

1.

Placement.  

 

The Company hereby engages Hunter to act as its exclusive placement agent (except as hereinafter provided) in a transaction on a “best efforts” basis involving the issuance and sale by the Company (the “Offering”) of $500,000 principal amount Universal Guardian Holdings Inc. 6 Month Secured Convertible Debentures (the “Debentures”). The Debentures will be secured by a pledge of 750,000 shares under a Pledge Agreement (the “Pledge Agreement”) dated the date of the Debentures by certain officers and employees of the Company in favor of the holders of the Debentures. 

 

The closing of the Offering will take place on January 10, 2005. The current penalty of $30,000 due Hunter in respect of the Company’s  failure to file an SB-2 Registration Statement under paragraph 5.1(a) of that certain May 25, 2004, Common Stock Purchase Agreement (“Common Stock Purchase Agreement”) will be deducted from the proceeds of the Offering and paid to Hunter. Thereafter, the monthly  penalty as provided for under the Common  Stock Purchase Agreement  shall remain in effect , and shall be payable by the Company no later than the 25th day of each calendar month.

 

Hunter shall not be obligated to sell any Debentures and this Offering by Hunter shall be solely on a “best efforts basis.”  

On or before February 11, 2005, the Company shall file a Form SB-2 with the SEC the closing of the Debentures covering not only previous securities with respect to which existing agreements between Hunter and the Company  that are in place, but also all warrants owned by Hunter, all shares into which the Debentures are convertible and such other shares as 

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Hunter shall approve in writing.  The Company shall use its best efforts to have the SB-2 declared effective within 120 days of the closing.  

    The Offering shall be conducted pursuant to Regulation D promulgated by the Securities and Exchange Commission (the “SEC”) and shall be offered and sold only to “Accredited Investors” as that term is defined in Regulation D.  The Offering is intended to qualify as a Regulation D, Rule 506 transaction.  

2.

Compensation.

As compensation for the Debentures sold by Hunter, Hunter will receive the following: (i)  $ 40,000 deducted from the proceeds of the Offering,  (ii) Hunter’s attorney fees of $ 7,500, also deducted from the proceeds of the Offering  (iii) reduction of the exercise price of that certain Common Stock Purchase Warrant issued May 25, 2004, as No. 052604-01 (“Warrant No. 052604-1”) from $1.50 per shares to $1.00 per share (iv) reduction of the exercise price of that certain Common Stock Purchase Warrant issued May 25, 2004, as No. 052604-02 (“Warrant No. 052604-02”) from $2.00 per share to $1.25 per share and (v) issuance of a new warrant, in substantially the same form as the above described warrants entitling the holder(s) of the Debenture to purchase an aggregate of 250,000 shares of common stock of the Company at an exercise price of $2.00 per share for a five year period commencing on the closing of the Offering.  Notwithstanding any provision herein to the contrary, in the event the volume average weighted price (VWAP) of the Company’s common stock equals or exceeds $5.00 per share for a period of five (5) consecutive days or more after the closing of the Offering, the exercise price of Warrant No. 052604-01 shall return to $1.50 per share and the exercise price for Warrant No. 052604-2 shall return to $2.00 per share.

3.

Exclusivity.   

Hunter will continue to act as the Company’s exclusive investment banker and placement agent with regard to all financings undertaken by the Company consistent with the terms and conditions of that certain May 21, 2004, Investment Banking Agreement (Investment Banking Agreement”) , provided, however, that the Company may close a PIPE financing with another investment banking firm (“PIPE”) and Hunter hereby waives any right(s) of first refusal as well as any right(s) to collect any compensation, fees or expenses as provided under Investment Banking Agreement or as may otherwise have been agreed in connection with the PIPE, provided, further, that in the event the PIPE results in proceeds to the Company in excess of $2,000,000.00 and is closed on or before March 15, 2005, the Company will prepay the Debentures, principal and interest, in full at the closing of the PIPE. 

4.

Representations, Warranties and Covenants of Hunter.

Hunter represents, warrants and covenants as follows:

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(a)

Hunter has the necessary power to enter into this Agreement and to consummate the transactions contemplated hereby.

(b)

The execution and delivery by Hunter of this Agreement and the consummation of the transactions contemplated herein will not result in any violation of, or be in conflict with, or constitute a default under, any agreement or instrument to which Hunter is a party or by which Hunter or its properties are bound, or any judgment, decree, order or, to Hunter’s knowledge, any statute, rule or regulation applicable to Hunter.  This Agreement, when executed and delivered by Hunter, will constitute the legal, valid and binding obligations of Hunter, enforceable in accordance with their respective terms, except to the extent that (i) the enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws from time to time in effect and affecting the rights of creditors generally, (ii) the enforceability hereof or thereof is subject to general principles of equity, or (iii) the indemnification provisions hereof or thereof may be held to violate public policy.

(c)

Hunter will not deliver any documents related to the Offering to any person it does not reasonably believe to be an Accredited Investor based upon documentary evidence thereof, where appropriate.

(d)

Hunter will not intentionally take any action that it reasonably believes would cause the Offering to violate the provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, the respective rules and regulations promulgated thereunder (the “Rules and Regulations”) or applicable “Blue Sky” laws of any state or jurisdiction.

(e)

Hunter shall use all reasonable efforts to determine (i) whether the Investor is an Accredited Investor and (ii) that any information furnished by the Investor is true and accurate.  Hunter shall have no obligation to insure that any check, note, draft or other means of payment for the Units will be honored, paid or enforceable against the Investor in accordance with its terms.

(f)

Hunter is a member of the NASD, and is a broker-dealer registered as such under the Securities Exchange Act of 1934 and under the securities laws of the states in which the Units will be offered or sold by Hunter, unless an exemption for such state registration is available to Hunter.  Hunter is in compliance with all material rules and regulations applicable to Hunter generally and applicable to Hunter’s participation in the Offering.

5.

Representations and Warranties of the Company.

The Company represents and warrants as follows:

(a)

The execution, delivery and performance of this Agreement has been or will be duly and validly authorized by the Company and will be a valid and binding agreement of the Company, enforceable in accordance with its respective terms, except to the extent that (i) the enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization, 

moratorium or similar laws from time to time in effect and affecting the rights of creditors generally, (ii) the enforceability hereof or thereof is subject to general principles of equity or (iii) the indemnification provisions hereof or thereof may be held to violate public policy.  The securities to be issued pursuant to the transactions contemplated by this Agreement have been duly authorized and, when issued and paid for in accordance with (x) this Agreement and (y) the certificates/instruments representing such securities, will be valid and binding obligations of the Company, enforceable in accordance with their respective terms, except to the extent that (1) the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws from time to time in effect and affecting the rights of creditors generally, and (2) the enforceability thereof is subject to general principles of equity.  All corporate action required to be taken for the authorization, issuance and sale of the securities has been duly and validly taken by the Company.

(b)

The Company has a duly authorized, issued and outstanding capitalization as set forth in the Private Placement Memorandum effective as of the date of the Private Placement Memorandum previously delivered to Hunter in connection with the previous financing (the “PPM”).  The Company is not a party to or bound by any instrument, agreement or other arrangement providing for it to issue any capital stock, rights, warrants, options or other securities, except for this Agreement, the agreements described herein or as set forth in the PPM.  All issued and outstanding securities of the Company, have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof have no rights of rescission or preemptive rights with respect thereto and are not subject to personal liability solely by reason of being security holders; and none of such securities was issued in violation of the preemptive rights of any holders of any security of the Company.  

(c)

The Debenture, when issued and delivered as contemplated hereunder will have been duly authorized executed and delivered by the Company and will be enforceable in accordance with their terms, except as enforceability may affected by bankruptcy and creditors rights generally.  The Common Stock issuable upon exercise of the Debentures and the warrants referred to in Section 2  have been duly authorized and when issued and paid for in accordance with this Agreement and proper exercise of the Debentures and such warrants, respectively, and the certificates/instruments representing such Common Stock, will be validly issued, fully-paid and non-assessable; the holders thereof will not be subject to personal liability solely by reason of being such holders; such securities are not and will not be subject to the preemptive rights of any holder of any security of the Company.

(d)

The Company has good and marketable title to, or valid and enforceable leasehold estates in, all items of real and personal property necessary to conduct its business (including, without limitation any real or personal property to be owned or leased by the Company).  , 

(e)

Other than two labor claims asserted by former employees as well as  a dispute  with the Company’s former investor relations firm concerning an alleged breach of contract, there is no litigation or governmental proceeding pending or, to the best of the 

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Company’s knowledge, there is no threatened litigation or governmental proceeding, against, or involving the properties or business of the Company.  

(f) 

To the best of its knowledge, the Company is not aware of any federal or securities violations by any of its current officers, directors or consultants, nor does the Company believe that any of its officers, directors or consultants are or were the subject of any enforcement proceedings by the SEC or the NASD.  In addition to the Indemnification provisions under Section 11, the Company agrees to indemnify and hold the Placement Agent and its attorneys, accountants, agent and employees, officers and directors, free and harmless from any liability, cost and expense, including attorneys’ fees in the event of a breach of this representation and warranty, except for acts of Hunter involving gross negligence or willful misconduct.

(g)

The Company and each subsidiary, has been duly organized and is a validly existing as a corporation in good standing under the laws of the State of Delaware.  T [NOTE:  The Company owns multiple direct and indirect subsidiaries.]  The Company, and each subsidiary is duly qualified or licensed and in good standing as a foreign corporation in each jurisdiction in which the character of its operations requires such qualification or licensing and where failure to so qualify would have a material adverse effect on the Company.  The Company and each subsidiary has all requisite corporate power and authority, and all material and necessary authorizations, approvals, orders, licenses, certificates and permits of and from all governmental regulatory officials and bodies (domestic and foreign) to conduct its business (and proposed business), and the Company is doing business in strict compliance with all such authorizations, approvals, orders, licenses, certificates and permits and all foreign, federal, state and local laws, rules and regulations concerning the business in which it is engaged.  The Company and each subsidiary has all corporate power and authority to enter into this Agreement, to carry out the provisions and conditions hereof, and all consents, authorizations, approvals and orders required in connection herewith have been obtained.  No consent, authorization or order of, and no filing with, any court, government agency or other body is required by the Company for the issuance of the securities except for applicable federal and state securities laws.  The Company, in the last three years, has not incurred any liability arising under or as a result of the application of any of the provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 or the Rules and Regulations.

(h)

The Company is not in breach of, or in default under, any term or provision of any material indenture, mortgage, deed of trust, lease, note, loan or credit agreement or any other material agreement or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which it is a party or by which it or any of its properties may be bound or affected.  The Company is not in violation of any provision of its charter or by-laws (other than the obligation to hold annual meetings of its shareholders and related matters) or in violation of any franchise, license, permit, judgment, decree or order, or in violation of any statute, rule or regulation.  Neither the execution and delivery of this Agreement, nor the issuance and sale or delivery of the securities, nor the consummation of any of the transactions contemplated herein, has conflicted with or will conflict with, or has resulted in or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute 

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a default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or pursuant to the terms of any indenture, mortgage, deed of trust, note, loan or credit agreement or any other agreement or instrument evidencing an obligation for borrowed money, or any other agreement or instrument to which the Company may be bound or to which any of the property or assets of the Company is subject except (a) where such default, lien, charge or encumbrance would not have a material adverse effect on the Company and (b) nor will such action result in any violation of the provisions of the charter or the by-laws of the Company or, assuming the due performance by Hunter of its obligations hereunder, any statute or any order, rule or regulation applicable to the Company of any court or of any foreign, federal, state or other regulatory authority or other government body having jurisdiction over the Company.

(i)

The information in the PPM, including, without limitation, information concerning any liability or obligation, direct or contingent, for borrowed money, or any transaction other than in the ordinary course of business, or with respect to the declaration or payment of any dividend or other distribution on or in respect of its capital stock and as to any outstanding obligations to any officer or director of the Company, shall be true and correct as of the date of the PPM, and the PPM shall be amended during the Placement Term to update any changes in the information therein.

(j)

There are no claims for services in the nature of a finder’s or origination fee with respect to the sale of the Debentures, or the securities comprising a part thereof, or any other arrangements, agreements or understandings that may affect Hunter's compensation, other than as set forth herein.

(k)

The Company owns or possesses, free and clear of all liens or encumbrances and rights thereto or therein by third parties, the requisite licenses or other rights to use all trademarks, service marks, copyrights, service names, trade names, patents, patent applications and licenses necessary to conduct its business and to the best of the Company’s knowledge there is no claim or action by any person pertaining to, or proceeding, pending or threatened, which challenges the exclusive rights of the Company with respect to any trademarks, service marks, copyrights, service names, trade names, patents, patent applications and licenses used in the conduct of the Company’s businesses except any claim or action that would not have a material adverse effect on the Company; to the best of the Company’s knowledge, the Company’s current products, services or processes do not infringe or will not infringe on the patents currently held by any third party.

(l)

The Company is not under any obligation to pay royalties or fees of any kind whatsoever to any third party with respect to any trademarks, service marks, copyrights, service names, trade names, patents, patent applications, licenses or technology it has developed, uses, employs or intends to use or employ, other than to their respective licensors.

(m)

Subject to the performance by Hunter, of its obligations hereunder, the offer and sale of the Debentures comply in all material respects with the requirements of Rule 

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506 of Regulation D promulgated by the SEC pursuant to the Securities Act of 1933 and any other applicable federal and state laws, rules, regulations and executive orders.  The Company will not cause or knowingly permit any action to be taken in connection with the placement which violates the Securities Act of 1933 or any state securities laws. 

(n)  

All taxes which are due and payable from the Company have been paid in full and the Company does not have any tax deficiency or claim outstanding assessed or proposed against it.

(o)  

None of the Company nor to the best of the Company’s knowledge any of its officers, directors, employees or agents, nor any other person acting on behalf of the Company, has, directly or indirectly, given or agreed to give any money, gift or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic or foreign) or other person who is or may be in a position to help or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) which (i) might subject the Company to any damage or penalty in any civil, criminal or governmental litigation or proceeding, or (ii) if not given in the past, might have had a materially adverse effect on the assets, business or operations of the Company as reflected in any of the financial statements, or (iii) if not continued in the future, might adversely affect the assets, business, operations or prospects of the Company in the future.

(p) 

All information and statements provided by the Company in writing to prospective investors is and will be true and correct.

(q)

Any written offering material prepared by the Company in writing is not misleading or violative of the anti-fraud provisions of the Securities Exchange Act of 1934. 

(r)

The financial statements presented to Hunter fairly reflect the financial condition of the Company and the results of its operations at a time and for the periods covered by the financial statements.

6.

Certain Covenants and Agreements of the Company.

 

The Company covenants and agrees at its expense and without any expense to Hunter as follows:

(a)

To advise Hunter of any material adverse change in the Company’s financial condition, prospects or business or of any development materially affecting the Company or rendering untrue or misleading any material statement in the PPM occurring at any time until the expiration of the exclusivity period referred to in Section 3 of that certain May 21, 2004, Investment Banking Agreement between Hunter and the Company.  The Company shall at all times have sufficient shares authorized and unissued  to keep available out of its authorized 

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Common Stock solely for the purpose of issuance upon the conversion of the Debenture and the exercise of all Warrants described in this Agreement, such number of shares of Common Stock as shall then be issuable upon the exercise or conversion thereof.

(b)

To ensure that any transactions between or among the Company, or any of its officers, directors and affiliates be on terms and conditions that are no less favorable to the Company, than the terms and conditions that would be available in an “arm’s length” transaction with an independent third party.

(c)

To ensure that  the Company will not cause or knowingly permit any action to be taken in connection with the placement which violates the Securities Act of 1933 or any state securities laws;

(d)

To ensure that all information and statements provided by the Company to prospective investors in writing will be true and correct in all material respects;

(e)

To ensure that  any written offering material will not be misleading or violative of the anti- fraud provisions of the Securities and Exchange Act of 1934;

(f)

To cooperate with Hunter as to permit the Offering to be conducted in a manner consistent with the applicable state and federal securities laws.

7.

Indemnification.

(a)

The Company hereby agrees that it will indemnify and hold Hunter and each officer, director, shareholder, employee, attorneys, accountants, agents or representative of Hunter, and each person controlling, controlled by or under common control with Hunter within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934 or the SEC’s rules and regulations promulgated thereunder (the “Rules and Regulations”), harmless from and against any and all loss, claim, damage, liability, cost or expense whatsoever (including, but not limited to, any and all reasonable legal fees and other expenses and disbursements incurred in connection with investigating, preparing to defend or defending any action, suit or proceeding, including any inquiry or investigation, commenced or threatened, or any claim whatsoever or in appearing or preparing for appearance as a witness in any action, suit or proceeding, including any inquiry, investigation or pretrial proceeding such as a deposition including attorneys’ fees in the event of a breach of this representation and warranty) to which Hunter or such indemnified person of Hunter may become subject under the Securities Act of 1933, the Securities Exchange Act of 1934, the Rules and Regulations, or any other federal or state law or regulation, common law or otherwise, arising out of or based upon (i) any untrue statement or alleged untrue statement of a material fact contained in (a) this Agreement, (b) any written offering material prepared by the Company including the PPM (except those written statements relating to Hunter given by an indemnified person for inclusion therein), (c) any application or other document or written communication executed by the Company or based upon written information furnished by the Company filed in any jurisdiction 

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in order to qualify the Units, the Common Stock and the Warrants under the securities laws thereof, or any state securities commission or agency; (ii) the omission or alleged omission from documents described in clauses (a), (b) or (c) above of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iii) the breach of any representation, warranty, covenant or agreement made by the Company in this Agreement.  The Company further agrees that upon demand by an indemnified person, at any time or from time to time, it will promptly reimburse such indemnified person for any loss, claim, damage, liability, cost or expense actually and reasonably paid by the indemnified person as to which the Company has indemnified such person pursuant hereto.  Notwithstanding the foregoing provisions of this Section 13(a), any such payment or reimbursement by the Company of fees, expenses or disbursements incurred by an indemnified person in any proceeding in which a final judgment by a court of competent jurisdiction (after all appeals or the expiration of time to appeal) is entered against Hunter or such indemnified person as a direct result of Hunter or such person’s gross negligence or willful misfeasance will be promptly repaid to the Company.

(b)

Hunter hereby agrees that it will indemnify and hold the Company and each officer, director, shareholder, employee or representative of the Company, and each person controlling, controlled by or under common control with the Company within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934 or the Rules and Regulations, harmless from and against any and all loss, claim, damage, liability, cost or expense whatsoever (including, but not limited to, any and all reasonable legal fees and other expenses and disbursements incurred in connection with investigating, preparing to defend or defending any action, suit or proceeding, including any inquiry or investigation, commenced or threatened, or any claim whatsoever or in appearing or preparing for appearance as a witness in any action, suit or proceeding, including any inquiry, investigation or pretrial proceeding such as a deposition) to which the Company or such indemnified person of the Company may become subject under the Securities Act of 1933, the Securities Exchange Act of 1934, the Rules and Regulations, or any other federal or state law or regulation, common law or otherwise, arising out of or based upon (i) the conduct of Hunter or its officers, employees or representatives in acting as placement agent for the Offering or (ii) the breach of any representation, warranty, covenant or agreement made by Hunter in this Agreement.

(c)

Promptly after receipt by an indemnified party of notice of commencement of any action covered by Section 13(a) or 13(b), the party to be indemnified shall, within five (5) business days, notify the indemnifying party of the commencement thereof; the omission by one indemnified party to so notify the indemnifying party shall not relieve the indemnifying party of its obligation to indemnify any other indemnified party that has given such notice and shall not relieve the indemnifying party of any liability outside of this indemnification if not materially prejudiced thereby.  In the event that any action is brought against the indemnified party, the indemnifying party will be entitled to participate therein and, to the extent it may desire, to assume and control the defense thereof with counsel chosen by it which is reasonably acceptable to the indemnified party.  After notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party will not be liable to such indemnified party under such Section 13(a) or 13(b) for any legal or other 

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expenses subsequently incurred by such indemnified party in connection with the defense thereof, but the indemnified party may, at its own expense, participate in such defense by counsel chosen by it, without, however, impairing the indemnifying party’s control of the defense.  Subject to the proviso of this sentence and notwithstanding any other statement to the contrary contained herein, the indemnified party or parties shall have the right to choose its or their own counsel and control the defense of any action, all at the expense of the indemnifying party if, (i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such action at the expense of the indemnifying party, or (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to such indemnified party to have charge of the defense of such action within a reasonable time after notice of commencement of the action, or (iii) such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses of one additional counsel shall be borne by the indemnifying party; provided, however, that the indemnifying party shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstance, be liable for the reasonable fees and expenses of more than one separate firm of attorneys at any time for all such indemnified parties.  No settlement of any action or proceeding against an indemnified party shall be made without the consent of the indemnifying party. 

 

(d)

 In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in Section 13(a) or 13(b) is due in accordance with its terms but is for any reason held by a court to be unavailable on grounds of policy or otherwise, the Company and Hunter shall contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with the investigation or defense of same) which the other may incur in such proportion so that Hunter shall be responsible for such percent of the aggregate of such losses, claims, damages and liabilities as shall equal the percentage of the gross proceeds paid to Hunter and the Company shall be responsible for the balance; provided, however, that no person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act of 1933 shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 13(d), any person controlling, controlled by or under common control with Hunter, or any partner, director, officer, employee, representative or any agent of any thereof, shall have the same rights to contribution as Hunter and each person controlling, controlled by or under common control with the Company within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934 and each officer of the Company and each director of the Company shall have the same rights to contribution as the Company.  Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against the other party under this Section 13(d), notify such party from whom contribution may be sought, but the omission to so notify such party shall not relieve the party from whom contribution may be sought from any obligation they may have hereunder 

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or otherwise if the party from whom contribution may be sought is not materially prejudiced thereby.  The indemnity and contribution agreements contained in this Section 13 shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any indemnified person or any termination of this Agreement.

8.

Non-Circumvention.

 

Pursuant to this Agreement, it is contemplated that Hunter shall supply to the Company and its officers and directors certain information concerning investors and other customers of Hunter.  Except for any prior contacts established prior to the date of this Agreement, neither the Company, nor any of its majority owned or controlled entities or any of their officers and directors shall, without the prior written consent of Hunter, contact any of such investors and other customers for the purpose of an investment in the Company or an investment in any other entity or enterprise controlled by the Company.  

 

Except for any prior contacts established prior to the date of this Agreement, in the event that the Company or any of its majority owned or controlled entities or any of its or their officers and directors enters into an agreement with any investor or other customer of Hunter referenced above within thirty-six (36) months after the Offering, regarding a Transaction and completes such Transaction, Hunter shall be entitled to payment at the closing of such Transaction of ten percent (10%) of the Aggregate Consideration with respect to such Transaction (excluding the Placement pursuant to which amounts payable to Hunter are set forth herein).  “Transaction” shall be defined as any direct or indirect sale, transfer, conveyance, exchange, financing, investment, trade, or other change in legal or beneficial ownership of any property, whether accomplished by an issuance or purchase of assets of securities, merger, consolidation, management contract, joint venture, partnership, trade or exchange of assets or stock or otherwise.  The “Aggregate Consideration” in a Transaction for purposes of determining the aforementioned fees shall mean (x) the aggregate amount of consideration received by the subject party and/or its shareholders (treating any shares issuable under exercise of options, warrants or other rights of conversion as outstanding) and the implied value of any equity interest retained by the subject party’s shareholders and the value of any assets retained by the subject party plus (y) the amount of any debt assumed or repaid or preferred stock redeemed or remaining outstanding in connection with a Transaction (i.e. deferred payments, covenants not to compete, consulting agreements or traded/exchange properties).  Furthermore, neither the Company nor any of its majority owned or controlled entities or any of its or their officers, directors shall solicit any investor or other customer of Hunter within thirty-six (36) months after the Offering, regarding a Transaction.  Both Standard Capital Securities Corporation and Hunter shall sign reciprocal non-solicitation agreements with the same respective terms.

9.

Conditions Closing.

 

The closing shall be held at the offices of Company’s counsel or as otherwise determined by Hunter and the Company.  The obligations of Hunter hereunder shall be subject to the continuing accuracy in all material respects of the representations and warranties of the 

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Company herein as of the date hereof and as of each closing date with respect to the Company as if it had been made on and as of such closing date; the accuracy on and as of each closing date of the statements of the officers of the Company made pursuant to the provisions hereof; and the performance by the Company on and as of each closing of its covenants and obligations hereunder and to the following further conditions:

(a)

At or prior to the closing, counsel for Hunter shall have been furnished such documents, certificates and opinions as they may reasonably require for the purpose of enabling them to review or pass upon the matters referred to in this Agreement and the offering materials or in order to evidence the accuracy, completeness or satisfaction of any of the representations, warranties or conditions herein contained.

(b)

   At the closing, (i) there shall have been no material adverse change in the condition or prospects or the business activities, financial or otherwise, of the Company from the latest dates as of which such condition is set forth in the offering materials; (ii) there shall have been no transaction, not in the ordinary course of business, entered into by the Company which has not been disclosed in the offering materials or to Hunter in writing; (iii) except as set forth in the offering materials, the Company shall not be in default under any provision of any instrument relating to any outstanding indebtedness for which a waiver or extension has not been otherwise received; (iv) except as set forth in the offering materials, the Company shall not have issued any securities (other than those to be issued as provided in the offering materials or those issuable on conversion or exercise of outstanding warrants, options, or convertible bridge loans) or declared or paid any dividend or made any distribution of its capital stock of any class and there shall not have been any change in the indebtedness (long or short term) or liabilities or obligations of the Company (contingent or otherwise); (v) no material amount of the assets of the Company shall have been pledged or mortgaged, except as indicated in the offering materials; and (vi) no action, suit or proceeding, at law or in equity, against the Company or affecting any of its properties or businesses shall be pending or threatened before or by any court or federal or state commission, board or other administrative agency, domestic or foreign, wherein an unfavorable decision, ruling or finding could materially adversely affect the businesses, prospects or financial condition or income of the Company, except as set forth in the offering materials.

(c)

At the closing Hunter shall have received a certificate of the Company signed by its chief executive officer, dated as of the applicable closing date, to the effect that the conditions set forth in subparagraph (b) above have been satisfied and that, as of the applicable closing date, the representations and warranties of the Company set forth herein are true and correct.

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10.

Miscellaneous.

(a)

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall be deemed to be one and the same instrument.

(b)

Any notice required or permitted to be given hereunder shall be given in writing and shall be deemed effective when deposited in the United States mail, postage prepaid, or when received if personally delivered or faxed, addressed as follows:

To Hunter:

Hunter World Markets, Inc.

9300 Wilshire Boulevard

Penthouse Suite

Beverly Hills, CA 90212

Attention: Todd Ficeto

Telephone: (310) 286-2211

Fax: (310) 286-2373

with a copy to:

Shustak Jalil & Heller

400 Park Avenue

New York, New York 10022

Attention:  James P. Jalil, Esq.

Telephone: (212) 688-5900

Fax: (212) 688-6151

To the Company:

Mark V. Asdourian, Esq.

General Counsel

Universal Guardian Holdings Inc.

4695 MacArthur Court, Suite 300

Newport Beach, California 92660

Telephone: 949.221.0020

Facsimile: 949.221.0019

or to such other address of which written notice is given to the others.

(c)

All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of California, without giving effect to any choice of law or conflict of law provision.  Any controversy arising 

13

EXECUTION COPY

hereunder shall be resolved by arbitration from the American Arbitration Association.

(d)

This Agreement contains the entire understanding between the parties hereto and may not be modified or amended except by a writing duly signed by the party against whom enforcement of the modification or amendment is sought.

(e)

If any provision of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision of this Agreement.

(f)

Hunter and the Company shall execute and deliver any and all additional papers, documents or other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations under this Agreement and to carry out the intent and agreements of the parties to this Agreement.

[SIGNATURES ON THE FOLLOWING PAGE]

14

EXECUTION COPY

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

UNIVERSAL GUARDIAN HOLDINGS INC.

a Delaware corporation 

/s/ Michael J. Skellern

By:

Michael J. Skellern

Its:    

Chief Executive Officer

AGREED AND ACCEPTED

HUNTER WORLD MARKETS, INC.

A California corporation

/s/ Todd Ficeto

By:

Todd Ficeto

Its:    

President and CEO

15OPTEUM MORTGAGE ACCEPTANCE CORPORATION,

                                    COMPANY,

                             WELLS FARGO BANK, N.A.

                  MASTER SERVICER AND SECURITIES ADMINISTRATOR,

                                       AND

                       HSBC BANK USA, NATIONAL ASSOCIATION

                                     TRUSTEE

                         POOLING AND SERVICING AGREEMENT

                           DATED AS OF JANUARY 1, 2005

                            ________________________

                     ASSET-BACKED PASS-THROUGH CERTIFICATES

                                  SERIES 2005-1

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
                                    ARTICLE I

                                   DEFINITIONS

   Section 1.01     Defined Terms.............................................4
      Accepted Master Servicing Practices.....................................4
      Accrual Period..........................................................4
      Accrued Certificate Interest............................................4
      Adjustable Rate Mortgage Loans..........................................4
      Advance.................................................................4
      Affiliate...............................................................5
      Aggregate Stated Principal Balance......................................5
      Agreement...............................................................5
      Allocated Realized Loss Amount..........................................5
      Assignment..............................................................5
      Assignment Agreement....................................................5
      Available Distribution Amount...........................................5
      Balloon Loan............................................................6
      Balloon Payment.........................................................6
      Bankruptcy Code.........................................................6
      Basic Principal Distribution Amount.....................................6
      Basis Risk Shortfall....................................................6
      Basis Risk Shortfall Carry-Forward Amount...............................6
      Basis Risk Shortfall Reserve Fund.......................................6
      Book-Entry Certificate..................................................6
      Business Day............................................................6
      Cash Liquidation........................................................6
      Cenlar..................................................................7
      Cenlar Servicing Agreement..............................................7
      Certificate.............................................................7
      Certificate Account.....................................................7
      Certificate Account Deposit Date........................................7
      Certificateholder or Holder.............................................7
      Certificate Margin......................................................7
      Certificate Owner.......................................................7
      Certificate Principal Balance...........................................8
      Certificate Register....................................................8
      Class...................................................................8
      Class A Certificate.....................................................8
      Class A Corridor Contract Allocation Amount.............................8
      Class A Principal Distribution Amount...................................8
      Class A-1 Certificates..................................................8
      Class A-1A Certificate..................................................8

                                       -i-
<PAGE>

      Class A-1B Certificate...................................................9
      Class A-2 Certificate....................................................9
      Class A-3 Certificate....................................................9
      Class A-4 Certificate....................................................9
      Class C Certificate......................................................9
      Class M Certificates.....................................................9
      Class M-1 Certificate....................................................9
      Class M-1 Principal Distribution Amount.................................10
      Class M-2 Certificate...................................................10
      Class M-2 Principal Distribution Amount.................................10
      Class M-3 Certificate...................................................10
      Class M-3 Principal Distribution Amount.................................11
      Class M-4 Certificate...................................................11
      Class M-4 Principal Distribution Amount.................................11
      Class M-5 Certificate...................................................12
      Class M-5 Principal Distribution Amount.................................12
      Class M-6 Certificate...................................................12
      Class M-6 Principal Distribution Amount.................................12
      Class M-7 Certificate...................................................13
      Class M-7 Principal Distribution Amount.................................13
      Class M-8 Certificate...................................................13
      Class M-8 Principal Distribution Amount.................................13
      Class M-9 Certificate...................................................14
      Class M-9 Principal Distribution Amount.................................14
      Class M-10 Certificate..................................................14
      Class M-10 Principal Distribution Amount................................14
      Class P Certificate.....................................................15
      Class R Certificate.....................................................15
      Class R-1 Interest......................................................15
      Class R-2 Interest......................................................15
      Closing Date............................................................15
      Code....................................................................15
      Collateral Value........................................................15
      Commission..............................................................15
      Company.................................................................15
      Compensating Interest...................................................15
      Corridor Contract Counterparty..........................................16
      Corridor Contracts......................................................16
      Corporate Trust Office..................................................16
      Corresponding Certificate...............................................16
      Curtailment.............................................................17
      Custodial Account.......................................................17
      Custodial Agreement.....................................................17
      Custodian...............................................................17
      Cut-off Date............................................................17
      Deficient Valuation.....................................................17

                                      -ii-
<PAGE>

      Definitive Certificate..................................................17
      Deleted Mortgage Loan...................................................17
      Delinquent..............................................................17
      Depository..............................................................17
      Depository Participant..................................................17
      Determination Date......................................................18
      Disqualified Organization...............................................18
      Distribution Date.......................................................18
      Due Date................................................................18
      Due Period..............................................................18
      EDGAR...................................................................18
      Eligible Account........................................................18
      Event of Default........................................................19
      Exchange Act............................................................19
      Extra Principal Distribution Amount.....................................19
      Fannie Mae..............................................................19
      FDIC....................................................................19
      Fitch...................................................................19
      Fixed Rate Mortgage Loans...............................................19
      Freddie Mac.............................................................19
      Initial Certificate Principal Balance...................................19
      Initial Notional Amount.................................................19
      Insurance Policy........................................................19
      Insurance Proceeds......................................................19
      Interest Carry Forward Amount...........................................20
      Interest Determination Date.............................................20
      Interest Remittance Amount..............................................20
      Late Collections........................................................20
      Lender-Paid Insured Loans...............................................20
      Lender-Paid PMI Policy..................................................20
      Lender-Paid PMI Rate....................................................20
      Lender-Paid UGI Policy..................................................20
      Lender-Paid UGI Rate....................................................20
      LIBOR...................................................................20
      LIBOR Business Day......................................................21
      Liquidated Mortgage Loan................................................21
      Liquidation Proceeds....................................................21
      Loan-to-Value Ratio.....................................................21
      Lost Note Affidavit.....................................................21
      Majority Class C Certificateholder......................................21
      Marker Rate.............................................................21
      Master Servicer.........................................................21
      Master Servicing Fees...................................................22
      Master Servicing Fee Rate...............................................22
      Maximum Uncertificated Accrued Interest Deferral Amount.................22
      MERS....................................................................22

                                      -iii-
<PAGE>

      MERS(R) System..........................................................22
      MIN.....................................................................22
      MOM Loan................................................................22
      Monthly Payment.........................................................22
      Moody's.................................................................23
      Mortgage................................................................23
      Mortgage File...........................................................23
      Mortgage Loan...........................................................23
      Mortgage Loan Purchase Agreement........................................23
      Mortgage Loan Schedule..................................................23
      Mortgage Note...........................................................25
      Mortgage Rate...........................................................25
      Mortgaged Property......................................................25
      Mortgagor...............................................................25
      Net Liquidation Proceeds................................................25
      Net Monthly Excess Cashflow.............................................25
      Net Mortgage Rate.......................................................25
      Net Prepayment Interest Shortfall.......................................25
      Net WAC Rate............................................................25
      Nonrecoverable Advance..................................................26
      Non-United States Person................................................26
      Notional Amount.........................................................26
      Offered Certificates....................................................26
      Officers' Certificate...................................................26
      Opinion of Counsel......................................................26
      Option One..............................................................26
      Option One Servicing Agreement..........................................26
      Optional Termination Date...............................................26
      OTS.....................................................................26
      Outstanding Mortgage Loan...............................................27
      Overcollateralization Deficiency Amount.................................27
      Overcollateralization Floor Amount......................................27
      Overcollateralization Release Amount....................................27
      Overcollateralization Target Amount.....................................27
      Overcollateralized Amount...............................................27
      Ownership Interest......................................................27
      Pass-Through Rate.......................................................27
      Percentage Interest.....................................................29
      Permitted Investment....................................................30
      Permitted Transferee....................................................31
      Person..................................................................31
      Prepayment Assumption...................................................31
      Prepayment Charge.......................................................31
      Prepayment Interest Shortfall...........................................31
      Prepayment Period.......................................................31
      Primary Hazard Insurance Policy.........................................31

                                      -iv-
<PAGE>

      Primary Insurance Policy................................................31
      Principal Distribution Amount...........................................31
      Principal Prepayment....................................................31
      Principal Prepayment in Full............................................32
      Principal Remittance Amount.............................................32
      Prospectus Supplement...................................................32
      Protected Account.......................................................32
      Purchase Price..........................................................32
      Qualified Insurer.......................................................32
      Qualified Substitute Mortgage Loan......................................33
      Rating Agency...........................................................33
      Realized Loss...........................................................33
      Record Date.............................................................34
      Regular Certificate.....................................................34
      Relief Act..............................................................34
      Relief Act Interest Shortfall...........................................34
      REMIC...................................................................34
      REMIC 1.................................................................34
      REMIC 1 Interest Loss Allocation Amount.................................34
      REMIC 1 Overcollateralized Amount.......................................35
      REMIC 1 Principal Loss Allocation Amount................................35
      REMIC 1 Overcollateralization Target Amount.............................35
      REMIC 1 Regular Interest LT-AA..........................................35
      REMIC 1 Regular Interest LT-A1A.........................................35
      REMIC 1 Regular Interest LT-A1B.........................................36
      REMIC 1 Regular Interest LT-A2..........................................36
      REMIC 1 Regular Interest LT-A3..........................................36
      REMIC 1 Regular Interest LT-A4..........................................36
      REMIC 1 Regular Interest LT-M2..........................................36
      REMIC 1 Regular Interest LT-M3..........................................37
      REMIC 1 Regular Interest LT-M4..........................................37
      REMIC 1 Regular Interest LT-M5..........................................37
      REMIC 1 Regular Interest LT-M6..........................................37
      REMIC 1 Regular Interest LT-M7..........................................37
      REMIC 1 Regular Interest LT-M8..........................................37
      REMIC 1 Regular Interest LT-M9..........................................37
      REMIC 1 Regular Interest LT-M10.........................................38
      REMIC 1 Regular Interest LT-P...........................................38
      REMIC 1 Regular Interest LT-ZZ..........................................38
      REMIC 1 Regular Interests...............................................38
      REMIC 2.................................................................38
      REMIC Provisions........................................................38
      REMIC Regular Interest..................................................38
      Remittance Report.......................................................38
      REO Acquisition.........................................................39
      REO Disposition.........................................................39

                                       -v-
<PAGE>

      REO Imputed Interest....................................................39
      REO Proceeds............................................................39
      REO Property............................................................39
      Request for Release.....................................................39
      Residual Certificates...................................................39
      Residual Interest.......................................................39
      Responsible Officer.....................................................39
      Securities Administrator................................................39
      Seller..................................................................39
      Senior Enhancement Percentage...........................................39
      Servicer................................................................40
      Servicer Remittance Date................................................40
      Servicing Advances......................................................40
      Servicing Agreements....................................................40
      Servicing Fee...........................................................40
      Servicing Fee Rate......................................................40
      Servicing Officer.......................................................40
      Single Certificate......................................................40
      Standard & Poor's.......................................................41
      Startup Day.............................................................41
      Stated Principal Balance................................................41
      Step-Up Date............................................................41
      Stepdown Date...........................................................41
      Subservicer.............................................................41
      Subservicer Remittance Date.............................................41
      Subservicing Agreement..................................................41
      Subsequent Recoveries...................................................41
      Substitution Adjustment.................................................41
      Tax Returns.............................................................42
      Transfer................................................................42
      Transferor..............................................................42
      Trigger Event...........................................................42
      Trustee.................................................................42
      Uncertificated Accrued Interest.........................................42
      Uncertificated Principal Balance........................................43
      Uncertificated Pass-Through Rate........................................43
      Uncertificated REMIC 1 Pass-Through Rate................................43
      Uninsured Cause.........................................................43
      United States Person....................................................43
      Voting Rights...........................................................44
      Weighted Average Net Mortgage Rate......................................44
   Section 1.02     Determination of LIBOR....................................44
   Section 1.03     Allocation of Certain Interest Shortfalls.................45

                                      -vi-
<PAGE>

                                   ARTICLE II

         CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

   Section 2.01     Conveyance of Mortgage Loans..............................46
   Section 2.02     Acceptance of the Trust Fund by the Trustee...............49
   Section 2.03     Representations, Warranties and Covenants of the Master
                    Servicer and the Company..................................51
   Section 2.04     Assignment of Interest in the Mortgage Loan Purchase .....54
                    Agreement
   Section 2.05     Issuance of Certificates; Conveyance of REMIC Regular
                    Interests and Acceptance of REMIC 1 and REMIC 2 by the
                    Trustee...................................................56
   Section 2.06     Negative Covenants of the Trustee and Master Servicer.....57

                                   ARTICLE III

                 ADMINISTRATION AND SERVICING OF THE TRUST FUND

   Section 3.01     Administration and Servicing of Mortgage Loans............58
   Section 3.02     REMIC-Related Covenants...................................59
   Section 3.03     Monitoring of Servicer....................................60
   Section 3.04     Fidelity Bond.............................................61
   Section 3.05     Power to Act; Procedures..................................61
   Section 3.06     Due-on-Sale Clauses; Assumption Agreements................62
   Section 3.07     Release of Mortgage Files.................................62
   Section 3.08     Documents, Records and Funds in Possession of Master
                    Servicer To Be Held for Trustee...........................63
   Section 3.09     Standard Hazard Insurance and Flood Insurance Policies....64
   Section 3.10     Presentment of Claims and Collection of Proceeds..........64
   Section 3.11     Maintenance of the Primary Mortgage Insurance Policies....64
   Section 3.12     Trustee to Retain Possession of Certain Insurance
                    Policies and Documents................. ..................65
   Section 3.13     Realization Upon Defaulted Mortgage Loans.................65
   Section 3.14     Compensation for the Master Servicer......................66
   Section 3.15     REO Property..............................................66
   Section 3.16     Protected Accounts........................................66
   Section 3.17     Custodial Account.........................................68
   Section 3.18     Permitted Withdrawals and Transfers from the Custodial
                    Account........................... .......................69
   Section 3.19     Certificate Account.......................................70
   Section 3.20     Permitted Withdrawals and Transfers from the Certificate
                    Account......................... .........................71
   Section 3.21     Annual Officer's Certificate as to Compliance.............72
   Section 3.22     Annual Independent Accountant's Servicing Report..........73
   Section 3.23     Reports Filed with Securities and Exchange Commission.....73
   Section 3.24     UCC.......................................................74
   Section 3.25     Optional Purchase of Defaulted Mortgage Loans.............74
   Section 3.26     The Corridor Contracts....................................75

                                      -vii-
<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

   Section 4.01     Distributions.............................................76
   Section 4.02     Statements to Certificateholders..........................82
   Section 4.03     Remittance Reports; Advances by the Master Servicer.......84
   Section 4.04     Distributions on the REMIC Regular Interests..............85
   Section 4.05     Allocation of Realized Losses.............................87
   Section 4.06     Information Reports to Be Filed by the Servicer...........89
   Section 4.07     Compliance with Withholding Requirements..................89
   Section 4.08     Basis Risk Shortfall Reserve Fund.........................89

                                    ARTICLE V

                                THE CERTIFICATES

   Section 5.01     The Certificates..........................................91
   Section 5.02     Registration of Transfer and Exchange of Certificates.....92
   Section 5.03     Mutilated, Destroyed, Lost or Stolen Certificates.........98
   Section 5.04     Persons Deemed Owners.....................................98
   Section 5.05     Rule 144A Information.....................................98

                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER

   Section 6.01     Liability of the Company and the Master Servicer..........99
   Section 6.02     Merger, Consolidation or Conversion of the Company or
                    the Master Servicer................ ......................99
   Section 6.03     Limitation on Liability of the Company, the Master
                    Servicer, the Securities Administrator and Others.........99
   Section 6.04     Limitation on Resignation of the Master Servicer.........100
   Section 6.05     Sale and Assignment of Master Servicing..................100

                                   ARTICLE VII

                                     DEFAULT

   Section 7.01     Events of Default........................................102
   Section 7.02     Trustee to Act; Appointment of Successor.................103
   Section 7.03     Notification to Certificateholders.......................105
   Section 7.04     Waiver of Events of Default..............................105
   Section 7.05     List of Certificateholders...............................105

                                  ARTICLE VIII

               CONCERNING THE TRUSTEE AND SECURITIES ADMINISTRATOR

   Section 8.01     Duties of Trustee and the Securities Administrator.......106

                                     -viii-
<PAGE>

   Section 8.02     Certain Matters Affecting the Trustee and the Securities
                    Administrator.................. .........................107
   Section 8.03     Trustee and Securities Administrator Not Liable for
                    Certificates or Mortgage Loans...........................109
   Section 8.04     Trustee and Securities Administrator May Own
                    Certificates ............................................109
   Section 8.05     Trustee's and Securities Administrator's Fees............109
   Section 8.06     Eligibility Requirements for Trustee and the Securities
                    Administrator................... ........................110
   Section 8.07     Resignation and Removal of the Trustee and the Securities
                    Administrator................. ..........................110
   Section 8.08     Successor Trustee and Successor Securities Administrator.111
   Section 8.09     Merger or Consolidation of Trustee or Securities
                    Administrator.......................... .................112
   Section 8.10     Appointment of Co-Trustee or Separate Trustee............112

                                   ARTICLE IX

                                   TERMINATION

   Section 9.01     Termination Upon Repurchase or Liquidation of All
                    Mortgage Loans or upon Purchase of Certificates..........114
   Section 9.02     Termination of REMIC 2...................................116
   Section 9.03     Additional Termination Requirements......................116

                                    ARTICLE X

                                REMIC PROVISIONS

   Section 10.01    REMIC Administration.....................................118
   Section 10.02    Prohibited Transactions and Activities...................121
   Section 10.03    Master Servicer, Securities Administrator and
                    Trustee Indemnification................... ..............121

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

   Section 11.01    Amendment................................................123
   Section 11.02    Recordation of Agreement; Counterparts...................124
   Section 11.03    Limitation on Rights of Certificateholders...............124
   Section 11.04    Governing Law............................................125
   Section 11.05    Notices..................................................125
   Section 11.06    Severability of Provisions...............................126
   Section 11.07    Successors and Assigns...................................126
   Section 11.08    Article and Section Headings.............................126
   Section 11.09    Notice to Rating Agencies................................126
   Section 11.10    Third Party Rights.......................................127

                                      -ix-
<PAGE>

Signatures
Acknowledgments

Exhibit A       Form of Class A Certificate
Exhibit B-1     Form of Class M Certificate
Exhibit B-2     Form of Class C Certificate
Exhibit B-3     Form of Class P Certificate
Exhibit B-4     Form of Class R Certificate
Exhibit C       Form of Trustee Initial Certification
Exhibit D       Form of Trustee Final Certification
Exhibit E       Form of Remittance Report
Exhibit F       Request for Release
Exhibit G-1     Form of Investor Representation Letter
Exhibit G-2     Form of Transferor Representation Letter
Exhibit G-3     Form of Rule 144A Investment Representation
Exhibit G-4     Transferor Certificate for Transfers of Residual Certificates
Exhibit G-5     Transfer Affidavit and Agreement for Transfers of Residual
                Certificates
Exhibit H       Mortgage Loan Schedule
Exhibit I       [Reserved]
Exhibit J       [Reserved]
Exhibit K       Assignment Agreement
Exhibit L-1     Form 10-K Certification
Exhibit L-2     Form 10-K Back-up Certification (Master Servicer)
Exhibit L-3     Form 10-K Back-up Certification (Trustee)
Exhibit M-1     Cenlar Servicing Agreement
Exhibit M-2     Option One Servicing Agreement
Exhibit N       Form of Custodial Agreement
Exhibit O       [Reserved]
Exhibit P       Form of Mortgage Loan Purchase Agreement

                                      -x-
<PAGE>

         This Pooling and Servicing Agreement, dated and effective as of January
1, 2005, is entered into among Opteum Mortgage Acceptance Corporation, as
company (the "Company"), Wells Fargo Bank, N.A., as master servicer (in such
capacity, the "Master Servicer") and as securities administrator (in such
capacity, the "Securities Administrator"), and HSBC Bank USA, National
Association, as trustee (the "Trustee").

                             PRELIMINARY STATEMENT:

         The Company intends to sell pass-through certificates (collectively,
the "Certificates"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in the Trust
Fund created hereunder. The Certificates will consist of eighteen classes of
certificates, designated as (i) the Class A-1A, Class A-1B, Class A-2, Class A-3
and Class A-4 Certificates, (ii) the Class M-1, Class M-2, Class M-3, Class M-4,
Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10
Certificates, (iii) the Class C Certificates, (iv) the Class P Certificates and
(v) the Class R Certificates.

<PAGE>

                                     REMIC 1
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Trust Fund (exclusive of the Basis
Risk Shortfall Reserve Fund and the Corridor Contracts) as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC 1". The Class R-1 Interest will represent the sole class of "residual
interests" in REMIC 1 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the designation, the
Uncertificated REMIC 1 Pass-Through Rate, the initial Uncertificated Principal
Balance, and for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC 1
Regular Interests. None of the REMIC 1 Regular Interests will be certificated.

<TABLE>
<CAPTION>

                         Uncertificated REMIC 1           Initial Certificate              Assumed Final
    Designation            Pass-Through Rate               Principal Balance             Maturity Date(1)
    -----------            -----------------               -----------------             ----------------
<S>   <C>                        <C>                       <C>                           <C>
       LT-AA                     (2)                       $ 786,572,535.79              Februay 25, 2035
      LT-A1A                     (2)                       $   3,218,118.00              Februay 25, 2035
      LT-A1B                     (2)                       $     357,569.00              Februay 25, 2035
       LT-A2                     (2)                       $   1,512,015.00              Februay 25, 2035
       LT-A3                     (2)                       $   1,279,920.00              Februay 25, 2035
       LT-A4                     (2)                       $     783,752.00              Februay 25, 2035
       LT-M1                     (2)                       $     180,590.00              Februay 25, 2035
       LT-M2                     (2)                       $     140,460.00              Februay 25, 2035
       LT-M3                     (2)                       $      88,290.00              Februay 25, 2035
       LT-M4                     (2)                       $      72,240.00              Februay 25, 2035
       LT-M5                     (2)                       $      64,210.00              Februay 25, 2035
       LT-M6                     (2)                       $      64,210.00              Februay 25, 2035
       LT-M7                     (2)                       $      56,180.00              Februay 25, 2035
       LT-M8                     (2)                       $      48,160.00              Februay 25, 2035
       LT-M9                     (2)                       $      48,160.00              Februay 25, 2035
      LT-M10                     (2)                       $      52,180.00              Februay 25, 2035
       LT-ZZ                     (2)                       $   8,086,446.73              Februay 25, 2035
        LT-P                     (2)                       $         100.00              Februay 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for each REMIC 1
         Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC 1
         Pass-Through Rate" herein.

                                      -2-
<PAGE>

                                     REMIC 2
                                     -------

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the REMIC 1 Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC 2". The Class R-2 Interest will represent the sole class of
"residual interests" in REMIC 2 for purposes of the REMIC Provisions.

         The following table irrevocably sets forth the Class designation,
Pass-Through Rate and Initial Certificate Principal Balance for each Class of
Certificates that represents one or more of the "regular interests" in REMIC 2
created hereunder:

<TABLE>
<CAPTION>

                         Initial Certificate                                     Assumed Final
 Class Designation       Principal Balance           Pass-Through Rate         MaturityDate(1)
 -----------------       -----------------           -----------------         --------------
<S>     <C>                <C>                         <C>                    <C>
        A-1A               $321,811,800                Adjustable(2)          February 25, 2035
        A-1B               $ 35,756,900                Adjustable(2)          February 25, 2035
         A-2               $151,201,500                Adjustable(2)          February 25, 2035
         A-3               $127,992,000                Adjustable(2)          February 25, 2035
         A-4               $ 78,375,200                Adjustable(2)          February 25, 2035
         M-1               $ 18,059,000                Adjustable(2)          February 25, 2035
         M-2               $ 14,046,000                Adjustable(2)          February 25, 2035
         M-3               $  8,829,000                Adjustable(2)          February 25, 2035
         M-4               $  7,224,000                Adjustable(2)          February 25, 2035
         M-5               $  6,421,000                Adjustable(2)          February 25, 2035
         M-6               $  6,421,000                Adjustable(2)          February 25, 2035
         M-7               $  5,618,000                Adjustable(2)          February 25, 2035
         M-8               $  4,816,000                Adjustable(2)          February 25, 2035
         M-9               $  4,816,000                Adjustable(2)          February 25, 2035
        M-10               $  5,218,000                Adjustable(2)          February 25, 2035
          C                $  6,019,636.52               Variable(3)          February 25, 2035
          P                $        100.00                  (4)               February 25, 2035
</TABLE>

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest possible maturity date has
         been designated as the "latest possible maturity date" for each REMIC 2
         Regular Interest.
(2)      Calculated in accordance with the definition of "Pass-Through Rate"
         herein.
(3)      The Class C Certificates will accrue interest at their variable
         Pass-Through Rate on the Notional Amount of the Class C Certificates
         outstanding from time to time which shall equal the aggregate of the
         Uncertificated Principal Balances of the REMIC 1 Regular Interests
         (other than REMIC 1 Regular Interest LT-P). The Class C Certificates
         will not accrue interest on their Certificate Principal Balance. (4)
         The Class P Certificates do not accrue interest.

                                      -3-
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01 Defined Terms.

         Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the meanings specified in this
Article. Unless otherwise specified, all calculations in respect of interest on
the Class A Certificates, the Class M Certificates, the Class C Certificates and
the REMIC 1 Regular Interests shall be made on the basis of a 360-day year
consisting of the actual number of days in the related Accrual Period. The Class
P and Class R Certificates do not accrue interest.

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

         "Accrual Period": With respect to any Distribution Date, the Offered
Certificates and the Class M-10 Certificates, the period commencing on the
immediately preceding Distribution Date (or, in the case of the first
Distribution Date, the Closing Date) and ending on the day immediately preceding
the current Distribution Date. With respect to any Distribution Date and the
Class C Certificates, the calendar month preceding the month in which such
Distribution Date occurs. The Class P and Class R Certificates will not accrue
any interest and therefore have no Accrual Period.

         "Accrued Certificate Interest": With respect to the Class A, Class M
and Class C Certificates and any Distribution Date, the amount of interest
accrued during the related Accrual Period at the related Pass-Through Rate on
the Certificate Principal Balance (or Notional Amount in the case of the Class C
Certificates) of such Class immediately prior to such Distribution Date, in each
case, reduced by any Net Prepayment Interest Shortfalls and Relief Act Interest
Shortfalls (allocated to such Certificate as set forth in Section 1.03). The
Accrued Certificate Interest on the Class A Certificates and Class M
Certificates will be calculated on the basis of a 360-day year and the actual
number of days in the related Accrual Period. The Accrued Certificate Interest
on the Class C Certificates will be calculated on the basis of a 360-day year
consisting of twelve 30-days months.

         "Adjustable Rate Mortgage Loans": The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is adjustable at any
point during the life of the related Mortgage, including any Mortgage Loans
delivered in replacement thereof.

         "Advance": As to any Mortgage Loan, any advance made by the Servicer or
the Master Servicer on any Distribution Date pursuant to Section 4.03.

                                      -4-
<PAGE>

         "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.

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

         "Agreement": This Pooling and Servicing Agreement and all amendments
hereof.

         "Allocated Realized Loss Amount": With respect to any Distribution Date
and any Class of Class M Certificates or Class A-1B Certificates, an amount
equal to the sum of any Realized Loss allocated to that class of Certificates on
that Distribution Date and any Allocated Realized Loss Amount for that class
remaining unpaid from any previous Distribution Date.

         "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect a
record the sale of the Mortgage.

         "Assignment Agreement": The Assignment, Assumption and Recognition
Agreement, dated as of the Closing Date, among the Company, the Trustee and the
Seller, whereby the Servicing Agreements are being assigned to the Trust, and
attached hereto as Exhibit K.

         "Available Distribution Amount": With respect to any Distribution Date,
an amount equal to the aggregate of the following amounts with respect to the
Mortgage Loans: (a) all previously undistributed payments on account of
principal and all previously undistributed payments on account of interest
received after the Cut-off Date and on or prior to the related Determination
Date, (b) any Advances and Compensating Interest paid by the Servicers or the
Master Servicer with respect to such Distribution Date and (c) any reimbursed
amount in connection with losses on investments of deposits in an account,
except: (i) all payments that were due on or before the Cut-off Date; (ii) all
Principal Prepayments, Liquidation Proceeds and Subsequent Recoveries received
after the applicable Prepayment Period; (iii) all payments, other than Principal
Prepayments, that represent early receipt of scheduled payments due on a date or
dates subsequent to the related Due Date; (iv) amounts received on particular
Mortgage Loans as late payments of principal or interest and respecting which,
and to the extent that, there are any unreimbursed Advances; (v) any investment
earnings on amounts on deposit in the Custodial Account and the Certificate
Account and amounts permitted to be withdrawn from the Custodial Account and the
Certificate Account pursuant to this Agreement; (vi) amounts needed to pay the
Servicing Fees and Master Servicing Fees or to reimburse the Servicer or the
Master Servicer for amounts due under the applicable Servicing Agreement and the
Agreement to the extent such amounts have not been retained by, or paid
previously to, the Servicer or the Master Servicer; (vii) to pay any fees with
respect to the Lender-Paid PMI Policy or Lender-Paid UGI Policy and (viii) any
amounts reimbursable to the Trustee, the Securities Administrator and the
Custodian pursuant to this Agreement.

                                      -5-
<PAGE>

         "Balloon Loan": Each of the Mortgage Loans identified in the Mortgage
Loan Schedule as having an original term to maturity that is shorter than the
related amortization term.

         "Balloon Payment": With respect to any Balloon Loan, the payment due on
the stated maturity date of such Balloon Loan.

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

         "Basic Principal Distribution Amount": With respect to any Distribution
Date, the excess, if any, of (x) the Principal Remittance Amount for such
Distribution Date, over (y) the Overcollateralization Release Amount.

         "Basis Risk Shortfall": With respect to any Class of Offered
Certificates and the Class M-10 Certificates, on each Distribution Date where
clause (ii) of the related definition of "Pass-Through Rate" is less than clause
(i) of the definition of "Pass-Through Rate", the excess, if any, of (x) the
aggregate Accrued Certificate Interest thereon for such Distribution Date
calculated pursuant to clause (i) of the definition of "Pass-Through Rate" over
(y) interest accrued on the Mortgage Loans at the Net WAC Rate.

         "Basis Risk Shortfall Carry-Forward Amount": With respect to each Class
of Offered Certificates and the Class M-10 Certificates and any Distribution
Date, as determined separately for each such Class of Offered Certificates or
the Class M-10 Certificates, an amount equal to the aggregate amount of Basis
Risk Shortfall for such Certificates on such Distribution Date, plus any unpaid
Basis Risk Shortfall for such Class of Certificates from prior Distribution
Dates, plus interest thereon at the Pass-Through Rate for such Distribution
Date, to the extent previously unreimbursed by the Net Monthly Excess Cashflow
or the Corridor Contracts.

         "Basis Risk Shortfall Reserve Fund": A reserve fund established by the
Securities Administrator on behalf of the Trustee for the benefit of the Holders
of the Offered Certificates and the Class M-10 Certificates. The Basis Risk
Shortfall Reserve Fund is an "outside reserve fund" within the meaning of
Treasury regulation Section 1.860G-2(h), which is not an asset of any REMIC,
ownership of which is evidenced by the Class C Certificates, and which is
established and maintained pursuant to Section 4.08.

         "Book-Entry Certificate": Any Certificate registered in the name of the
Depository or its nominee.

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

         "Cash Liquidation": As to any defaulted Mortgage Loan other than a
Mortgage Loan as to which an REO Acquisition occurred, a determination by the
Servicer that it has received all Insurance Proceeds, Liquidation Proceeds and
other payments or cash recoveries which the Servicer reasonably and in good
faith expects to be finally recoverable with respect to such Mortgage Loan.

                                      -6-
<PAGE>

         "Cenlar": Cenlar FSB.

         "Cenlar Servicing Agreement": The Servicing Agreement dated March 5,
2004, between Wells Fargo Bank, N.A. as master servicer and Home Star Mortgage
Services, LLC as seller and servicer.

         "Certificate": Any Class A, Class M, Class C, Class P or Class R
Certificate.

         "Certificate Account": The trust account or accounts created and
maintained pursuant to Section 3.19, which shall be entitled "HSBC Bank USA,
National Association, in trust for registered holders of Opteum Mortgage
Acceptance Corporation, Asset-Backed Pass-Through Certificates, Series 2005-1",
and which account or accounts must each be an Eligible Account.

         "Certificate Account Deposit Date": With respect to any Distribution
Date, the Business Day immediately preceding such Distribution Date.

         "Certificateholder" or "Holder": The Person in whose name a Certificate
is registered in the Certificate Register, except that only a Permitted
Transferee shall be a holder of a Residual Certificate for any purposes hereof
and, solely for the purposes of giving any consent pursuant to this Agreement,
any Certificate registered in the name of the Company or the Master Servicer or
any affiliate thereof shall be deemed not to be outstanding and the Voting
Rights to which such Certificate is entitled shall not be taken into account in
determining whether the requisite percentage of Voting Rights necessary to
effect any such consent has been obtained, except as otherwise provided in
Section 11.01. The Trustee and the Securities Administrator shall be entitled to
rely upon a certification of the Company or the Master Servicer in determining
if any Certificates are registered in the name of the respective affiliate. All
references herein to "Holders" or "Certificateholders" shall reflect the rights
of Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified
herein; provided, however, that the Trustee and the Securities Administrator
shall be required to recognize as a "Holder" or "Certificateholder" only the
Person in whose name a Certificate is registered in the Certificate Register.

         "Certificate Margin": With respect to the Class A-1A, Class A-1B, Class
A-2, Class A-3, Class A-4, Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Certificates and
solely for the purposes of the definition of Marker Rate and Maximum
Uncertificated Accrued Interest Deferral Amount, the REMIC I Regular Interests
(other than REMIC I Regular Interests LT-AA, LT-ZZ and LT-P), on any
Distribution Date prior to the Optional Termination Date, 0.300%, 0.350%,
0.140%, 0.270%, 0.400%, 0.470%, 0.510%, 0.570%, 0.770%, 0.800%, 0.870%, 1.350%,
1.450%, 1.850% and 1.850% per annum, respectively, and on any Distribution Date
on and after the Step-Up Date, 0.600%, 0.700%, 0.280%, 0.540%, 0.800%, 0.705%,
0.765%, 0.855%, 1.155%, 1.200%, 1.305%, 2.025%, 2.175%, 2.775% and 2.775% per
annum, respectively.

         "Certificate Owner": With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Certificate, as reflected on the
books of an indirect participating brokerage firm for which a Depository
Participant acts as agent, if any, and otherwise on the books of a Depository
Participant, if any, and otherwise on the books of the Depository.

                                      -7-
<PAGE>

         "Certificate Principal Balance": With respect to any Class of Class A
Certificates or Class M Certificates immediately prior to any Distribution Date,
the Initial Certificate Principal Balance thereof, plus any Subsequent
Recoveries added to the Certificate Principal Balance of such Certificate,
reduced by the sum of (a) all amounts actually distributed in respect of
principal of such Class and, (b) in the case of a Class M Certificate and Class
A-1B Certificate, Realized Losses allocated thereto on all prior Distribution
Dates. With respect to the Class C Certificates as of any date of determination,
an amount equal to the excess, if any, of (A) the then aggregate Uncertificated
Principal Balances of the REMIC 1 Regular Interests over (B) the then aggregate
Certificate Principal Balances of the Class A Certificates, the Class M
Certificates and the Class P Certificates then outstanding.

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

         "Class": Collectively, all of the Certificates bearing the same
designation.

         "Class A Certificate": Class A-1A, Class A-1B, Class A-2, Class A-3 or
Class A-4 Certificates.

         "Class A Corridor Contract Allocation Amount": With respect to each
Class of Class A Certificates and any Distribution Date, the amount received
with respect to the Corridor Contract for the Class A Certificates for such
Distribution Date times a fraction, the numerator of which is the Certificate
Principal Balance of such Class of Certificates immediately prior to such
Distribution Date, and the denominator of which is the aggregate Certificate
Principal Balance of the Class A Certificates immediately prior to such
Distribution Date.

         "Class A Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the aggregate Certificate Principal Balance of the Class
A Certificates immediately prior to such Distribution Date over (y) the lesser
of (a) the Aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by 78.20% and (b) the amount, if any, by which (i)
the Aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

         "Class A-1 Certificates": Class A-1A Certificates and Class A-1B
Certificates.

         "Class A-1A Certificate": Any one of the Class A-1A Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class A-1B Certificate": Any one of the Class A-1B Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest

                                      -8-
<PAGE>

in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class A-2 Certificate": Any one of the Class A-2 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class A-3 Certificate": Any one of the Class A-3 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class A-4 Certificate": Any one of the Class A-4 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit A, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class C Certificate": Any one of the Class C Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-2, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing a REMIC Regular
Interest in REMIC 2.

         "Class M Certificates": The Class M-1, Class M-2, Class M-3, Class M-4,
Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10
Certificates.

         "Class M-1 Certificate": Any one of the Class M-1 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

                                      -9-
<PAGE>

         "Class M-1 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account the distribution
of the Class A Principal Distribution Amount on such Distribution Date) and (ii)
the Certificate Principal Balance of the Class M-1 Certificates immediately
prior to such Distribution Date over (y) the lesser of (a) the Aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by 82.70% and (b) the amount, if any, by which (i) the
Aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

         "Class M-2 Certificate": Any one of the Class M-2 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-2 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates and Class M-1 Certificates (after taking
into account the distribution of the Class A and Class M-1 Principal
Distribution Amounts on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
86.20% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

         "Class M-3 Certificate": Any one of the Class M-3 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest

                                      -10-
<PAGE>

in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-3 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1 and Class M-2 Certificates (after taking into
account the distributions of the Class A, Class M-1 and Class M-2 Principal
Distribution Amounts on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-3 Certificates immediately prior to such
Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
88.40% and (a) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

         "Class M-4 Certificate": Any one of the Class M-4 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-4 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2 and Class M-3 Certificates (after
taking into account the distribution of the Class A, Class M-1, Class M-2 and
Class M-3 Principal Distribution Amounts on such Distribution Date) and (ii) the
Certificate Principal Balance of the Class M-4 Certificates immediately prior to
such Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
90.20% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

                                      -11-
<PAGE>

         "Class M-5 Certificate": Any one of the Class M-5 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-5 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3 and Class M-4
Certificates (after taking into account the distribution of the Class A, Class
M-1, Class M-2, Class M-3 and Class M-4 Principal Distribution Amounts on such
Distribution Date) and (ii) the Certificate Principal Balance of the Class M-5
Certificates immediately prior to such Distribution Date over (y) the lesser of
(a) the Aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by 91.80% and (b) the amount, if any, by which (i)
the Aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

         "Class M-6 Certificate": Any one of the Class M-6 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-6 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5
Certificates (after taking into account the distribution of the Class A, Class
M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Principal Distribution
Amounts on such Distribution Date) and (ii) the Certificate Principal Balance of
the Class M-6 Certificates immediately prior to such Distribution Date over (y)
the lesser of (a) the Aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by 93.40% and (b) the amount,
if any, by which (i) the Aggregate Stated Principal Balance of the Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled

                                      -12-
<PAGE>

payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) exceeds (ii) the Overcollateralization
Floor Amount.

         "Class M-7 Certificate": Any one of the Class M-7 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-7 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5
and Class M-6 Certificates (after taking into account the distribution of the
Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6
Principal Distribution Amounts on such Distribution Date) and (ii) the
Certificate Principal Balance of the Class M-7 Certificates immediately prior to
such Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
94.80% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

         "Class M-8 Certificate": Any one of the Class M-8 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-8 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
Class M-6 and Class M-7 Certificates (after taking into account the distribution
of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6
and Class M-7 Principal Distribution Amounts on such Distribution Date) and (ii)
the Certificate Principal Balance of the Class M-8 Certificates immediately
prior to such Distribution Date over (y) the lesser of (a) the Aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due

                                      -13-
<PAGE>

Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by 96.00% and (b) the amount, if any, by which (i) the
Aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

         "Class M-9 Certificate": Any one of the Class M-9 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-9 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
Class M-6, Class M-7 and Class M-8 Certificates (after taking into account the
distribution of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6, Class M-7 and Class M-8 Principal Distribution Amounts on such
Distribution Date) and (ii) the Certificate Principal Balance of the Class M-9
Certificates immediately prior to such Distribution Date over (y) the lesser of
(a) the Aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) multiplied by 97.20% and (b) the amount, if any, by which (i)
the Aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) the Overcollateralization Floor Amount.

         "Class M-10 Certificate": Any one of the Class M-10 Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing (i) a REMIC Regular
Interest in REMIC 2 and (ii) the right to receive the related Basis Risk
Shortfall Carry-Forward Amount from the Basis Risk Shortfall Reserve Fund.

         "Class M-10 Principal Distribution Amount": For any applicable
Distribution Date on or after the Stepdown Date as long as a Trigger Event has
not occurred with respect to such Distribution Date, an amount equal to the
excess (if any) of (x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A, Class M-1, Class M-2, Class M-3, Class M-4, Class

                                      -14-
<PAGE>

M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates (after taking
into account the distribution of the Class A, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Principal
Distribution Amounts on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-10 Certificates immediately prior to such
Distribution Date over (y) the lesser of (a) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) multiplied by
98.50% and (b) the amount, if any, by which (i) the Aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii) the
Overcollateralization Floor Amount.

         "Class P Certificate": Any one of the Class P Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-3, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, representing the right to
distributions as set forth herein and therein and evidencing a REMIC Regular
Interest in REMIC 2.

         "Class R Certificate": Any one of the Class R Certificates as
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-4, executed by the Securities Administrator and authenticated and
delivered by the Securities Administrator, evidencing the ownership of the Class
R-1 Interest and Class R-2 Interest.

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

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

         "Closing Date": January 31, 2005.

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

         "Collateral Value": The appraised value of a Mortgaged Property based
upon the lesser of (i) the appraisal made at the time of the origination of the
related Mortgage Loan, or (ii) the sales price of such Mortgaged Property at
such time of origination. With respect to a Mortgage Loan the proceeds of which
were used to refinance an existing mortgage loan, the appraised value of the
Mortgaged Property based upon the appraisal obtained at the time of refinancing.

         "Commission": The Securities and Exchange Commission.

         "Company": Opteum Mortgage Acceptance Corporation, or its successor in
interest.

         "Compensating Interest": With respect to any Distribution Date, an
amount equal to Prepayment Interest Shortfalls resulting from Principal
Prepayments during the related

                                      -15-
<PAGE>

Prepayment Period, but not more than the Servicing Fees for the immediately
preceding Due Period.

         "Corridor Contract Counterparty": The Bank of New York.

         "Corridor Contracts": The corridor contracts, each between the Trustee
and the Corridor Contract Counterparty for the benefit of the Offered
Certificates, the Class M-10 Certificates and the Class C Certificates.

         "Corporate Trust Office": With respect to the Trustee, the principal
corporate trust office of the Trustee at which at any particular time its
corporate trust business related to this Agreement shall be administered, which
office at the date of the execution of this Agreement is located at 452 Fifth
Avenue, New York, New York 10018, Attention: Corporate Trust Services - Opteum,
and with respect to the Securities Administrator, for Certificate transfer
purposes, Wells Fargo Center, Sixth Street and Marquette Avenue, Minneapolis,
Minnesota 55479, Attn: Corporate Trust Services - Opteum 2005-1, and for all
other purposes, 9062 Old Annapolis Road, Columbia, Maryland, 21045, Attn:
Corporate Trust Services - Opteum 2005-1.

         "Corresponding Certificate": With respect to:

         (i)      REMIC 1 Regular Interest LT-A1A, the Class A-1A Certificates,

         (ii)     REMIC 1 Regular Interest LT-A1B, the Class A-1B Certificates,

         (iii)    REMIC 1 Regular Interest LT-A2, the Class A-2 Certificates,

         (iv)     REMIC 1 Regular Interest LT-A3, the Class A-3 Certificates,

         (v)      REMIC 1 Regular Interest LT-A4, the Class A-4 Certificates,

         (vi)     REMIC 1 Regular Interest LT-M1, the Class M-1 Certificates,

         (vii)    REMIC 1 Regular Interest LT-M2, the Class M-2 Certificates,

         (viii)   REMIC 1 Regular Interest LT-M3, the Class M-3 Certificates,

         (ix)     REMIC 1 Regular Interest LT-M4, the Class M-4 Certificates,

         (x)      REMIC 1 Regular Interest LT-M5, the Class M-5 Certificates,

         (xi)     REMIC 1 Regular Interest LT-M6, the Class M-6 Certificates,

         (xii)    REMIC 1 Regular Interest LT-M7, the Class M-7 Certificates,

         (xiii)   REMIC 1 Regular Interest LT-M8, the Class M-8 Certificates;

         (xiv)    REMIC 1 Regular Interest LT-M9, the Class M-9 Certificates;

         (xv)     REMIC 1 Regular Interest LT-M10, the Class M-10 Certificates;
                  and

                                      -16-
<PAGE>

         (xvi)    REMIC 1 Regular Interest LT-P, the Class P Certificates.

         "Curtailment": Any Principal Prepayment made by a Mortgagor which is
not a Principal Prepayment in Full.

         "Custodial Account": The custodial account or accounts created and
maintained by the Master Servicer pursuant to Section 3.17 in the name of a
depository institution, as custodian for the Holders of the Certificates. Any
such account or accounts shall be an Eligible Account.

         "Custodial Agreement": An agreement, dated as of the Closing Date among
the Company, the Master Servicer, the Trustee and the Custodian in substantially
the form of Exhibit N hereto.

         "Custodian": Wells Fargo Bank, N.A., or any successor custodian
appointed pursuant to the provisions hereof and of the Custodial Agreement.

         "Cut-off Date": January 1, 2005.

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

         "Definitive Certificate": Any definitive, fully registered Certificate.

         "Deleted Mortgage Loan": A Mortgage Loan replaced or to be replaced
with a Qualified Substitute Mortgage Loan.

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

         "Depository": The Depository Trust Company, or any successor Depository
hereafter named. The nominee of the initial Depository for purposes of
registering those Certificates that are to be Book-Entry Certificates is Cede &
Co. The Depository shall at all times be a "clearing corporation" as defined in
Section 8-102(5) of the Uniform Commercial Code of the State of New York and a
"clearing agency" registered pursuant to the provisions of Section 17A of the
Securities Exchange Act of 1934, as amended.

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

                                      -17-
<PAGE>

         "Determination Date": The 15th day (or if such 15th day is not a
Business Day, the Business Day immediately preceding such 15th day) of the month
of the related Distribution Date.

         "Disqualified Organization": Any organization defined as a
"disqualified organization" under Section 860E(e)(5) of the Code, which includes
any of the following: (i) the United States, any State or political subdivision
thereof, any possession of the United States, or any agency or instrumentality
of any of the foregoing (other than an instrumentality which is a corporation if
all of its activities are subject to tax and, except for the Freddie Mac, a
majority of its board of directors is not selected by such governmental unit),
(ii) a foreign government, any international organization, or any agency or
instrumentality of any of the foregoing, (iii) any organization (other than
certain farmers' cooperatives described in Section 521 of the Code) which is
exempt from the tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on unrelated business taxable income), (iv) rural
electric and telephone cooperatives described in Section 1381(a)(2)(C) of the
Code and (v) any other Person so designated by the Securities Administrator
based upon an Opinion of Counsel that the holding of an Ownership Interest in a
Residual Certificate by such Person may cause any REMIC or any Person having an
Ownership Interest in any Class of Certificates (other than such Person) to
incur a liability for any federal tax imposed under the Code that would not
otherwise be imposed but for the Transfer of an Ownership Interest in a Residual
Certificate to such Person. The terms "United States", "State" and
"international organization" shall have the meanings set forth in Section 7701
of the Code or successor provisions.

         "Distribution Date": The 25th day of any month, or if such 25th day is
not a Business Day, the Business Day immediately following such 25th day,
commencing in February 2005.

         "Due Date": With respect to all of the Mortgage Loans, the first day of
the month.

         "Due Period": With respect to any Distribution Date, the period
commencing on the second day of the month preceding the month of such
Distribution Date (or, with respect to the first Due Period, the day following
the Cut-off Date) and ending on the first day of the month of the related
Distribution Date.

         "EDGAR": The Electronic Data Gathering and Retrieval System of the
Commission.

         "Eligible Account": Any of (i) a segregated account maintained with a
federal or state chartered depository institution (A) the short-term obligations
of which are rated A-1+ or better by Standard & Poor's and P-1 by Moody's at the
time of any deposit therein or (B) insured by the FDIC (to the limits
established by such Corporation), the uninsured deposits in which account are
otherwise secured such that, as evidenced by an Opinion of Counsel (obtained by
the Person requesting that the account be held pursuant to this clause (ii))
delivered to the Trustee prior to the establishment of such account, the
Certificateholders will have a claim with respect to the funds in such account
and a perfected first priority security interest against any collateral (which
shall be limited to Permitted Investments, each of which shall mature not later
than the Business Day immediately preceding the Distribution Date next following
the date of investment in such collateral or the Distribution Date if such
Permitted Investment is an obligation of the institution that maintains the
Certificate Account or Custodial Account) securing such funds that

                                      -18-
<PAGE>

is superior to claims of any other depositors or general creditors of the
depository institution with which such account is maintained, (ii) a segregated
trust account or accounts maintained with a federal or state chartered
depository institution or trust company subject to regulations regarding
fiduciary funds on deposit similar to Title 12 of the Code of Federal
Regulations Section 9.10(b), which, in either case, has corporate trust powers,
acting in its fiduciary capacity or (iii) a segregated account or accounts of a
depository institution acceptable to the Rating Agencies (as evidenced in
writing by a letter from the Rating Agencies to the Trustee that use of any such
account as the Custodial Account or the Certificate Account will not have an
adverse effect on the then-current ratings assigned to the Classes of the
Certificates then rated by the Rating Agencies). Eligible Accounts may bear
interest.

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

         "Exchange Act": The Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.

         "Extra Principal Distribution Amount": With respect to any Distribution
Date, is the lesser of (x) the Overcollateralization Deficiency Amount for such
Distribution Date and (y) the Net Monthly Excess Cashflow Amount for such
Distribution Date.

         "Fannie Mae": Federal National Mortgage Association or any successor.

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

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

         "Fixed Rate Mortgage Loans": The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life of
the related Mortgage, including any Mortgage Loans delivered in replacement
thereof.

         "Freddie Mac": Federal Home Loan Mortgage Corporation or any successor.

         "Initial Certificate Principal Balance": With respect to each Class of
Regular Certificates, the Initial Certificate Principal Balance of such Class of
Certificates as set forth in the Preliminary Statement hereto, or with respect
to any single Certificate, the Initial Certificate Principal Balance as stated
on the face thereof.

         "Initial Notional Amount": With respect to any Class C Certificate, the
aggregate of the initial Uncertificated Principal Balance of the REMIC 1 Regular
Interests (other than REMIC 1 Regular Interest LT-P).

         "Insurance Policy": With respect to any Mortgage Loan, any insurance
policy (including the Lender-Paid PMI Policy and Lender-Paid UGI Policy) which
is required to be maintained from time to time under this Agreement in respect
of such Mortgage Loan.

         "Insurance Proceeds": Proceeds paid in respect of the Mortgage Loans
pursuant to any Insurance Policy, to the extent such proceeds are payable to the
mortgagee under the Mortgage, any Subservicer, the Master Servicer or the
Trustee and are not applied to the restoration of the

                                      -19-
<PAGE>

related Mortgaged Property or released to the Mortgagor in accordance with the
procedures that the Master Servicer would follow in servicing mortgage loans
held for its own account.

         "Interest Carry Forward Amount": With respect to each Class of Offered
Certificates and the Class M-10 Certificates and each Distribution Date, the
excess of (a) the Accrued Certificate Interest for such Class with respect to
prior Distribution Dates, over (b) the amount actually distributed to such Class
with respect to interest on such prior Distribution Dates, with interest on such
excess at the related Pass-Through Rate.

         "Interest Determination Date": With respect to the first Accrual
Period, the second LIBOR Business Day preceding the Closing Date, and with
respect to each Accrual Period thereafter, the second LIBOR Business Day
preceding the related Distribution Date on which such Accrual Period commences.

         "Interest Remittance Amount": With respect to any Distribution Date,
that portion of the Available Distribution Amount for such Distribution Date
allocable to interest received or advanced on the Mortgage Loans.

         "Late Collections": With respect to any Mortgage Loan, all amounts
received during any Due Period, whether as late payments of Monthly Payments or
as Insurance Proceeds, Liquidation Proceeds or otherwise, which represent late
payments or collections of Monthly Payments due but delinquent for a previous
Due Period and not previously recovered.

         "Lender-Paid Insured Loans": The Mortgage Loans included in the Trust
Fund covered by the Lender-Paid PMI Policy or the Lender-Paid UGI Policy, as
applicable, as indicated on the Mortgage Loan Schedule.

         "Lender-Paid PMI Policy": The lender-paid Primary Insurance Policy
issued by PMI Mortgage Insurance Co., as assigned to the Trust on the Closing
Date, or any replacement policy therefore.

         "Lender-Paid PMI Rate": With respect to any Lender-Paid Insured Loan
covered by Lender-Paid PMI Policy, the rate per annum at which the premium on
the Lender-Paid PMI Policy accrues.

         "Lender-Paid UGI Policy": The lender-paid Primary Insurance Policy
issued by United Guaranty Corporation, as assigned to the Trust on the Closing
Date, or any replacement policy therefore.

         "Lender-Paid UGI Rate": With respect to any Lender-Paid Insured Loan
covered by the Lender-Paid UGI Policy, the rate per annum at which the premium
on the Lender-Paid UGI Policy accrues.

         "LIBOR": With respect to any Distribution Date and the Pass-Through
Rates on the Offered Certificates and the Class M-10 Certificates, the
arithmetic mean of the Loan interbank offered rate quotations of reference banks
(which will be selected by the Securities Administrator) for one-month U.S.
dollar deposits, expressed on a per annum basis, determined in accordance with
Section 1.02.

                                      -20-
<PAGE>

         "LIBOR Business Day": A day on which banks are open for dealing in
foreign currency and exchange in London and New York City.

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

         "Liquidation Proceeds": Amounts (other than Insurance Proceeds)
received by the Servicer or Master Servicer in connection with the taking of an
entire Mortgaged Property by exercise of the power of eminent domain or
condemnation or in connection with the liquidation of a defaulted Mortgage Loan
through trustee's sale, foreclosure sale or otherwise and any Subsequent
Recoveries, other than amounts received in respect of any REO Property.

         "Loan-to-Value Ratio": As of any date of determination, the fraction,
expressed as a percentage, the numerator of which is the current principal
balance of the related Mortgage Loan at the date of determination and the
denominator of which is the Collateral Value of the related Mortgaged Property.

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

         "Majority Class C Certificateholder": With respect to the Class C
Certificates and any Distribution Date, the Holder of a 50.01% or greater
Percentage Interest of the Class C Certificates.

         "Marker Rate": With respect to the Class C Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the Uncertificated REMIC 1 Pass-Through Rates for each REMIC 1 Regular
Interest (other than REMIC 1 Regular Interest LT-AA and REMIC I Regular Interest
LT-P) subject to a cap (for each such REMIC 1 Regular Interest other than REMIC
1 Regular Interest LT-ZZ) equal to the lesser of (x) One-Month LIBOR plus the
related Certificate Margin of the Corresponding Certificate and (y) the Net WAC
Rate for the purpose of this calculation; with the rate on REMIC 1 Regular
Interest LT-ZZ subject to a cap of zero for the purpose of this calculation;
provided, however, that solely for this purpose, calculations of the
Uncertificated REMIC 1 Pass-Through Rate and the related caps with respect to
each such REMIC 1 Regular Interest, other than REMIC 1 Regular Interest LT-ZZ,
shall be multiplied by a fraction, the numerator of which is the actual number
of days in the Interest Accrual Period and the denominator of which is 30.

         "Master Servicer": Wells Fargo Bank, N.A., or any successor master
servicer appointed as herein provided.

                                      -21-
<PAGE>

         "Master Servicing Fees": As to each Mortgage Loan, an amount, equal to
interest at the Master Servicing Fee Rate on the Stated Principal Balance of
such Mortgage Loan as of the Due Date in the calendar month preceding the month
in which the payment of the Master Servicing Fee is due.

         "Master Servicing Fee Rate": With respect to each Mortgage Loan, the
per annum rate of 0.0125%.

         "Maximum Uncertificated Accrued Interest Deferral Amount": With respect
to any Distribution Date, the excess of (a) accrued interest at the
Uncertificated REMIC 1 Pass-Through Rate applicable to REMIC 1 Regular Interest
LT-ZZ for such Distribution Date on a balance equal to the excess of (i) the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-ZZ over (ii) the
REMIC 1 Overcollateralized Amount, in each case for such Distribution Date over
(b) the sum of (I) Uncertificated Accrued Interest on REMIC 1 Regular Interest
LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1 Regular Interest LT-A2, REMIC 1
Regular Interest LT-A3, REMIC 1 Regular Interest LT-A4, REMIC 1 Regular Interest
LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1 Regular Interest LT-M3, REMIC 1
Regular Interest LT-M4, REMIC 1 Regular Interest LT-M5, REMIC 1 Regular Interest
LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC 1
Regular Interest LT-M9 and REMIC 1 Regular Interest LT-M10 with the rate on each
such REMIC 1 Regular Interest subject to a cap equal to the lesser of (x)
One-Month LIBOR plus the related Certificate Margin and (y) the Net WAC Rate;
provided, however, that solely for this purpose, calculations of the
Uncertificated REMIC 1 Pass-Through Rate and the related caps with respect to
REMIC 1 Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1
Regular Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest
LT-A4, REMIC 1 Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1
Regular Interest LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest
LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1
Regular Interest LT-M8, REMIC 1 Regular Interest LT-M9 and REMIC 1 Regular
Interest LT-M10 shall be multiplied by a fraction, the numerator of which is the
actual number of days in the Interest Accrual Period and the denominator of
which is 30.

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

         "MERS(R) System": The system of recording transfers of Mortgages
electronically maintained by MERS.

         "MIN": The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS(R) System. "MOM Loan": With respect to any Mortgage Loan,
MERS acting as the mortgagee of such Mortgage Loan, solely as nominee for the
originator of such Mortgage Loan and its successors and assigns, at the
origination thereof.

         "Monthly Payment": With respect to any Mortgage Loan, the scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by a Mortgagor from

                                      -22-
<PAGE>

time to time under the related Mortgage Note as originally executed (after
adjustment, if any, for Deficient Valuations occurring prior to such Due Date,
and after any adjustment by reason of any bankruptcy or similar proceeding or
any moratorium or similar waiver or grace period), and other than any Balloon
Payment.

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

         "Mortgage": The mortgage, deed of trust or any other instrument
securing the Mortgage Loan.

         "Mortgage File": The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement; provided, that
whenever the term "Mortgage File" is used to refer to documents actually
received by the Custodian as agent for the Trustee, such term shall not be
deemed to include such additional documents required to be added unless they are
actually so added.

         "Mortgage Loan": Each of the mortgage loans, transferred and assigned
to the Trustee pursuant to Section 2.01, 2.04 or 2.06 and from time to time held
in the Trust Fund (including any Qualified Substitute Mortgage Loans), the
Mortgage Loans so transferred, assigned and held being identified in the
Mortgage Loan Schedule. As used herein, the term "Mortgage Loan" includes the
related Mortgage Note and Mortgage.

         "Mortgage Loan Purchase Agreement": The Mortgage Loan Purchase
Agreement dated as the Cut-off Date, between Opteum Financial Services, LLC as
seller and the Company as purchaser, and all amendments thereof and supplements
thereto, a form of which is attached hereto as Exhibit P.

         "Mortgage Loan Schedule": As of any date of determination, the schedule
of Mortgage Loans included in the Trust Fund. The initial schedule of Mortgage
Loans with accompanying information transferred on the Closing Date to the
Trustee as part of the Trust Fund for the Certificates, attached hereto as
Exhibit H (as amended from time to time to reflect the addition of Qualified
Substitute Mortgage Loans) (and, for purposes of the Trustee pursuant to Section
2.02, in computer-readable form as delivered to the Trustee), which list shall
set forth the following information with respect to each Mortgage Loan:

         (i)      the loan number;

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

         (iii)    (A) the original term to maturity and (B) if such Mortgage
                  Loan is a Balloon Loan, the amortization term thereof;

         (iv)     the original principal balance and the original Mortgage Rate;

         (v)      the first Distribution Date;

                                      -23-
<PAGE>

         (vi)     whether the Mortgage Loan is a Balloon Mortgage Loan or a
                  Mortgage Loan the terms of which do not provide for a Balloon
                  Payment;

         (vii)    the type of Mortgaged Property;

         (viii)   the Monthly Payment in effect as of the Cut-off Date;

         (ix)     the principal balance as of the Cut-off Date;

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

         (xi)     the occupancy status;

         (xii)    the purpose of the Mortgage Loan;

         (xiii)   the Collateral Value of the Mortgaged Property;

         (xiv)    the original term to maturity;

         (xv)     the paid-through date of the Mortgage Loan;

         (xvi)    the Master Servicing Fee Rate;

         (xvii)   the Servicing Fee Rate;

         (xviii)  the Net Mortgage Rate for such Mortgage Loan;

         (xix)    whether the Mortgage Loan is covered by a private mortgage
                  insurance policy or an original certificate of private
                  mortgage insurance;

         (xx)     the documentation type;

         (xxi)    the type and term of the related Prepayment Charge, if any;

         (xxii)   whether such Mortgage Loan is a Lender-Paid Insured Loan and,
                  if so, the related Lender-Paid PMI Rate or Lender-Paid UGI
                  Rate, as applicable;

         (xxiii)  with respect to each Adjustable Rate Mortgage Loan.

                  (a)      the frequency of each Adjustment Date;

                  (b)      the next Adjustment Date;

                  (c)      the Maximum Mortgage Rate;

                  (d)      the Minimum Mortgage Rate;

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

                                      -24-
<PAGE>

                  (f)      the related Periodic Rate Cap;

                  (g)      the Gross Margin; and

                  (h)      the purpose of the Mortgage Loan.

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

         "Mortgage Rate": With respect to any Mortgage Loan, the annual rate at
which interest accrues on such Mortgage Loan, as adjusted from time to time in
accordance with the provisions of the Mortgage Note.

         "Mortgaged Property": The underlying property securing a Mortgage Loan.

         "Mortgagor": The obligor or obligors on a Mortgage Note.

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

         "Net Monthly Excess Cashflow": For any Distribution Date, the sum of
(a) the Overcollateralization Release Amount and (b) the excess of (x) the
Available Distribution Amount for such distribution date over (y) the sum for
such Distribution Date of (A) the aggregate Accrued Certificate Interest for the
Offered Certificates and the Class M-10 Certificates, (B) the aggregate Interest
Carry Forward Amount for the Class A Certificates and (C) the Principal
Remittance Amount.

         "Net Mortgage Rate": With respect to each Mortgage Loan Due Date, a per
annum rate of interest equal to the then-applicable Mortgage Rate on such
Mortgage Loan less the sum of (i) the Master Servicing Fee Rate, (ii) the
Servicing Fee Rate and (iii) with respect to the Lender-Paid Insured Loans, the
related Lender-Paid PMI Rate or Lender-Paid UGI Rate, as applicable, calculated
on the basis of a 360-day year and the number of days in the related Accrual
Period.

         "Net Prepayment Interest Shortfall": With respect to any Distribution
Date, the excess, if any, of any Prepayment Interest Shortfalls for such date
over the related Compensating Interest.

         "Net WAC Rate": With respect to the Offered Certificates and the Class
M-10 Certificates, a per annum rate equal to the weighted average of the Net
Mortgage Rates of the Mortgage Loans, weighted on the basis of the Stated
Principal Balances thereof as of the close of business on the first day of the
calendar month preceding the month in which such Distribution Date occurs. For
federal income tax purposes, the equivalent of the foregoing shall be expressed
as the weighted average of the Uncertificated REMIC 1 Pass-Through Rate on each
REMIC 1 Regular Interest, weighted on the basis of the Uncertificated Principal
Balance of each such REMIC 1 Regular Interest.

                                      -25-
<PAGE>

         "Nonrecoverable Advance": Any Advance or Servicing Advance previously
made or proposed to be made in respect of a Mortgage Loan which, in the good
faith judgment of the Servicer or the Master Servicer, will not or, in the case
of a proposed Advance or Servicing Advance, would not be ultimately recoverable
from related Late Collections, Insurance Proceeds, Liquidation Proceeds or REO
Proceeds. The determination by the Servicer or the Master Servicer that it has
made a Nonrecoverable Advance or that any proposed Advance or Servicing Advance
would constitute a Nonrecoverable Advance, shall be evidenced by a certificate
of a Servicing Officer delivered, in the case of the Servicer, to the Company
and the Master Servicer, and in the case of the Master Servicer, to the Company
and the Trustee.

         "Non-United States Person": Any Person other than a United States
Person.

         "Notional Amount": With respect to the Class C Certificates,
immediately prior to any Distribution Date, the aggregate of the Uncertificated
Principal Balances of the REMIC 1 Regular Interests, other than REMIC 1 Regular
Interest LT-P.

         "Offered Certificates": The Class A Certificates and Class M
Certificates (except for the Class M-10 Certificates).

         "Officers' Certificate": A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or a vice president and by
the Treasurer, the Secretary, or one of the assistant treasurers or assistant
secretaries of the Company, the Seller, the Master Servicer or of any
Subservicer and delivered to the Company and Trustee.

         "Opinion of Counsel": A written opinion of counsel, who may be counsel
for the Company, the Seller, or the Master Servicer, reasonably acceptable to
the Trustee and Securities Administrator; except that any opinion of counsel
relating to (a) the qualification of any account required to be maintained
pursuant to this Agreement as an Eligible Account, (b) the qualification of each
REMIC as a REMICs, (c) compliance with the REMIC Provisions or (d) resignation
of the Master Servicer pursuant to Section 6.04 must be an opinion of counsel
who (i) is in fact independent of the Company and the Master Servicer, (ii) does
not have any direct financial interest or any material indirect financial
interest in the Company or the Master Servicer or in an affiliate of either and
(iii) is not connected with the Company or the Master Servicer as an officer,
employee, director or person performing similar functions.

         "Option One": Option One Mortgage Corporation.

         "Option One Servicing Agreement": The Servicing Agreement dated March
5, 2004, between the Company as owner and Home Star Mortgage Servicers, LLC as
servicer.

         "Optional Termination Date": The first Distribution Date following the
first Distribution Date after the Aggregate Stated Principal Balance of the
Mortgage Loans, and properties acquired in respect thereof, remaining in the
Trust Fund has been reduced to less than or equal to 10% of the Aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date.

         "OTS": Office of Thrift Supervision or any successor.

                                      -26-
<PAGE>

         "Outstanding Mortgage Loan": As to any Due Date, a Mortgage Loan
(including an REO Property) which was not the subject of a Principal Prepayment
in Full, Cash Liquidation or REO Disposition and which was not purchased prior
to such Due Date pursuant to Sections 2.02, 2.04 or 3.14.

         "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount (calculated for the purpose of this
definition only, solely after giving effect to distributions in respect of the
Principal Remittance Amount on such Distribution Date) on such Distribution
Date.

         "Overcollateralization Floor Amount": An amount equal to approximately
0.50% of the Aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

         "Overcollateralization Release Amount": With respect to any
Distribution Date, the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the excess, if any, of (i) the Overcollateralized
Amount (after giving effect to distributions in respect of the Principal
Remittance Amount to be made on such Distribution Date) for such Distribution
Date over (ii) the Overcollateralization Target Amount for such Distribution
Date.

         "Overcollateralization Target Amount": With respect to any Distribution
Date, (a) prior to the Stepdown Date, 0.75% of the Aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, (b) on or after the
Stepdown Date and if a Trigger Event is not in effect, the greater of (i) 1.50%
of the then current Aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period and (ii) the Overcollateralization
Floor Amount or (c) on or after the Stepdown Date and if a Trigger Event is in
effect, the Overcollateralization Target Amount for the immediately preceding
Distribution Date. Notwithstanding the foregoing, on and after any Distribution
Date following the reduction of the aggregate Certificate Principal Balance of
the Class A Certificates and the Class M Certificates to zero, the
Overcollateralization Target Amount shall be zero.

         "Overcollateralized Amount": With respect to any Distribution Date, the
amount, if any, by which (i) the Aggregate Stated Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period and any Realized Losses on the Mortgage Loans) exceeds (ii) the aggregate
Certificate Principal Balance of the Offered Certificates and the Class M-10
Certificates as of such Distribution Date (after giving effect to distributions
on such Distribution Date).

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

         "Pass-Through Rate": With respect to each Distribution Date and each
Class of Offered Certificates and the Class M-10 Certificates, a floating rate
equal to the lesser of (i) One-Month LIBOR plus the related Certificate Margin
and (ii) the Net WAC Rate with respect to such

                                      -27-
<PAGE>

Distribution Date times a fraction equal to (x) 30 over (y) the number of days
in the related Accrual Period.

         With respect to any Distribution Date and the Class C Certificates, a
per annum rate equal to the percentage equivalent of a fraction, the numerator
of which is (x) the sum of the amounts calculated pursuant to clauses (A)
through (R) below, and the denominator of which is (y) the aggregate of the
Uncertificated Principal Balances of the REMIC 1 Regular Interests (other than
REMIC 1 Regular Interests LT-P). For purposes of calculating the Pass-Through
Rate for the Class C Certificates, the numerator is equal to the sum of the
following components:

         (A)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-AA minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-AA;

         (B)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-A1A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A1A;

         (C)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-A1B minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A1B;

         (D)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-A2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A2;

         (E)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-A3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A3;

         (F)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-A4 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-A4;

         (G)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1;

         (H)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M2;

         (I)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M3;

                                      -28-
<PAGE>

         (J)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M4 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4;

         (K)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M5 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M5;

         (L)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M6 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M6;

         (M)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M7 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M7;

         (N)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M8 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M8;

         (O)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M9 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M9;

         (P)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-M10 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M10;

         (Q)      the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-ZZ minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-ZZ; and

         (R)      100% of the interest on REMIC 1 Regular Interest LT-P.

         The Class P and Class R Certificates will not accrue interest and
therefore will not have a Pass-Through Rate.

         "Percentage Interest": With respect to any Certificate (other than a
Class R Certificate), the undivided percentage ownership interest in the related
Class evidenced by such Certificate, which percentage ownership interest shall
be equal to the Initial Certificate Principal Balance thereof or Initial
Notional Amount, as applicable, thereof divided by the aggregate Initial
Certificate Principal Balance or Initial Notional Amount, as applicable, of all
of the Certificates of the same Class. With respect to any Class R, the interest
in distributions to be made with respect to such Class evidenced thereby,
expressed as a percentage, as stated on the face of each such Certificate.

                                      -29-
<PAGE>

         "Permitted Investment": One or more of the following:

         (i)      obligations of or guaranteed as to principal and interest by
the United States or any agency or instrumentality thereof when such obligations
are backed by the full faith and credit of the United States;

         (ii)     repurchase agreements on obligations specified in clause (i)
maturing not more than one month from the date of acquisition thereof, provided
that the unsecured obligations of the party agreeing to repurchase such
obligations are at the time rated by each Rating Agency in its highest
short-term rating available;

         (iii)    federal funds, certificates of deposit, demand deposits, time
deposits and bankers' acceptances (which shall each have an original maturity of
not more than 90 days and, in the case of bankers' acceptances, shall in no
event have an original maturity of more than 365 days or a remaining maturity of
more than 30 days) denominated in United States dollars of any U.S. depository
institution or trust company incorporated under the laws of the United States or
any state thereof or of any domestic branch of a foreign depository institution
or trust company; provided that the debt obligations of such depository
institution or trust company (or, if the only Rating Agency is Standard &
Poor's, in the case of the principal depository institution in a depository
institution holding company, debt obligations of the depository institution
holding company) at the date of acquisition thereof have been rated by each
Rating Agency in its highest short-term rating available; and provided further
that, if the only Rating Agency is Standard & Poor's and if the depository or
trust company is a principal subsidiary of a bank holding company and the debt
obligations of such subsidiary are not separately rated, the applicable rating
shall be that of the bank holding company; and, provided further that, if the
original maturity of such short-term obligations of a domestic branch of a
foreign depository institution or trust company shall exceed 30 days, the
short-term rating of such institution shall be A-1+ in the case of Standard &
Poor's if Standard & Poor's is the Rating Agency;

         (iv)     commercial paper (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 Moody's and
Standard & Poor's in their highest short-term ratings available; provided that
such commercial paper shall have a remaining maturity of not more than 30 days;

         (v)      a money market fund or a qualified investment fund rated by
Moody's in its highest long-term ratings available and rated AAAm or AAAm-G by
Standard & Poor's, including any such funds for which Wells Fargo Bank, N.A. or
any affiliate thereof serves as an investment advisor, manager, administrator,
shareholder, servicing agent, and/or custodian or sub-custodian; and

         (vi)     other obligations or securities that are acceptable to each
Rating Agency as a Permitted Investment hereunder and will not reduce the rating
assigned to any Class of Certificates by such Rating Agency below the lower of
the then-current rating or the rating assigned to such Certificates as of the
Closing Date by such Rating Agency, as evidenced in writing;

                                      -30-
<PAGE>

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.

         "Permitted Transferee": Any transferee of a Residual Certificate other
than a Disqualified Organization, a Non-United States Person or an "electing
large partnership" (as defined in Section 775 of the Code).

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

         "Prepayment Assumption": As defined in the Prospectus Supplement.

         "Prepayment Charge": With respect to any Mortgage Loan, the charges,
penalties or premiums, if any, due in connection with a full or partial
prepayment of such Mortgage Loan in accordance with the terms of the related
Mortgage Note (or any rider or annex thereto), or any amounts in respect thereof
paid by the Seller in accordance with the Mortgage Loan Purchase Agreement or
the Servicer in accordance with the Servicing Agreements.

         "Prepayment Interest Shortfall": As to any Distribution Date and any
Mortgage Loan (other than a Mortgage Loan relating to an REO Property) that was
the subject of (a) a Principal Prepayment in Full during the related Prepayment
Period, an amount equal to the excess of one month's interest at the Net
Mortgage Rate on the Stated Principal Balance of such Mortgage Loan over the
amount of interest (adjusted to the Net Mortgage Rate) paid by the Mortgagor for
such Prepayment Period to the date of such Principal Prepayment in Full or (b) a
Curtailment during the prior calendar month, an amount equal to one month's
interest at the Mortgage Rate on the amount of such Curtailment.

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

         "Primary Hazard Insurance Policy": Each primary hazard insurance policy
required to be maintained pursuant to Section 3.13.

         "Primary Insurance Policy": Any primary policy of mortgage guaranty
insurance including the Lender-Paid PMI Policy or Lender-Paid UGI Policy, as
applicable, or any replacement policy therefor.

         "Principal Distribution Amount": With respect to any Distribution Date,
an amount equal to the sum of the Basic Principal Distribution Amount plus the
Extra Principal Distribution Amount.

         "Principal Prepayment": Any payment of principal made by the Mortgagor
on a Mortgage Loan which is received in advance of its scheduled Due Date and
which is not

                                      -31-
<PAGE>

accompanied by an amount of interest representing scheduled interest due on
any date or dates in any month or months subsequent to the month of
prepayment.

         "Principal Prepayment in Full": Any Principal Prepayment made by a
Mortgagor of the entire unpaid principal balance of the Mortgage Loan.

         "Principal Remittance Amount": With respect to any Distribution Date,
the sum of (i) each scheduled payment of principal collected or advanced on the
Mortgage Loans by the Servicer or Master Servicer that was due during the
related Due Period, (ii) the principal portion of all partial and full Principal
Prepayments of the Mortgage Loans applied by the Servicer or Master Servicer
during the related Prepayment Period, (iii) the principal portion of all Net
Liquidation Proceeds, REO Proceeds, Insurance Proceeds and Subsequent Recoveries
received during the related Prepayment Period, (iv) the principal portion of
proceeds of Mortgage Loan purchases made pursuant to Section 2.02, 2.04 or 3.06,
in each case received or made during the related Prepayment Period, (v) the
principal portion of any related Substitution Adjustments deposited in the
Custodial Account during the related Prepayment Period and (vi) on the
Distribution Date on which the Trust Fund is to be terminated pursuant to
Section 9.01, the principal portion of the termination price received from the
Servicer or the Master Servicer, as applicable, in connection with a termination
of the Trust Fund to occur on such Distribution Date.

         "Prospectus Supplement": That certain Prospectus Supplement dated
January 27, 2005 relating to the public offering of the Offered Certificates.

         "Protected Account": An account established and maintained for the
benefit of Certificateholders by the Servicer with respect to the related
Mortgage Loans and with respect to REO Property pursuant to the respective
Servicing Agreements.

         "Purchase Price": With respect to any Mortgage Loan (or REO Property)
required to be purchased pursuant to Section 2.02, 2.04 or 3.06, an amount equal
to the sum of (i) 100% of the Stated Principal Balance thereof, (ii) unpaid
accrued interest (or REO Imputed Interest) at the applicable Net Mortgage Rate
on the Stated Principal Balance thereof outstanding during each Due Period that
such interest was not paid or advanced, from the date through which interest was
last paid by the Mortgagor or advanced and distributed to Certificateholders
together with unpaid Master Servicing Fees and Servicing Fees and, if such
Mortgage Loan is a Lender-Paid Insured Loan, the related premium payable at the
related Lender-Paid PMI Rate or Lender-Paid UGI Rate, as applicable, from the
date through which interest was last paid by the Mortgagor, in each case to the
first day of the month in which such Purchase Price is to be distributed, plus
(iii) the aggregate of all Advances and Servicing Advances made in respect
thereof that were not previously reimbursed and (iv) costs and damages incurred
by the Trust Fund in connection with a repurchase pursuant to Section 2.04
hereof that arises out of a violation of any anti-predatory lending law which
also constitutes an actual breach of representations (xxxii), (xxxiii), (xxxiv),
(xxxv), (xxxvi) or (xxxvii) of Section 3.1(b) of the Mortgage Loan Purchase
Agreement.

         "Qualified Insurer": Any insurance company duly qualified as such under
the laws of the state or states in which the related Mortgaged Property or
Mortgaged Properties is or are located, duly authorized and licensed in such
state or states to transact the type of insurance business in

                                      -32-
<PAGE>

which it is engaged and approved as an insurer by the Master Servicer, so long
as the claims paying ability of which is acceptable to the Rating Agencies for
pass-through certificates having the same rating as the Certificates rated by
the Rating Agencies as of the Closing Date.

         "Qualified Substitute Mortgage Loan": A Mortgage Loan substituted by
the Company for a Deleted Mortgage Loan which must, on the date of such
substitution, as confirmed in an Officers' Certificate of the Seller delivered
to the 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 Mortgage Loan for a Deleted
Mortgage Loan, an aggregate outstanding principal balance, after such
deduction), not in excess of the Stated Principal Balance of the Deleted
Mortgage Loan (the amount of any shortfall to be paid to the Master Servicer for
deposit in the Custodial Account in the month of substitution); (ii) have a
Mortgage Rate and a Net Mortgage Rate no lower than and not more than 1% per
annum higher than the Mortgage Rate and Net Mortgage Rate, respectively, of the
Deleted Mortgage Loan as of the date of substitution; (iii) have a Loan-to-Value
Ratio at the time of substitution no higher than that of the Deleted Mortgage
Loan at the time of substitution; (iv) have a remaining term to stated maturity
not greater than (and not more than one year less than) that of the Deleted
Mortgage Loan; (v) comply with each representation and warranty set forth in
Section 2.04 hereof; and, (vi) comply with each non-statistical representation
and warranty set forth in the Mortgage Loan Purchase Agreement.

         "Rating Agency": Standard & Poor's and Moody's and each of their
successors. If such agencies and their successors are no longer in existence,
"Rating Agency" shall be such nationally recognized statistical rating agency,
or other comparable Person, designated by the Company, notice of which
designation shall be given to the Trustee, the Securities Administrator and
Master Servicer. References herein to the two highest long term debt ratings of
a Rating Agency shall mean "AA" or better in the case of Standard & Poor's and
"Aa2" or better in the case of Moody's and references herein to the two highest
short-term debt ratings 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 such references shall mean such rating categories without regard
to any plus or minus.

         "Realized Loss": With respect to each Mortgage Loan or REO Property as
to which a Cash Liquidation or REO Disposition has occurred, an amount (not less
than zero) equal to (i) the Stated Principal Balance of the Mortgage Loan as of
the date of Cash Liquidation or REO Disposition, plus (ii) interest (and REO
Imputed Interest, if any) at the Net Mortgage Rate from the Due Date as to which
interest was last paid or advanced to Certificateholders up to the date of the
Cash Liquidation or REO Disposition on the Stated Principal Balance of such
Mortgage Loan outstanding during each Due Period that such interest was not paid
or advanced, minus (iii) the proceeds, if any, received during the month in
which such Cash Liquidation or REO Disposition occurred, to the extent applied
as recoveries of interest at the Net Mortgage Rate and to principal of the
Mortgage Loan, net of the portion thereof reimbursable to the Master Servicer or
the Servicer with respect to related Advances or Servicing Advances not
previously reimbursed. With respect to each Mortgage Loan which has become the
subject of a Deficient Valuation, the difference between the principal balance
of the Mortgage Loan outstanding immediately prior to such Deficient Valuation
and the principal balance of the Mortgage Loan as reduced by the Deficient
Valuation. In addition, to the extent the Servicer or Master Servicer receives

                                      -33-
<PAGE>

Subsequent Recoveries with respect to any Mortgage Loan, the amount of the
Realized Loss with respect to that Mortgage Loan will be reduced to the extent
such recoveries are applied to reduce the Certificate Principal Balance of any
Class of Certificates on any Distribution Date.

         "Record Date": With respect to any Book-Entry Certificates and any
Distribution Date, the close of business on the Business Day immediately
preceding such distribution date. With respect to any Certificates that are not
Book-Entry Certificates, the close of business on the last Business Day of the
calendar month preceding such Distribution Date.

         "Regular Certificate": Any of the Certificates other than a Residual
Certificate.

         "Relief Act": The Servicemembers Civil Relief Act, f/k/a Soldiers' and
Sailors' Civil Relief Act of 1940, as amended.

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

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

         "REMIC 1": The segregated pool of assets subject hereto (exclusive of
the Basis Risk Shortfall Reserve Fund and the Corridor Contracts) with respect
to which a REMIC election is to be made, conveyed in trust to the Trustee, for
the benefit of the Holders of the REMIC 1 Regular Interests and the Holders of
the Class R Certificates (as holders of the Class R-1 Interest), consisting of:
(i) each Mortgage Loan (exclusive of payments of principal and interest due on
or before the Cut-off Date, if any, received by the Master Servicer which shall
not constitute an asset of the Trust Fund) as from time to time are subject to
this Agreement and all payments under and proceeds of such Mortgage Loans
(exclusive of any prepayment fees and late payment charges received on the
Mortgage Loans), together with all documents included in the related Mortgage
File, subject to Section 2.01; (ii) such funds or assets as from time to time
are deposited in the Custodial Account or the Certificate Account and belonging
to the Trust Fund; (iii) any REO Property; (iv) the Primary Hazard Insurance
Policies, if any, the Primary Insurance Policies, if any, and all other
Insurance Policies with respect to the Mortgage Loans; and (v) the Company's
interest in respect of the representations and warranties made by the Seller in
the Mortgage Loan Purchase Agreement as assigned to the Trustee pursuant to
Section 2.04 hereof. REMIC 1 specifically does not include the Basis Risk
Shortfall Reserve Fund and the Corridor Contracts.

         "REMIC 1 Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Principal Balance of the mortgage loans and related REO Properties then
outstanding and (ii) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1
Regular Interest LT-AA minus the Marker Rate, divided by (b) 12.

                                      -34-
<PAGE>

         "REMIC 1 Overcollateralized Amount": With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Principal Balances of
REMIC 1 Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1
Regular Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest
LT-A4, REMIC 1 Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1
Regular Interest LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest
LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1
Regular Interest LT-M8, REMIC 1 Regular Interest LT-M9, REMIC 1 Regular Interest
LT-M10, REMIC 1 Regular Interest LT-ZZ and REMIC 1 Regular Interest LT-P, minus
(ii) the aggregate of the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1 Regular Interest
LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest LT-A4, REMIC 1
Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1 Regular Interest
LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest LT-M5, REMIC 1
Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest
LT-M8, REMIC 1 Regular Interest LT-M9, REMIC 1 Regular Interest LT-M10 and REMIC
1 Regular Interest LT-P, in each case as of such date of determination.

         "REMIC 1 Principal Loss Allocation Amount": With respect to any
Distribution Date and the mortgage loans, an amount equal to (a) the product of
(i) the aggregate Principal Balance of the mortgage loans and related REO
Properties then outstanding and (ii) 1 minus a fraction, the numerator of which
is two times the aggregate of the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1 Regular
Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest LT-A4,
REMIC 1 Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1 Regular
Interest LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest LT-M5,
REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular
Interest LT-M8, REMIC 1 Regular Interest LT-M9, REMIC 1 Regular Interest LT-M10
and the denominator of which is the aggregate of the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B,
REMIC 1 Regular Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular
Interest LT-A4, REMIC 1 Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2,
REMIC 1 Regular Interest LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular
Interest LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7,
REMIC 1 Regular Interest LT-M8, REMIC 1 Regular Interest LT-M9, REMIC 1 Regular
Interest LT-M10 and REMIC 1 Regular Interest LT-ZZ.

         "REMIC 1 Overcollateralization Target Amount": 1% of the
Overcollateralization Target Amount.

         "REMIC 1 Regular Interest LT-AA": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-AA shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-A1A": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
regular interest in REMIC

                                      -35-
<PAGE>

1. REMIC 1 Regular Interest LT-A1A shall accrue interest at the related
Uncertificated REMIC 1 Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

         "REMIC 1 Regular Interest LT-A1B": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
regular interest in REMIC 1. REMIC 1 Regular Interest LT-A1B shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-A2": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
regular interest in REMIC 1. REMIC 1 Regular Interest LT-A2 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-A3": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
regular interest in REMIC 1. REMIC 1 Regular Interest LT-A3 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-A4": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
regular interest in REMIC 1. REMIC 1 Regular Interest LT-A4 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M1": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M1 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M2": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M2 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

                                      -36-
<PAGE>

         "REMIC 1 Regular Interest LT-M3": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M3 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M4": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M4 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M5": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M5 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M6": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M6 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M7": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M7 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M8": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M8 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-M9": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M9 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of

                                      -37-
<PAGE>

principal, subject to the terms and conditions hereof, in an aggregate amount
equal to its initial Uncertificated Principal Balance as set forth in the
Preliminary Statement hereto.

         "REMIC 1 Regular Interest LT-M10": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-M10 shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interest LT-P": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-P shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to any amounts distributed to REMIC 1
Regular Interest LT-P (including Prepayment Charges).

         "REMIC 1 Regular Interest LT-ZZ": One of the separate non-certificated
beneficial ownership interests in REMIC 1 issued hereunder and designated as a
"regular interest" in REMIC 1. REMIC 1 Regular Interest LT-ZZ shall accrue
interest at the related Uncertificated REMIC 1 Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         "REMIC 1 Regular Interests": REMIC 1 Regular Interest LT-AA, REMIC 1
Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1 Regular
Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest LT-A4,
REMIC 1 Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1 Regular
Interest LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest LT-M5,
REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular
Interest LT-M8, REMIC 1 Regular Interest LT-M9, REMIC 1 Regular Interest LT-M10,
REMIC 1 Regular Interest LT-ZZ and REMIC 1 Regular Interest LT-P.

         "REMIC 2": The segregated pool of assets consisting of all of the REMIC
1 Regular Interests conveyed in trust to the Trustee, for the benefit of the
Holders of the Regular Certificates and the Holders of the Class R Certificates
(as holders of the Class R-2 Interest), pursuant to Article II hereunder, and
all amounts deposited therein, with respect to which a separate REMIC election
is to be made.

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

         "REMIC Regular Interest": A REMIC 1 Regular Interest or Regular
Certificate.

         "Remittance Report": A report prepared by the Master Servicer (and
delivered to the Securities Administrator) providing the information set forth
in Exhibit E attached hereto.

                                      -38-
<PAGE>

         "REO Acquisition": The acquisition by the Servicer on behalf of the
Trust Fund for the benefit of the Certificateholders of any REO Property
pursuant to Section 3.15.

         "REO Disposition": The receipt by the Servicer of Insurance Proceeds,
Liquidation Proceeds, Subsequent Recoveries and other payments and recoveries
(including proceeds of a final sale) which the Servicer expects to be finally
recoverable from the sale or other disposition of the REO Property.

         "REO Imputed Interest": As to any REO Property, for any period, an
amount equivalent to interest (at the Mortgage Rate that would have been
applicable to the related Mortgage Loan had it been outstanding) on the unpaid
principal balance of the Mortgage Loan as of the date of acquisition thereof (as
such balance is reduced pursuant to Section 3.15 by any income from the REO
Property treated as a recovery of principal).

         "REO Proceeds": Proceeds, net of directly related expenses, received in
respect of any REO Property (including, without limitation, proceeds from the
rental of the related Mortgaged Property and of any REO Disposition), which
proceeds are required to be deposited into the Custodial Account as and when
received.

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

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

         "Residual Certificates": A Class R Certificate.

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

         "Responsible Officer": When used with respect to the Trustee shall mean
any officer within the Corporate Trust Office of the Trustee with direct
responsibility for the administration of this Agreement and also, with respect
to a particular matter, any other officer of the Trustee to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject. When used with respect to the Securities Administrator shall
mean any officer assigned with direct responsibility for the administration of
this Agreement and also, with respect to a particular matter, any other officer
of the Securities Administrator to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject.

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

         "Seller": Opteum Financial Services, LLC, or its successor in interest.

         "Senior Enhancement Percentage": For any Distribution Date, the
percentage obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class M Certificates and (ii) the related
Overcollateralization Amount, in each case prior to the

                                      -39-
<PAGE>

distribution of the Principal Distribution Amount on such Distribution Date,
by (y) the Aggregate Stated Principal Balance of the Mortgage Loans after
giving effect to distributions to be made on that Distribution Date.

         "Servicer": Opteum Financial Services, LLC, or its successor in
interest.

         "Servicer Remittance Date": The 18th day of any month, or if such 18th
day is not a Business Day, the first Business Day immediately preceding such
18th day. The first Remittance Date shall occur on February 18, 2005.

         "Servicing Advances": All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in connection with a default, delinquency or
other unanticipated event in the performance by the Master Servicer, the
Servicer or any Subservicer of its servicing obligations, including, but not
limited to, the cost of (i) the preservation, restoration and protection of a
Mortgaged Property, (ii) any enforcement or judicial proceedings, including
foreclosures, including any expenses incurred in relation to any such
proceedings that result from the Mortgage Loan being registered on the MERS
System, (iii) the management and liquidation of any REO Property, including
reasonable fees paid to any independent contractor in connection therewith, and
(iv) compliance with the obligations under the second paragraph of Section 3.01,
Section 3.09 and Section 3.13 (other than any deductible described in the last
paragraph thereof).

         "Servicing Agreements": The Cenlar Servicing Agreement and the Option
One Servicing Agreement, attached hereto as Exhibits M-1 and M-2, respectively.

         "Servicing Fee": With respect to each Mortgage Loan, accrued interest
at the related Servicing Fee Rate with respect to the Mortgage Loan on the same
principal balance on which interest on the Mortgage Loan accrues for the
calendar month. The Servicing Fee consists of servicing and other related
compensation payable to the Servicer or to the Master Servicer if the Master
Servicer is directly servicing the loan, and includes any amount payable to any
Subservicer by the Servicer.

         "Servicing Fee Rate": With respect to each mortgage loan, the servicing
fee rate set forth in the mortgage loan schedule. With respect to each fixed
rate mortgage loan, the Servicing Fee Rate ranges from 0.25% to 0.50% per annum.
With respect to each adjustable rate mortgage loan, the Servicing Fee Rate
ranges from 0.375% to 0.50% per annum; provided that, if any adjustable rate
mortgage loan has an initial fixed rate interest period, that rate will range
from 0.25% to 0.50% per annum following such initial fixed rate period.

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

         "Single Certificate": A Regular Certificate of any Class (other than a
Class P Certificate) evidencing an Initial Certificate Principal Balance or
Initial Notional Amount, as applicable, of $1,000, or, in the case of a Class P
Certificate, a Certificate of such Class evidencing an Initial Certificate
Principal Balance of $100.

                                      -40-
<PAGE>

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

         "Startup Day": The day designated as such pursuant to Article X hereof.

         "Stated Principal Balance": With respect to any Mortgage Loan or
related REO Property at any given time, (i) the principal balance of the
Mortgage Loan outstanding as of the Cut-off Date, after application of principal
payments due on or before such date, whether or not received, minus (ii) the sum
of (a) the principal portion of the Monthly Payments due with respect to such
Mortgage Loan or REO Property during each Due Period ending prior to the most
recent Distribution Date which were received or with respect to which an Advance
was made, and (b) all Principal Prepayments with respect to such Mortgage Loan
or REO Property, and all Insurance Proceeds, Liquidation Proceeds, Subsequent
Recoveries and REO Proceeds to the extent applied by the Master Servicer as
recoveries of principal in accordance with Section 3.15 with respect to such
Mortgage Loan or REO Property, which were distributed pursuant to Section 4.01
on any previous Distribution Date, and (c) any Realized Loss with respect
thereto allocated pursuant to Section 4.07 for any previous Distribution Date.

         "Step-Up Date": The first Distribution Date following the first
Distribution Date on which the aggregate unpaid principal balance of the
Mortgage Loans, and properties acquired in respect thereof, remaining in the
Trust Fund has been reduced to less than or equal to 10% of the Aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date.

         "Stepdown Date": The earlier to occur of (i) the Distribution Date on
which the aggregate Certificate Principal Balance of the Class A Certificates
has been reduced to zero and (ii) the later to occur of (x) the Distribution
Date occurring in February 2008 and (y) the first Distribution Date for which
the Senior Enhancement Percentage is greater than or equal to approximately
21.80%.

         "Subservicer": Any Subservicer appointed by the Servicer pursuant to a
Servicing Agreement. Initially, the Subservicers shall be Cenlar and Option One.

         "Subservicer Remittance Date": The 18th day of each month, or if such
day is not a Business Day, the immediately preceding Business Day.

         "Subservicing Agreement": The written contract between the Servicer and
a Subservicer and any successor Subservicer relating to servicing and
administration of certain Mortgage Loans as provided in the Servicing
Agreements.

         "Subsequent Recoveries": As of any Distribution Date, amounts received
by the Servicer or Master Servicer (net of any related expenses permitted to be
reimbursed pursuant to Section 4.02) or surplus amounts held by the Servicer or
Master Servicer to cover estimated expenses (including, but not limited to,
recoveries in respect of the representations and warranties made by the Seller
pursuant to the Mortgage Loan Purchase Agreement) specifically related to a
Mortgage Loan that was the subject of a liquidation or final disposition of any
REO Property prior to the related Prepayment Period that resulted in a Realized
Loss.

         "Substitution Adjustment": As defined in Section 2.04 hereof.

                                      -41-
<PAGE>

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

         "Transfer": Any direct or indirect transfer, sale, pledge,
hypothecation or other form of assignment of any Ownership Interest in a
Certificate.

         "Transferor": Any Person who is disposing by Transfer of any Ownership
Interest in a Certificate.

         "Trigger Event": A Trigger Event is in effect with respect to any
distribution date if:

         (1)      the three-month rolling average of the aggregate principal
balanceof Mortgage Loans that are 60 or more days Delinquent (including for this
purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect
to which the related mortgaged property has been acquired by the trust) as of
the close of business on the last day of the preceding calendar month equals or
exceeds 32% of the Senior Enhancement Percentage; or

         (2)      in the case of any Distribution Date after the 36th
Distribution Date, the cumulative amount of Realized Losses incurred on the
Mortgage Loans from the Cut-off Date through the end of the calendar month
immediately preceding such Distribution Date exceeds the applicable percentage
set forth below of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date:

        Distribution Date                             Percentage
        -----------------                             ----------
        February 2005 to January 2008                 N/A
        February 2008 to January 2009                 1.25%
        February 2009 to January 2010                 1.75%
        February 2010 to January 2011                 2.25%
        February 2011 and thereafter                  2.50%

         "Trust Fund": REMIC 1, REMIC 2, the Corridor Contracts, the Basis Risk
Shortfall Reserve Fund, the Custodial Account and the Certificate Account.

         "Trust REMIC": Any of REMIC 1 or REMIC 2.

         "Trustee": HSBC Bank USA, National Association, or its successor in
interest, or any successor trustee appointed as herein provided.

         "Uncertificated Accrued Interest": With respect to each REMIC Regular
Interest on each Distribution Date, an amount equal to one month's interest at
the related Uncertificated Pass-Through Rate on the Uncertificated Principal
Balance or Uncertificated Notional Amount, as

                                      -42-
<PAGE>

applicable, of such REMIC Regular Interest. In each case, Uncertificated
Accrued Interest will be reduced by any Net Prepayment Interest Shortfalls and
Relief Act Interest Shortfalls (allocated to such REMIC Regular Interests as
set forth in Section 1.03).

         "Uncertificated Principal Balance": With respect to each REMIC 1
Regular Interest, the principal amount of such REMIC Regular Interest
outstanding as of any date of determination. As of the Closing Date, the
Uncertificated Principal Balance of each REMIC 1 Regular Interest shall equal
the amount set forth in the Preliminary Statement hereto as its initial
Uncertificated Principal Balance. On each Distribution Date, the Uncertificated
Principal Balance of each such REMIC 1 Regular Interest shall be reduced by all
distributions of principal made on such REMIC 1 Regular Interest on such
Distribution Date pursuant to Section 4.06 and, if and to the extent necessary
and appropriate, shall be further reduced on such Distribution Date by Realized
Losses as provided in Section 4.07. The Uncertificated Principal Balance of
REMIC 1 Regular Interest LT-ZZ shall be increased by interest deferrals as
provided in Section 4.06. The Uncertificated Principal Balance of each REMIC
Regular Interest shall never be less than zero.

         "Uncertificated Pass-Through Rate": The Uncertificated REMIC 1
Pass-Through Rate.

         "Uncertificated REMIC 1 Pass-Through Rate": With respect to each REMIC
1 Regular Interest and any Distribution Date, a per annum rate equal to the
average of the Net Mortgage Rates of the Mortgage Loans, weighted on the basis
of the Stated Principal Balances thereof as of the close of business on the last
day of the calendar month preceding the month in which such Distribution Date
occurs.

         "Uninsured Cause": Any cause of damage to property subject to a
Mortgage such that the complete restoration of such property is not fully
reimbursable by the hazard insurance policies or flood insurance policies
required to be maintained pursuant to Section 3.13.

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

                                      -43-
<PAGE>

         "Voting Rights": The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. At all times during the term
of this Agreement, (i) 97% of all Voting Rights will be allocated among the
Holders of the Offered Certificates and the Class M-10 Certificates in
proportion to the then outstanding Certificate Principal Balances of their
respective Certificates, (ii) 1% of all Voting Rights will be allocated to the
Holders of the Class C Certificates, (iii) 1% of all Voting Rights will be
allocated to the Holders of the Class P Certificates and (iv) 1% of all Voting
Rights will be allocated to the Holders of the Class R Certificates. The Voting
Rights allocated to any Class of Certificates shall be allocated among all
Holders of the Certificates of such Class in proportion to the outstanding
Percentage Interests in such Class represented thereby.

         "Weighted Average Net Mortgage Rate": The weighted average of the Net
Mortgage Rates of the Mortgage Loans, weighted on the basis of the Stated
Principal Balances thereof as of the close of business on the first day of the
calendar month preceding the month in which such Distribution Date occurs.

         Section 1.02 Determination of LIBOR.

         LIBOR applicable to the calculation of the Pass-Through Rate on the
Offered Certificates and the Class M-10 Certificates for any Accrual Period will
be determined on each Interest Determination Date.

         On each Interest Determination Date, LIBOR shall be established by the
Securities Administrator and, as to any Accrual Period, will equal the rate for
one month United States dollar deposits that appears on the Telerate Screen Page
3750 as of 11:00 a.m., London time, on such Interest Determination Date.
"Telerate Screen Page 3750" means the display designated as page 3750 on the
Telerate Service (or such other page as may replace page 3750 on that service
for the purpose of displaying London interbank offered rates of major banks). If
such rate does not appear on such page (or such other page as may replace that
page on that service, or if such service is no longer offered, LIBOR shall be so
established by use of such other service for displaying LIBOR or comparable
rates as may be selected by the Securities Administrator), the rate will be the
Reference Bank Rate. The "Reference Bank Rate" will be determined on the basis
of the rates at which deposits in U.S. Dollars are offered by the reference
banks (which shall be any three major banks that are engaged in transactions in
the London interbank market, selected by the Securities Administrator after
consultation with the Master Servicer) as of 11:00 a.m., London time, on the
Interest Determination Date to prime banks in the London interbank market for a
period of one month in amounts approximately equal to the aggregate Certificate
Principal Balance of the Offered Certificates and the Class M-10 Certificates
then outstanding. The Securities Administrator will request the principal London
office of each of the reference banks to provide a quotation of its rate. If at
least two such quotations are provided, the rate will be the arithmetic mean of
the quotations rounded up to the next multiple of 1/16%. If on such date fewer
than two quotations are provided as requested, the rate will be the arithmetic
mean of the rates quoted by one or more major banks in New York City, selected
by the Securities Administrator, as of 11:00 a.m., New York City time, on such
date for loans in U.S. Dollars to leading European banks for a period of one
month in amounts approximately equal to the aggregate Certificate Principal
Balance of the Offered Certificates and the Class M-10 Certificates then
outstanding. If no such quotations can be obtained, the rate will be LIBOR for

                                      -44-
<PAGE>

the prior Distribution Date; provided however, if, under the priorities
described above, LIBOR for a Distribution Date would be based on LIBOR for the
previous Distribution Date for the third consecutive Distribution Date, the
Securities Administrator shall select an alternative comparable index (over
which the Securities Administrator has no control), used for determining
one-month Eurodollar lending rates that is calculated and published (or
otherwise made available) by an independent party.

         The establishment of LIBOR by the Securities Administrator on any
Interest Determination Date and the Trustee's subsequent calculation of the
Pass-Through Rate applicable to the Offered Certificates and the Class M-10
Certificates for the relevant Accrual Period, in the absence of manifest error,
will be final and binding.

         The Securities Administrator will supply to any Certificateholder so
requesting by telephone the Pass-Through Rate on the Offered Certificates and
the Class M-10 Certificates for the current and the immediately preceding
Accrual Period.

         Section 1.03 Allocation of Certain Interest Shortfalls.

         For purposes of calculating the amount of the Accrued Certificate
Interest for the Class A, Class M and Class C Certificates for any Distribution
Date, the aggregate amount of any Net Prepayment Interest Shortfalls and any
Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated first, to the Class C Certificates to the
extent of one month's interest at the then applicable Pass-Through Rate on the
Notional Amount of each such Certificate and, thereafter, among the Class A
Certificates and Class M Certificates on a PRO RATA basis based on, and to the
extent of, one month's interest at the then applicable respective Pass-Through
Rate on the respective Certificate Principal Balance of each such Certificate.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC 1 Regular Interests for any Distribution Date, the
aggregate amount of any Net Prepayment Interest Shortfalls and any Relief Act
Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated (i) with respect to the Mortgage Loans,
among REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-A1A, REMIC 1
Regular Interest LT-A1B, REMIC 1 Regular Interest LT-A2, REMIC 1 Regular
Interest LT-A3, REMIC 1 Regular Interest LT-A4, REMIC 1 Regular Interest LT-M1,
REMIC 1 Regular Interest LT-M2, REMIC 1 Regular Interest LT-M3, REMIC 1 Regular
Interest LT-M4, REMIC 1 Regular Interest LT-M5, REMIC 1 Regular Interest LT-M6,
REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC 1 Regular
Interest LT-M9, REMIC 1 Regular Interest LT-M10 and REMIC 1 Regular Interest
LT-ZZ, PRO RATA based on, and to the extent of, one month's interest at the then
applicable respective Uncertificated REMIC 1 Pass-Through Rate on the respective
Uncertificated Principal Balance of each such Uncertificated REMIC 1 Regular
Interest.

                                      -45-
<PAGE>

                                  ARTICLE II

                         CONVEYANCE OF MORTGAGE LOANS;
                       ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.01 Conveyance of Mortgage Loans.

         The Company, as of the Closing Date, and concurrently with the
execution and delivery hereof, does hereby assign, transfer, sell, set over and
otherwise convey to the Trustee without recourse all the right, title and
interest of the Company in and to (1) the Mortgage Loans identified on the
Mortgage Loan Schedule (including any Prepayment Charges but exclusive of any
late payment charges received thereon), (2) the rights with respect to the
Servicing Agreements as assigned to the Trustee on behalf the Certificateholders
by the Assignment Agreement and (3) all other assets included or to be included
in the Trust Fund for the benefit of the Certificateholders. Such assignment
includes all principal and interest due and received by the Servicer on or with
respect to the Mortgage Loans (other than payment of principal and interest due
on or before the Cut-off Date).

         In connection with such transfer and assignment, the Company has caused
the Seller to deliver to, and deposit with the Custodian as agent for the
Trustee, as described in the Mortgage Loan Purchase Agreement, with respect to
each Mortgage Loan, the following documents or instruments:

                  (i)      the original Mortgage Note (including all riders
         thereto) bearing all intervening endorsements necessary to show a
         complete chain of endorsements from the original payee, endorsed "Pay
         to the order of _____without recourse", via original signature, and, if
         previously endorsed, signed in the name of the last endorsee by a duly
         qualified officer of the last endorsee or, with respect to any Mortgage
         Loan as to which the original Mortgage Note has been permanently lost
         or destroyed and has not been replaced, a Lost Note Affidavit. If the
         Mortgage Loan was acquired by the last endorsee in a merger, the
         endorsement must be by "[name of last endorsee], successor by merger to
         [name of the predecessor]." If the Mortgage Loan was acquired or
         originated by the last endorsee while doing business under another
         name, the endorsement must be by "[name of last endorsee], formerly
         known as [previous name]." Within 45 days after the Closing Date, the
         Custodian shall endorse the Mortgage Note in the name of "HSBC Bank
         USA, National Association, as trustee under the Pooling and Servicing
         Agreement relating to Opteum Mortgage Acceptance Corporation,
         Asset-Backed Pass-Through Certificates, Series 2005-1" for each
         Mortgage Note;

                  (ii)     The original recorded Mortgage, noting the presence
         of the MIN of the Mortgage Loan and either language indicating that the
         Mortgage Loan is a MOM loan or if the Mortgage Loan was not a MOM loan
         at origination, the original Mortgage and the assignment thereof to
         MERS, with evidence of recording indicated thereon; provided that if
         such document is not included because of a delay by the public
         recording office where such document has been delivered for recordation
         or such office as a matter of policy does not return the original of
         such document or if such original Mortgage has been lost,

                                      -46-
<PAGE>

         the Seller shall include or cause to be included a copy thereof
         certified by the appropriate recording office, if available;

                  (iii)    the original Assignment of Mortgage in blank, in form
         and substance acceptable for recordation in the jurisdiction in which
         the related mortgage property is located and signed in the name of the
         Last Endorsee by an authorized officer; unless the Mortgage Loan is
         registered on the MERS system;

                  (iv)     The original intervening Assignments, if any, with
         evidence of recording thereon, showing an unbroken chain of title to
         the Mortgage from the originator thereof to Person assigning it to the
         Trustee (or to MERS, if the Mortgage Loan is registered on the MERS(R)
         System); provided that if such document is not included because of a
         delay by the public recording office where such document has been
         delivered for recordation or such office as a matter of policy does not
         return the original of such document, the Seller shall include or cause
         to be included a copy thereof certified by the appropriate recording
         office, if available;

                  (v)      The originals of each assumption, modification or
         substitution agreement, if any, relating to the Mortgage Loan; and

                  (vi)     the original title insurance policy, or, if such
         policy has not been issued, any one of an original or a copy of the
         preliminary title report, title binder or title commitment on the
         Mortgaged Property with the original policy of the insurance to be
         delivered promptly following the receipt thereof.

         Within 30 days after the Closing Date, the Company shall complete or
cause to be completed the Assignments of Mortgage in the name of "HSBC Bank USA,
National Association, as trustee under the Pooling and Servicing Agreement
relating to Opteum Mortgage Acceptance Corporation, Asset-Backed Pass-Through
Certificates, Series 2005-1" (or shall prepare or cause to be prepared new forms
of Assignment of Mortgage so completed in the name of the Trustee) for each
Mortgage Property in a state, if any, which is specifically excluded from the
Opinion of Counsel delivered by the Company to the Trustee and the Custodian,
each such assignment shall be recorded in the appropriate public office for real
property records, and returned to the Custodian, at no expense to the Custodian.

         The Seller is obligated as described in the Mortgage Loan Purchase
Agreement, with respect to the Mortgage Loans, to deliver to the Custodian as
agent for the Trustee: (a) either the original recorded Mortgage, or in the
event such original cannot be delivered by the Seller, a copy of such Mortgage
certified as true and complete by the appropriate recording office, in those
instances where a copy thereof certified by the Seller was delivered to the
Custodian as agent for the Trustee pursuant to clause (ii) above; and (b) either
the original Assignment or Assignments of the Mortgage, with evidence of
recording thereon, showing an unbroken chain of assignment from the originator
to the Seller, or in the event such original cannot be delivered by the Seller,
a copy of such Assignment or Assignments certified as true and complete by the
appropriate recording office, in those instances where copies thereof certified
by the Seller were delivered to the Custodian as agent for the Trustee pursuant
to clause (iv) above. However, pursuant to the Mortgage Loan Purchase Agreement,
the Seller need not cause to be recorded

                                      -47-
<PAGE>

any assignment in any jurisdiction under the laws of which, as evidenced by an
Opinion of Counsel delivered by the Seller to the Trustee, the Custodian and the
Rating Agencies, the recordation of such assignment is not necessary to protect
the Trustee's interest in the related Mortgage Loan; provided, however,
notwithstanding the delivery of any Opinion of Counsel, each assignment shall be
submitted for recording by the Seller in the manner described above, at no
expense to the Trust or the Trustee, upon the earliest to occur of: (i)
reasonable direction by the Holders of Certificates evidencing at least 25% of
the Voting Rights, (ii) the occurrence of an Event of Default, (iii) the
occurrence of a bankruptcy, insolvency or foreclosure relating to the Seller,
(iv) the occurrence of a servicing transfer as described in Section 7.02 hereof
and (v) if the Seller is not the Master Servicer and with respect to any one
assignment, the occurrence of a bankruptcy, insolvency or foreclosure relating
to the Mortgagor under the related Mortgage.

         Notwithstanding anything to the contrary contained in this Section
2.01, in those instances where the public recording office retains the original
Mortgage after it has been recorded, the Seller shall be deemed to have
satisfied its obligations hereunder upon delivery to the Custodian as agent for
the Trustee of a copy of such Mortgage certified by the public recording office
to be a true and complete copy of the recorded original thereof.

         If any Assignment is lost or returned unrecorded to the Custodian as
agent for the Trustee because of any defect therein, the Seller is required, as
described in the Mortgage Loan Purchase Agreement, to prepare a substitute
Assignment or cure such defect, as the case may be, and the Seller shall cause
such Assignment to be recorded in accordance with this section.

         The Seller is required as described in the Mortgage Loan Purchase
Agreement, with respect to the Mortgage Loans, to exercise its best reasonable
efforts to deliver or cause to be delivered to the Custodian as agent for the
Trustee within 120 days of the Closing Date, with respect to the Mortgage Loans,
the original or a photocopy of the title insurance policy with respect to each
such Mortgage Loan assigned to the Trustee pursuant to this Section 2.01.

         In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Seller further agrees that it will cause, at the
Seller's own expense, as of the Closing Date, the MERS(R) System to indicate
that such Mortgage Loans have been assigned by the Seller to the Trustee in
accordance with this Agreement for the benefit of the Certificateholders by
including (or deleting, in the case of Mortgage Loans which are repurchased in
accordance with this Agreement) in such computer files (a) the code in the field
which identifies the specific Trustee and (b) the code in the field "Pool Field"
which identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Company further agrees that it will not, and will not permit
the Servicer to alter the codes referenced in this paragraph with respect to any
Mortgage Loan during the term of this Agreement unless and until such Mortgage
Loan is repurchased in accordance with the terms of this Agreement.

         All original documents relating to the Mortgage Loans which are not
delivered to the Custodian as agent for the Trustee are and shall be held by the
Seller in trust for the benefit of the Trustee on behalf of the
Certificateholders.

         Except as may otherwise expressly be provided herein, none of the
Company, the Custodian, the Master Servicer, or the Trustee shall (and the
Master Servicer shall ensure that no

                                      -48-
<PAGE>

Servicer shall) assign, sell, dispose of or transfer any interest in the Trust
Fund or any portion thereof, or cause the Trust Fund or any portion thereof to
be subject to any lien, claim, mortgage, security interest, pledge or other
encumbrance.

         It is intended that the conveyance of the Mortgage Loans by the Company
to the Trustee as provided in this Section be, and be construed as, a sale of
the Mortgage Loans as provided for in this Section 2.01 by the Company to the
Trustee for the benefit of the Certificateholders. It is, further, not intended
that such conveyance be deemed a pledge of the Mortgage Loans by the Company to
the Trustee to secure a debt or other obligation of the Company. However, in the
event that the Mortgage Loans are held to be property of the Company, or if for
any reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans, then it is intended that, (a) this Agreement shall also be
deemed to be a security agreement within the meaning of Articles 8 and 9 of the
New York Uniform Commercial Code and the Uniform Commercial Code of any other
applicable jurisdiction; (b) the conveyance provided for in this Section shall
be deemed to be (1) a grant by the Company to the Trustee of a security interest
in all of the Company's right (including the power to convey title thereto),
title and interest, whether now owned or hereafter acquired, in and to (A) the
Mortgage Loans, including the Mortgage Notes, the Mortgages, any related
Insurance Policies and all other documents in the related Mortgage Files, (B)
all amounts payable to the holders of the Mortgage Loans in accordance with the
terms thereof and (C) all proceeds of the conversion, voluntary or involuntary,
of the foregoing into cash, instruments, securities or other property, including
without limitation all amounts from time to time held or invested in the
Certificate Account or the Custodial Account, whether in the form of cash,
instruments, securities or other property and (2) an assignment by the Company
to the Trustee of any security interest in any and all of the Seller's right
(including the power to convey title thereto), title and interest, whether now
owned or hereafter acquired, in and to the property described in the foregoing
clauses (1)(A) through (C); (c) the possession by the Custodian as agent for the
Trustee or any other agent of the Trustee of Mortgage Notes and such other items
of property as constitute instruments, money, negotiable documents or chattel
paper shall be deemed to be "possession by the secured party" or possession by a
purchaser or a person designated by such secured party, for purposes of
perfecting the security interest pursuant to the New York Uniform Commercial
Code and the Uniform Commercial Code of any other applicable jurisdiction
(including, without limitation, Sections 9-115, 9-305, 8-102, 8-301, 8-501 and
8-503 thereof); and (d) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the Trustee
for the purpose of perfecting such security interest under applicable law. The
Company and the Trustee shall, to the extent consistent with this Agreement,
take such actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Mortgage Loans and the REMIC 1
Regular Interests, such security interest would be deemed to be a perfected
security interest of first priority under applicable law and will be maintained
as such throughout the term of the Agreement.

         Section 2.02 Acceptance of the Trust Fund by the Trustee.

         The Trustee acknowledges receipt (subject to any exceptions noted in
the Initial Certification described below), of the documents referred to in
Section 2.01 above and all other

                                      -49-
<PAGE>

assets included in the definition of "Trust Fund" and declares that it (or the
Custodian on its behalf) holds and will hold such documents and the other
documents delivered to Custodian as agent for the Trustee constituting the
Mortgage Files, and that it holds or will hold such other assets included in the
definition of "Trust Fund" (to the extent delivered or assigned to the Custodian
as agent for the Trustee), in trust for the exclusive use and benefit of all
present and future Certificateholders.

         The Trustee agrees that, for the benefit of the Certificateholders, the
Custodian as agent for the Trustee will review each Mortgage File on or before
the Closing Date to ascertain that all documents required to be delivered to it
are in its possession, and the Custodian as agent for the Trustee agrees to
execute and deliver, or cause to be executed and delivered, to the Company on
the Closing Date, with respect to each Mortgage Loan, an Initial Certification
in the form annexed hereto as Exhibit C to the effect that, as to each Mortgage
Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or any Mortgage Loan specifically identified in such certification as not
covered by such certification), (i) all documents required to be delivered to it
pursuant to this Agreement with respect to such Mortgage Loan are in its
possession, and (ii) such documents have been reviewed by it and appear regular
on their face and relate to such Mortgage Loan. Neither the Custodian, the
Trustee or the Master Servicer shall be under any duty to determine whether any
Mortgage File should include any of the documents specified in clauses (v) or
(vi) of Section 2.01. Neither the Custodian, the Trustee or the Master Servicer
shall be under any duty or obligation to inspect, review or examine said
documents, instruments, certificates or other papers to determine that the same
are genuine, enforceable or appropriate for the represented purpose or that they
have actually been recorded, or they are in recordable form or that they are
other than what they purport to be on their face.

         Within 180 days of the Closing Date, with respect to the Mortgage
Loans, the Custodian as agent for the Trustee shall deliver to the Company a
Final Certification in the form annexed hereto as Exhibit D evidencing the
completeness of the Mortgage Files, with any applicable exceptions noted
thereon.

         If in the process of reviewing the Mortgage Files and preparing the
certifications referred to above the Custodian as agent for the Trustee or the
Master Servicer finds any document or documents constituting a part of a
Mortgage File to be missing or defective in any material respect, the Custodian
as agent for the Trustee shall promptly notify the Trustee, the Seller and the
Company. The Custodian as agent for the Trustee shall promptly notify the Seller
and the Securities Administrator of such defect and request that the Seller cure
any such defect within 60 days from the date on which the Seller was notified of
such defect, and if the Seller does not cure such defect in all material
respects during such period, request on behalf of the Certificateholders that
the Seller purchase such Mortgage Loan from the Trust Fund at the Purchase Price
within 90 days after the date on which the Seller was notified of such defect;
provided that if such defect would cause the Mortgage Loan to be other than a
"qualified mortgage" as defined in Section 860G(a)(3) of the Code, any such cure
or repurchase must occur within 90 days from the date such breach was
discovered. It is understood and agreed that the obligation of the Seller to
cure a material defect in, or purchase any Mortgage Loan as to which a material
defect in a constituent document exists shall constitute the sole remedy
respecting such defect available to Certificateholders or the Trustee on behalf
of Certificateholders. The Purchase Price for the purchased Mortgage Loan shall
be deposited or caused to be deposited upon receipt by the

                                      -50-
<PAGE>

Master Servicer in the Custodial Account and, upon receipt by theCustodian as
agent for the Trustee and the Securities Administrator of written notification
of such deposit signed by a Servicing Officer, the Custodian as agent for the
Trustee shall release or cause to be released to the Seller the related Mortgage
File and shall execute and deliver such instruments of transfer or assignment,
in each case without recourse, as the Seller shall require as necessary to vest
in the Seller ownership of any Mortgage Loan released pursuant hereto and at
such time the Custodian as agent for the Trustee shall have no further
responsibility with respect to the related Mortgage File. In furtherance of the
foregoing, if the Seller is not a member of MERS and the Mortgage is registered
on the MERS(R) System, the Trustee, at the Seller's expense, shall cause MERS to
execute and deliver an assignment of the Mortgage in recordable form to transfer
the Mortgage from MERS to the Seller and shall cause such Mortgage to be removed
from registration on the MERS(R) System in accordance with MERS' rules and
regulations.

         Section 2.03   Representations, Warranties and Covenants of the Master
Servicer and the Company.

         (a)      The Master Servicer hereby represents and warrants to and
covenants with the Company for the benefit of Certificateholders and the Trustee
that:

                  (i)      The Master Servicer is, and throughout the term
         hereof shall remain, a corporation duly organized, validly existing and
         in good standing under the laws of the state of its incorporation, the
         Master Servicer is, and shall remain, in compliance with the laws of
         each state in which any Mortgaged Property is located to the extent
         necessary to perform its obligations under this Agreement, and the
         Master Servicer or an affiliate is, and shall remain, approved to
         service mortgage loans for Fannie Mae and Freddie Mac;

                  (ii)     The execution and delivery of this Agreement by the
         Master Servicer, and the performance and compliance with the terms of
         this Agreement by the Master Servicer, will not violate the Master
         Servicer's articles of incorporation or bylaws or constitute a default
         (or an event which, with notice or lapse of time, or both, would
         constitute a default) under, or result in the breach of, any material
         agreement or other instrument to which it is a party or which is
         applicable to it or any of its assets;

                  (iii)    The Master Servicer has the full power and authority
         to enter into and consummate all transactions contemplated by this
         Agreement, has duly authorized the execution, delivery and performance
         of this Agreement, and has duly executed and delivered this Agreement;

                  (iv)     This Agreement, assuming due authorization, execution
         and delivery by the Company and the Trustee, constitutes a valid, legal
         and binding obligation of the Master Servicer, enforceable against the
         Master Servicer in accordance with the terms hereof, subject to (A)
         applicable bankruptcy, insolvency, reorganization, moratorium and other
         laws affecting the enforcement of creditors' rights generally, and (B)
         general principles of equity, regardless of whether such enforcement is
         considered in a proceeding in equity or at law;

                                      -51-
<PAGE>

                  (v)      The Master Servicer is not in violation of, and its
         execution and delivery of this Agreement and its performance and
         compliance with the terms of this Agreement will not constitute a
         violation of, any law, any order or decree of any court or arbiter, or
         any order, regulation or demand of any federal, state or local
         governmental or regulatory authority, which violation is likely to
         affect materially and adversely either the ability of the Master
         Servicer to perform its obligations under this Agreement or the
         financial condition of the Master Servicer;

                  (vi)     No litigation is pending (other than litigation with
         respect to which pleadings or documents have been filed with a court,
         but not served on the Master Servicer) or, to the best of the Master
         Servicer's knowledge, threatened against the Master Servicer which
         would prohibit its entering into this Agreement or performing its
         obligations under this Agreement or is likely to affect materially and
         adversely either the ability of the Master Servicer to perform its
         obligations under this Agreement or the financial condition of the
         Master Servicer;

                  (vii)    The Master Servicer will comply in all material
         respects in the performance of this Agreement with all reasonable rules
         and requirements of each insurer under each Insurance Policy;

                  (viii)   The execution of this Agreement and the performance
         of the Master Servicer's obligations hereunder do not require any
         license, consent or approval of any state or federal court, agency,
         regulatory authority or other governmental body having jurisdiction
         over the Master Servicer, other than such as have been obtained; and

                  (ix)     No information, certificate of an officer, statement
         furnished in writing or report delivered to the Company, any affiliate
         of the Company or the Trustee by the Master Servicer in its capacity as
         Master Servicer, will, to the knowledge of the Master Servicer, contain
         any untrue statement of a material fact.

         It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.03(a) shall survive the execution and
delivery of this Agreement, and shall inure to the benefit of the Company, the
Trustee and the Certificateholders. Upon discovery by any of the Company, the
Trustee, the Securities Administrator or the Master Servicer of a breach of any
of the foregoing representations, warranties and covenants that materially and
adversely affects the interests of the Company or the Trustee or the value of
any Mortgage Loan or Prepayment Charge, the party discovering such breach shall
give prompt written notice to the other parties.

         (b)      The Company hereby represents and warrants to the Master
Servicer, the Securities Administrator and the Trustee for the benefit of
Certificateholders that as of the Closing Date

                  (i)      the Company (a) is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware and (b) is qualified and in good standing as a foreign
         corporation to do business in each jurisdiction where such
         qualification is necessary, except where the failure so to qualify
         would not reasonably be expected to have a material adverse effect on
         the Company's business as presently

                                      -52-
<PAGE>

         conducted or on the Company's ability to enter into this Agreement and
         to consummate the transactions contemplated hereby;

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

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

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

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

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

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

                                      -53-
<PAGE>

         Upon discovery by either the Company, the Master Servicer, the
Securities Administrator, the Custodian or the Trustee of a breach of any
representation or warranty set forth in this Section 2.03 which materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
the party discovering such breach shall give prompt written notice to the other
parties.

         Section 2.04 Assignment of Interest in the Mortgage Loan Purchase
Agreement.

         The Company hereby assigns to the Trustee for the benefit of
Certificateholders all of its rights (but none of its obligations) in, to and
under the Mortgage Loan Purchase Agreement. Insofar as the Mortgage Loan
Purchase Agreement relates to such representations and warranties and any
remedies provided thereunder for any breach of such representations and
warranties, such right, title and interest may be enforced by the Trustee on
behalf of the Certificateholders. Upon the discovery by the Company, the Master
Servicer, the Securities Administrator or the Trustee of a breach of any of the
representations and warranties made in the Mortgage Loan Purchase Agreement in
respect of any Mortgage Loan which materially and adversely affects the value of
a Mortgage Loan or the interests of the Certificateholders in such Mortgage
Loan, the party discovering such breach shall give prompt written notice to the
other parties. The Trustee shall promptly notify the Seller of such breach and
request that the Seller shall, within 90 days from the date that the Seller was
notified or otherwise obtained knowledge of such breach, either (i) cure such
breach in all material respects or (ii) purchase such Mortgage Loan from the
Trust Fund at the Purchase Price and in the manner set forth in Section 2.02;
provided that if such breach would cause the Mortgage Loan to be other than a
"qualified mortgage" as defined in Section 860G(a)(3) of the Code, any such cure
or repurchase must occur within 90 days from the date such breach was
discovered. However, in the case of a breach under the Mortgage Loan Purchase
Agreement, subject to the approval of the Company the Seller shall have the
option to substitute a Qualified Substitute Mortgage Loan or Loans for such
Mortgage Loan if such substitution occurs within two years following the Closing
Date, except that if the breach would cause the Mortgage Loan to be other than a
"qualified mortgage" as defined in Section 860G(a)(3) of the Code, any such
substitution must occur within 90 days from the date the breach was discovered
if such 90 day period expires before two years following the Closing Date. In
the event that the Seller elects to substitute a Qualified Substitute Mortgage
Loan or Loans for a Deleted Mortgage Loan pursuant to this Section 2.04, the
Trustee shall enforce the obligation of the Seller under the Mortgage Loan
Purchase Agreement to deliver to the Custodian as agent for the Trustee and the
Master Servicer, as appropriate, with respect to such Qualified Substitute
Mortgage Loan or Loans, the original Mortgage Note, the Mortgage, an Assignment
of the Mortgage in recordable form, and such other documents and agreements as
are required by Section 2.01, with the Mortgage Note endorsed as required by
Section 2.01. No substitution will be made in any calendar month after the
Determination Date for such month. Monthly Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution, to the extent
received by the Master Servicer or any Subservicer, shall not be part of the
Trust Fund and will be retained by the Master Servicer and remitted by the
Master Servicer to the Seller on the next succeeding Distribution Date. For the
month of substitution, distributions to Certificateholders will include the
Monthly Payment due on a Deleted Mortgage Loan for such month and thereafter the
Seller shall be entitled to retain all amounts received in respect of such
Deleted Mortgage Loan. The Company shall amend or cause to be amended the
Mortgage Loan Schedule for the benefit of the Certificateholders to reflect the
removal of such

                                      -54-
<PAGE>

Deleted Mortgage Loan and the substitution of the Qualified Substitute Mortgage
Loan or Loans and the Company shall deliver the amended Mortgage Loan Schedule
to the Custodian as agent for the Trustee. Upon such substitution, the Qualified
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, the Seller shall be deemed to have made the
representations and warranties with respect to the Qualified Substitute Mortgage
Loan contained in the Mortgage Loan Purchase Agreement as of the date of
substitution, and the Company shall be deemed to have made with respect to any
Qualified Substitute Mortgage Loan or Loans, as of the date of substitution, the
representations and warranties set forth in the Mortgage Loan Purchase Agreement
(other than any statistical representations set forth therein).

         In connection with the substitution of one or more Qualified Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (the "Substitution Adjustment"), if any, by which the
aggregate principal balance of all such Qualified Substitute Mortgage Loans as
of the date of substitution is less than the aggregate Stated Principal Balance
of all such Deleted Mortgage Loans (in each case after application of the
principal portion of the Monthly Payments due in the month of substitution that
are to be distributed to Certificateholders in the month of substitution). The
Trustee shall enforce the obligation of the Seller under the Mortgage Loan
Purchase Agreement to provide the Master Servicer on the day of substitution for
immediate deposit into the Custodial Account the amount of such shortfall,
without any reimbursement therefor. In accordance with the Mortgage Loan
Purchase Agreement, the Seller shall give notice in writing to the Trustee and
the Custodian of such event, which notice shall be accompanied by an Officers'
Certificate as to the calculation of such shortfall and by an Opinion of Counsel
to the effect that such substitution will not cause (a) any federal tax to be
imposed on any Trust REMIC, including without limitation, any federal tax
imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or on
"contributions after the startup date" under Section 860G(d)(1) of the Code or
(b) any portion of any Trust REMIC to fail to qualify as a REMIC at any time
that any Certificate is outstanding. The costs of any substitution as described
above, including any related assignments, opinions or other documentation in
connection therewith shall be borne by the Seller.

         Except as expressly set forth herein none of the Trustee, the
Custodian, the Securities Administrator or the Master Servicer is under any
obligation to discover any breach of the above-mentioned representations and
warranties. It is understood and agreed that the obligation of the Seller to
cure such breach, purchase or to substitute for such Mortgage Loan as to which
such a breach has occurred and is continuing shall constitute the sole remedy
respecting such breach available to Certificateholders or the Trustee on behalf
of Certificateholders. Notwithstanding the foregoing, within 90 days of the
earlier of discovery by the Seller or receipt of notice by the Seller of the
breach of the representation or covenant of the Seller set forth in Section
3.1(b)(xxxvi) of the Mortgage Loan Purchase Agreement which materially and
adversely affects the interests of the Holders of the Class P Certificates in
any Prepayment Charge or if the Prepayment Charge is unenforceable due to
subsequent changes in law, the Seller shall remedy such breach as set forth in
Section 3.1(b)(xxxvi) of the Mortgage Loan Purchase Agreement.

                                      -55-
<PAGE>

         Section 2.05 Issuance of Certificates; Conveyance of REMIC Regular
Interests and Acceptance of REMIC 1 and REMIC 2 by the Trustee.

         (a)      The Trustee acknowledges the assignment to it of the Mortgage
Loans and the delivery to the Custodian as agent for the Trustee of the Mortgage
Files, subject to the provisions of Sections 2.01 and 2.02, together with the
assignment to it of all other assets included in the Trust Fund, receipt of
which is hereby acknowledged. Concurrently with such assignment and delivery and
in exchange therefor, the Trustee, pursuant to the written request of the
Company executed by an officer of the Company, has executed, authenticated and
delivered to or upon the order of the Company, the Certificates in authorized
denominations. The interests evidenced by the Certificates, constitute the
entire beneficial ownership interest in the Trust Fund.

         (b)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to REMIC 1 for the benefit of the Holders of the REMIC 1 Regular Interests
and Holders of the Class R Certificates (as Holders of the Class R-1 Interest).
The Trustee acknowledges receipt of the REMIC 1 Regular Interests (which are
uncertificated) and declares that it holds and will hold the same in trust for
the exclusive use and benefit of the Holders of the REMIC 1 Regular Interests
and Holders of the Class R Certificates (as Holders of the Class R-1 Interest).
The interests evidenced by the Class R-1 Interest, together with the REMIC 1
Regular Interests, constitute the entire beneficial ownership interest in REMIC
1.

         (c)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Company in
and to the REMIC 1 Regular Interests (which are uncertificated) for the benefit
of the Holders of the Regular Certificates and the Class R Certificates (in
respect of the Class R-2 Interest). The Trustee acknowledges receipt of the
REMIC 1 Regular Interests and declares that it holds and will hold the same in
trust for the exclusive use and benefit of the Holders of the Regular
Certificates and the Class R Certificates (in respect of the Class R-2
Interest). The interests evidenced by the Class R-2 Interest, together with the
Regular Certificates, constitute the entire beneficial ownership interest in
REMIC 2.

         (d)      Concurrently with (i) the assignment and delivery to the
Trustee of REMIC 1 and the acceptance by the Trustee thereof, pursuant to
Section 2.01, Section 2.02 and subsection (b) and (ii) the assignment and
delivery to the Trustee of REMIC 2 (including the Residual Interest therein
represented by the Class R-2 Interest) and the acceptance by the Trustee
thereof, pursuant to subsection (c), the Trustee, pursuant to the written
request of the Company executed by an officer of the Company, has executed,
authenticated and delivered to or upon the order of the Company, the Class R
Certificates in authorized denominations evidencing the Class R-1 Interest and
the Class R-2 Interest.

                                      -56-
<PAGE>

         Section 2.06 Negative Covenants of the Trustee and Master Servicer.

         Except as otherwise expressly permitted by this Agreement the Trustee
and Master Servicer shall not cause the Trust Fund to:

                  (i)      sell, transfer, exchange or otherwise dispose of any
         of the assets of the Trust Fund;

                  (ii)     dissolve or liquidate the Trust Fund in whole or in
         part;

                  (iii)    engage, directly or indirectly, in any business other
         than that arising out of the issue of the Certificates, and the actions
         contemplated or required to be performed under this Agreement;

                  (iv)     incur, create or assume any indebtedness for borrowed
         money;

                  (v)      voluntarily file a petition for bankruptcy,
         reorganization, assignment for the benefit of creditors or similar
         proceeding; or

                  (vi)     merge, convert or consolidate with any other Person.

                                      -57-
<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF THE TRUST FUND

         Section 3.01 Administration and Servicing of Mortgage Loans.

         (a)      The Master Servicer shall supervise, monitor and oversee the
obligation of the Servicer to service and administer the Mortgage Loans in
accordance with the terms of the related Servicing Agreement and shall have full
power and authority to do any and all things which it may deem necessary or
desirable in connection with such master servicing and administration. In
performing its obligations hereunder, the Master Servicer shall act in a manner
consistent with Accepted Master Servicing Practices. Furthermore, the Master
Servicer shall oversee and consult with the Servicer as necessary from
time-to-time to carry out the Master Servicer's obligations hereunder, shall
receive, review and evaluate all reports, information and other data provided to
the Master Servicer by the Servicer and shall cause the Servicer to perform and
observe the covenants, obligations and conditions to be performed or observed by
the Servicer under the applicable Servicing Agreement. The Master Servicer shall
independently and separately monitor the Servicer's servicing activities with
respect to each related Mortgage Loan, reconcile the results of such monitoring
with such information provided in the previous sentence on a monthly basis and
coordinate corrective adjustments to the Servicer's and Master Servicer's
records, and based on such reconciled and corrected information, the Master
Servicer shall provide such information to the Securities Administrator as shall
be necessary in order for it to prepare the statements specified in Section
4.03, and prepare any other information and statements required to be forwarded
by the Master Servicer hereunder. The Master Servicer shall reconcile the
results of its Mortgage Loan monitoring with the actual remittances of the
Servicer to the Custodial Account pursuant to the applicable Servicing
Agreement.

         The Trustee shall furnish the Servicer and the Master Servicer with any
powers of attorney and other documents in form as provided to it necessary or
appropriate to enable the Servicer and the Master Servicer to service and
administer the related Mortgage Loans and REO Property.

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

         The Trustee shall execute and deliver to the Servicer and the Master
Servicer any court pleadings, requests for trustee's sale or other documents
necessary or desirable to (i) the foreclosure or trustee's sale with respect to
a Mortgaged Property; (ii) any legal action brought to obtain judgment against
any Mortgagor on the Mortgage Note or Security Instrument; (iii) obtain

                                      -58-
<PAGE>

a deficiency judgment against the Mortgagor; or (iv) enforce any other rights or
remedies provided by the Mortgage Note or Security Instrument or otherwise
available at law or equity.

         (b)      Consistent with the terms of this Agreement, the Master
Servicer may waive, modify or vary any term of any Mortgage Loan or consent to
the postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if such waiver, modification, postponement or
indulgence is in conformity with the Accepted Servicing Practices; provided,
however, that:

         (A)      the Master Servicer shall not make future advances (except as
provided in Section 4.03);

         (B)      the Master Servicer shall not permit any modification with
respect to any Mortgage Loan that would change the Mortgage Rate, defer or
forgive the payment of any principal or interest payments, reduce the
outstanding Stated Principal Balance (except for reductions resulting from
actual payments of principal) or extend the final maturity date on such Mortgage
Loan (unless (i) the Mortgagor is in default with respect to the Mortgage Loan
or (ii) such default is, in the judgment of the Master Servicer, reasonably
foreseeable); and

         (C)      the Master Servicer shall not consent to (i) partial releases
of Mortgages, (ii) alterations, (iii) removal, demolition or division of
properties subject to Mortgages, (iv) modification or (v) second mortgage
subordination agreements with respect to any Mortgage Loan that would: (i)
affect adversely the status of any REMIC as a REMIC,(ii) cause any REMIC to be
subject to a tax on "prohibited transactions" or "contributions" pursuant to the
REMIC Provisions, or (iii) both (x) effect an exchange or reissuance of such
Mortgage Loan under Section 1001 of the Code (or Treasury regulations
promulgated thereunder) and (y) cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC under the Code or the imposition of any tax
on "prohibited transactions" or "contributions" after the Startup Day under the
REMIC Provisions.

The provisions of this Section 3.01(b) shall apply to the exercise of such
waiver, modification, postponement or indulgence rights by the Master Servicer
in its capacity as such and shall not apply to the exercise of any similar
rights by the Servicer, who shall instead by subject to the provisions of the
Servicing Agreement. Such waiver, modification, postponement and indulgence
rights of the Master Servicer set forth in this Section shall not be construed
as a duty.

         (c)      The Master Servicer shall enforce the obligation of the

Servicer under the Servicing Agreements in connection with the waiver of
Prepayment Charges in accordance with the criteria therein and to pay the amount
of any waived Prepayment Charges.

         Section 3.02 REMIC-Related Covenants.

         For as long as each REMIC shall exist, the Trustee, the Master Servicer
and the Securities Administrator shall act in accordance herewith to assure
continuing treatment of such REMIC as a REMIC, and the Trustee, the Master
Servicer and the Securities Administrator shall comply with any directions of
the Company, the Servicer or the Master Servicer to assure such continuing
treatment. In particular, the Trustee shall not (a) sell or permit the sale of
all or any portion of the Mortgage Loans or of any investment of deposits in an
Account unless such sale is

                                      -59-
<PAGE>

as a result of a repurchase of the Mortgage Loans pursuant to this Agreement or
the Trustee has received a REMIC Opinion addressed to the Trustee prepared at
the expense of the Trust Fund; and (b) other than with respect to a substitution
pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of this
Agreement, as applicable, accept any contribution to any REMIC after the Startup
Day without receipt of a REMIC Opinion addressed to the Trustee.

         Section 3.03 Monitoring of Servicer.

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

         (b)      The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of the Servicer under the
related Servicing Agreement, and shall, in the event that the Servicer fails to
perform its obligations in accordance with the related Servicing Agreement,
subject to the preceding paragraph, terminate the rights and obligations of the
Servicer thereunder and act as servicer of the related Mortgage Loans or to
cause the Trustee to enter in to a new Servicing Agreement with a successor
Servicer selected by the Master Servicer; provided, however, it is understood
and acknowledged by the parties hereto that there will be a period of transition
(not to exceed 90 days) before the actual servicing functions can be fully
transferred to such successor Servicer. Such enforcement, including, without
limitation, the legal prosecution of claims, termination of Servicing Agreements
and the pursuit of other appropriate remedies, shall be in such form and carried
out to such an extent and at such time as the Master Servicer, in its good faith
business judgment, would require were it the owner of the related Mortgage
Loans. The Master Servicer shall pay the costs of such enforcement at its own
expense, provided that the Master Servicer shall not be required to prosecute or
defend any legal action except to the extent that the Master Servicer shall have
received reasonable indemnity for its costs and expenses in pursuing such
action.

         (c)      To the extent that the costs and expenses of the Master
Servicer related to any termination of the Servicer, appointment of a successor
Servicer or the transfer and assumption of servicing by the Master Servicer with
respect to any Servicing Agreement (including, without limitation, (i) all legal
costs and expenses and all due diligence costs and expenses associated with an
evaluation of the potential termination of the Servicer as a result of an event
of default by the Servicer and (ii) all costs and expenses associated with the
complete transfer of servicing, including all servicing files and all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the successor servicer to correct any errors or
insufficiencies in the servicing data or otherwise to enable the successor
service to service the Mortgage Loans in accordance with the related Servicing
Agreement) are not fully and timely

                                      -60-
<PAGE>

reimbursed by the terminated Servicer, the Master Servicer shall be entitled to
reimbursement of such costs and expenses from the Custodial Account.

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

         (e)      If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces.

         Section 3.04 Fidelity Bond.

         The Master Servicer, at its expense, shall maintain in effect a blanket
fidelity bond and an errors and omissions insurance policy, affording coverage
with respect to all directors, officers, employees and other Persons acting on
such Master Servicer's behalf, and covering errors and omissions in the
performance of the Master Servicer's obligations hereunder. The errors and
omissions insurance policy and the fidelity bond shall be in such form and
amount generally acceptable for entities serving as master servicers or
trustees.

         Section 3.05 Power to Act; Procedures.

         The Master Servicer shall master service the Mortgage Loans and shall
have full power and authority, subject to the REMIC Provisions and the
provisions of Article X hereof, to do any and all things that it may deem
necessary or desirable in connection with the master servicing and
administration of the Mortgage Loans, including but not limited to the power and
authority (i) to execute and deliver, on behalf of the Certificateholders and
the Trustee, customary consents or waivers and other instruments and documents,
(ii) to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds,
Liquidation Proceeds and Subsequent Recoveries, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the related Servicing Agreement, as applicable; provided,
however, that the Master Servicer shall not (and, consistent with its
responsibilities under Section 3.03, shall not permit the Servicer to) knowingly
or intentionally take any action, or fail to take (or fail to cause to be taken)
any action reasonably within its control and the scope of duties more
specifically set forth herein, that, under the REMIC Provisions, if taken or not
taken, as the case may be, would cause any REMIC to fail to qualify as a REMIC
or result in the imposition of a tax upon the Trust Fund (including but not
limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
of the Code and the tax on contributions to a REMIC set forth in Section 860G(d)
of the Code) unless the Master Servicer has received an Opinion of Counsel (but
not at the expense of the Master Servicer) to the effect that the contemplated
action would not cause any REMIC to fail to qualify as a REMIC or result in the
imposition of a tax upon any REMIC. The Trustee shall furnish the Master
Servicer, upon written request from a Servicing Officer, with any powers of
attorney empowering the Master Servicer or the Servicer to execute and deliver
instruments of satisfaction or cancellation, or of partial or full release or
discharge, and to foreclose upon or otherwise liquidate Mortgaged Property, and
to appeal, prosecute or defend in any court action relating to the Mortgage
Loans or the Mortgaged Property, in accordance with the applicable Servicing
Agreement and this Agreement, and the Trustee shall execute and deliver such
other

                                      -61-
<PAGE>

documents, as the Master Servicer may request, to enable the Master Servicer to
master service and administer the Mortgage Loans and carry out its duties
hereunder, in each case in accordance with Accepted Master Servicing Practices
(and the Trustee shall have no liability for misuse of any such powers of
attorney by the Master Servicer or the Servicer). If the Master Servicer or the
Trustee has been advised that it is likely that the laws of the state in which
action is to be taken prohibit such action if taken in the name of the Trustee
or that the Trustee would be adversely affected under the "doing business" or
tax laws of such state if such action is taken in its name, the Master Servicer
shall join with the Trustee in the appointment of a co-trustee pursuant to
Section 8.10 hereof. In the performance of its duties hereunder, the Master
Servicer shall be an independent contractor and shall not, except in those
instances where it is taking action in the name of the Trustee, be deemed to be
the agent of the Trustee.

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

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

         Section 3.07 Release of Mortgage Files.

         (a)      Upon becoming aware of the payment in full of any Mortgage
Loan, or the receipt by the Servicer of a notification that payment in full has
been escrowed in a manner customary for such purposes for payment to
Certificateholders on the next Distribution Date, the Servicer will, if required
under the applicable Servicing Agreement (or if the Servicer does not, the
Master Servicer may), promptly furnish to the Custodian, on behalf of the
Trustee, two copies of a certification substantially in the form of Exhibit F
hereto signed by an officer of the Servicer or in a mutually agreeable
electronic format which will, in lieu of a signature on its face, originate from
a Servicing Officer (which certification shall include a statement to the effect
that all amounts received in connection with such payment that are required to
be deposited in the Protected Account maintained by the Servicer pursuant to
Section 3.16 or by the Servicer pursuant to its Servicing Agreement have been or
will be so deposited) and shall request that the Custodian, on behalf of the
Trustee, deliver to the Servicer the related Mortgage File. Upon receipt of such
certification and request, the Custodian, on behalf of the Trustee, shall
promptly release the related Mortgage File to the Servicer and the Trustee and
Custodian shall have no further responsibility with regard to such Mortgage
File. Upon any such payment in full, the Servicer is authorized, to give, as
agent for the Trustee, as the mortgagee under the Mortgage that secured the
Mortgage Loan, an instrument of satisfaction (or assignment of mortgage without
recourse) regarding the Mortgaged Property subject to the Mortgage, which
instrument of satisfaction or assignment, as the case may be, shall be delivered
to the Person or Persons entitled thereto against receipt therefor of such
payment, it being understood and agreed that no expenses incurred in connection
with such instrument of satisfaction or assignment, as the case may be, shall be
chargeable to the Protected Account.

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<PAGE>

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

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

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

         (b)      All Mortgage Files and funds collected or held by, or under
the control of, the Master Servicer, in respect of any Mortgage Loans, whether
from the collection of principal and interest payments or from Liquidation
Proceeds, Insurance Proceeds or Subsequent Recoveries, shall be held by the
Master Servicer for and on behalf of the Trustee and the Certificateholders

                                      -63-
<PAGE>

and shall be and remain the sole and exclusive property of the Trustee;
provided, however, that the Master Servicer and the Servicer shall be entitled
to setoff against, and deduct from, any such funds any amounts that are properly
due and payable to the Master Servicer or the Servicer under this Agreement or
the applicable Servicing Agreement.

         Section 3.09 Standard Hazard Insurance and Flood Insurance Policies.

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

         (b)      Pursuant to Section 3.16 and 3.17, any amounts collected by
the Servicer or the Master Servicer, or by the Servicer, under any insurance
policies (other than amounts to be applied to the restoration or repair of the
property subject to the related Mortgage or released to the Mortgagor in
accordance with the applicable Servicing Agreement) shall be deposited into the
Custodial Account, subject to withdrawal pursuant to Section 3.17 and 3.18. Any
cost incurred by the Master Servicer or the Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or the
Servicer pursuant to Section 3.17 and 3.18.

         Section 3.10 Presentment of Claims and Collection of Proceeds.

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

         Section 3.11 Maintenance of the Primary Mortgage Insurance Policies.

         (a)      The Master Servicer shall not take, or permit the Servicer (to
the extent such action is prohibited under the applicable Servicing Agreement)
to take, any action that would result in noncoverage under any applicable
Primary Mortgage Insurance Policy of any loss

                                      -64-
<PAGE>

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

         (b)      The Master Servicer agrees to present, or to cause the
Servicer (to the extent required under the related Servicing Agreement) to
present, on behalf of the Trustee and the Certificateholders, claims to the
insurer under any Primary Mortgage Insurance Policies and, in this regard, to
take such reasonable action as shall be necessary to permit recovery under any
Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans.
Pursuant to Section 3.16 and 3.17, any amounts collected by the Master Servicer
or the Servicer under any Primary Mortgage Insurance Policies shall be deposited
in the Custodial Account, subject to withdrawal pursuant to Sections 3.17 and
3.18.

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

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

         Section 3.13 Realization Upon Defaulted Mortgage Loans.

         The Master Servicer shall cause the Servicer (to the extent required
under the related Servicing Agreement) to foreclose upon, repossess or otherwise
comparably convert the ownership of Mortgaged Properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments, all
in accordance with the applicable Servicing Agreement.

                                      -65-
<PAGE>

         Section 3.14 Compensation for the Master Servicer.

         The Master Servicer will be entitled to the Master Servicer Fee and any
all income and gain realized from any investment of funds in the Certificate
Account and the Custodial Account, pursuant to Article IV, for the performance
of its activities hereunder. Servicing compensation in the form of assumption
fees, if any, late payment charges, as collected, if any, or otherwise (but not
including any Prepayment Charge) shall be retained by the Servicer and shall not
be deposited in the Protected Account. The Master Servicer shall be required to
pay all expenses incurred by it in connection with its activities hereunder and
shall not be entitled to reimbursement therefor except as provided in this
Agreement.

         Section 3.15 REO Property.

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

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

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

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

         Section 3.16 Protected Accounts.

         (a)      The Master Servicer shall enforce the obligation of the
Servicer to establish and maintain a Protected Account in accordance with the
applicable Servicing Agreement, with

                                      -66-
<PAGE>

records to be kept with respect thereto on a Mortgage Loan by Mortgage Loan
basis, into which accounts shall be deposited within 48 hours (or as of such
other time specified in the related Servicing Agreement) of receipt, all
collections of principal and interest on any Mortgage Loan and any REO Property
received by the Servicer, including Principal Prepayments, Insurance Proceeds,
Liquidation Proceeds, and advances made from the Servicer's own funds (less
servicing compensation as permitted by the applicable Servicing Agreement in the
case of the Servicer) and all other amounts to be deposited in the Protected
Account. The Servicer is hereby authorized to make withdrawals from and deposits
to the related Protected Account for purposes required or permitted by this
Agreement. To the extent provided in the related Servicing Agreement, the
Protected Account shall be held by a Designated Depository Institution and
segregated on the books of such institution in the name of the Trustee for the
benefit of Certificateholders.

         (b)      To the extent provided in the related Servicing Agreement,
amounts on deposit in a Protected Account may be invested in Permitted
Investments in the name of the Trustee for the benefit of Certificateholders
and, except as provided in the preceding paragraph, not commingled with any
other funds. Such Permitted Investments shall mature, or shall be subject to
redemption or withdrawal, no later than the date on which such funds are
required to be withdrawn for deposit in the Custodial Account, and shall be held
until required for such deposit. The income earned from Permitted Investments
made pursuant to this Section 3.16 shall be paid to the Servicer under the
applicable Servicing Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the Servicer. The Servicer (to the extent provided
in the Servicing Agreement) shall deposit the amount of any such loss in the
Protected Account within two Business Days of receipt of notification of such
loss but not later than the second Business Day prior to the Distribution Date
on which the moneys so invested are required to be distributed to the
Certificateholders.

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

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

                  (2)      Full Principal Prepayments and any Liquidation
                  Proceeds received by the Servicer with respect to the Mortgage
                  Loans in the related Prepayment Period, with interest to the
                  date of prepayment or liquidation, net of the amount thereof
                  comprising its Servicing Fee;

                                      -67-
<PAGE>

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

                  (4)      Any amount to be used as a Monthly Advance.

         (d)      Withdrawals may be made from an Account only to make
remittances as provided in the Servicing Agreement; to reimburse the Master
Servicer or the Servicer for Monthly Advances which have been recovered by
subsequent collections from the related Mortgagor; to remove amounts deposited
in error; to remove fees, charges or other such amounts deposited on a temporary
basis; or to clear and terminate the account at the termination of this
Agreement in accordance with Section 10.01. As provided in Sections 3.16(a) and
3.17(b) certain amounts otherwise due to the Servicer may be retained by them
and need not be deposited in the Custodial Account.

         Section 3.17 Custodial Account.

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

                  (1)      Any amounts withdrawn from a Protected Account;

                  (2)      Any Monthly Advance and any payments of Compensating
                  Interest;

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

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

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

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

                                      -68-
<PAGE>

         (b)      All amounts deposited to the Custodial Account shall be held
by the Master Servicer in the name of the Trustee in trust for the benefit of
the Certificateholders in accordance with the terms and provisions of this
Agreement. The requirements for crediting the Custodial Account or the
Certificate Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, payments in the nature of (i)
prepayment or late payment charges or assumption, tax service, statement account
or payoff, substitution, satisfaction, release and other like fees and charges
and (ii) the items enumerated in Subsection 3.20(a) need not be credited by the
Master Servicer or the Servicer to the Certificate Account or the Custodial
Account, as applicable. In the event that the Master Servicer shall deposit or
cause to be deposited to the Custodial Account any amount not required to be
credited thereto, the Securities Administrator, upon receipt of a written
request therefor signed by a Servicing Officer of the Master Servicer, shall
promptly transfer such amount to the Master Servicer, any provision herein to
the contrary notwithstanding.

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

         Section 3.18 Permitted Withdrawals and Transfers from the Custodial
Account.

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

         (b)      On an ongoing basis, the Master Servicer shall withdraw from
the Custodial Account (i) any expenses recoverable by the Trustee, the Master
Servicer or the Securities Administrator or the Custodian pursuant to Sections
3.03 and 6.03 and (ii) any amounts payable to the Master Servicer as set forth
in Section 3.14.

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

                                      -69-
<PAGE>

         (d)      No later than 3:00 p.m. New York time on each Certificate
Account Deposit Date, the Master Servicer will transfer all Available
Distribution Amount on deposit in the Custodial Account with respect to the
related Distribution Date to the Securities Administrator for deposit in the
Certificate Account.

         Section 3.19 Certificate Account.

         (a)      The Securities Administrator shall establish and maintain in
the name of the Trustee, for the benefit of the Certificateholders, the
Certificate Account as a segregated trust account or accounts and it may be a
sub-account of the Custodial Account.

         (b)      All amounts deposited to the Certificate Account shall be held
by the Trustee in the name of the Trustee in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement.

         (c)      The Certificate Account shall constitute a trust account of
the Trust Fund segregated on the books of the Securities Administrator on behalf
of the Trustee, and the Certificate Account and the funds deposited therein
shall not be subject to, and shall be protected from, all claims, liens, and
encumbrances of any creditors or depositors of the Trustee, the Securities
Administrator or the Master Servicer (whether made directly, or indirectly
through a liquidator or receiver of the Trustee or the Master Servicer). The
Certificate Account shall be an Eligible Account. The Certificate Account may be
a sub-account of the Custodial Account and in such case any withdrawals from the
Custodial Account and deposits into the Certificate Account shall be deemed to
have been made. The amount at any time credited to the Certificate Account shall
be (i) held in cash and fully insured by the FDIC to the maximum coverage
provided thereby or (ii) invested in the name of the Trustee, in such Permitted
Investments selected by the Securities Administrator or deposited in demand
deposits with such depository institutions as selected by the Securities
Administrator, provided that time deposits of such depository institutions would
be a Permitted Investment. All Permitted Investments shall mature or be subject
to redemption or withdrawal on or before, and shall be held until, the next
succeeding Distribution Date if the obligor, manager or advisor for such
Permitted Investment is an affiliate of the Securities Administrator or, if such
obligor is any other Person, the Business Day preceding such Distribution Date.
All investment earnings on amounts on deposit in the Certificate Account or
benefit from funds uninvested therein from time to time shall be for the account
of the Securities Administrator. The Securities Administrator shall be permitted
to withdraw or receive distribution of any and all investment earnings from the
Certificate Account on each Distribution Date. If there is any loss on a
Permitted Investment or demand deposit, the Securities Administrator shall
deposit the amount of the loss to the Certificate Account. With respect to the
Certificate Account and the funds deposited therein, the Master Servicer shall
take such action as may be necessary to ensure that the Certificateholders shall
be entitled to the priorities afforded to such a trust account (in addition to a
claim against the estate of the Trustee) as provided by 12 U.S.C. ss. 92a(e),
and applicable regulations pursuant thereto, if applicable, or any applicable
comparable state statute applicable to state chartered banking corporations.

                                      -70-
<PAGE>

         Section 3.20 Permitted Withdrawals and Transfers from the Certificate
Account.

         (a)      The Securities Administrator will, from time to time, make or
cause to be made such withdrawals or transfers from the Certificate Account as
the Securities Administrator has designated for such transfer or withdrawal
pursuant to this Agreement and the Servicing Agreements:

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

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

                  (3)      to reimburse the Master Servicer or the Servicer from
                  Insurance Proceeds relating to a particular Mortgage Loan for
                  insured expenses incurred with respect to such Mortgage Loan
                  and to reimburse the Master Servicer or the Servicer from
                  Liquidation Proceeds from a particular Mortgage Loan for
                  Liquidation Expenses incurred with respect to such Mortgage
                  Loan; provided that the Master Servicer shall not be entitled
                  to reimbursement for Liquidation Expenses with respect to a
                  Mortgage Loan to the extent that (i) any amounts with respect
                  to such Mortgage Loan were paid as Excess Liquidation Proceeds
                  pursuant to clause (xi) of this Subsection 3.20(a) to the
                  Master Servicer; and (ii) such Liquidation Expenses were not
                  included in the computation of such Excess Liquidation
                  Proceeds;

                  (4)      to reimburse the Master Servicer or the Servicer for
                  advances of funds (other than Monthly Advances) made with
                  respect to the Mortgage Loans, and the right to reimbursement
                  pursuant to this subclause being limited to amounts received
                  on the related Mortgage Loan (including, for this purpose, the
                  Purchase Price therefor, Insurance Proceeds and Liquidation
                  Proceeds) which represent late recoveries of the payments for
                  which such advances were made;

                  (5)      to reimburse the Master Servicer or the Servicer for
                  any Monthly Advance or advance, after a Realized Loss has been
                  allocated with respect

                                      -71-
<PAGE>

                  to the related Mortgage Loan if the Monthly Advance or advance
                  has not been reimbursed pursuant to clauses (1) and (4);

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

                  (7)      to reimburse the Master Servicer for expenses, costs
                  and liabilities incurred by and reimbursable to it pursuant to
                  Sections 3.03 and 6.03;

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

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

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

                  (11)     to remove amounts deposited in error; and

                  (12)     to clear and terminate the Certificate Account
                  pursuant to Section 9.01.

         (b)      The Master Servicer shall keep and maintain separate
accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
accounting for any reimbursement from the Certificate Account pursuant to
subclauses (1) through (4) immediately above or with respect to any such amounts
which would have been covered by such subclauses had the amounts not been
retained by the Master Servicer without being deposited in the Certificate
Account under Section 3.18(b).

         (c)      On each Distribution Date, the Securities Administrator shall
distribute the Available Distribution Amount to the extent on deposit in the
Certificate Account to the Holders of the Certificates and determined by the
Securities Administrator.

         Section 3.21 Annual Officer's Certificate as to Compliance.

         (a)      The Master Servicer shall deliver to the Trustee and the
Rating Agencies on or before March 1 of each year, commencing on March 1, 2006,
an Officer's Certificate, certifying that with respect to the period ending
December 31 of the prior year: (i) such Servicing Officer has reviewed the
activities of such Master Servicer during the preceding calendar year or portion
thereof and its performance under this Agreement, (ii) to the best of such
Servicing Officer's knowledge, based on such review, such Master Servicer has
performed and fulfilled its duties, responsibilities and obligations under this
Agreement in all material respects throughout such year, or, if there has been a
default in the fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and

                                      -72-
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status thereof, (iii) nothing has come to the attention of such Servicing
Officer to lead such Servicing Officer to believe that the Servicer has failed
to perform any of its duties, responsibilities and obligations under the related
Servicing Agreement in all material respects throughout such year, or, if there
has been a material default in the performance or fulfillment of any such
duties, responsibilities or obligations, specifying each such default known to
such Servicing Officer and the nature and status thereof.

         (b)      Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Securities
Administrator at the Master Servicer's expense if the Master Servicer failed to
provide such copies.

         Section 3.22 Annual Independent Accountant's Servicing Report.

         If the Master Servicer has, during the course of any fiscal year,
directly serviced any of the Mortgage Loans, then the Master Servicer at its
expense shall cause a nationally recognized firm of independent certified public
accountants to furnish a statement to the Trustee, the Rating Agencies and the
Company on or before March 1 of each year, commencing on March 1, 2006 to the
effect that, with respect to the most recently ended fiscal year, such firm has
examined certain records and documents relating to the Master Servicer's
performance of its servicing obligations under this Agreement and pooling and
servicing and trust agreements in material respects similar to this Agreement
and to each other and that, on the basis of such examination conducted
substantially in compliance with the audit program for mortgages serviced for
Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such
firm is of the opinion that the Master Servicer's activities have been conducted
in compliance with this Agreement, or that such examination has disclosed no
material items of noncompliance except for (i) such exceptions as such firm
believes to be immaterial, (ii) such other exceptions as are set forth in such
statement and (iii) such exceptions that the Uniform Single Attestation Program
for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac
requires it to report. Copies of such statements shall be provided to any
Certificateholder upon request by the Master Servicer, or by the Securities
Administrator at the expense of the Master Servicer. If such report discloses
exceptions that are material, the Master Servicer shall advise the Trustee
whether such exceptions have been or are susceptible of cure, and will take
prompt action to do so.

         Section 3.23 Reports Filed with Securities and Exchange Commission.

         Within 15 days after each Distribution Date, the Securities
Administrator shall, in accordance with industry standards, file with the
Commission via EDGAR, a Form 8-K with a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
January 30 in any year, the Securities Administrator shall, in accordance with
industry standards and unless otherwise instructed by the Company, file a Form
15 Suspension Notice with respect to the Trust Fund, if applicable. Prior to (i)
March 15, 2006 and (ii) unless and until a Form 15 Suspension Notice shall have
been filed, prior to March 15 of each year thereafter, the Master Servicer shall
provide the Securities Administrator with a Master Servicer Certification,
together with a copy of the annual independent accountant's servicing report and
annual statement of compliance of the Servicer, in each case, required to be
delivered pursuant to the related Servicing Agreement, and, if applicable, the
annual statement of compliance, and the annual independent accountant's
servicing report to be delivered by the Master Servicer pursuant

                                      -73-
<PAGE>

to Sections 3.21 and 3.22. Prior to (i) March 31, 2006, or such earlier filing
date as may be required by the Commission, and (ii) unless and until a Form 15
Suspension Notice shall have been filed, March 31 of each year thereafter, or
such earlier filing date as may be required by the Commission, the Securities
Administrator shall file a Form 10-K, in substance conforming to industry
standards, with respect to the Trust. Such Form 10-K shall include the Master
Servicer Certification and other documentation provided by the Master Servicer
pursuant to the second preceding sentence. The Company hereby grants to the
Securities Administrator a limited power of attorney to execute and file each
such document on behalf of the Company. Such power of attorney shall continue
until either the earlier of (i) receipt by the Securities Administrator from the
Company of written termination of such power of attorney and (ii) the
termination of the Trust Fund. The Company agrees to promptly furnish to the
Securities Administrator, from time to time upon request, such further
information, reports and financial statements within its control related to this
Agreement and the Mortgage Loans as the Securities Administrator reasonably
deems appropriate to prepare and file all necessary reports with the Commission.
The Securities Administrator shall have no responsibility to file any items
other than those specified in this Section 3.23; provided, however, the
Securities Administrator will cooperate with the Company in connection with any
additional filings with respect to the Trust Fund as the Company deems necessary
under the Exchange Act. Fees and expenses incurred by the Securities
Administrator in connection with this Section 3.23 shall not be reimbursable
from the Trust Fund.

         Section 3.24 UCC.

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

         Section 3.25 Optional Purchase of Defaulted Mortgage Loans.

         (a)      During the first full calendar month (but excluding the last
Business Day thereof) following a Mortgage Loan or related REO Property becoming
90 days or more delinquent, the Seller shall have the option, but not the
obligation to purchase from the Trust Fund any such Mortgage Loan or related REO
Property that is then still 90 days or more delinquent, which the Seller
determines in good faith will otherwise become subject to foreclosure
proceedings (evidence of such determination to be delivered in writing to the
Trustee prior to purchase), at a price equal to the Purchase Price. The Purchase
Price for any Mortgage Loan or related REO Property purchased hereunder shall be
deposited in the Custodial Account, and the Trustee, upon written certification
of such deposit, shall release or cause to be released to the Seller the related
Mortgage File and the Trustee shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as the Seller shall
furnish and as shall be necessary to vest in the Seller title to any Mortgage
Loan or related REO Property released pursuant hereto.

                                      -74-
<PAGE>

         (b)      If with respect to any delinquent Mortgage Loan or related REO
Property, the option of the Seller set forth in the preceding paragraph shall
have arisen but the Seller shall have failed to exercise such option on or
before the Business Day preceding the last Business Day of the calendar month
following the calendar month during which such Mortgage Loan or related REO
Property first became 90 days or more delinquent, then such option shall
automatically expire; provided, however, that if any such Mortgage Loan or
related REO Property shall cease to be 90 days or more delinquent but then
subsequently shall again become 90 days or more delinquent, then the Seller
shall be entitled to another repurchase option with respect to such Mortgage
Loan or REO Property as provided in the preceding paragraph.

         Section 3.26 The Corridor Contracts.

         The Trustee on behalf of the Trust Fund, shall enter into two interest
rate cap transactions evidenced by the Corridor Contracts, on the terms and
conditions set forth in the Corridor Contract Assignment Agreements. The
Corridor Contracts will be an asset of the Trust Fund but will not be an asset
of any REMIC. The Securities Administrator, on behalf of the Trustee, shall
deposit any amounts received from time to time with respect to the Corridor
Contracts into the Basis Risk Shortfall Reserve Fund.

         The Securities Administrator, on behalf of the Trustee, shall prepare
and deliver any notices required to be delivered under the Corridor Contracts.

         The Securities Administrator, on behalf of the Trustee, shall terminate
the Corridor Contracts upon the occurrence of certain events of default or
termination events to the extent specified thereunder.

                                      -75-
<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

         Section 4.01 Distributions.

         (a)      On each Distribution Date the Securities Administrator shall
distribute to each Certificateholder of record as of the next preceding Record
Date (other than as provided in Section 9.01 respecting the final distribution)
either in immediately available funds (by wire transfer or otherwise) to the
account of such Certificateholder at a bank or other entity having appropriate
facilities therefor, if such Certificateholder has so notified the Securities
Administrator at least 5 Business Days prior to the related Record Date, or
otherwise by check mailed to such Certificateholder at the address of such
Holder appearing in the Certificate Register, such Certificateholder's share
(based on the aggregate of the Percentage Interests represented by Certificates
of the applicable Class held by such Holder) of the amounts required to be
distributed to such Holder pursuant to this Section 4.01.

         On each Distribution Date, the Securities Administrator shall withdraw
from the Certificate Account that portion of Available Distribution Amount for
such Distribution Date consisting of the Interest Remittance Amount for such
Distribution Date, and make the following disbursements and transfers in the
order of priority described below, in each case to the extent of the Interest
Remittance Amount remaining for such Class for such Distribution Date;

                  (i)      concurrently, to the Holders of the Class A
         Certificates, the related Accrued Certificate Interest for such Class
         and any Interest Carry Forward Amount for such Class for such
         Distribution Date; and

                  (ii)     sequentially, to the Holders of the Class M-1, Class
         M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
         Class M-9 and Class M-10 Certificates, in that order, the related
         Accrued Certificate Interest for such Class for such Distribution Date.

         (b)      (i) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, the Holders of each Class of
Offered Certificates and the Class M-10 Certificates shall be entitled to
receive distributions in respect of principal from that portion of Available
Distribution Amount to the extent of the Principal Distribution Amount in the
following amounts and order of priority:

                           (1)      to the Class A Certificates, in the order
                           and priority set forth in clause (d) below, until the
                           Certificate Principal Balances thereof have been
                           reduced to zero; and

                           (2)      sequentially, to the Class M-1, Class M-2,
                           Class M-3, Class M-4, Class M-5, Class M-6, Class
                           M-7, Class M-8, Class M-9 and Class M-10
                           Certificates, in that order, until the Certificate
                           Principal Balance of each such Class is reduced to
                           zero.

                                      -76-
<PAGE>

                  (ii)     On each Distribution Date (a) on or after the
         Stepdown Date and (b) on which a Trigger Event is not in effect, the
         Holders of each Class of Offered Certificates and the Class M-10
         Certificates shall be entitled to receive distributions in respect of
         principal from that portion of Available Distribution Amount to the
         extent of the Principal Distribution Amount in the following amounts
         and order of priority:

                           (1)      first, the Class A Principal Distribution
                           Amount shall be distributed to the Holders of the
                           Class A Certificates, in the order and priority set
                           forth in clause (d) below, until the Certificate
                           Principal Balances thereof have been reduced to zero;

                           (2)      second, to the Holders of the Class M-1
                           Certificates, the Class M-1 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (3)      third, to the Holders of the Class M-2
                           Certificates, the Class M-2 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (4)      fourth, to the Holders of the Class M-3
                           Certificates, the Class M-3 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (5)      fifth, to the Holders of the Class M-4
                           Certificates, the Class M-4 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (6)      sixth, to the Holders of the Class M-5
                           Certificates, the Class M-5 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero; &&&

                           (7)      seventh, to the Holders of the Class M-6
                           Certificates, the Class M-6 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (8)      eighth, to the Holders of the Class M-7
                           Certificates, the Class M-7 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (9)      ninth, to the Holders of the Class M-8
                           Certificates, the Class M-8 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero;

                           (10)     tenth, to the Holders of the Class M-9
                           Certificates, the Class M-9 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero; and

                                      -77-
<PAGE>

                           (11)     eleventh, to the Holders of the Class M-10
                           Certificates, the Class M-10 Principal Distribution
                           Amount until the Certificate Principal Balance
                           thereof has been reduced to zero.

         (c)      On each Distribution Date, the Net Monthly Excess Cashflow
shall be distributed in the following order of priority, in each case to the
extent of the Net Monthly Excess Cashflow remaining for such Distribution Date:

                  (i)      first, to the Holders of the Offered Certificates and
         the Class M-10 Certificates then entitled to receive distributions in
         respect of principal, in an amount equal to any Extra Principal
         Distribution Amount, payable to such Holders as part of the Principal
         Distribution Amount as described under Section 4.01(b) above;

                  (ii)     second, to the Class A-1B Certificates, any Allocated
         Realized Loss Amount;

                  (iii)    third, sequentially to the Holders of the Class M-1,
         Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
         M-8, Class M-9 and Class M-10 Certificates, in that order, in an amount
         equal to any Interest Carry Forward Amount for such Class or Classes;

                  (iv)     fourth, sequentially to the Holders of the Class M-1,
         Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
         M-8, Class M-9 and Class M-10 Certificates, in that order, in an amount
         equal to any Allocated Realized Loss Amount for such Class or Classes;

                  (v)      fifth, to the Basis Risk Shortfall Reserve Fund,
         after taking into account amounts, if any, received under the Corridor
         Contracts, to pay the Offered Certificates and the Class M-10
         Certificates as follows: first, to the Class A Certificates, on a pro
         rata basis, based on the aggregate amount of Basis Risk Shortfall
         Carry-Forward Amounts for such Classes, and second, sequentially to the
         Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
         M-7, Class M-8, Class M-9 and Class M-10 Certificates, in that order,
         any related Basis Risk Shortfall Carry-Forward Amount for such Class or
         Classes on such Distribution Date, in each case to the extent not
         covered by the Corridor Contracts and paid pursuant to Section 4.01(g);

                  (vi)     sixth, to the Holders of the Class C Certificates,
         the Accrued Certificate Interest for such Class and any Principal
         Remittance Amount not used to make payments pursuant to clauses (b) and
         (c)(i) through (iv) above and any Overcollateralization Release Amount
         for such Distribution Date;

                  (vii)    seventh, if such Distribution Date follows the
         Prepayment Period during which a Prepayment Charge may be required to
         be paid in respect of any Mortgage Loans, to the Holders of the Class P
         Certificates, in reduction of the Certificate Principal Balance
         thereof, until the Certificate Principal Balance thereof is reduced to
         zero;

                                      -78-
<PAGE>

                  (viii)   eighth, to the Master Servicer and the Securities
         Administrator any amounts payable pursuant to Section 6.03 which were
         not reimbursed because of the operation of the annual cap described in
         such Section; and

                  (ix)     ninth, any remaining amounts to the Holders of the
         Class R Certificates (in respect of the Class R-2 Interest).

Without limiting the provisions of Section 9.01, the Class R Certificateholders,
by accepting the Class R Certificates, respectively, agree to pledge their
rights to receive any amounts otherwise distributable on the Class R
Certificates, and such rights are hereby assigned and pledged to the holders of
the Class C Certificates. Allocated Realized Loss Amounts and Basis Risk
Shortfall Carry-Forward Amounts will be payable to each Class of the Class A
Certificates and the Class M Certificates, as applicable, even after its
Certificate Principal Balance has been reduced to zero.

         (d)      On each Distribution Date, any Principal Distribution Amount
payable to the Class A Certificates shall be distributed in the following manner
and order of priority:

                  (i)      Concurrently on a pro rata basis, based on their
         respective aggregate Certificate Principal Balances, as follows:

                           (1)      pro rata to the Class A-1A Certificates and
                           the Class A-1B Certificates, until the Certificate
                           Principal Balance thereof has been reduced to zero;
                           and

                           (2)      sequentially to the Class A-2, Class A-3 and
                           Class A-4 Certificates, in that order, in each case
                           until the Certificate Principal Balance thereof has
                           been reduced to zero,

         provided, however, that on any Distribution Date on or after the
         Aggregate Certificate Principal Balance of the Class M Certificates has
         been reduced to zero, (A) amounts payable to the Class A-1 Certificates
         pursuant to clause (1) shall be made on a pro rata basis, but any
         reduction in the Certificate Principal Balance of the Class A-1B
         Certificates to be made on that Distribution Date as a result of
         Realized Losses allocated thereto shall be treated as a principal
         distribution in determining such pro rata distribution, and (B) amounts
         payable to the Class A-2, Class A-3 and Class A-4 Certificates pursuant
         to clause (2) will be allocated to the Class A-2, Class A-3 and Class
         A-4 Certificates on a pro-rata basis.

         (e)      In addition to the foregoing distributions, with respect to
any Subsequent Recoveries, the Master Servicer shall deposit such funds into the
Custodial Account pursuant to Section 3.17. If, after taking into account such
Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of
such Subsequent Recoveries will be applied to increase the Certificate Principal
Balance of the Class of Certificates with the highest payment priority to which
Realized Losses have been allocated, but not by more than the amount of Realized
Losses previously allocated to that Class of Certificates. The amount of any
remaining Subsequent Recoveries will be applied to increase the Certificate
Principal Balance of the Class of Certificates with the next highest payment
priority, up to the amount of such Realized Losses

                                      -79-
<PAGE>

previously allocated to that Class of Certificates, and so on. Holders of such
Certificates will not be entitled to any payment in respect of Accrued
Certificate Interest on the amount of such increases for any Accrual Period
preceding the Distribution Date on which such increase occurs. Any such
increases shall be applied to the Certificate Principal Balance of each
Certificate of such Class in accordance with its respective Percentage Interest.

         (f)      On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans received during the related Prepayment
Period will be withdrawn from the Certificate Account and distributed by the
Securities Administrator to the Holders of the Class P Certificates and shall
not be available for distribution to the Holders of any other Class of
Certificates. The payment of the foregoing amounts to the Holders of the Class P
Certificates shall not reduce the Certificate Principal Balances thereof.

         (g)      With respect to the Corridor Contracts, on each Distribution
Date, any payments received from the Corridor Contract Counterparty with respect
to such Distribution Date will be allocated to the Offered Certificates, Class
M-10 Certificates and Class C Certificates in the following order of priority,
in each case to the extent of amounts remaining:

                           (1)      the Class A Corridor Contract Allocation
                           Amount shall be paid to the Class A Certificates, on
                           a pro rata basis, in reduction of any related Basis
                           Risk Shortfall Carry-Forward Amount for such
                           Distribution Date and any amounts with respect to the
                           Corridor Contract for the Class M Certificates shall
                           be paid sequentially to the Class M-1, Class M-2,
                           Class M-3, Class M-4, Class M-5, Class M-6, Class
                           M-7, Class M-8, Class M-9 and Class M-10
                           Certificates, in that order, in reduction of any
                           related Basis Risk Shortfall Carry-Forward Amount for
                           such Distribution Date;

                           (2)      from any amounts remaining from both
                           Corridor Contracts, concurrently to the Class A
                           Certificates, on a pro rata basis, based on the
                           aggregate amount of Basis Risk Shortfall
                           Carry-Forward Amounts remaining for such classes of
                           Class A Certificates, in reduction of any remaining
                           related Basis Risk Shortfall Carry-Forward Amount for
                           such Distribution Date;

                           (3)      from any amounts remaining from both
                           Corridor Contracts, sequentially, to the Class M-1,
                           Class M-2, Class M-3, Class M-4, Class M-5, Class
                           M-6, Class M-7, Class M-8, Class M-9 and Class M-10
                           Certificates, in that order, any remaining related
                           Basis Risk Shortfall Carry-Forward Amount for such
                           Class or Classes for such Distribution Date; and

                           (4)      any remaining amounts from both Corridor
                           Contracts to the Class C Certificates.

         (h)      Each distribution with respect to a Book-Entry Certificate
shall be paid to the Company, as Holder thereof, and the Company shall be
responsible for crediting the amount of such distribution to the accounts of its
Company Participants in accordance with its normal

                                      -80-
<PAGE>

procedures. Each Company Participant shall be responsible for disbursing such
distribution to the Certificate Owners that it represents and to each indirect
participating brokerage firm (a "brokerage firm" or "indirect participating
firm") for which it acts as agent. Each brokerage firm shall be responsible for
disbursing funds to the Certificate Owners that it represents. None of the
Trustee, the Securities Administrator the Company or the Master Servicer shall
have any responsibility therefor except as otherwise provided by this Agreement
or applicable law. (i) Except as otherwise provided in Section 9.01, if the
Securities Administrator anticipates that a final distribution with respect to
any Class of Certificates will be made on the next Distribution Date, the
Securities Administrator shall, no later than two Business Days after the
Determination Date in the month of such final distribution, mail on such date to
each Holder of such Class of Certificates a notice to the effect that: (i) the
Securities Administrator anticipates that the final distribution with respect to
such Class of Certificates will be made on such Distribution Date but only upon
presentation and surrender of such Certificates at the office of the Securities
Administrator or as otherwise specified therein, and (ii) no interest shall
accrue on such Certificates from and after the end of the prior calendar month.

         (j)      Any funds not distributed to any Holder or Holders of
Certificates of such Class on such Distribution Date because of the failure of
such Holder or Holders to tender their Certificates shall, on such date, be set
aside and held in trust and credited to the account of the appropriate
non-tendering Holder or Holders. If any Certificates as to which notice has been
given pursuant to this Section 4.01(j) shall not have been surrendered for
cancellation within six months after the time specified in such notice, the
Securities Administrator shall mail a second notice to the remaining
non-tendering Certificateholders to surrender their Certificates for
cancellation in order to receive the final distribution with respect thereto. If
within six months after the second notice all such Certificates shall not have
been surrendered for cancellation, the Securities Administrator shall take
reasonable steps as directed by the Company, or appoint an agent to take
reasonable steps, to contact the remaining non-tendering Certificateholders
concerning surrender of their Certificates. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in the Trust Fund. If within nine months
after the second notice any such Certificates shall not have been surrendered
for cancellation, the Class R Certificateholders shall be entitled to all
unclaimed funds and other assets which remain subject hereto. No interest shall
accrue or be payable to any Certificateholder on any amount held in trust as a
result of such Certificateholder's failure to surrender its Certificate(s) for
final payment thereof in accordance with this Section 4.01(j).

         (k)      On each Distribution Date, other than the final Distribution
Date, the Securities Administrator shall distribute to each Certificateholder of
record as of the immediately preceding Record Date the Certificateholder's pro
rata share of its Class (based on the aggregate Percentage Interest represented
by such Holder's Certificates) of all amounts required to be distributed on such
Distribution Date to such Class. The Securities Administrator shall calculate
the amount to be distributed to each Class and, based on such amounts, the
Securities Administrator shall determine the amount to be distributed to each
Certificateholder. All of the Securities Administrator's calculations of
payments shall be based solely on information provided to the Securities
Administrator by the Master Servicer. The Securities Administrator shall not be

                                      -81-
<PAGE>

required to confirm, verify or recompute any such information but shall be
entitled to rely conclusively on such information.

         Section 4.02 Statements to Certificateholders.

         (a)      On each Distribution Date, based, as applicable, on
information provided to it by the Master Servicer, the Securities Administrator
shall prepare and make available on the Securities Administrator's website as
set forth below, to each Holder of the Regular Certificates, the Trustee, the
Master Servicer and the Rating Agencies, a statement as to the distributions
made on such Distribution Date setting forth:

                  (i)      (A) the amount of the distribution made on such
         Distribution Date to the Holders of each Class of Regular Certificates,
         separately identified, allocable to principal and (B) the amount of the
         distribution made on such Distribution Date to the Holders of the Class
         P Certificates allocable to Prepayment Charges;

                  (ii)     the amount of the distribution made on such
         Distribution Date to the Holders of each Class of Regular Certificates
         (other than the Class P Certificates) allocable to interest, separately
         identified;

                  (iii)    the Pass-Through Rate on each Class of Regular
         Certificates (other than the Class P Certificates) for such
         Distribution Date;

                  (iv)     the aggregate amount of Advances for such
         Distribution Date;

                  (v)      the number and Aggregate Stated Principal Balance of
         the Mortgage Loans as of the end of the related Due Period;

                  (vi)     the Overcollateralized Amount, the
         Overcollateralization Deficiency Amount and the Overcollateralization
         Target Amount for such Distribution Date;

                  (vii)    the aggregate Certificate Principal Balance or
         Notional Amount, as applicable, of each Class of Regular Certificates
         after giving effect to the amounts distributed on such Distribution
         Date (in the case of each Class of the Class M Certificates, separately
         identifying any reduction thereof due to the allocation of Realized
         Losses thereto);

                  (viii)   the number and Aggregate Stated Principal Balance of
         Mortgage Loans (a) Delinquent 31 to 60 days, (b) Delinquent 61 to 90
         days, (c) Delinquent 91 days or more, in each case as of the end of the
         calendar month prior to such Distribution Date;

                  (ix)     the number, aggregate principal balance and book
         value of any REO Properties as of the close of business on the last day
         of the calendar month preceding the month in which such Distribution
         Date occurs;

                  (x)      the weighted average remaining term to maturity,
         weighted average Mortgage Rate and weighted average Net Mortgage Rate
         of the Mortgage Loans as of the

                                      -82-
<PAGE>

         close of business on the first day of the calendar month in which such
         Distribution Date occurs;

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

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

                  (xiii)   the aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Custodial Account or the Certificate
         Account for such Distribution Date;

                  (xiv)    the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date, to the extent not covered by
         payments by the Servicer or Master Servicer pursuant to Section 3.17,
         and the aggregate amount of Relief Act Interest Shortfalls for such
         Distribution Date;

                  (xv)     the Accrued Certificate Interest in respect of each
         Class of the Class A Certificates, Class M Certificates and Class C
         Certificates for such Distribution Date and the Unpaid Interest
         Shortfall Amount, if any, with respect to each Class of the Class A
         Certificates and Class M Certificates for such Distribution Date;

                  (xvi)    (A) the Overcollateralization Target Amount, (B) the
         Overcollateralized Amount and (C) the amount, if any, by which the
         Overcollateralization Target Amount exceeds the Overcollateralized
         Amount, in each case after giving effect to the distribution made on
         the Regular Certificates on such Distribution Date;

                  (xvii)   the aggregate amount of the Master Servicer Fee
         received by the Master Servicer with respect to the related Due Period
         and such other customary information as the Securities Administrator
         deems necessary or desirable, or which a Certificateholder reasonably
         requests, to enable Certificateholders to prepare their tax returns;

                  (xviii)  the aggregate of any deposits to and withdrawals from
         the Basis Risk Shortfall Reserve Fund for such Distribution Date and
         the remaining amount on deposit in the Basis Risk Shortfall Reserve
         Fund after such deposits and withdrawals;

                  (xix)    the Available Distribution Amount for such
         Distribution Date;

                  (xx)     the amount paid under the Corridor Contracts.

         On each Distribution Date, the Securities Administrator shall provide
Bloomberg Financial Markets, L.P. ("Bloomberg") CUSIP level factors for each
Class of Certificates as of such Distribution Date, using a format and media
mutually acceptable to the Trustee and Bloomberg.

         The information set forth above shall be calculated or reported, as the
case may be, by the Securities Administrator, based solely on, and to the extent
of, information provided to the Securities Administrator by the Master Servicer.
The Securities Administrator may conclusively

                                      -83-
<PAGE>

rely on such information and shall not be required to confirm, verify or
recalculate any such information.

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

         Within a reasonable period of time after the end of each calendar year,
the Securities Administrator shall prepare and forward, to each Person who at
any time during the calendar year was a Holder of a Certificate, a statement
containing the information set forth in subclauses (i) and (ii) above,
aggregated for such calendar year or applicable portion thereof during which
such person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Securities
Administrator pursuant to any requirements of the Code and regulations
thereunder as from time to time are in force.

         Within a reasonable period of time after the end of each calendar year,
the Securities Administrator shall prepare and forward, to each Person who at
any time during the calendar year was a Holder of a Class R Certificate a
statement containing the information provided pursuant to the previous paragraph
aggregated for such calendar year or applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Securities
Administrator pursuant to any requirements of the Code as from time to time are
in force.

         Section 4.03 Remittance Reports; Advances by the Master Servicer.

         (a)      On the Business Day following each Determination Date but in
no event later than the 20th day of each month (or if such 20th day is not a
Business Day, the preceding Business Day), the Master Servicer shall deliver to
the Securities Administrator a report, prepared as of the close of business on
the Determination Date (the "Remittance Report"), in the form of an electronic
format mutually acceptable to each party. The Remittance Report and any written
information supplemental thereto shall include such information with respect to
the Mortgage Loans that is required by the Securities Administrator for purposes
of making the calculations and preparing the statement described in Sections
4.01 and 4.02, as set forth in written specifications or guidelines issued by
the Securities Administrator from time to time. The Trustee shall have no
obligation to recompute, recalculate or verify any information provided to it by
the Master Servicer.

                                      -84-
<PAGE>

         (b)      If the scheduled payment on a Mortgage Loan that was due on a
related Due Date is delinquent, other than as a result of application of the
Relief Act, and for which the related Servicer was required to make an advance
pursuant to the related Servicing Agreement exceeds the amount deposited in the
Custodial Account which will be used for an advance with respect to such
Mortgage Loan, the Master Servicer will deposit in the Custodial Account not
later than the Certificate Account Deposit Date immediately preceding the
related Distribution Date an amount equal to such deficiency, net of the
Servicing Fee for such Mortgage Loan except to the extent the Master Servicer
determines any such advance to be a Nonrecoverable Advance. Subject to the
foregoing, the Master Servicer shall continue to make such advances through the
date that the related Servicer is required to do so under its Servicing
Agreement. If the Master Servicer deems an advance to be a Nonrecoverable
Advance, on the Certificate Account Deposit Date, the Master Servicer shall
present an Officer's Certificate to the Trustee (i) stating that the Master
Servicer elects not to make a Monthly Advance in a stated amount and (ii)
detailing the reason it deems the advance to be a Nonrecoverable Advance.

         (c)      The Master Servicer shall deposit in the Custodial Account not
later than each Certificate Account Deposit Date an amount equal to the lesser
of (i) the sum of the aggregate amounts required to be paid by the Servicers
under the Servicing Agreements with respect to subclauses (a) and (b) of the
definition of Interest Shortfall with respect to the Mortgage Loans for the
related Distribution Date, and not so paid by the related Servicer and (ii) the
Master Servicer Fees for such Distribution Date (such amount, the "Compensating
Interest Payment"). The Master Servicer shall not be entitled to any
reimbursement of any Compensating Interest Payment.

         Section 4.04 Distributions on the REMIC Regular Interests.

         (a)      On each Distribution Date, the Securities Administrator shall
cause the Available Distribution Amount, in the following order of priority, to
be distributed by REMIC 1 to REMIC 2 on account of the REMIC 1 Regular Interests
or withdrawn from the Certificate Account and distributed to the Holders of the
Class R Certificates (in respect of the Class R-1 Interest), as the case may be:

                  (i)      to Holders of REMIC 1 Regular Interest LT-AA, REMIC 1
         Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1
         Regular Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular
         Interest LT-A4, REMIC 1 Regular Interest LT-M1, REMIC 1 Regular
         Interest LT-M2, REMIC 1 Regular Interest LT-M3, REMIC 1 Regular
         Interest LT-M4, REMIC 1 Regular Interest LT-M5, REMIC 1 Regular
         Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular
         Interest LT-M8, REMIC 1 Regular Interest LT-M9, REMIC 1 Regular
         Interest LT-M10 and REMIC 1 Regular Interest LT-ZZ and REMIC 1 Regular
         Interest LT-P, PRO RATA, in an amount equal to

                  (A)      the related Uncertificated Accrued Interest for such
                           Distribution Date, plus

                  (B)      any amounts in respect thereof remaining unpaid from
                           the previous Distribution Dates.

                                      -85-
<PAGE>

Amounts payable as Uncertificated Accrued Interest in respect of REMIC 1 Regular
Interest LT-ZZ shall be reduced when the REMIC 1 Overcollateralized Amount is
less than the REMIC 1 Overcollateralization Target Amount, by the lesser of (x)
the amount of such difference and (y) the Maximum Uncertificated Accrued
Interest Deferral Amount, and such amount will be payable to the Holders of
REMIC 1 Regular Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1
Regular Interest LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest
LT-A4, REMIC 1 Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1
Regular Interest LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest
LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1
Regular Interest LT-M8, REMIC 1 Regular Interest LT-M9 and REMIC 1 Regular
Interest LT-M10 in the same proportion as the Overcollateralization Deficiency
Amount is allocated to the Corresponding Certificates, and the Uncertificated
Principal Balance of REMIC 1 Regular Interest LT-ZZ shall be increased by such
amount;

                  (ii)     to the Holders of REMIC 1 Regular Interest LT-P, (A)
         on each Distribution Date, 100% of the amount paid in respect of
         Prepayment Charges and (B) on the Distribution Date immediately
         following the expiration of the latest Prepayment Charge as identified
         on the Prepayment Charge Schedule or any Distribution Date thereafter
         until $100 has been distributed pursuant to this clause;

                  (iii)    to the Holders of the REMIC 1 Regular Interests, in
         an amount equal to the remainder of the Available Funds for such
         Distribution Date after the distributions made pursuant to clauses (i)
         and (ii) above, allocated as follows:

                  (A)      98% of such remainder to the Holders of REMIC 1
                           Regular Interest LT-AA, until the Uncertificated
                           Principal Balance of such Uncertificated REMIC 1
                           Regular Interest is reduced to zero;

                  (B)      2% of such remainder, first to the REMIC 1 Regular
                           Interest LT-A1A, REMIC 1 Regular Interest LT-A1B,
                           REMIC 1 Regular Interest LT-A2, REMIC 1 Regular
                           Interest LT-A3, REMIC 1 Regular Interest LT-A4, REMIC
                           1 Regular Interest LT-M1, REMIC 1 Regular Interest
                           LT-M2, REMIC 1 Regular Interest LT-M3, REMIC 1
                           Regular Interest LT-M4, REMIC 1 Regular Interest
                           LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1
                           Regular Interest LT-M7, REMIC 1 Regular Interest
                           LT-M8, REMIC 1 Regular Interest LT-M9 and REMIC 1
                           Regular Interest LT-M10, 1% of and in the same
                           proportion as principal payments are allocated to the
                           Corresponding Certificates, until the Uncertificated
                           Principal Balances of such REMIC 2 Regular Interests
                           are reduced to zero and second, to the Holders of
                           REMIC 1 Regular Interest LT-ZZ, until the
                           Uncertificated Principal Balance of such REMIC 1
                           Regular Interest is reduced to zero; and

                  (C)      any remaining amount to the Holders of the Class R
                           Certificates (in respect of the Class R-1 Interest);

                                      -86-
<PAGE>

provided, however, that 98% and 2% of any principal payments shall be allocated
to Holders of REMIC 1 Regular Interest LT-AA and REMIC 1 Regular Interest LT-ZZ,
respectively, once the Uncertificated Principal Balances of REMIC 1 Regular
Interest LT-A1A, REMIC 1 Regular Interest LT-A1B, REMIC 1 Regular Interest
LT-A2, REMIC 1 Regular Interest LT-A3, REMIC 1 Regular Interest LT-A4, REMIC 1
Regular Interest LT-M1, REMIC 1 Regular Interest LT-M2, REMIC 1 Regular Interest
LT-M3, REMIC 1 Regular Interest LT-M4, REMIC 1 Regular Interest LT-M5, REMIC 1
Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest
LT-M8, REMIC 1 Regular Interest LT-M9 and REMIC 1 Regular Interest LT-M10 have
been reduced to zero.

         Distributions of principal and interest on the Class C Certificates
shall be made in the same manner and priority as amounts distributed on the
Class C Certificates.

         Section 4.05 Allocation of Realized Losses.

         All Realized Losses on the Mortgage Loans shall be allocated by the
Securities Administrator on each Distribution Date as follows: first, to Net
Monthly Excess Cashflow, through a distribution of the Extra Principal
Distribution Amount for that Distribution Date; second, to the
Overcollateralized Amount by a reduction of the Certificate Principal Balance of
the Class C Certificates, until the Certificate Principal Balance thereof has
been reduced to zero; third, to the Class M-10 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; fourth, to the
Class M-9 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; fifth, to the Class M-8 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; sixth, to the Class M-7
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; seventh, to the Class M-6 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; eighth, to the Class M-5 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero; ninth,
to the Class M-4 Certificates, until the Certificate Principal Balance thereof
has been reduced to zero; tenth, to the Class M-3 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; eleventh, to the
Class M-2 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; twelfth, to the Class M-1 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; and thirteenth, to the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1
Regular Interest LT-A1B and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT-A-1B has been reduced to zero. All Realized Losses to be allocated
to the Certificate Principal Balances of all Classes on any Distribution Date
shall be so allocated after the actual distributions to be made on such date as
provided above. All references above to the Certificate Principal Balance of any
Class of Certificates shall be to the Certificate Principal Balance of such
Class immediately prior to the relevant Distribution Date, before reduction
thereof by any Realized Losses, in each case to be allocated to such Class of
Certificates, on such Distribution Date.

         Any allocation of Realized Losses to a Class M Certificate on any
Distribution Date shall be made by reducing the Certificate Principal Balance
thereof by the amount so allocated. Any allocation of Realized Losses to a Class
C Certificate shall be made by (i) FIRST, reducing the amount otherwise payable
in respect thereof pursuant to Section 4.01(c)(ix), and (ii) SECOND, by reducing
the Certificate Principal Balance thereof by the amount so allocated. No
allocations of

                                      -87-
<PAGE>

any Realized Losses shall be made to the Certificate Principal Balances of the
Class A or Class P Certificates, provided, however, that after the aggregate
Certificate Principal Balance of the Class M Certificates is reduced to zero, a
fraction equal to (x) the aggregate Certificate Principal Balance of the Class
A-1 Certificates over (y) the aggregate Certificate Principal Balance of all of
the Class A Certificates, of any additional Realized Losses will be allocated to
the Class A-1B Certificates, until the Certificate Principal Balance thereof has
been reduced to zero.

         All Realized Losses on the Mortgage Loans shall be allocated by the
Securities Administrator on each Distribution Date as follows: first to
Uncertificated Accrued Interest payable to the REMIC 1 Regular Interest LT-AA
and REMIC 1 Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC
1 Interest Loss Allocation Amount, 98% and 2% respectively; second, to the
Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA and REMIC 1
Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC 1 Principal
Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest
LT-M10 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M10 has been
reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-AA, REMIC 1 Regular Interest LT-M9 and REMIC 1 Regular
Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LT-M9 has been reduced to zero; fifth, to
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1
Regular Interest LT-M8 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT-M8 has been reduced to zero; sixth, to the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M7 and
REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M7 has been
reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-AA, REMIC 1 Regular Interest LT-M6 and REMIC 1 Regular
Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LT-M6 has been reduced to zero; eighth, to
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1
Regular Interest LT-M5 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT-M5 has been reduced to zero; ninth, to the Uncertificated Principal
Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest LT-M4 and
REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M4 has been
reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1
Regular Interest LT-AA, REMIC 1 Regular Interest LT-M3 and REMIC 1 Regular
Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LT-M3 has been reduced to zero; eleventh, to
the Uncertificated Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1
Regular Interest LT-M2 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC 1 Regular
Interest LT-M2 has been reduced to zero; and twelfth, to the Uncertificated
Principal Balances of REMIC 1 Regular Interest LT-AA, REMIC 1 Regular Interest
LT-M1 and REMIC 1 Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
the Uncertificated Principal Balance of REMIC 1 Regular Interest LT-M1 has been
reduced to zero.

                                      -88-
<PAGE>

         Realized Losses shall be allocated to the Class C Certificates in the
same manner and priority as such amounts are allocated to the Class C
Certificates.

         Section 4.06 Information Reports to Be Filed by the Servicer.

         The Servicer shall file information reports with respect, to the extent
set forth in the Servicing Agreements, to the receipt of mortgage interest
received in a trade or business, foreclosures and abandonments of any Mortgaged
Property and the information returns relating to cancellation of indebtedness
income with respect to any Mortgaged Property required by Sections 6050H, 6050J
and 6050P of the Code, respectively, and deliver to the Securities Administrator
an Officers' Certificate stating that such reports have been filed. Such reports
shall be in form and substance sufficient to meet the reporting requirements
imposed by such Sections 6050H, 6050J and 6050P of the Code.

         Section 4.07 Compliance with Withholding Requirements.

         Notwithstanding any other provision of this Agreement the Securities
Administrator shall comply with all federal withholding requirements respecting
payments to Certificateholders of interest or original issue discount on the
Mortgage Loans, that the Securities Administrator reasonably believes are
applicable under the Code. The consent of Certificateholders shall not be
required for such withholding. In the event the Securities Administrator
withholds any amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal withholding
requirements, the Securities Administrator shall, together with its monthly
report to such Certificateholders pursuant to Section 4.02 hereof, indicate such
amount withheld.

         Section 4.08 Basis Risk Shortfall Reserve Fund.

         (a)      On the Closing Date, the Securities Administrator shall
establish and maintain in its name, in trust for the benefit of Offered
Certificates and the Class M-10 Certificates, the Basis Risk Shortfall Reserve
Fund.

         (b)      On each Distribution Date, the Securities Administrator shall
transfer from the Certificate Account to the Basis Risk Shortfall Reserve Fund
the amounts specified pursuant to Sections 4.01(c)(v) and (g). On each
Distribution Date, to the extent required, the Securities Administrator shall
make withdrawals from the Basis Risk Shortfall Reserve Fund and use the amounts
in the Basis Risk Shortfall Reserve Fund to make distributions to the Offered
Certificates and the Class M-10 Certificates in an amount equal to the amount of
any Basis Risk Shortfall Carry-Forward Amount on such Certificates. Any such
amounts from the Corridor Contracts shall be distributed in the same order of
priority set forth in Section 4.01(g) above. Any such amounts from the Net
Monthly Excess Cashflow shall be distributed first, concurrently to the Class
A-1A, Class A-1B, Class A-2, Class A-3 and Class A-4 Certificates, and second,
sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
M-6, Class M-7, Class M-8, Class M-9 and Class M-10 Certificates, in that order,
in each case until the related Basis Risk Shortfall Carry-Forward Amount has
been reduced to zero. Any such amounts (other than any amounts paid to the Basis
Risk Shortfall Reserve Fund by the Corridor Contracts) transferred shall be
treated for federal tax purposes as amounts distributed by REMIC

                                      -89-
<PAGE>

2 to the Holder of the Class C Certificates. On each Distribution Date, after
the distributions described in the preceding sentence, the Securities
Administrator shall withdraw from the Basis Risk Shortfall Reserve Fund (to the
extent of funds available on deposit therein) any remaining amounts and
distribute them to the Holders of the Class C Certificates, not in respect of
any REMIC.

         (c)      The Basis Risk Shortfall Reserve Fund shall be an Eligible
Account. Amounts held in the Basis Risk Shortfall Reserve Fund from time to time
shall continue to constitute assets of the Trust Fund, but not of the REMICs,
until released from the Basis Risk Shortfall Reserve Fund pursuant to this
Section 4.08. The Basis Risk Shortfall Reserve Fund constitutes an "outside
reserve fund" within the meaning of Treasury Regulation ss. 1.860G-2(h) and is
not an asset of any REMIC. The Holders of the Class C Certificates shall be the
owner of the Basis Risk Shortfall Reserve Fund. The Securities Administrator
shall keep records that accurately reflect the funds on deposit in the Basis
Risk Shortfall Reserve Fund. The Securities Administrator shall, at the written
direction of the holder of the Majority Class C Certificateholder, invest
amounts on deposit in the Basis Risk Shortfall Reserve Fund in Permitted
Investments. In the absence of written direction to the Securities Administrator
from the Majority Class C Certificateholder, all funds in the Basis Risk
Shortfall Reserve Fund shall remain uninvested. On each Distribution Date, the
Securities Administrator shall distribute, not in respect of any REMIC, any
interest earned on the Basis Risk Shortfall Reserve Fund to the Holders of the
Class C Certificates.

         (d)      For federal tax return and information reporting, the value of
the right of the Holders of the Class A Certificates and the Class M
Certificates to receive payments from the reserve fund in respect of any Basis
Risk Shortfall Carry-Forward Amount will be $659,000 and $ 259,000,
respectively.

                                      -90-
<PAGE>

                                    ARTICLE V

                                THE CERTIFICATES

         Section 5.01 The Certificates.

         (a)      The Certificates will be substantially in the respective forms
annexed hereto as Exhibits A and B-1 through B-4. The Certificates will be
issuable in registered form only. The Certificates (other than the Class P
Certificates, the Class C Certificates and the Residual Certificates) will be
issued in minimum denominations of $100,000 Initial Certificate Principal
Balance and integral multiples of $1 in excess thereof. The Class C Certificates
will be issued in minimum denominations of $1.00 Initial Notional Amount and
integral multiples of $1.00 in excess thereof. The Class P Certificates and the
Residual Certificates will each be issuable in minimum denominations of any
Percentage Interest representing 20.00% and multiples of 0.01% in excess
thereof.

         Upon original issue, the Certificates shall, upon the written request
of the Company executed by an officer of the Company, be executed and delivered
by the Securities Administrator, authenticated by the Securities Administrator
and delivered to or upon the order of the Company upon receipt by the Securities
Administrator of the documents specified in Section 2.01. The Certificates shall
be executed by manual or facsimile signature on behalf of the Securities
Administrator by a Responsible Officer. Certificates bearing the manual or
facsimile signatures of individuals who were at the time they signed the proper
officers of the Securities Administrator shall bind the Securities
Administrator, notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such Certificates. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein executed by the
Securities Administrator by manual signature, and such certificate upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates issued on the Closing Date shall be dated the Closing Date and any
Certificates delivered thereafter shall be dated the date of their
authentication.

         (b)      The Class A Certificates and the Class M Certificates shall
initially be issued as one or more Certificates registered in the name of the
Company or its nominee and, except as provided below, registration of such
Certificates may not be transferred by the Securities Administrator except to
another Company that agrees to hold such Certificates for the respective
Certificate Owners with Ownership Interests therein. The Certificate Owners
shall hold their respective Ownership Interests in and to each of such
Book-Entry Certificates through the book-entry facilities of the Company and,
except as provided below, shall not be entitled to Definitive Certificates in
respect of such Ownership Interests. All transfers by Certificate Owners of
their respective Ownership Interests in the Book-Entry Certificates shall be
made in accordance with the procedures established by the Company Participant or
brokerage firm representing such Certificate Owner. Each Company Participant
shall transfer the Ownership Interests only in the Book-Entry Certificates of
Certificate Owners it represents or of brokerage firms for which it acts as
agent in accordance with the Company's normal procedures. The Securities

                                      -91-
<PAGE>

Administrator shall not be required to monitor, determine or inquire as to
compliance with the transfer restrictions with respect to the Book-Entry
Certificates, and the Securities Administrator shall have no liability for
transfers of Ownership Interests in the Book Entry Certificates made through the
book-entry facilities of the Depositary or between or among Depositary
Participants or Certificate Owners, made in violation of the applicable
restrictions.

         The Trustee, the Securities Administrator, the Master Servicer and the
Company may for all purposes (including the making of payments due on the
respective Classes of Book-Entry Certificates) deal with the Company as the
authorized representative of the Certificate Owners with respect to the
respective Classes of Book-Entry Certificates for the purposes of exercising the
rights of Certificateholders hereunder. The rights of Certificate Owners with
respect to the respective Classes of Book-Entry Certificates shall be limited to
those established by law and agreements between such Certificate Owners and the
Company Participants and brokerage firms representing such Certificate Owners.
Multiple requests and directions from, and votes of, the Company as Holder of
any Class of Book-Entry Certificates with respect to any particular matter shall
not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Securities Administrator may establish a reasonable
record date in connection with solicitations of consents from or voting by
Certificateholders and shall give notice to the Company of such record date.

         If (i)(A) the Company advises the Securities Administrator in writing
that the Company is no longer willing or able to properly discharge its
responsibilities as Company and (B) the Company is unable to locate a qualified
successor or (ii) the Company at its option advises the Securities Administrator
in writing that it elects to terminate the book-entry system through the
Company, the Securities Administrator shall notify all Certificate Owners,
through the Company, of the occurrence of any such event and of the availability
of Definitive Certificates to Certificate Owners requesting the same. Upon
surrender to the Securities Administrator of the Book-Entry Certificates by the
Company, accompanied by registration instructions from the Company for
registration of transfer, the Securities Administrator shall, at the expense of
the Company, issue the Definitive Certificates. Neither the Company, the Master
Servicer nor the Securities Administrator shall be liable for any actions taken
by the Company or its nominee, including, without limitation, any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Certificates the Trustee, the Securities Administrator and the Master Servicer
shall recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

         (c)      Each Certificate is intended to be a "security" governed by
Article 8 of the Uniform Commercial Code as in effect in the State of New York
and any other applicable jurisdiction, to the extent that any of such laws may
be applicable.

         Section 5.02 Registration of Transfer and Exchange of Certificates.

         (a)      The Securities Administrator shall maintain a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Securities Administrator shall provide for the registration of Certificates
and of transfers and exchanges of Certificates as herein provided.

                                      -92-
<PAGE>

         (b)      Except as provided in Section 5.02(c), no transfer, sale,
pledge or other disposition of a Class P, Class C or Residual Certificate shall
be made unless such transfer, sale, pledge or other disposition is exempt from
the registration requirements of the Securities Act of 1933, as amended (the
"Act"), and any applicable state securities laws or is made in accordance with
said Act and laws. In the event that a transfer of a Class P, Class C or
Residual Certificate is to be made under this Section 5.02(b), (i) the
Securities Administrator shall require an Opinion of Counsel acceptable to and
in form and substance satisfactory to the Securities Administrator that such
transfer shall be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from said Act and laws or is being made
pursuant to said Act and laws, which Opinion of Counsel shall not be an expense
of the Securities Administrator, the Trustee, the Company or the Master
Servicer, provided that such Opinion of Counsel will not be required in
connection with the initial transfer of any such Certificate by the Company or
any affiliate thereof, to a non-affiliate of the Company and (ii) the Securities
Administrator shall require the transferee to execute a representation letter,
substantially in the form of Exhibit G-1 hereto, and the Securities
Administrator shall require the transferor to execute a representation letter,
substantially in the form of Exhibit G-2 hereto, each acceptable to and in form
and substance satisfactory to the Securities Administrator certifying to the
Company and the Securities Administrator the facts surrounding such transfer,
which representation letters shall not be an expense of the Securities
Administrator, the Trustee, the Company or the Master Servicer; provided,
however, that such representation letters will not be required in connection
with any transfer of any such Certificate by the Company to an affiliate of the
Company and the Securities Administrator shall be entitled to conclusively rely
upon a representation (which, upon the request of the Securities Administrator,
shall be a written representation) from the Company of the status of such
transferee as an affiliate of the Company. Any such Certificateholder desiring
to effect such transfer shall, and does hereby agree to, indemnify the
Securities Administrator, the Trustee, the Company and the Master Servicer
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such applicable federal and state laws.

         (c)      Notwithstanding the requirements of Section 5.02(b), transfers
of Class P, Class C and Residual Certificates may be made in accordance with
this Section 5.02(c) if the prospective transferee of a Certificate provides the
Securities Administrator and the Company with an investment letter substantially
in the form of Exhibit G-3 attached hereto, which investment letter shall not be
an expense of the Securities Administrator, the Trustee, the Company or the
Master Servicer, and which investment letter states that, among other things,
such transferee is a "qualified institutional buyer" as defined under Rule 144A.
Such transfers shall be deemed to have complied with the requirements of Section
5.02(b) hereof; provided, however, that no Transfer of any of the Class P
Certificates, Class C Certificates or Residual Certificates may be made pursuant
to this Section 5.02(c) by the Company. Any such Certificateholder desiring to
effect such transfer shall, and does hereby agree to, indemnify the Securities
Administrator, the Trustee, the Company and the Master Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such applicable federal and state laws.

         The Securities Administrator shall require an Opinion of Counsel, on
which the Securities Administrator, the Trustee, the Company or the Master
Servicer may rely, from a prospective transferee prior to the transfer of any
Class P, Class C or Class R Certificate to any employee benefit plan or other
retirement arrangement, including an individual retirement

                                      -93-
<PAGE>

account or Keogh plan, that is subject to the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), or Section 4975 of the Code (any of
the foregoing, a "Plan"), to a trustee or other Person acting on behalf of any
Plan, or to any other person who is using "plan assets" of any Plan to effect
such acquisition (including any insurance company using funds in its general or
separate accounts that may constitute "plan assets"). Such Opinion of Counsel
must establish to the satisfaction of the Securities Administrator that such
transfer is permissible under applicable law, will not constitute or result in a
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code,
and will not subject the Securities Administrator, the Trustee, the Master
Servicer or the Company to any obligation in addition to those undertaken in
this Agreement. None of the Company, the Master Servicer, the Securities
Administrator or the Trustee will be required to obtain such Opinion of Counsel
on behalf of any prospective transferee. A purchaser of a Class P, Class C or
Class R Certificate shall be deemed to represent to the Securities
Administrator, the Trustee, the Master Servicer and the Company that it is not a
Plan or using assets of a Plan if it does not provide such an Opinion of
Counsel.

         Each beneficial owner of a Class M Certificate or any interest therein
shall be deemed to have represented, by virtue of its acquisition or holding of
that certificate or interest therein, that either (i) it is not a Plan or a
trustee or other Person acting on behalf of a Plan or using "plan assets" of a
Plan to effect such acquisition (including any insurance company using funds in
its general or separate accounts that may constitute "plan assets"), (ii) it has
acquired and is holding such certificate in reliance on Prohibited Transaction
Exemption 2002-41 as amended from time to time (the "Exemption"), and that it
understands that there are certain conditions to the availability of the
Exemption, including that the certificate must be rated, at the time of
purchase, not lower than "BBB-"(or its equivalent) by S&P, Fitch or Moody's, and
the certificate is so rated or (iii) (1) it is an insurance company, (2) the
source of funds used to acquire or hold the certificate or interest therein is
an "insurance company general account," as such term is defined in Prohibited
Transaction Class Exemption ("PTCE") 95-60, and (3) the conditions in Sections I
and III of PTCE 95-60 have been satisfied.

         (d)      [Reserved]

         (e)      (i) Each Person who has or who acquires any Ownership Interest
in a Residual Certificate shall be deemed by the acceptance or acquisition of
such Ownership Interest to have agreed to be bound by the following provisions
and to have irrevocably authorized the Trustee or its designee under clause
(iii)(A) below to deliver payments to a Person other than such Person and to
negotiate the terms of any mandatory sale under clause (iii)(B) below and to
execute all instruments of transfer and to do all other things necessary in
connection with any such sale. The rights of each Person acquiring any Ownership
Interest in a Residual Certificate are expressly subject to the following
provisions:

                  (A)      Each Person holding or acquiring any Ownership
                           Interest in a Residual Certificate shall be a
                           Permitted Transferee and shall promptly notify the
                           Securities Administrator of any change or impending
                           change in its status as a Permitted Transferee.

                  (B)      In connection with any proposed Transfer of any
                           Ownership Interest in a Residual Certificate, the
                           Securities Administrator shall require delivery to

                                      -94-
<PAGE>

                           it, and shall not register the Transfer of any
                           Residual Certificate until its receipt of (I) an
                           affidavit and agreement (a "Transfer Affidavit and
                           Agreement" in the form attached hereto as Exhibit
                           G-5) from the proposed Transferee, in form and
                           substance satisfactory to the Securities
                           Administrator representing and warranting, among
                           other things, that it is a Permitted Transferee, that
                           it is not acquiring its Ownership Interest in the
                           Residual Certificate that is the subject of the
                           proposed Transfer as a nominee, trustee or agent for
                           any Person who is not a Permitted Transferee, that
                           for so long as it retains its Ownership Interest in a
                           Residual Certificate, it will endeavor to remain a
                           Permitted Transferee, and that it has reviewed the
                           provisions of this Section 5.02 and agrees to be
                           bound by them, and (II) a certificate, in the form
                           attached hereto as Exhibit G-4, from the Holder
                           wishing to transfer the Residual Certificate, in form
                           and substance satisfactory to the Securities
                           Administrator representing and warranting, among
                           other things, that no purpose of the proposed
                           Transfer is to impede the assessment or collection of
                           tax.

                  (C)      Notwithstanding the delivery of a Transfer Affidavit
                           and Agreement by a proposed Transferee under clause
                           (B) above, if a Responsible Officer of the Securities
                           Administrator assigned to this transaction has actual
                           knowledge that the proposed Transferee is not a
                           Permitted Transferee, no Transfer of an Ownership
                           Interest in a Residual Certificate to such proposed
                           Transferee shall be effected.

                  (D)      Each Person holding or acquiring any Ownership
                           Interest in a Residual Certificate shall agree (x) to
                           require a Transfer Affidavit and Agreement from any
                           other Person to whom such Person attempts to transfer
                           its Ownership Interest in a Residual Certificate and
                           (y) not to transfer its Ownership Interest unless it
                           provides a certificate to the Securities
                           Administrator in the form attached hereto as Exhibit
                           G-4.

                  (E)      Each Person holding or acquiring an Ownership
                           Interest in a Residual Certificate, by purchasing an
                           Ownership Interest in such Certificate, agrees to
                           give the Securities Administrator written notice that
                           it is a "pass-through interest holder" within the
                           meaning of Temporary Treasury Regulations Section
                           1.67-3T(a)(2)(i)(A) immediately upon acquiring an
                           Ownership Interest in a Residual Certificate, if it
                           is "a pass-through interest holder", or is holding an
                           Ownership Interest in a Residual Certificate on
                           behalf of a "pass-through interest holder."

                  (ii)     The Securities Administrator will register the
         Transfer of any Residual Certificate only if it shall have received the
         Transfer Affidavit and Agreement in the form attached hereto as Exhibit
         G-5, a certificate of the Holder requesting such transfer in the form
         attached hereto as Exhibit G-4 and all of such other documents as shall
         have been reasonably required by the Securities Administrator as a
         condition to such registration. Transfers of the Residual Certificates
         other than to Permitted Transferees are prohibited.

                                      -95-
<PAGE>

                  (iii)    (A) If any Person other than a Permitted Transferee
         shall become a Holder of a Residual Certificate, then the last
         preceding Permitted Transferee shall be restored, to the extent
         permitted by law, to all rights and obligations as Holder thereof
         retroactive to the date of registration of such Transfer of such
         Residual Certificate. If a Non-United States Person shall become a
         Holder of a Residual Certificate, then the last preceding Permitted
         Transferee shall be restored, to the extent permitted by law, to all
         rights and obligations as Holder thereof retroactive to the date of
         registration of such Transfer of such Residual Certificate. If a
         transfer of a Residual Certificate is disregarded pursuant to the
         provisions of Treasury Regulations Section 1.860E-1 or Section
         1.860G-3, then the last preceding Permitted Transferee shall be
         restored, to the extent permitted by law, to all rights and obligations
         as Holder thereof retroactive to the date of registration of such
         transfer of such Residual Certificate. The prior Holder shall be
         entitled to recover from any purported Holder of a Residual Certificate
         that was in fact not a Permitted Transferee under this Section 5.05(b)
         at the time it became a Holder all payments made on such Residual
         Certificate. Each Holder of a Residual Certificate, by acceptance
         thereof, shall be deemed for all purposes to have consented to the
         provisions of this clause (b) and to any amendment of this Agreement
         deemed necessary (whether as a result of new legislation or otherwise)
         by counsel of the Company to ensure that the Residual Certificates are
         not transferred to any Person who is not a Permitted Transferee and
         that any transfer of such Residual Certificates will not cause the
         imposition of a tax upon the Trust or cause any such REMIC to fail to
         qualify as a REMIC. The Securities Administrator shall be under no
         liability to any Person for any registration of Transfer of a Residual
         Certificate that is in fact not permitted by this Section 5.02 or for
         making any payments due on such Certificate to the Holder thereof or
         for taking any other action with respect to such Holder under the
         provisions of this Agreement.

                  (B)      If any purported Transferee shall become a Holder of
                           a Residual Certificate in violation of the
                           restrictions in this Section 5.02 and to the extent
                           that the retroactive restoration of the rights of the
                           Holder of such Residual Certificate as described in
                           clause (iii)(A) above shall be invalid, illegal or
                           unenforceable, then the Securities Administrator
                           shall have the right, without notice to the Holder or
                           any prior Holder of such Residual Certificate, to
                           sell such Residual Certificate to a purchaser
                           selected by the Securities Administrator on such
                           terms as the Securities Administrator may choose.
                           Such purported Transferee shall promptly endorse and
                           deliver each Residual Certificate in accordance with
                           the instructions of the Securities Administrator.
                           Such purchaser may be the Securities Administrator
                           itself. The proceeds of such sale, net of the
                           commissions (which may include commissions payable to
                           the Securities Administrator), expenses and taxes
                           due, if any, will be remitted by the Securities
                           Administrator to such purported Transferee. The terms
                           and conditions of any sale under this clause (iii)(B)
                           shall be determined in the sole discretion of the
                           Securities Administrator, and the Securities
                           Administrator shall not be liable to any Person
                           having an Ownership Interest in a Residual
                           Certificate as a result of its exercise of such
                           discretion.

                  (iv)     The Securities Administrator shall make available to
         the Internal Revenue Service and those Persons specified by the REMIC
         Provisions, all information necessary to compute any tax imposed (A) as
         a result of the transfer of an ownership interest in a

                                      -96-
<PAGE>

         Residual Certificate to any Person who is a Disqualified Organization,
         including the information regarding "excess inclusions" of such
         Residual Certificates required to be provided to the Internal Revenue
         Service and certain Persons as described in Treasury Regulations
         Sections 1.860D-1(b)(5) and 1.860E-2(a)(5), and (B) as a result of any
         regulated investment company, real estate investment trust, common
         trust fund, partnership, trust, estate or organization described in
         Section 1381 of the Code that holds an Ownership Interest in a Residual
         Certificate having as among its record Holders at any time any Person
         who is a Disqualified Organization. The Securities Administrator may
         charge and shall be entitled to reasonable compensation for providing
         such information as may be required from those Persons which may have
         had a tax imposed upon them as specified in clauses (A) and (B) of this
         paragraph for providing such information.

                  (v)      Subject to the preceding paragraphs, upon surrender
         for registration of transfer of any Certificate at the office of the
         Securities Administrator maintained for such purpose, the Securities
         Administrator shall execute and the Securities Administrator shall
         authenticate and deliver, in the name of the designated transferee or
         transferees, one or more new Certificates of the same Class of a like
         aggregate Percentage Interest. Every Certificate surrendered for
         transfer shall be accompanied by notification of the account of the
         designated transferee or transferees for the purpose of receiving
         distributions pursuant to Section 4.01 by wire transfer, if any such
         transferee desires and is eligible for distribution by wire transfer.

                  (vi)     At the option of the Certificateholders, Certificates
         may be exchanged for other Certificates of authorized denominations of
         the same Class of a like aggregate Percentage Interest, upon surrender
         of the Certificates to be exchanged at the office of the Securities
         Administrator. Whenever any Certificates are so surrendered for
         exchange the Securities Administrator shall execute, authenticate and
         deliver the Certificates which the Certificateholder making the
         exchange is entitled to receive. Every Certificate presented or
         surrendered for transfer or exchange shall (if so required by the
         Trustee) be duly endorsed by, or be accompanied by a written instrument
         of transfer in the form satisfactory to the Trustee duly executed by,
         the Holder thereof or his attorney duly authorized in writing. In
         addition, with respect to each Class R Certificate, the Holder thereof
         may exchange, in the manner described above, such Class R Certificate
         for two separate Certificates, each representing such Holder's
         respective Percentage Interest in the Class R-1 Interest and the Class
         R-2 Interest, respectively, in each case that was evidenced by the
         Class R Certificate being exchanged.

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

                  (viii)   All Certificates surrendered for transfer and
         exchange shall be canceled and retained by the Securities Administrator
         in accordance with the Securities Administrator's standard procedures.

                                      -97-
<PAGE>

         Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

         If (i) any mutilated Certificate is surrendered to the Securities
Administrator and the Securities Administrator receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate, and (ii)
there is delivered to the Securities Administrator such security or indemnity as
may be required by it to save it harmless, then, in the absence of notice to the
Securities Administrator that such Certificate has been acquired by a bona fide
purchaser, the Securities Administrator shall execute, authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Certificate, a new Certificate of the same Class and Percentage Interest. Upon
the issuance of any new Certificate under this Section 5.03, the Securities
Administrator may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Securities Administrator)
connected therewith. Any replacement Certificate issued pursuant to this Section
shall constitute complete and indefeasible evidence of ownership in the Trust
Fund, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

         Section 5.04 Persons Deemed Owners.

         The Company, the Master Servicer, Securities Administrator the Trustee
and any agent of any of them may treat the person in whose name any Certificate
is registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.01 and for all other purposes whatsoever,
and neither the Company, the Master Servicer, the Trustee nor any agent of any
of them shall be affected by notice to the contrary.

         Section 5.05 Rule 144A Information.

         For so long as any Class P, Class C and Residual Certificates are
outstanding and are "restricted securities" within the meaning of Rule 144(a)(3)
of the Securities Act, (1) the Company will provide or cause to be provided to
any Holder of such Certificates and any prospective purchaser thereof designated
by such a Holder, upon the request of such Holder or prospective purchaser, the
information required to be provided to such Holder or prospective purchaser by
Rule 144A(d)(4) under the Securities Act; and (2) the Company shall update such
information from time to time in order to prevent such information from becoming
false and misleading and will take such other actions as are necessary to ensure
that the safe harbor exemption from the registration requirements of the
Securities Act under Rule 144A is and will be available for resales of such
Certificates conducted in accordance with Rule 144A. The Master Servicer shall
cooperate with the Company and furnish the Company such information in the
Master Servicer's possession as the Company may reasonably request.

                                      -98-
<PAGE>

                                   ARTICLE VI

                       THE COMPANY AND THE MASTER SERVICER

         Section 6.01 Liability of the Company and the Master Servicer.

         The Company and the Master Servicer each shall be liable in accordance
herewith only to the extent of the obligations specifically imposed upon and
undertaken by the Company and the Master Servicer herein. Only the Master
Servicer, any successor Master Servicer or the Trustee acting as Master Servicer
shall be liable with respect to the master servicing of the Mortgage Loans and
the REO Property for actions taken by any such Person in contravention of the
Master Servicer's duties hereunder.

         Section 6.02 Merger, Consolidation or Conversion of the Company or the
Master Servicer.

         The Company and the Master Servicer each will keep in full effect its
existence, rights and franchises as a corporation under the laws of the state of
its incorporation, and each will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Mortgage Loans
and to perform its respective duties under this Agreement.

         Any Person into which the Company or the Master Servicer may be merged,
consolidated or converted, or any corporation resulting from any merger or
consolidation to which the Company or the Master Servicer shall be a party, or
any Person succeeding to the business of the Company or the Master Servicer,
shall be the successor of the Company or the Master Servicer, as the case may
be, hereunder, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to
the Master Servicer or an affiliate thereof shall be qualified to service
mortgage loans for Fannie Mae or Freddie Mac.

         Section 6.03 Limitation on Liability of the Company, the Master
Servicer, the Securities Administrator and Others.

         Neither the Company, the Master Servicer nor any of the directors,
officers, employees or agents of the Company or the Master Servicer shall be
under any liability to the Trust Fund or the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Company or the Master Servicer (but this
provision shall protect the above described persons) against any breach of
warranties or representations made herein, or against any specific liability
imposed on the Master Servicer pursuant to Section 3.01 or any other Section
hereof; and provided further that this provision shall not protect the Company,
the Master Servicer or any such person, against any liability which would
otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Company, the Master Servicer and any
director, officer, employee or agent of the Company or the Master Servicer may

                                      -99-
<PAGE>

rely in good faith on any document of any kind PRIMA FACIE properly executed and
submitted by any Person respecting any matters arising hereunder. The Company,
the Custodian, the Master Servicer, the Securities Administrator and any
director, officer, employee or agent of the Company, the Custodian, the Master
Servicer or the Securities Administrator shall be indemnified and held harmless
by the Trust Fund (with respect to the Master Servicer, Custodian and Securities
Administrator, in the aggregate up to a limit of $500,000 per calendar year,
against any loss, liability or expense incurred in connection with this
Agreement, the Custodial Agreement or the Certificates or the Mortgage Loans
(including reasonable legal fees and disbursements of counsel), other than (a)
any loss, liability or expense related to Master Servicer's master servicing
obligations with respect to any specific Mortgage Loan or Mortgage Loans (except
as any such loss, liability or expense shall be otherwise reimbursable pursuant
to this Agreement) or related to the Master Servicer's obligations under Section
3.01, or to the Custodian's failure to perform its duties under the Custodial
Agreement, respectively, or (b) any loss, liability or expense incurred by
reason of willful misfeasance, bad faith or gross negligence in the performance
of duties hereunder or by reason of reckless disregard of obligations and duties
hereunder. None of the Company, the Master Servicer, the Custodian or the
Securities Administrator shall be under any obligation to appear in, prosecute
or defend any legal action which is not incidental to its respective duties
under this Agreement and which in its opinion may involve it in any expense or
liability; provided, however, that the Company, the Master Servicer, the
Custodian or the Securities Administrator may in its sole discretion undertake
any such action which it may deem necessary or desirable with respect to this
Agreement and the rights and duties of the parties hereto and the interests of
the Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom (except any action or
liability related to the Master Servicer's obligations under Section 3.01) shall
be expenses, costs and liabilities of the Trust Fund, and the Company, the
Custodian, the Master Servicer and the Securities Administrator shall be
entitled to be reimbursed therefor from the Certificate Account as provided in
Section 3.18, any such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Certificate Account.

         Section 6.04 Limitation on Resignation of the Master Servicer.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (a) upon appointment of a successor master servicer
reasonably acceptable to the Trustee upon receipt by the Trustee of a letter
from each Rating Agency (obtained by the Master Servicer and at its expense)
that such a resignation and appointment will not, in and of itself, result in a
downgrading of the Certificates or (b) upon determination that its duties
hereunder are no longer permissible under applicable law. Any such determination
described in (b) above permitting the resignation of the Master Servicer shall
be evidenced by an Opinion of Counsel (at the expense of the resigning Master
Servicer) to such effect delivered to the Trustee. No such resignation shall
become effective until the Trustee or a successor servicer shall have assumed
the Master Servicer's responsibilities, duties, liabilities and obligations
hereunder. Any resignation of the Master Servicer shall result in the automatic
resignation of the Securities Administrator.

         Section 6.05 Sale and Assignment of Master Servicing.

         The Master Servicer may sell and assign its rights and delegate its
duties and obligations in their entirety as Master Servicer under this
Agreement; provided, however, that: (i) the

                                     -100-
<PAGE>

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

                                     -101-
<PAGE>

                                   ARTICLE VII

                                     DEFAULT

         Section 7.01 Events of Default.

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

                  (i)      any failure by the Master Servicer to deposit into
         the Certificate Account on each Certificate Account Deposit Date the
         amounts required to be deposited therein (other than an Advance) under
         the terms of this Agreement which continues unremedied for one (1)
         Business Day after such amount was required to be remitted; or

                  (ii)     any failure on the part of the Master Servicer duly
         to observe or perform in any material respect any other of the
         covenants or agreements on the part of the Master Servicer contained in
         the Certificates or in this Agreement (including any breach of the
         Master Servicer's representations and warranties pursuant to Section
         2.03(a) which materially and adversely affects the interests of the
         Certificateholders) which continues unremedied for a period of 60 days
         after the date on which written notice of such failure, requiring the
         same to be remedied, shall have been given to the Master Servicer by
         the Trustee or to the Master Servicer and the Trustee by the Holders of
         Certificates entitled to at least 25% of the Voting Rights; or

                  (iii)    a decree or order of a court or agency or supervisory
         authority having jurisdiction in an involuntary case under any present
         or future federal or state bankruptcy, insolvency or similar law or the
         appointment of a conservator or receiver or liquidator in any
         insolvency, readjustment of debt, marshaling of assets and liabilities
         or similar proceedings, or for the winding-up or liquidation of its
         affairs, shall have been entered against the Master Servicer and such
         decree or order shall have remained in force undischarged or unstayed
         for a period of 60 consecutive days; or

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

                  (v)      the Master Servicer shall admit in writing its
         inability to pay its debts generally as they become due, file a
         petition to take advantage of or otherwise voluntarily commence a case
         or proceeding under any applicable bankruptcy, insolvency,
         reorganization or other similar statute, make an assignment for the
         benefit of its creditors, or voluntarily suspend payment of its
         obligations; or

                  (vi)     the Master Servicer shall fail to deposit in the
         Certificate Account on any Certificate Account Deposit Date an amount
         equal to any required Advance which continues unremedied for a period
         of one (1) Business Day after the Business Day immediately preceding
         the related Distribution Date.

                                     -102-
<PAGE>

         If an Event of Default described in clauses (i) - (vi) of this Section
shall occur, then, and in each and every such case, so long as such Event of
Default shall not have been remedied, the Trustee or the Holders of Certificates
entitled to at least 51% of the Voting Rights, by notice in writing to the
Master Servicer (and to the Trustee if given by such Holders of Certificates),
with a copy to the Rating Agencies, may terminate all of the rights and
obligations (but not the liabilities) of the Master Servicer under this
Agreement and in and to the Trust Fund, other than its rights as a
Certificateholder hereunder; provided, however, that the successor to the Master
Servicer appointed pursuant to Section 7.02 shall have accepted the duties of
Master Servicer effective upon the resignation or termination of the Master
Servicer. On or after the receipt by the Master Servicer of such notice, all
authority and power of the Master Servicer under this Agreement, whether with
respect to the Certificates (other than as a Holder thereof) or the Mortgage
Loans or otherwise, shall pass to and be vested in the Trustee pursuant to and
under this Section, and, without limitation, the Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement or assignment of the Mortgage Loans and related documents, or
otherwise at the expense of the Master Servicer. The Master Servicer agrees to
cooperate with (and pay any related costs and expenses of) the Trustee in
effecting the termination of the Master Servicer's responsibilities and rights
hereunder, including, without limitation, the transfer to the Trustee or the
successor Master Servicer for administration by it of (i) the property and
amounts which are then or should be part of the Trust Fund or which thereafter
become part of the Trust Fund; (ii) originals or copies of all documents of the
Master Servicer reasonably requested by the Trustee to enable it to assume the
Master Servicer's duties thereunder; (iii) the rights and obligations of the
Master Servicer under the Subservicing Agreements with respect to the Mortgage
Loans; and (iv) all cash amounts which shall at the time be deposited by the
Master Servicer or should have been deposited to the Custodial or the
Certificate Account or thereafter be received with respect to the Mortgage
Loans. The Trustee shall not be deemed to have breached any obligation hereunder
as a result of a failure to make or delay in making any distribution as and when
required hereunder caused by the failure of the Master Servicer to remit any
amounts received by it or to deliver any documents held by it with respect to
the Mortgage Loans. For purposes of this Section 7.01, the Trustee shall not be
deemed to have knowledge of an Event of Default unless a Responsible Officer of
the Trustee has actual knowledge thereof or unless notice of any event which is
in fact such an Event of Default is received by the Trustee as provided in
Section 11.05 and such notice references the Certificates, the Trust Fund or
this Agreement.

         Section 7.02 Trustee to Act; Appointment of Successor.

         Within 90 days of the time the Master Servicer receives a notice of
termination pursuant to Section 7.01(i) - (vi), the Trustee or its appointed
agent shall be the successor in all respects to the Master Servicer in its
capacity as Master Servicer under this Agreement and the transactions set forth
or provided for herein and shall be subject thereafter to all the
responsibilities, duties and liabilities relating thereto placed on the Master
Servicer including the obligation to make Advances which have been or will be
required to be made (except for the responsibilities, duties and liabilities
contained in Section 2.03 and its obligations to deposit amounts in respect of
losses pursuant to 4.01(i)) by the terms and provisions hereof; and provided
further, that any failure to perform such duties or responsibilities caused by
the Master Servicer's failure to

                                     -103-
<PAGE>

provide information required by Section 4.03 shall not be considered a default
by the Trustee hereunder. As compensation therefor, the Trustee shall be
entitled to all funds relating to the Mortgage Loans which the Master Servicer
would have been entitled to charge to the Custodial Account and the Certificate
Account if the Master Servicer had continued to act hereunder. If the Trustee
has become the successor to the Master Servicer in accordance with Section 6.04
or Section 7.02, then notwithstanding the above, if the Trustee shall be
unwilling to so act, or shall be unable to so act, the Trustee may appoint, or
petition a court of competent jurisdiction to appoint, any established housing
and home finance institution, which is also a Fannie Mae- or Freddie
Mac-approved mortgage servicing institution, having a net worth of not less than
$10,000,000 as the successor to the Master Servicer hereunder in the assumption
of all or any part of the responsibilities, duties or liabilities of the Master
Servicer hereunder. Pending appointment of a successor to the Master Servicer
hereunder, the Trustee shall act in such capacity as herein above provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Master Servicer hereunder.
Each of the Company, the Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. In no event shall the successor Master Servicer be liable for the
acts or omissions of the predecessor Master Servicer.

         In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, in which case the predecessor Master Servicer shall cooperate with the
successor Master Servicer in causing MERS to revise its records to reflect the
transfer of servicing to the successor Master Servicer as necessary under MERS'
rules and regulations, or (ii) the predecessor Master Servicer shall cooperate
with the successor Master Servicer in causing MERS to execute and deliver an
assignment of Mortgage in recordable form to transfer the Mortgage from MERS to
the Trustee and to execute and deliver such other notices, documents and other
instruments as may be necessary or desirable to effect a transfer of such
Mortgage Loan or servicing of such Mortgage Loan on the MERS(R) System to the
successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
predecessor Master Servicer shall bear any and all fees of MERS, costs of
preparing any assignments of Mortgage, and fees and costs of filing any
assignments of Mortgage that may be required under this Section 7.02. The
successor Master Servicer shall cause such assignment to be delivered to the
Trustee promptly upon receipt of the original with evidence of recording thereon
or a copy certified by the public recording office in which such assignment was
recorded.

         Any successor, including the Trustee, to the Master Servicer shall
maintain in force during its term as master servicer hereunder policies and
fidelity bonds to the same extent as the Master Servicer is so required pursuant
to Section 3.18.

         Notwithstanding anything else herein to the contrary, in no event shall
the Trustee be liable for any Master Servicing Fee or for any differential in
the amount of the Master Servicing

                                     -104-
<PAGE>

Fee paid hereunder and the amount necessary to induce any successor Master
Servicer to act as successor Master Servicer under this Agreement and the
transactions set forth or provided for herein.

         Section 7.03 Notification to Certificateholders.

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

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

         Section 7.04 Waiver of Events of Default.

         The Holders representing at least 51% of the Voting Rights of
Certificates affected by a default or Event of Default hereunder, may waive such
default or Event of Default (other than an Event of Default set forth in Section
7.01(vi)); provided, however, that (a) a default or Event of Default under
clause (i) of Section 7.01 may be waived only by all of the Holders of
Certificates affected by such default or Event of Default and (b) no waiver
pursuant to this Section 7.04 shall affect the Holders of Certificates in the
manner set forth in the second paragraph of Section 11.01 or materially
adversely affect any non-consenting Certificateholder. Upon any such waiver of a
default or Event of Default by the Holders representing the requisite percentage
of Voting Rights of Certificates affected by such default or Event of Default,
such default or Event of Default shall cease to exist and shall be deemed to
have been remedied for every purpose hereunder. No such waiver shall extend to
any subsequent or other default or Event of Default or impair any right
consequent thereon except to the extent expressly so waived. The Master Servicer
shall give notice of any such waiver to the Rating Agencies.

         Section 7.05 List of Certificateholders.

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

                                     -105-
<PAGE>

                                  ARTICLE VIII

               CONCERNING THE TRUSTEE AND SECURITIES ADMINISTRATOR

         Section 8.01 Duties of Trustee and the Securities Administrator.

         The Trustee, prior to the occurrence of an Event of Default and after
the curing or waiver of all Events of Default which may have occurred, and the
Securities Administrator each undertake to perform such duties and only such
duties as are specifically set forth in this Agreement as duties of the Trustee
and the Securities Administrator, respectively. If an Event of Default occurs,
is continuing and has not been waived, the Trustee shall exercise such of the
rights and powers vested in it by this Agreement, and use the same degree of
care and skill in their exercise as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs. Any permissive right of the
Trustee enumerated in this Agreement shall not be construed as a duty.

         The Trustee and the Securities Administrator, upon receipt of all
resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Trustee and the Securities Administrator
which are specifically required to be furnished pursuant to any provision of
this Agreement, the Trustee and the Securities Administrator, respectively,
shall examine them in accordance with the requirements of this Agreement. If any
such instrument is found not to conform to the requirements of this Agreement in
a material manner, the Trustee or the Securities Administrator, as applicable,
shall take such action as it deems appropriate to have the instrument corrected,
and if the instrument is not corrected to the Trustee's or the Securities
Administrator's, as applicable, satisfaction, the Trustee or the Securities
Administrator, as applicable, will provide notice thereof to the
Certificateholders. Notwithstanding the foregoing, neither the Trustee nor the
Securities Administrator shall be responsible for the accuracy or content of any
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the Master Servicer hereunder or any Opinion of Counsel
required hereunder.

         The Securities Administrator shall prepare and file or cause to be
filed on behalf of the Trust Fund any tax return that is required with respect
to any Trust REMIC pursuant to applicable federal, state or local tax laws.

         The Securities Administrator covenants and agrees that it shall perform
its obligations hereunder in a manner so as to maintain the status of any Trust
REMIC under the REMIC Provisions and to prevent the imposition of any federal,
state or local income, prohibited transaction, contribution or other tax on any
of any Trust REMIC to the extent that maintaining such status and avoiding such
taxes are within the control of the Securities Administrator and are reasonably
within the scope of its duties under this Agreement.

                                     -106-
<PAGE>

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

                  (i)      The duties and obligations of the Trustee prior to
         the occurrence of an Event of Default, and after the curing or waiver
         of all such Events of Default which may have occurred and the
         Securities Administrator, at all times, shall be determined solely by
         the express provisions of this Agreement, neither the Trustee nor the
         Securities Administrator shall be liable except for the performance of
         such duties and obligations as are specifically set forth in this
         Agreement, no implied covenants or obligations shall be read into this
         Agreement against the Trustee or the Securities Administrator and, in
         the absence of bad faith on the part of the Trustee or the Securities
         Administrator, respectively, the Trustee or the Securities
         Administrator may conclusively rely, as to the truth of the statements
         and the correctness of the opinions expressed therein, upon any
         certificates or opinions furnished to the Trustee or the Securities
         Administrator and conforming to the requirements of this Agreement;

                  (ii)     Neither the Trustee nor the Securities Administrator
         shall be liable for an error of judgment made in good faith by a
         Responsible Officer or Responsible Officers of the Trustee or of the
         Securities Administrator, as applicable, unless it shall be proved that
         the Trustee or Securities Administrator, respectively, was negligent in
         ascertaining the pertinent facts; and

                  (iii)    Neither the Trustee nor the Securities Administrator
         shall be liable with respect to any action taken, suffered or omitted
         to be taken by it in good faith in accordance with the direction of the
         Holders of Certificates entitled to at least 25% of the Voting Rights
         relating to the time, method and place of conducting any proceeding for
         any remedy available to the Trustee or the Securities Administrator,
         respectively, or exercising any trust or power conferred upon the
         Trustee or the Securities Administrator, respectively, under this
         Agreement.

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

         Except as otherwise provided in Section 8.01:

         (a)      The Trustee and the Securities Administrator may conclusively
rely upon and shall be fully protected in acting or refraining from acting in
reliance upon any resolution, Officers' Certificate, certificate of auditors or
any other certificate, statement, instrument, opinion, report, notice, request,
consent, order, appraisal, bond or other paper or document reasonably believed
by it to be genuine and to have been signed or presented by the proper party or
parties;

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

                                     -107-
<PAGE>

         (c)      Neither the Trustee nor the Securities Administrator shall be
under any obligation to exercise any of the trusts or powers vested in it by
this Agreement, other than its obligation to give notice pursuant to this
Agreement, or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the
Certificateholders, pursuant to the provisions of this Agreement, unless such
Certificateholders shall have offered to the Trustee or Securities Administrator
security or indemnity satisfactory to it against the costs, expenses and
liabilities which may be incurred therein or thereby; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default of which a Responsible Officer of the Trustee's corporate trust
department has actual knowledge (which has not been waived or cured), 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 man would
exercise or use under the circumstances in the conduct of his own affairs;

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

         (e)      Neither the Trustee prior to the occurrence of an Event of
Default hereunder and after the curing or waiver of all Events of Default which
may have occurred, nor the Securities Administrator, at any time, shall be bound
to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or document, unless requested in writing to
do so by the Holders of Certificates entitled to at least 25% of the Voting
Rights; provided, however, that if the payment within a reasonable time to the
Trustee or Securities Administrator, as applicable, of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee or Securities Administrator, as applicable,
reasonably assured to the Trustee or the Securities Administrator, as
applicable, by the security afforded to it by the terms of this Agreement
reasonable expense of every such examination shall be paid by the
Certificateholders requesting the investigation;

         (f)      The Trustee and the Securities Administrator may execute any
of the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents, nominees, custodians or attorneys appointed
with due care, and shall not be responsible for any willful misconduct or
negligence on the part of any agent, attorney, custodian or nominee so
appointed;

         (g)      Neither the Trustee nor the Securities Administrator shall be
required to give any bond or surety with respect to the execution of the trust
created hereby or the powers granted hereunder; and

         (h)      Whenever in the administration of the provisions of this
Agreement the Trustee and the Securities Administrator shall deem it necessary
or desirable that a matter be proved or established prior to taking or suffering
any action to be taken hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of gross
negligence or bad faith on the part of the Trustee or the Securities
Administrator, as applicable, be deemed to be conclusively proved and
established by a certificate signed and delivered to the Trustee or Securities
Administrator, as applicable, and such certificate, in the absence of gross

                                     -108-
<PAGE>

negligence or bad faith on the part of the Trustee or Securities Administrator,
as applicable, shall be full warrant to the Trustee or Securities Administrator,
as applicable, for any action taken, suffered or omitted by it under the
provisions of this Agreement upon the faith thereof.

         Neither the Trustee nor the Securities Administrator shall have any
obligation to invest and reinvest any cash held. The Trustee and the Securities
Administrator shall have no liability in respect of losses incurred as a result
of the liquidation of any investment incurred as a result of the liquidation of
any investment prior to its stated maturity.

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

         The recitals contained herein and in the Certificates (other than the
signature of the Securities Administrator, the authentication of the Securities
Administrator on the Certificates, the acknowledgments of the Securities
Administrator contained in Article II) shall be taken as the statements of the
Company and neither the Trustee nor the Securities Administrator assumes any
responsibility for their correctness. Neither the Trustee nor the Securities
Administrator makes any representations or warranties as to the validity or
sufficiency of this Agreement or of the Certificates (other than the signature
and authentication of the Trustee on the Certificates) or of any Mortgage Loan
or related document, or of MERS or the MERS(R) System. Neither the Trustee nor
the Securities Administrator shall be accountable for the use or application by
the Company of any of the Certificates or of the proceeds of such Certificates,
or for the use or application of any funds paid to the Company or the Master
Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the
Custodial Account by the Master Servicer.

         Section 8.04 Trustee and Securities Administrator May Own Certificates.

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

         Section 8.05 Trustee's and Securities Administrator's Fees.

         Each of the Trustee and Securities Administrator shall be compensated
by the Master Servicer. Such compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
shall be paid for all services rendered by it in the execution of the trusts
hereby created and in the exercise and performance of any of the powers and
duties hereunder or of the Trustee and the Securities Administrator. Except as
otherwise provided in this Agreement, the Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified and held harmless by the
Trust Fund against any claim, loss, liability, fee or expense incurred in
connection with any Event of Default, any breach of this Agreement or any claim
or legal action (including any pending or threatened claim or legal action)
relating to the acceptance or administration of its trusts hereunder or the
Trustee's performance under the Certificates, other than any claim, loss,
liability or expense (i) sustained in connection with this Agreement related to
the willful misfeasance, bad faith or negligence of the Master Servicer in the
performance of its duties hereunder or (ii) incurred in connection with

                                     -109-
<PAGE>

a breach constituting willful misfeasance, bad faith or negligence of the
Trustee in the performance of its duties hereunder or by reason of reckless
disregard of its obligations and duties hereunder.

         The Master Servicer shall indemnify the Company, the Trustee and the
Securities Administrator and any director, officer, employee or agent of the
Company, the Trustee or the Securities Administrator against any such claim or
legal action (including any pending or threatened claim or legal action), loss,
liability, fee or expense that may be sustained in connection with this
Agreement related to the willful misfeasance, bad faith, or negligence in the
performance of the Master Servicer's duties hereunder.

         The provisions of this Section 8.05 shall survive the resignation or
removal of the Trustee or the Securities Administrator or the termination of
this Agreement.

         Section 8.06 Eligibility Requirements for Trustee and the Securities
Administrator.

         The Trustee and the Securities Administrator hereunder shall at all
times be a corporation or a national banking association organized and doing
business under the laws of any state or the United States of America or the
District of Columbia, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authority. In
addition, the Trustee and the Securities Administrator shall at all times be
acceptable to the Rating Agency rating the Certificates. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Trustee or the
Securities Administrator shall cease to be eligible in accordance with the
provisions of this Section, the Trustee or the Securities Administrator, as
applicable, shall resign immediately in the manner and with the effect specified
in Section 8.07. The corporation or national banking association serving as
Trustee or Securities Administrator may have normal banking and trust
relationships with the Seller and their affiliates or the Master Servicer and
its affiliates.

         Section 8.07 Resignation and Removal of the Trustee and the Securities
Administrator.

         The Trustee and the Securities Administrator may at any time resign and
be discharged from the trusts hereby created by giving written notice thereof to
the Master Servicer; with a copy to the Rating Agencies; provided, that such
resignation shall not be effective until a successor trustee is appointed and
accepts appointment in accordance with the following provisions; provided,
however, that the resigning Trustee or Securities Administrator, as applicable,
shall not resign and be discharged from the trusts hereby created until such
time as the Rating Agency rating the Certificates approves the successor trustee
or successor securities administrator. Any resignation or removal of the
Securities Administrator shall result in the automatic removal of the Master
Servicer to the extent that Wells Fargo Bank, N.A. is both the Securities
Administrator and the Master Servicer. Upon receiving such notice of resignation
of the Trustee, the Master Servicer shall promptly appoint a successor trustee
who meets the eligibility requirements of Section 8.06 by written instrument, in
triplicate, one copy of which

                                     -110-
<PAGE>

instrument shall be delivered to the resigning Trustee, and to the successor
trustee. Upon receiving notice of the resignation of the Securities
Administrator, the Trustee shall promptly appoint a successor securities
administrator who meets the eligibility requirements of Section 8.06 by written
instrument, in triplicate, copies of which instrument shall be delivered to the
resigning securities administrator and the successor securities administrator.
If no successor trustee or successor securities administrator shall have been so
appointed and have accepted appointment within 30 days after the giving of such
notice of resignation, the resigning Trustee or resigning Securities
Administrator, as applicable may petition any court of competent jurisdiction
for the appointment of a successor trustee or successor securities
administrator, as applicable.

         If at any time the Trustee or the Securities Administrator shall cease
to be eligible in accordance with the provisions of Section 8.06 and shall fail
to resign after written request therefor by the Master Servicer, or if at any
time the Trustee or the Securities Administrator shall become incapable of
acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee
or Securities Administrator, as applicable, or of its property shall be
appointed, or any public officer shall take charge or control of the Trustee or
Securities Administrator, as applicable, or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, the Master Servicer may
remove the Trustee, or the Trustee shall remove the Securities Administrator, as
applicable, and appoint a successor trustee or successor securities
administrator, as applicable, who meets the eligibility requirements of Section
8.06 by written instrument, in triplicate, which instrument shall be delivered
to the Trustee or Securities Administrator, as applicable, so removed and to the
successor trustee or successor securities administrator, as applicable.

         The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee or Securities Administrator and
appoint a successor trustee or successor securities administrator by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact duly authorized, one complete set of which instruments shall
be delivered to the Master Servicer (if the Trustee is removed), the Securities
Administrator (if the Trustee is removed), and the Trustee (if the Securities
Administrator is removed), one complete set to the Trustee or Securities
Administrator so removed and one complete set to the successor so appointed. A
copy of such instrument shall be delivered to the Certificateholders and the
Company by the Master Servicer (if the Trustee is removed) and by the Trustee
(if the Securities Administrator is removed).

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

         Section 8.08 Successor Trustee and Successor Securities Administrator.

         Any successor trustee or successor securities administrator appointed
as provided in Section 8.07 shall execute, acknowledge and deliver to the Master
Servicer and to its predecessor trustee or predecessor securities administrator
an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee or predecessor

                                     -111-
<PAGE>

securities administrator shall become effective and such successor trustee or
successor securities administrator, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with the like effect as if originally named as
trustee herein. The predecessor trustee or predecessor securities administrator
shall after payment of its outstanding fees and expenses, promptly deliver to
the successor trustee or successor securities administrator all assets and
records of the Trust Fund held by it hereunder, and the Master Servicer and the
predecessor trustee or predecessor securities administrator shall execute and
deliver all such instruments and do such other things as may reasonably be
required for more fully and certainly vesting and confirming in the successor
trustee or successor securities administrator all such rights, powers, duties
and obligations.

         No successor trustee or successor securities administrator shall accept
appointment as provided in this Section unless at the time of such acceptance
such successor trustee or successor securities administrator shall be eligible
under the provisions of Section 8.06.

         Upon acceptance of appointment by a successor trustee or successor
securities administrator as provided in this Section, the Master Servicer (in
the case of a successor trustee) and the Trustee (in the case of a successor
securities administrator) shall mail notice of the succession of such trustee or
securities administrator hereunder to all Holders of Certificates at their
addresses as shown in the Certificate Register. If the Master Servicer (in the
case of a successor trustee) and the Trustee (in the case of a successor
securities administrator) fails to mail such notice within ten days after
acceptance of appointment by the successor trustee successor securities
administrator, the successor trustee successor securities administrator shall
cause such notice to be mailed at the expense of the Master Servicer or Trustee,
as the case may be.

         Section 8.09 Merger or Consolidation of Trustee or Securities
Administrator.

         Any state bank or trust company or corporation or national banking
association into which the Trustee or Securities Administrator may be merged or
converted or with which it may be consolidated or any state bank or trust
company or national banking association resulting from any merger, conversion or
consolidation to which the Trustee or Securities Administrator shall be a party,
or any state bank or trust company or corporation or national banking
association succeeding to all or substantially all of the corporate trust
business of the Trustee or Securities Administrator, shall be the successor of
the Trustee or Securities Administrator hereunder, provided such state bank or
trust company or corporation or national banking association shall be eligible
under the provisions of Section 8.06 without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

         Section 8.10 Appointment of Co-Trustee or Separate Trustee.

         Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located, the
Master Servicer and the Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or
separate trustee or

                                     -112-
<PAGE>

separate trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity, such title to the Trust Fund, or any part
thereof, and, subject to the other provisions of this Section 8.10, such powers,
duties, obligations, rights and trusts as the Master Servicer and the Trustee
may consider necessary or desirable. If the Master Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in case an Event of Default shall have occurred and be continuing,
the Trustee alone shall have the power to make such appointment without the
Master Servicer. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 8.06
hereunder and no notice to Holders of Certificates of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 8.08
hereof.

         In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10, all rights, powers, duties and obligations
conferred or imposed upon the Trustee and required to be conferred or such
co-trustee shall be conferred or imposed upon and exercised or performed by the
Trustee and such separate trustee or co-trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Trustee hereunder or as successor to the Master
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust Fund or any portion thereof in any
such jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.

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

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

                                     -113-
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                                   ARTICLE IX

                                   TERMINATION

         Section 9.01 Termination Upon Repurchase or Liquidation of All Mortgage
Loans or upon Purchase of Certificates.

         Subject to Section 9.03, the respective obligations and
responsibilities of the Company, the Master Servicer, the Securities
Administrator and the Trustee created hereby (other than the obligations of the
Master Servicer to the Trustee pursuant to Section 8.05 and of the Master
Servicer to provide for and the Securities Administrator to make payments to
Certificateholders as hereafter set forth) shall terminate upon payment to the
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them hereunder following the earlier to occur of (i) the
repurchase by the Servicer, or its designee (or if the Servicer fails to
exercise such option, the Master Servicer) of all Mortgage Loans and each REO
Property in respect thereof remaining in the Trust Fund at a price equal to (a)
100% of the unpaid principal balance of each Mortgage Loan (other than one as to
which a REO Property was acquired) on the day of repurchase together with
accrued interest on such unpaid principal balance at the Net Mortgage Rate to
the first day of the month in which the proceeds of such repurchase are to be
distributed, plus (b) the appraised value of any REO Property (but not more than
the unpaid principal balance of the related Mortgage Loan, together with accrued
interest on that balance at the Net Mortgage Rate to the first day of the month
such repurchase price is distributed), less the good faith estimate of the
Servicer or the Master Servicer, as applicable, of liquidation expenses to be
incurred in connection with its disposal thereof, such appraisal to be conducted
by an appraiser mutually agreed upon by the Servicer or the Master Servicer, as
applicable, and the Master Servicer on behalf of the Trustee at the expense of
the terminating party, and (ii) the final payment or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund (or the disposition of all REO Property in respect thereof); provided,
however, that in no event shall the trust created hereby continue beyond the
earlier of (i) the Distribution Date occurring in February 2035 and (ii) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James, living on the date hereof, and provided further, that the purchase price
set forth above shall be increased as is necessary, as determined by the
Servicer or the Master Servicer, as applicable, to avoid disqualification of any
of any Trust REMIC as a REMIC. In the case of any repurchase by the Servicer or
the Master Servicer, as applicable, pursuant to clause (i), the Master Servicer
shall exercise reasonable efforts to cooperate fully with the Trustee in
effecting such repurchase and the transfer of the Mortgage Loans and related
Mortgage Files and related records to the Servicer or the Master Servicer, as
applicable; provided, however, such option may only be exercised if (i) the
purchase price is sufficient to pay all interest accrued on, as well as amounts
necessary to retire the principal balance of, each class of notes secured
primarily by the Class C Certificates and the Class P Certificates.

         The right of the Servicer or its designee to repurchase all Mortgage
Loans pursuant to (i) above shall be conditioned upon the Aggregate Stated
Principal Balance of such Mortgage Loans at the time of any such repurchase
aggregating an amount equal to or less than 10% of the Aggregate Stated
Principal Balance of the Mortgage Loans at the Cut-off Date. If such right is
exercised, the Servicer upon such repurchase shall provide to the Trustee and
Securities

                                     -114-
<PAGE>

Administrator, notice of such exercise prior to the Determination Date in the
month preceding the month of purchase.

         The right of the Master Servicer, or its designee to repurchase all
Mortgage Loans pursuant to (i) in the second preceding paragraph shall be
conditioned upon the Aggregate Stated Principal Balance of such Mortgage Loans
at the time of any such repurchase aggregating an amount equal to or less than
5% of the Aggregate Stated Principal Balance of the Mortgage Loans at the
Cut-off Date. If such right is exercised, the Master Servicer, upon such
repurchase shall provide to the Trustee and Securities Administrator, notice of
such exercise prior to the Determination Date in the month preceding the month
of purchase.

         Written notice of any termination, specifying the Distribution Date
upon which the Certificateholders may surrender their Certificates to the
Securities Administrator for payment of the final distribution and cancellation,
shall be given promptly by the Securities Administrator by letter to the
Certificateholders mailed (a) in the event such notice is given in connection
with the Servicer's or the Master Servicer's, as applicable, election to
repurchase, not earlier than the 15th day and not later than the 25th day of the
month next preceding the month of such final distribution or (b) otherwise
during the month of such final distribution on or before the Determination Date
in such month, in each case specifying (i) the Distribution Date upon which
final payment of the Certificates will be made upon presentation and surrender
of Certificates at the office of the Securities Administrator therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of the Certificates at the
office of the Securities Administrator therein specified. In the event such
notice is given in connection with the Servicer or the Master Servicer, as
applicable, or its designee's election to repurchase, the Servicer or the Master
Servicer, as applicable, or its designee shall deliver to the Securities
Administrator for deposit in the Certificate Account on the Business Day
immediately preceding the Distribution Date specified in such notice an amount
equal to the above-described repurchase price payable out of its own funds. Upon
presentation and surrender of the Certificates by the Certificateholders, the
Securities Administrator shall first pay any amounts owing to the Trustee,
Master Servicer, Custodian, Servicer and Securities Administrator, as
applicable, under this Agreement, and second, distribute to the
Certificateholders (i) the amount otherwise distributable on such Distribution
Date, if not in connection with the Servicer's or the Master Servicer's, as
applicable, election to repurchase, or (ii) if the Servicer or the Master
Servicer, as applicable, elected to so repurchase, an amount determined as
follows: with respect to each Regular Certificate, the outstanding Certificate
Principal Balance thereof, plus with respect to each Class A, Class M or Class C
Certificate, one month's interest thereon at the applicable Pass-Through Rate,
plus any previously accrued but unpaid Accrued Certificate Interest, plus with
respect to each Class M Certificate and Class A-1B Certificate, any unpaid
Allocated Realized Loss Amount; and with respect to each Class R Certificate,
the Percentage Interest evidenced thereby multiplied by the difference, if any,
between the above described repurchase price and the aggregate amount to be
distributed to the Holders of the Regular Certificates, subject to the
priorities set forth in Section 4.01. Notwithstanding the foregoing, by
acceptance of the Class R Certificates, the Holders of such Certificates agree,
in connection with any termination hereunder, to assign and transfer any amounts
received in respect of such termination to the Holders of the Class C
Certificates and to pay any such amounts to the Holders of the Class C
Certificates. Upon certification to the Custodian by a Servicing Officer,

                                     -115-
<PAGE>

following such final deposit, the Custodian shall promptly release the Mortgage
Files as directed by the Servicer or the Master Servicer, as applicable, for the
remaining Mortgage Loans, and the Trustee shall execute all assignments,
endorsements and other instruments required by the Servicer or the Master
Servicer, as applicable, as being necessary to effectuate such transfer.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the time specified
in the above-mentioned notice, the Securities Administrator shall give a second
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all of the Certificates shall not have been
surrendered for cancellation, the Securities Administrator shall take reasonable
steps as directed by the Company in writing, or appoint an agent to take
reasonable steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets which remain subject hereto. If within nine months after
the second notice all the Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets which remain subject hereto.

         Section 9.02 Termination of REMIC 2.

         REMIC 2 shall be terminated on the earlier of the Final Distribution
Date and the date on which it is deemed to receive the last deemed distributions
on the REMIC 1 Regular Interests and the last distribution due on the Regular
Certificates and the Class R Certificates (in respect of the Class R-2 Interest)
is made.

         Section 9.03 Additional Termination Requirements.

         (a)      In the event the Servicer or the Master Servicer, as
applicable, repurchases the Mortgage Loans as provided in Section 9.01, the
Trust Fund shall be terminated in accordance with the following additional
requirements, unless the Servicer or the Master Servicer, as applicable, at its
own expense, obtains for the Trustee and the Securities Administrator an Opinion
of Counsel to the effect that the failure of the Trust Fund to comply with the
requirements of this Section 9.03 will not (i) result in the imposition on the
Trust of taxes on "prohibited transactions," as described in Section 860F of the
Code, or (ii) cause either any Trust REMIC to fail to qualify as a REMIC at any
time that any Certificate is outstanding:

                  (i)      The Securities Administrator shall establish a 90-day
         liquidation period for REMIC 1 and REMIC 2, as the case may be, and
         specify the first day of such period in a statement attached to the
         Trust Fund's final Tax Return pursuant to Treasury regulations Section
         1.860F-1. The Securities Administrator also shall satisfy all of the
         requirements of a qualified liquidation for each Trust REMIC, as the
         case may be, under Section 860F of the Code and regulations thereunder;
         and

                  (ii)     The Servicer shall notify the Trustee and the
         Securities Administrator at the commencement of such 90-day liquidation
         period and, at or prior to the time of making of the final payment on
         the Certificates, the Trustee shall sell or otherwise

                                     -116-
<PAGE>

         dispose of all of the remaining assets of the Trust Fund in accordance
         with the terms hereof.

         (b)      Each Holder of a Certificate and the Trustee hereby
irrevocably approves and appoints the Securities Administrator as its
attorney-in-fact to adopt a plan of complete liquidation for each Trust REMIC at
the expense of the Trust Fund in accordance with the terms and conditions of
this Agreement.

                                     -117-
<PAGE>

                                    ARTICLE X

                                REMIC PROVISIONS

         Section 10.01 REMIC Administration.

         (a)      The Securities Administrator shall make an election to treat
the Trust Fund as two REMICs under the Code and, if necessary, under applicable
state law. Each such election will be made on Form 1066 or other appropriate
federal tax or information return (including Form 8811) or any appropriate state
return for the taxable year ending on the last day of the calendar year in which
the Certificates are issued. For the purposes of the REMIC elections in respect
of the Trust Fund, (i) the REMIC 1 Regular Interests will represent the "regular
interests" in REMIC 1, the Class R-1 Interest will constitute the sole class of
"residual interests" in REMIC 1 and (ii) the Class A and Class M Certificates
(exclusive of any right to receive payments from the Basis Risk Shortfall
Reserve Fund) the Class C Certificates and the Class P Certificates shall be
designated as the "regular interests" in REMIC 2 and the Class R-2 Interest will
constitute the sole class of "residual interests" in REMIC 2. The Securities
Administrator and the Trustee shall not permit the creation of any "interests"
(within the meaning of Section 860G of the Code) other than the REMIC 1 Regular
Interests, the Regular Certificates, the Class R-1 Interest and the Class R-2
Interest. The Securities Administrator will apply for an Employee Identification
Number from the IRS via form SS-4 or any other acceptable method for each Trust
REMIC.

         (b)      The Closing Date is hereby designated as the "startup day" of
the Trust Fund within the meaning of Section 860G(a)(9) of the Code.

         (c)      The Securities Administrator shall pay out of its own funds,
without any right of reimbursement, any and all expenses relating to any tax
audit of the REMICs (including, but not limited to, any professional fees or any
administrative or judicial proceedings with respect to the REMICs that involve
the Internal Revenue Service or state tax authorities), other than the expense
of obtaining any tax-related Opinion of Counsel except as specified herein. The
Securities Administrator, as agent for the REMICs' tax matters person, shall (i)
act on behalf of the REMICs in relation to any tax matter or controversy
involving the Trust Fund and (ii) represent the Trust Fund in any administrative
or judicial proceeding relating to an examination or audit by any governmental
taxing authority with respect thereto. By their acceptance thereof, the Holder
of the largest Percentage Interest of the Class R Certificates hereby agrees to
irrevocably appoint the Securities Administrator or an Affiliate as its agent to
perform all of the duties of the tax matters person for the REMICs.

         (d)      The Securities Administrator shall prepare and file or cause
to be filed, and the Trustee shall sign, all of the Tax Returns (including Form
8811, which must be filed within 30 days of the Closing Date) in respect of the
REMICs created hereunder. The expenses of preparing and filing such returns
shall be borne by the Securities Administrator without any right of
reimbursement therefor. The Master Servicer shall provide on a timely basis to
the Securities Administrator or its designee such information with respect to
the assets of the REMICs as is in its possession and reasonably required by the
Securities Administrator to enable it to perform its obligations under this
Article X.

                                     -118-
<PAGE>

         (e)      The Securities Administrator shall perform on behalf of the
REMICs all reporting and other tax compliance duties that are the responsibility
of the REMICs under the Code, the REMIC Provisions or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, as required by the Code, the REMIC Provisions or other
such compliance guidance, the Securities Administrator shall provide (i) to any
Transferor of a Class R Certificate such information as is necessary for the
application of any tax relating to the transfer of a Class R Certificate to any
Person who is not a Permitted Transferee, (ii) to the Certificateholders such
information or reports as are required by the Code or the REMIC Provisions
including reports relating to interest, original issue discount and market
discount or premium (using the Prepayment Assumption as required) and (iii) to
the Internal Revenue Service the name, title, address and telephone number of
the person who will serve as the representative of the REMICs. The Master
Servicer shall provide on a timely basis to the Securities Administrator such
information with respect to the assets of the REMICs, including, without
limitation, the Mortgage Loans, as is in its possession and reasonably required
by the Securities Administrator to enable it to perform its obligations under
this subsection. In addition, the Company shall provide or cause to be provided
to the Securities Administrator, within ten (10) days after the Closing Date,
all information or data that the Securities Administrator reasonably determines
to be relevant for tax purposes as to the valuations and issue prices of the
Certificates, including, without limitation, the price, yield, prepayment
assumption and projected cash flow of the Certificates.

         (f)      The Securities Administrator shall take such action and shall
cause the REMICs created hereunder to take such action as shall be necessary to
create or maintain the status thereof as REMICs under the REMIC Provisions (and
the Master Servicer shall assist it, to the extent reasonably requested by it).
The Securities Administrator shall not take any action, cause the Trust Fund to
take any action or fail to take (or fail to cause to be taken) any action that,
under the REMIC Provisions, if taken or not taken, as the case may be, could (i)
endanger the status of the REMIC 1 or REMIC 2 as REMICs or (ii) result in the
imposition of a tax upon the REMICs (including but not limited to the tax on
prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax
on contributions to a REMIC set forth in Section 860G(d) of the Code) (either
such event, an "Adverse REMIC Event") unless the Securities Administrator has
received an Opinion of Counsel, addressed to the Securities Administrator (at
the expense of the party seeking to take such action but in no event at the
expense of the Securities Administrator) to the effect that the contemplated
action will not, with respect to the REMICs created hereunder, endanger such
status or result in the imposition of such a tax, nor shall the Master Servicer
take or fail to take any action (whether or not authorized hereunder) as to
which the Securities Administrator has advised it in writing that each has
received an Opinion of Counsel to the effect that an Adverse REMIC Event could
occur with respect to such action. In addition, prior to taking any action with
respect to the REMICs or the assets of the REMICs, or causing the REMICs to take
any action, which is not contemplated under the terms of this Agreement, the
Master Servicer will consult with the Securities Administrator or its designee,
in writing, with respect to whether such action could cause an Adverse REMIC
Event to occur with respect to the Trust Fund, and the Master Servicer shall not
take any such action or cause the Trust Fund to take any such action as to which
the Securities Administrator has advised it in writing that an Adverse REMIC
Event could occur. The Securities Administrator may consult with counsel to make
such written advice, and the cost of same shall be borne by the party seeking to
take the action not permitted by this Agreement, but in no event shall such cost
be an expense of the

                                     -119-
<PAGE>

Securities Administrator. At all times as may be required by the Code, the
Securities Administrator will ensure that substantially all of the assets of the
REMICs created hereunder will consist of "qualified mortgages" as defined in
Section 860G(a)(3) of the Code and "permitted investments" as defined in Section
860G(a)(5) of the Code.

         (g)      In the event that any tax is imposed on "prohibited
transactions" of the REMICs created hereunder as defined in Section 860F(a)(2)
of the Code, on the "net income from foreclosure property" of the REMICs as
defined in Section 860G(c) of the Code, on any contributions to the REMICs after
the Startup Day therefor pursuant to Section 860G(d) of the Code, or any other
tax is imposed by the Code or any applicable provisions of state or local tax
laws, such tax shall be charged (i) to the Securities Administrator pursuant to
Section 10.03 hereof, if such tax arises out of or results from a breach by the
Securities Administrator of any of its obligations under this Article X, (ii) to
the Master Servicer pursuant to Section 10.03 hereof, if such tax arises out of
or results from a breach by the Master Servicer of any of its obligations under
Article III or this Article X, or otherwise, (iii) to the Master Servicer as
provided in Section 3.05, if applicable, (iv) to the Class R Certificateholder
to the extent of any funds distributed to such Certificateholder, (v) otherwise
against amounts on deposit in the Certificate Account and shall be paid by
withdrawal therefrom to the extent not required to be paid by the Master
Servicer, the Securities Administrator or the Class R Certificateholder pursuant
to another provision of this Agreement.

         (h)      On or before April 15 of each calendar year, commencing April
15, 2006, the Securities Administrator shall deliver to the Master Servicer and
the Rating Agency a Certificate from a Responsible Officer of the Securities
Administrator stating the Securities Administrator's compliance with its
obligations under this Article X.

         (i)      The Securities Administrator shall, for federal income tax
purposes, maintain books and records with respect to the REMICs on a calendar
year and on an accrual basis.

         (j)      Following the Startup Day, the Securities Administrator shall
not accept any contributions of assets to the REMICs other than in connection
with any Qualified Substitute Mortgage Loan delivered in accordance with Section
2.04 unless it shall have received an Opinion of Counsel to the effect that the
inclusion of such assets in the REMICs will not cause any Trust REMIC to fail to
qualify as REMICs at any time that any Certificates are outstanding or subject
any Trust REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.

         (k)      Neither the Securities Administrator nor the Master Servicer
shall enter into any arrangement by which the REMICs will receive a fee or other
compensation for services nor permit the REMICs to receive any income from
assets other than "qualified mortgages" as defined in Section 860G(a)(3) of the
Code or "permitted investments" as defined in Section 860G(a)(5) of the Code.

         (l)      (l) The Securities Administrator shall treat the rights of the
Certificateholders (other than the Class P Certificateholders and Residual
Certificateholders) to receive payments from the Basis Risk Shortfall Reserve
Fund as a notional principal contract between the Holders of the Class C
Certificates, as owner of the Basis Risk Shortfall Reserve Fund and the Holders
of

                                     -120-
<PAGE>

the Class A Certificates and Class M Certificates). For federal tax return and
information reporting, the right of the Holders of the Class A and Class M
Certificates to receive payments from the Carryover Reserve Fund in respect of
any Basis Risk Carry-Forward Amount may be obtained from the Securities
Administrator upon request. For purposes of determining the issue price of the
Class A Certificates and Class M Certificates, the Securities Administrator
shall assume that the Class A Corridor Contract and Class M Corridor Contract
have values of $659,000 and $259,000, respectively.

         Section 10.02 Prohibited Transactions and Activities.

         None of the Company, the Master Servicer, the Securities Administrator
or the Trustee shall sell, dispose of or substitute for any of the Mortgage
Loans (except in connection with (i) the foreclosure of a Mortgage Loan,
including but not limited to, the acquisition or sale of a Mortgaged Property
acquired by deed in lieu of foreclosure, (ii) the bankruptcy of the Trust Fund,
(iii) the termination of any Trust REMIC pursuant to Article IX of this
Agreement, (iv) a substitution pursuant to Article II of this Agreement or (v) a
purchase of Mortgage Loans pursuant to Article II or III of this Agreement), nor
acquire any assets for the Trust Fund (other than REO Property acquired in
respect of a defaulted Mortgage Loan), nor sell or dispose of any investments in
the Custodial Account or the Certificate Account for gain, nor accept any
contributions to the REMICs after the Closing Date (other than a Qualified
Substitute Mortgage Loan delivered in accordance with Section 2.04), unless each
such party has received an Opinion of Counsel, addressed to the Trustee and
Securities Administrator (at the expense of the party seeking to cause such
sale, disposition, substitution, acquisition or contribution but in no event at
the expense of the Trustee) that such sale, disposition, substitution,
acquisition or contribution will not (a) affect adversely the status of any
Trust REMIC as REMICs or (b) cause the Trust Fund to be subject to a tax on
"prohibited transactions" or "contributions" pursuant to the REMIC Provisions.

         Section 10.03 Master Servicer, Securities Administrator and Trustee
Indemnification.

         (a)      The Securities Administrator agrees to indemnify the Trust
Fund, the Company and the Master Servicer for any taxes and costs including,
without limitation, any reasonable attorneys' fees imposed on or incurred by the
Trust Fund, the Company or the Master Servicer, as a result of (i) a breach of
the Securities Administrator's covenants set forth in this Article X or (ii) any
state, local or franchise taxes imposed upon the Trust Fund as a result of the
location of the Securities Administrator.

         (b)      The Master Servicer agrees to indemnify the Trust Fund, the
Company and the Trustee for any taxes and costs including, without limitation,
any reasonable attorneys' fees imposed on or incurred by the Trust Fund, the
Company or the Trustee, as a result of (i) a breach of the Master Servicer's
covenants set forth in Article III or this Article X with respect to compliance
with the REMIC Provisions or (ii) any state, local or franchise taxes imposed
upon the Trust Fund as a result of the location of the Master Servicer.

         (c)      The Seller agrees to indemnify the Trust Fund and the Company
for any taxes and costs including, without limitation, any reasonable attorneys'
fees imposed on or incurred by the

                                     -121-
<PAGE>

Trust Fund or the Company, as a result of any state, local or franchise taxes
imposed upon the Trust Fund as a result of the location of the Trustee, the
Servicer or the Subservicers.

                                     -122-
<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01 Amendment.

         This Agreement may be amended from time to time by the Company, the
Master Servicer, the Securities Administrator and the Trustee, without the
consent of any of the Certificateholders, (i) to cure any ambiguity, (ii) to
correct or supplement any provisions herein which may be defective or
inconsistent with any other provisions herein or to correct any error, (iii) to
amend this Agreement in any respect subject to the provisions in clauses (A) and
(B) below, or (iv) if such amendment, as evidenced by an Opinion of Counsel
(provided by the Person requesting such amendment) delivered to the Trustee, is
reasonably necessary to comply with any requirements imposed by the Code or any
successor or amendatory statute or any temporary or final regulation, revenue
ruling, revenue procedure or other written official announcement or
interpretation relating to federal income tax laws or any proposed such action
which, if made effective, would apply retroactively to the Trust Fund at least
from the effective date of such amendment; provided that such action (except any
amendment described in (iv) above) shall not adversely affect in any material
respect the interests of any Certificateholder (other than Certificateholders
who shall consent to such amendment), as evidenced by (A) an Opinion of Counsel
(provided by the Person requesting such amendment) delivered to the Trustee, and
(B) a letter from each Rating Agency, confirming that such amendment shall not
cause it to lower its rating on any of the Certificates.

         This Agreement may also be amended from time to time by the Company,
the Master Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates entitled to at least 66-2/3% of the
Voting Rights for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of Certificates; provided, however, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments received on Mortgage Loans which are required to be distributed on
any Certificate without the consent of the Holder of such Certificate, (ii)
adversely affect in any material respect the interests of the Holders of any
Class of Certificates in a manner other than as described in (i), without the
consent of the Holders of Certificates of such Class evidencing at least 66-2/3%
of the Voting Rights of such Class, or (iii) reduce the aforesaid percentage of
Certificates the Holders of which are required to consent to any such amendment,
without the consent of the Holders of all Certificates then outstanding.
Notwithstanding any other provision of this Agreement, for purposes of the
giving or withholding of consents pursuant to this Section 11.01, Certificates
registered in the name of the Seller, the Trustee, the Securities Administrator
or the Master Servicer or any affiliate thereof shall be entitled to Voting
Rights with respect to matters described in (i), (ii) and (iii) of this
paragraph.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel (provided by the Person requesting such
amendment) and addressed to the Trustee and the Securities Administrator to the
effect that such amendment will not result in the imposition of

                                     -123-
<PAGE>

any tax on any Trust REMIC pursuant to the REMIC Provisions or cause any Trust
REMIC to fail to qualify as a REMIC at any time that any Certificates are
outstanding.

         Promptly after the execution of any such amendment the Trustee shall
furnish a copy of such amendment or a written statement describing the amendment
to each Certificateholder, with a copy to the Rating Agencies.

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

         Prior to executing any amendment pursuant to this Section, the Trustee
shall be entitled to receive an Opinion of Counsel (provided by the Person
requesting such amendment) to the effect that such amendment is authorized or
permitted by this Agreement. The cost of any Opinion of Counsel delivered
pursuant to this Section 11.01 shall be an expense of the party requesting such
amendment, but in any case shall not be an expense of the Trustee.

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

         Section 11.02 Recordation of Agreement; Counterparts.

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

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

         Section 11.03 Limitation on Rights of Certificateholders.

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the Trust Fund, nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

         No Certificateholder shall have any right to vote (except as expressly
provided for herein) or in any manner otherwise control the operation and
management of the Trust Fund, or the

                                     -124-
<PAGE>

obligations of the parties hereto, nor shall anything herein set forth, or
contained in the terms of the Certificates, be construed so as to constitute the
Certificateholders from time to time as partners or members of an association;
nor shall any Certificateholder be under any liability to any third party by
reason of any action taken by the parties to this Agreement pursuant to any
provision hereof.

         No Certificateholder shall have any right by virtue of any provision of
this Agreement to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Agreement, unless such Holder previously
shall have given to the Trustee a notice of an Event of Default, or of a default
by the Seller or the Trustee in the performance of any obligation hereunder, and
of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Certificates entitled to at least 51% of the Voting Rights shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

         Section 11.04 Governing Law.

         This Agreement and the Certificates shall be construed in accordance
with the laws of the State of New York and the obligations, rights and remedies
of the parties hereunder shall be determined in accordance with such laws.

         Section 11.05 Notices.

         All demands, notices and direction hereunder shall be in writing and
shall be deemed effective upon receipt when delivered to (a) in the case of the
Company, Opteum Mortgage Acceptance Corporation, W. 115 Century Road, Paramus,
New Jersey 07652, Attention: General Counsel, or such other address as may
hereafter be furnished to the other parties hereto in writing; (b) in the case
of Master Servicer, Wells Fargo Bank, N.A., P.O. Box 98, Columbia Maryland 21046
(or, in the case of overnight deliveries, 9062 Old Annapolis Road, Columbia,
Maryland 21045) (Attention: Corporate Trust Services - Opteum 2005-1), facsimile
no.: (410) 715-2380, or such other address as may hereafter be furnished to the
other parties hereto in writing; (c) in the case of the securities
administrator, the Corporate Trust Office; (d) in the case of the Trustee, to
its Corporate Trust Office, or such other address as may hereafter be furnished
to the other parties hereto in writing; or (e) in the case of the Rating
Agencies, Standard & Poor's, 55 Water Street, 41st Floor, New York, NY 10041,
Attention: Asset Backed Surveillance Department; and Moody's, Moody's Investors
Service, Inc., Residential Mortgage

                                     -125-
<PAGE>

Monitoring Department, 99 Church Street, New York, New York 10007. Any notice
required or permitted to be mailed to a Certificateholder shall be given by
first class mail, postage prepaid, at the address of such Holder as shown in the
Certificate Register. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given, whether or not
the Certificateholder receives such notice.

         Section 11.06 Severability of Provisions.

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

         Section 11.07 Successors and Assigns.

         The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto, and all
such provisions shall inure to the benefit of the Trustee and the
Certificateholders.

         Section 11.08 Article and Section Headings.

         The article and Section headings herein are for convenience of
reference only, and shall not limit or otherwise affect the meaning hereof.

         Section 11.09 Notice to Rating Agencies.

         The Trustee shall use its best efforts to promptly provide notice to
each Rating Agency referred to below with respect to each of the following of
which it has actual knowledge:

         1.       Any material change or amendment to this Agreement;

         2.       The occurrence of any Event of Default that has not been
cured;

         3.       The resignation or termination of the Master Servicer, the
Securities Administrator or the Trustee;

         4.       The repurchase or substitution of Mortgage Loans pursuant to
Section 2.04;

         5.       The final payment to Certificateholders; and

         6.       Any change in the location of the Custodial Account or the
Certificate Account.

         In addition, the Trustee shall promptly furnish to the Rating Agency
copies of each report to Certificateholders described in Section 4.02; and the
Master Servicer shall promptly furnish to the Rating Agency copies of each
annual independent public accountants' servicing report received as described in
Section 3.20.

                                     -126-
<PAGE>

         Any such notice pursuant to this Section 11.09 shall be in writing and
shall be deemed to have been duly given if personally delivered or mailed by
first class mail, postage prepaid, or by express delivery service to (i) in the
case of Standard & Poor's, 55 Water Street, 41st Floor, New York, New York
10041, Attention: Asset Backed Surveillance Department and (ii) in the case of
Moody's, Residential Mortgage Monitoring Department, 99 Church Street, New York,
New York 10007, or, in each case, such other address as either such Rating
Agency may designate in writing to the parties thereto.

         Section 11.10 Third Party Rights.

         The Seller shall be deemed a third-party beneficiary of Section 3.25
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of such Section. The Servicer shall be
deemed a third-party beneficiary of Section 3.25 of this Agreement to the same
extent as if it were a party hereto, and shall have the right to enforce the
provisions of such Section.

                                     -127-
<PAGE>

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

                                 OPTEUM MORTGAGE ACCEPTANCE CORPORATION,
                                 Company

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

                                 WELLS FARGO BANK, N.A.,
                                 Master Servicer

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

                                 HSBC BANK USA, NATIONAL ASSOCIATION
                                 Trustee

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

                                 WELLS FARGO BANK, N.A.,
                                 Securities Administrator

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

<PAGE>

STATE OF NEW JERSEY  )
                     )  ss.:
COUNTY OF BERGEN     )

         On the _____ day of ________________, 2005, before me, a notary public
in and for said State, personally appeared __________________, known to me to be
the _____________ of Opteum Mortgage Acceptance Corporation, one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

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

_______________________
     Notary Public

[Notarial Seal]

<PAGE>

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

         On the _____ day of _____________, 2005, before me, a notary public in
and for said State, personally appeared ________________, known to me to be a
_____________ of Wells Fargo Bank, N.A., the entity that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said entity, and acknowledged to me that such entity executed the within
instrument.

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

_______________________
     Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK    )
                     ) ss.:
COUNTY OF NEW YORK   )

         On the _____ day of ________________, 2005, before me, a notary public
in and for said State, personally appeared _____________________, known to me to
be a ________________ of HSBC Bank USA, National Association, the entity that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.

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

_______________________
     Notary Public

[Notarial Seal]

<PAGE>

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

         On the _______ day of _______________, 2005, before me, a notary public
in and for said State, personally appeared ______________, known to me to be a
_____________ of Wells Fargo Bank, N.A., the entity that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said entity, and acknowledged to me that such entity executed the within
instrument.

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

_______________________
     Notary Public

[Notarial Seal]

<PAGE>

                                    EXHIBIT A

                         FORM OF CLASS A-[_] CERTIFICATE

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

THIS CERTIFICATE SHALL INITIALLY BE ISSUED AS ONE OR MORE CERTIFICATES
REGISTERED IN THE NAME OF THE DEPOSITORY OR ITS NOMINEE AND, EXCEPT AS PROVIDED
BELOW, REGISTRATION OF SUCH CERTIFICATES MAY NOT BE TRANSFERRED BY THE TRUSTEE
EXCEPT TO ANOTHER DEPOSITORY THAT AGREES TO HOLD SUCH CERTIFICATES FOR THE
RESPECTIVE CERTIFICATE OWNERS WITH OWNERSHIP INTERESTS THEREIN. THE CERTIFICATE
OWNERS SHALL HOLD THEIR RESPECTIVE OWNERSHIP INTERESTS IN AND TO EACH OF SUCH
BOOK-ENTRY CERTIFICATES THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY AND,
EXCEPT AS PROVIDED BELOW, SHALL NOT BE ENTITLED TO DEFINITIVE CERTIFICATES IN
RESPECT OF SUCH OWNERSHIP INTERESTS. ALL TRANSFERS BY CERTIFICATE OWNERS OF
THEIR RESPECTIVE OWNERSHIP IN THE BOOK-ENTRY CERTIFICATES SHALL BE MADE IN
ACCORDANCE WITH THE PROCEDURES ESTABLISHED BY THE DEPOSITORY PARTICIPANT OR
BROKERAGE FIRM REPRESENTING SUCH CERTIFICATE OWNER. EACH DEPOSITORY PARTICIPANT
SHALL TRANSFER THE OWNERSHIP INTERESTS ONLY IN THE BOOK-ENTRY CERTIFICATES OF
CERTIFICATE OWNERS IT REPRESENTS OR OF BROKERAGE FIRMS FOR WHICH IT ACTS AS
AGENT IN ACCORDANCE WITH THE DEPOSITORY'S NORMAL PROCEDURES. THE TRUSTEE SHALL
NOT BE REQUIRED TO MONITOR, DETERMINE OR INQUIRE AS TO COMPLIANCE WITH THE
TRANSFER RESTRICTIONS WITH RESPECT TO THE BOOK-ENTRY CERTIFICATES, AND THE
TRUSTEE SHALL HAVE NO LIABILITY FOR TRANSFERS OF OWNERSHIP INTERESTS IN THE
BOOK-ENTRY CERTIFICATES MADE THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY
OR BETWEEN OR AMONG DEPOSITORY PARTICIPANTS OR CERTIFICATE OWNERS, MADE IN
VIOLATION OF THE APPLICABLE RESTRICTIONS.

                                      A-1
<PAGE>

<TABLE>
<CAPTION>
<S>                                         <C>
Certificate No. 1                           Adjustable Pass-Through Rate

Class A-[_]

Date of Pooling and Servicing               Percentage Interest: 100%
Agreement and Cut-off Date:
January 1, 2005

First Distribution Date:                    Aggregate Initial Certificate Principal Balance
February 25, 2005                           of the Class A-[_] Certificates:$______________
Master Servicer:                            Initial Certificate Principal
Wells Fargo Bank, National Association      Balance of this Certificate:
                                            $______________
Assumed Final                               CUSIP:__________
Distribution Date:
[____________], 2035
</TABLE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-1

        evidencing a percentage interest in the distributions
        allocable to the Class A-[_] Certificates with respect to a
        Trust Fund consisting primarily of a pool of one- to
        four-family adjustable and fixed-rate first lien and second
        lien mortgage loans formed and sold by OPTEUM MORTGAGE
        ACCEPTANCE CORPORATION

This Certificate is payable solely from the assets of the Trust Fund, and does
not represent an obligation of or interest in Opteum Mortgage Acceptance
Corporation, the Master Servicer, the Securities Administrator or the Trustee
referred to below or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency
or instrumentality or by Opteum Mortgage Acceptance Corporation, the Master
Servicer, the Securities Administrator, the Trustee or any of their affiliates.
None of the Company, the Master Servicer, the Securities Administrator or any of
their affiliates will have any obligation with respect to any certificate or
other obligation secured by or payable from payments on the Certificates.

This certifies that Cede & Co. is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Initial
Certificate Principal Balance of this Certificate by the aggregate Initial
Certificate Principal Balance of all Class A-[_] Certificates, both as specified
above) in certain distributions with respect to the Trust Fund consisting
primarily of an interest in a pool of one- to four-family fixed-rate and
adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to

                                      A-2
<PAGE>

below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the "Agreement") among the Company, the
Master Servicer, the Securities Administrator and HSBC Bank USA, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any, required to be distributed to Holders of Class A-[_]
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Any transferee shall be deemed to have made the representation set
forth in Section 5.02(c) of the Agreement.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota. The Initial Certificate Principal Balance of this
Certificate is set forth above. The Certificate Principal Balance hereof will be
reduced to the extent of distributions allocable to principal.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

                                      A-3
<PAGE>

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator and the Trustee
and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

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

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

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

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                                      A-4
<PAGE>

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

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

                                      A-5
<PAGE>

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

Dated:   January 31, 2005                WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: __________________________________
                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: __________________________________
                                         Authorized Signatory

                                      A-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto _____________________________________ (Please print or typewrite name and
address including postal zip code of assignee) a Percentage Interest evidenced
by the within Asset-Backed Pass-Through Certificate and hereby authorizes the
transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

I (We) further direct the Certificate Registrar to issue a new Certificate of a
like denomination and Class, to
the above named assignee and deliver such Certificate to the following address:
_______________________________________________________________________________
_______________________________________________________________________________

Dated:
                           _____________________________________________________
                                    Signature by or on behalf of assignor

                                               Signature Guaranteed

                                      A-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ___________________________________for the account of
__________________ account number _______________, or, if mailed by check, to
________________________. Applicable statements should be mailed
to____________________________________________.

This information is provided by __________________, the assignee named above, or
________________, as its agent.

                                      A-8
<PAGE>

                                   EXHIBIT B-1
                           FORM OF CLASS M CERTIFICATE

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
[THE CLASS M-1 CERTIFICATES] [AND THE CLASS M-2 CERTIFICATES] [AND THE CLASS M-3
CERTIFICATES] [AND THE CLASS M-4 CERTIFICATES] [AND THE CLASS M-5 CERTIFICATES]
[AND THE CLASS M-6 CERTIFICATES] [AND THE CLASS M-7 CERTIFICATES] AS DESCRIBED
IN THE AGREEMENT (AS DEFINED BELOW).

THIS CERTIFICATE SHALL INITIALLY BE ISSUED AS ONE OR MORE CERTIFICATES
REGISTERED IN THE NAME OF THE DEPOSITORY OR ITS NOMINEE AND, EXCEPT AS PROVIDED
BELOW, REGISTRATION OF SUCH CERTIFICATES MAY NOT BE TRANSFERRED BY THE TRUSTEE
EXCEPT TO ANOTHER DEPOSITORY THAT AGREES TO HOLD SUCH CERTIFICATES FOR THE
RESPECTIVE CERTIFICATE OWNERS WITH OWNERSHIP INTERESTS THEREIN. THE CERTIFICATE
OWNERS SHALL HOLD THEIR RESPECTIVE OWNERSHIP INTERESTS IN AND TO EACH OF SUCH
BOOK-ENTRY CERTIFICATES THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY AND,
EXCEPT AS PROVIDED BELOW, SHALL NOT BE ENTITLED TO DEFINITIVE CERTIFICATES IN
RESPECT OF SUCH OWNERSHIP INTERESTS. ALL TRANSFERS BY CERTIFICATE OWNERS OF
THEIR RESPECTIVE OWNERSHIP IN THE BOOK-ENTRY CERTIFICATES SHALL BE MADE IN
ACCORDANCE WITH THE PROCEDURES ESTABLISHED BY THE DEPOSITORY PARTICIPANT OR
BROKERAGE FIRM REPRESENTING SUCH CERTIFICATE OWNER. EACH DEPOSITORY PARTICIPANT
SHALL TRANSFER THE OWNERSHIP INTERESTS ONLY IN THE BOOK-ENTRY CERTIFICATES OF
CERTIFICATE OWNERS IT REPRESENTS OR OF BROKERAGE FIRMS FOR WHICH IT ACTS AS
AGENT IN ACCORDANCE WITH THE DEPOSITORY'S NORMAL PROCEDURES. THE TRUSTEE SHALL
NOT BE REQUIRED TO MONITOR, DETERMINE OR INQUIRE AS TO COMPLIANCE WITH THE
TRANSFER RESTRICTIONS WITH RESPECT TO THE BOOK-ENTRY CERTIFICATES, AND THE
TRUSTEE SHALL HAVE NO LIABILITY FOR TRANSFERS OF OWNERSHIP INTERESTS IN THE
BOOK-ENTRY CERTIFICATES MADE THROUGH THE BOOK-ENTRY FACILITIES OF THE DEPOSITORY
OR BETWEEN OR AMONG DEPOSITORY PARTICIPANTS OR CERTIFICATE OWNERS, MADE IN
VIOLATION OF THE APPLICABLE RESTRICTIONS.

         ANY TRANSFEREE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATION SET
FORTH IN SECTION 5.02(C) OF THE POOLING AND SERVICING AGREEMENT.

                                     B-1-1
<PAGE>

Certificate No.______                   Adjustable Pass-Through Rate

Class [M-__][Mezzanine]                 Aggregate Initial Certificate Principal
                                        Balance of the Class [M-__]
                                        Certificates: $____________

Date of Pooling and Servicing           Initial Certificate Principal Balance of
Agreement and Cut-off Date:             this Certificate:
January 1, 2005                         $__________________

First Distribution Date:                CUSIP:______________
February 25, 2005

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
[__________] 2035

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-1

         evidencing a percentage interest in any distributions
         allocable to the Class M-__ Certificates with respect to the
         Trust Fund consisting primarily of a pool of one- to
         four-family fixed-rate and adjustable-rate first lien and
         second lien mortgage loans formed and sold by OPTEUM MORTGAGE
         ACCEPTANCE CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator or the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Initial Certificate Principal Balance of this Certificate by the aggregate
Initial Certificate Principal Balance of all Class M-__ Certificates, both as
specified above) in certain distributions with respect to the Trust Fund
consisting primarily of an interest in a pool of one- to four-family fixed-rate
and adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below). The Trust Fund was created pursuant to a Pooling and Servicing

                                     B-1-2
<PAGE>

Agreement dated as specified above (the "Agreement") among the Company, the
Master Servicer, the Securities Administrator and HSBC Bank USA, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class M-__
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Any transferee shall be deemed to have made the representation set
forth in Section 5.02(c) of the Agreement.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota. The Initial Certificate Principal Balance of this
Certificate is set forth above. The Certificate Principal Balance hereof will be
reduced to the extent of distributions allocable to principal.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

                                     B-1-3
<PAGE>

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator, the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

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

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

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

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                                     B-1-4
<PAGE>

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

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

                                     B-1-5
<PAGE>

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

Dated:   January 31, 2005                WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: ___________________________________
                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: ___________________________________
                                         Authorized Signatory

                                     B-1-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto _____________________________________ (Please print or typewrite name and
address including postal zip code of assignee) a Percentage Interest evidenced
by the within Asset-Backed Pass-Through Certificate and hereby authorizes the
transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

I (We) further direct the Certificate Registrar to issue a new Certificate of a
like denomination and Class, to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated:                             _____________________________________________
                                   Signature by or on behalf of assignor

                                                Signature Guaranteed

                                     B-1-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ___________________________________for the account of
__________________ account number _______________, or, if mailed by check, to
________________________. Applicable statements should be mailed
to____________________________________________.

This information is provided by __________________, the assignee named above, or
________________, as its agent.

                                     B-1-8
<PAGE>

                                   EXHIBIT B-2

                          FORM OF CLASS C CERTIFICATES

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-[_], AND
CLASS M CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

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

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

                                     B-2-1
<PAGE>

Certificate No. 1

Class C                                  Aggregate Initial Notional Amount of
                                         the Class C Certificates:
                                         $______________

Date of Pooling and Servicing            Initial Notional Amount
Agreement and Cut-off Date:              of this Certificate ("Denomination"):
January 1, 2005                          $______________

First Distribution Date:                 Initial Certificate Principal Balance
February 25, 2005                        of this Certificate ("Denomination"):
                                         $______________

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
[_______________]

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-1

         evidencing percentage interest in the distributions allocable
         to the Class C Certificates with respect to a Trust Fund
         consisting primarily of a pool of one- to four- family
         fixed-rate and adjustable-rate first lien and seond lien
         mortgage loans formed and sold by OPTEUM MORTGAGE ACCEPTANCE
         CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator or the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

         This certifies that ___________________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Original Class C Certificate by the Original Class Certificate Principal
Balance) in certain distributions with respect to the Trust Fund consisting
primarily of an interest in a pool of one- to four-family fixed-rate and
adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the "Agreement") among the Company, the

                                     B-2-2
<PAGE>

Master Servicer, the Securities Administrator and HSBC Bank USA, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Class C Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class C
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities

                                     B-2-3
<PAGE>

laws or is exempt from the registration requirements under said Act and such
laws. In the event that a transfer is to be made in reliance upon an exemption
from the Act and such laws, in order to assure compliance with the act and such
laws, the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee and
the Company in writing the facts surrounding the transfer. In the event that
such a transfer is not to be made pursuant to Rule 144A of the act, there shall
be delivered to the Trustee and the Company of an Opinion of Counsel that such
transfer may be made pursuant to an exemption from the Act, which Opinion of
Counsel shall not be obtained at the expense of the Trustee, the Master Servicer
or the Company; or there shall be delivered to the Trustee and the Company a
transferor certificate by the transferor and an investment letter shall be
executed by the transferee. The Holder hereof desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee and the Company against
any liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator, the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

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

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

                                     B-2-4
<PAGE>

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

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, of the Servicer does not exercise this
right, the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

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

                                     B-2-5
<PAGE>

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

Dated:   January 31, 2005                WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: ___________________________________
                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: ___________________________________
                                         Authorized Signatory

                                     B-2-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto _____________________________________ (Please print or typewrite name and
address including postal zip code of assignee) a Percentage Interest evidenced
by the within Asset-Backed Pass-Through Certificate and hereby authorizes the
transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

I (We) further direct the Certificate Registrar to issue a new Certificate of a
like denomination and Class, to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated:                                  ________________________________________
                                        Signature by or on behalf of assignor

                                                  Signature Guaranteed

                                     B-2-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number _____________, or, if mailed by check, to ______________________.
Applicable statements should be mailed to ______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                     B-2-8
<PAGE>

                                   EXHIBIT B-3
                           FORM OF CLASS P CERTIFICATE

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

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

                                     B-3-1
<PAGE>

Certificate No. 1

Class P                                 Aggregate Initial Certificate Principal
                                        Balance of the Class P Certificates:
                                        $100.00

Date of Pooling and Servicing           Initial Certificate Principal Balance
Agreement and Cut-off Date:             of this Certificate ("Denomination"):
January 1, 2005                         $100.00

First Distribution Date:                Percentage Interest of this Certificate:
February 25, 2005                       100.00%

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
[_____________]

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-1

         evidencing a percentage interest in any distributions
         allocable to the Class P Certificates with respect to the
         Trust Fund consisting primarily of a pool of one- to
         four-family fixed-rate and adjustable-rate first lien and
         second lien mortgage loans sold by OPTEUM MORTGAGE ACCEPTANCE
         CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator or the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

         This certifies that ___________________ is the registered owner of the
Percentage Interest evidenced by this Class P Certificate (obtained by dividing
the Denomination of this Class P Certificate by the Original Class Certificate
Principal Balance) in certain distributions with respect to the Trust Fund
consisting primarily of an interest in a pool of one- to four-family fixed-rate
and adjustable-rate first lien and second lien mortgage loans (the "Mortgage
Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter called the
"Company," which term includes any successor entity under the Agreement referred
to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the

                                     B-3-2
<PAGE>

"Agreement") among the Company, the Master Servicer, the Securities
Administrator and HSBC Bank USA, National Association, as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class P
Certificates on such Distribution Date.

         Distributions on this Certificate will be made by the Securities
Administrator either in immediately available funds (by wire transfer or
otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Securities Administrator and the Trustee at least 5
Business Days prior to the related Record Date, or by check mailed to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota. The Initial Certificate Principal Balance of this
Certificate is set forth above. The Certificate Principal Balance hereof will be
reduced to the extent of distributions allocable to principal. This Certificate
is one of a duly authorized issue of Certificates issued in several Classes
designated as Asset-Backed Pass-Through Certificates of the Series specified
hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

                                     B-3-3
<PAGE>

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Company in writing the facts surrounding the
transfer. In the event that such a transfer is not to be made pursuant to Rule
144A of the Act, there shall be delivered to the Trustee and the Company of an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Act, which Opinion of Counsel shall not be obtained at the expense of the
Trustee, the Master Servicer or the Company; or there shall be delivered to the
Trustee and the Company a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Company against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(c) of the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Company, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of
each Class of Certificates affected thereby. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the Certificate. The Agreement also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain additional circumstances, without the
consent of the Holders of certain Classes of Certificates.

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

         The Certificates are issuable only as registered Certificates without
coupons in Classes and in denominations specified in the Agreement. As provided
in the Agreement and subject to

                                     B-3-4
<PAGE>

certain limitations therein set forth, Certificates are exchangeable for new
Certificates of authorized denominations evidencing the same Class and aggregate
Percentage Interest, as requested by the Holder surrendering the same.

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

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right, the Master Servicer to purchase at a price determined as provided in the
Agreement all remaining Mortgage Loans and all REO Property; provided, that any
such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

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

                                     B-3-5
<PAGE>

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

Dated:   January 31, 2005                WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                              as Securities Administrator

                                         By:____________________________________
                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By:____________________________________
                                         Authorized Signatory

                                     B-3-6
<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
             (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:
________________________________________________________________________________

Dated:________________

                                         Signature by or on behalf of assignor

                                                  Signature Guaranteed

                                     B-3-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
for the account of ____________________________________________________________,
account number __________________, or, if mailed by check, to _________________
_______________________________________________________________________________.
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by ______________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                     B-3-8
<PAGE>

                                   EXHIBIT B-4

                           FORM OF CLASS R CERTIFICATE

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A
"RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS" AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.02(C) OF THE AGREEMENT OR
AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE COMPANY AND THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE
IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE
AND WILL NOT SUBJECT THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE
COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE
UNDERTAKEN IN THE POOLING AND SERVICING AGREEMENT (THE "AGREEMENT").

THIS CLASS R CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND
WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER,
THE SECURITIES ADMINISTRATOR AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT (A)
THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF
ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED
IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF
THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511
OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE
CODE, (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B) OR (C) BEING
HEREIN REFERRED TO AS A

                                     B-4-1
<PAGE>

"DISQUALIFIED ORGANIZATION") OR (D) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2)
NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND
(3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS
CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED
ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR
EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER
FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                     B-4-2
<PAGE>

Certificate No. 1

Class R

Date of Pooling and, Servicing                    Percentage Interest:  100%
Agreement and Cut-off Date:
January 1, 2005

First Distribution Date:
February 25, 2005

Master Servicer:
Wells Fargo Bank, National Association

Assumed Final Distribution Date:
February 25, 2035

                      ASSET-BACKED PASS-THROUGH CERTIFICATE
                                  SERIES 2005-1

         evidencing a percentage interest in any distributions
         allocable to the Class R Certificates with respect to the
         Trust Fund consisting primarily of a pool of one- to
         four-family fixed-rate and adjustable-rate first lien mortgage
         loans sold by OPTEUM MORTGAGE ACCEPTANCE CORPORATION

         This Certificate is payable solely from the assets of the Trust Fund,
and does not represent an obligation of or interest in Opteum Mortgage
Acceptance Corporation, the Master Servicer, the Servicer, the Seller, the
Securities Administrator, the Trustee referred to below or any of their
affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality or by Opteum
Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the Seller,
the Securities Administrator, the Trustee or any of their affiliates. None of
Opteum Mortgage Acceptance Corporation, the Master Servicer, the Servicer, the
Seller, the Securities Administrator or any of their affiliates will have any
obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

                                     B-4-3
<PAGE>

         This certifies that ___________________ is the registered owner of the
Percentage Interest evidenced by this Certificate in certain distributions with
respect to the Trust Fund consisting primarily of an interest in a pool of one-
to four-family fixed-rate and adjustable-rate first lien mortgage loans (the
"Mortgage Loans"), sold by Opteum Mortgage Acceptance Corporation (hereinafter
called the "Company," which term includes any successor entity under the
Agreement referred to below). The Trust Fund was created pursuant to a Pooling
and Servicing Agreement dated as specified above (the "Agreement") among the
Company, the Master Servicer, the Securities Administrator and HSBC Bank USA,
National Association, as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the Distribution Date"), commencing as
described in the Agreement, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding the month of such Distribution Date (the "Record Date"),
from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and
principal, if any , required to be distributed to Holders of Class R
Certificates on such Distribution Date.

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions set forth in the Agreement to the effect that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United States Person and a Permitted Transferee, (ii) the transfer of any
Ownership Interest in this Certificate will be conditioned upon the delivery to
the Trustee of, among other things, an affidavit to the effect that it is a
United States Person and Permitted Transferee, (iii) any attempted or purported
transfer of any Ownership Interest in this Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee, and (iv) if any person other than a United States Person
and a Permitted Transferee acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Company will have the right, in its
sole discretion and without notice to the Holder of this Certificate, to sell
this Certificate to a purchaser selected by the Company, which purchaser may be
the Company, or any affiliate of the Company, on such terms and conditions as
the Company may choose.

         Notwithstanding the above, the final distribution on this Certificate
will be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose in the City of Minneapolis and
State of Minnesota.

         In connection with any transfer of this Certificate, the Trustee will
also require either (i) an opinion of counsel acceptable to and in form and
substance satisfactory to the Trustee with

                                     B-4-4
<PAGE>

respect to the permissibility of such transfer under the Employee Retirement
Income Security Act of 1974, as amended ("ERISA") and Section 4975 of the
Internal Revenue Code (the "Code") and stating, among other things, that the
transferee's acquisition of a Class R Certificate will not constitute or result
in a non-exempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code or (ii) a representation letter, in the form as described by
the Agreement, stating that the transferee is not an employee benefit or other
plan subject to the prohibited transaction provisions of ERISA or Section 4975
of the Code (a "Plan"), or any other person (including an investment manager, a
named fiduciary or a trustee of any Plan) acting, directly or indirectly, on
behalf of or purchasing any Certificate with "plan assets" of any Plan.

         This Certificate is one of a duly authorized issue of Certificates
issued in several Classes designated as Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

         The Certificates are limited in right of payment to certain collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the Agreement. In the event Master Servicer funds are advanced
with respect to any Mortgage Loan, such advance is reimbursable to the Master
Servicer, to the extent provided in the Agreement, from related recoveries on
such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

         As provided in the Agreement, withdrawals from the Custodial Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than
distributions to Certificateholders, such purposes including without limitation
reimbursement to the Trustee, the Company and the Master Servicer of advances
made, or certain expenses incurred, by either of them.

         The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Company, the Master Servicer, the Securities Administrator, the Trustee and
the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer, the Securities Administrator and the Trustee with
the consent of the Holders of Certificates evidencing in the aggregate not less
than 66-2/3% of the Percentage Interests of each Class of Certificates affected
thereby. Any such consent by the Holder of this Certificate shall be conclusive
and binding on such Holder and upon all future holders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent is made upon the
Certificate. The Agreement also permits the amendment thereof in certain
circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of
certain Classes of Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable with the Securities
Administrator upon surrender of this Certificate for registration of transfer at
the offices or agencies maintained by the Securities Administrator, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Securities
Administrator

                                     B-4-5
<PAGE>

duly executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized denominations
evidencing the same Class and aggregate Percentage Interest will be issued to
the designated transferee or transferees.

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

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

         The Company, the Master Servicer, the Securities Administrator, the
Servicer and the Trustee and any agent of the Company, the Master Servicer, the
Securities Administrator, the Servicer or the Trustee may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Company, the Master Servicer, the Securities Administrator, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

         This Certificate shall be governed by and construed in accordance with
the laws of the State of New York.

         The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon the payment to
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the purchase by the Servicer or its designee or the Master Servicer from the
Trust Fund of all remaining Mortgage Loans and each REO Property in respect
thereof remaining in the Trust Fund, thereby effecting early retirement of the
Certificates and (ii) the final payment or other liquidation (or any Advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund (or
the disposition of all REO Property in respect thereof). The Agreement permits,
but does not require, the Servicer, or, if the Servicer does not exercise this
right, or the Master Servicer to purchase at a price determined as provided in
the Agreement all remaining Mortgage Loans and all REO Property; provided, that
any such option may only be exercised on or after the first Distribution Date on
which the aggregate unpaid balance of the Mortgage Loans is less than or equal
to ten percent of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date with respect to a purchase by the Servicer, or on or
after the first Distribution Date on which the aggregate unpaid principal
balance of the Mortgage Loans is less than or equal to five percent of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date
with respect to a purchase by the Master Servicer.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purpose
have the same effect as if set forth at this place.

                                     B-4-6
<PAGE>

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

                                     B-4-7
<PAGE>

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

Dated:   January 31, 2005                WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: ___________________________________
                                         Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

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

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                         as Securities Administrator

                                         By: ___________________________________
                                         Authorized Signatory

                                     B-4-8
<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
              (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
                          POSTAL ZIP CODE OF ASSIGNEE)

a Percentage Interest evidenced by the within Asset-Backed Pass-Through
Certificate and hereby authorizes the transfer of registration of such interest
to assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:
________________________________________________________________________________

Dated:________________

                                       Signature by or on behalf of assignor

                                     B-4-9
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________________
for the account of ____________________________________________________________,
account number ________________, or, if mailed by check, to ___________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.

         This information is provided by _______________________________________
the assignee named above, or ___________________________________________________
as its agent.

                                     B-4-10
<PAGE>

                                    EXHIBIT C

                     FORM OF CUSTODIAN INITIAL CERTIFICATION

                                                                January 31, 2005

HSBC Bank USA, National Association       Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                          W. 115 Century Road
New York, New York 10018                  Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation,
         OMAC Mortgage Trust 2005-1, Asset-Backed Pass-Through Certificates,
         Series 2005-1

         Re:      Custodial Agreement, dated as of January 31, 2005, by and
                  among HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, National
                  Association relating to OMAC Mortgage Trust 2005-1,
                  Asset-Backed -- PASS-THROUGH CERTIFICATES, SERIES 2005-1

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, dated as of January 1, 2005 among Opteum Mortgage Acceptance
Corporation, HSBC Bank USA, National Association and Wells Fargo Bank, National
Association, the undersigned, as custodian (the "Custodian"), hereby certifies
that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than
any Mortgage Loan paid in full or listed on the attachment hereto) it has
reviewed the Mortgage File, and has determined that: (1) all documents required
to be included in the Mortgage File are in its possession and (2) such documents
have been reviewed by it and appear regular on their face and relate to such
Mortgage Loan.

                  The Custodian has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Custodial and Pooling and Servicing Agreements.
The Custodian makes no representations as to and shall not be responsible to
verify: (i) the validity, legality, sufficiency, enforceability, due
authorization, recordability or genuineness of any of the documents contained in
each Mortgage File of any of the Mortgage Loans identified on the Mortgage Loan
Schedule, (ii) the collectability, insurability, effectiveness or suitability of
any such Mortgage Loan, or (iii) the existence of any assumption, modification,
written assurance or substitution agreement with respect to any Mortgage File if
no such documents appear in the Mortgage File delivered to the Custodian.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                       C-1
<PAGE>

                                        WELLS FARGO BANK, NATIONAL
                                        ASSOCIATION, as Custodian

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

                                       C-2
<PAGE>

                                    EXHIBIT D

                      FORM OF CUSTODIAN FINAL CERTIFICATION

                                                             _____________, 20__

HSBC Bank USA, National Association     Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                        W. 115 Century Road
New York, New York 10018                Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation, OMAC Mortgage Trust
         2005-1, Asset-Backed Pass-Through Certificates, Series 2005-1

         Re:      Custodial Agreement, dated as of January 31, 2005, by and
                  among HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, National
                  Association relating to OMAC Mortgage Trust 2005-1,
                  Asset-Backed PASS-THROUGH CERTIFICATES, SERIES 2005-1

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, the undersigned, as Custodian, hereby certifies that it has received
a Mortgage File with respect to each Mortgage Loan listed in the Mortgage Loan
Schedule containing with respect to each Mortgage Loan:

                  (i)      the original Mortgage Note (including all riders
         thereto) bearing all intervening endorsements necessary to show a
         complete chain of endorsements from the original payee, endorsed "Pay
         to the order of HSBC Bank USA, National Association without recourse",
         via original signature, and, if previously endorsed, signed in the name
         of the last endorsee by a duly qualified officer of the last endorsee.
         If the Mortgage Loan was acquired by the last endorsee in a merger, the
         endorsement must be by "[name of last endorsee], successor by merger to
         [name of the predecessor]." If the Mortgage Loan was acquired or
         originated by the last endorsee while doing business under another
         name, the endorsement must be by "[name of last endorsee], formerly
         known as [previous name].";

                  (ii)     The original recorded Mortgage, noting the presence
         of the MIN of the Mortgage Loan and either language indicating that the
         Mortgage Loan is a MOM loan or if the Mortgage Loan was not a MOM loan
         at origination, the original Mortgage and the assignment thereof to
         MERS, with evidence of recording indicated thereon; provided that if
         such document is not included because of a delay by the public
         recording office where such document has been delivered for recordation
         or such office as a matter of policy does not return the original of
         such document or if such original Mortgage has been lost, the

                                       D-1
<PAGE>

         Seller shall include or cause to be included a copy thereof certified
         by the appropriate recording office, if available;

                  (iii)    the original Assignment of Mortgage in blank, in form
         and substance acceptable for recordation in the jurisdiction in which
         the related mortgage property is located and signed in the name of the
         Last Endorsee by an authorized officer; unless the Mortgage Loan is
         registered on the MERS system;

                  (iv)     The original intervening Assignments, if any and if
         available, with evidence of recording thereon, showing an unbroken
         chain of title to the Mortgage from the originator thereof to Person
         assigning it to the Trustee (or to MERS, if the Mortgage Loan is
         registered on the MERS(R) System); provided that if such document is
         not included because of a delay by the public recording office where
         such document has been delivered for recordation or such office as a
         matter of policy does not return the original of such document, the
         Seller shall include or cause to be included a copy thereof certified
         by the appropriate recording office, if available;

                  (v)      The originals of each assumption, modification or
         substitution agreement, if any and if available, relating to the
         Mortgage Loan; and

                  (vi)     the original title insurance policy, or, if such
         policy has not been issued, any one of an original or a copy of the
         preliminary title report, title binder or title commitment on the
         Mortgaged Property with the original policy of the insurance to be
         delivered promptly following the receipt thereof;

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement
or in the Pooling and Servicing Agreement, as applicable.

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        as Custodian

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

                                       D-2

<PAGE>

                                    EXHIBIT E

                            FORM OF REMITTANCE REPORT

                             (Provided Upon Request)

                                       E-1
<PAGE>

                                    EXHIBIT F
                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:      HSBC Bank USA, National Association
         452 Fifth Avenue
         New York, New York 10018

         Re:      Pooling and Servicing Agreement, dated as of January 1, 2005,
                  by and among HSBC Bank USA, National Association, Opteum
                  Mortgage Acceptance Corporation and Wells Fargo Bank, National
                  Association relating to OMAC Mortgage Trust 2005-1,
                  Asset-Backed PASS-THROUGH CERTIFICATES, SERIES 2005-1

         In connection with the administration of the Mortgage Loans held by you
pursuant to the above-captioned Pooling and Servicing Agreement, we request the
release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage
Loan described below, for the reason indicated.

MORTGAGE LOAN NUMBER:

MORTGAGOR NAME, ADDRESS & ZIP CODE:

REASON FOR REQUESTING DOCUMENTS (CHECK ONE):

_____             1.       Mortgage Paid in Full and proceeds have been
                           deposited into the Custodial Account

_____             2.       Foreclosure

_____             3.       Substitution

_____             4.       Other Liquidation

_____             5.       Nonliquidation                     Reason:
                                                                     ---------

_____             6.       California Mortgage Loan paid in full

                                        By:
                                            ------------------------------------
                                                 (authorized signer)

                                        Issuer:
                                                 -------------------------------
                                        Address:
                                                  ------------------------------
                                        Date:
                                             -----------------------------------

                                       F-1
<PAGE>

                                   EXHIBIT G-1
                     FORM OF INVESTOR REPRESENTATION LETTER

                               _____________,200__

Opteum Mortgage Acceptance Corporation
W. 115 Century Road
Paramus, New Jersey 07652

HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 10018
Attention: Opteum Mortgage Acceptance Corporation Series 2005-1

         Re:      Opteum Mortgage Acceptance Corporation ASSET-BACKED
                  PASS-THROUGH CERTIFICATES SERIES 2005-1, CLASS [___]

Ladies and Gentlemen:

         ______________ (the "Purchaser") intends to purchase from
______________ (the "Seller") $_________ Initial Certificate Principal Balance
of Asset-Backed Pass-Through Certificates, Series 2005-1, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of January 1, 2005 among Opteum
Mortgage Acceptance Corporation, as company (the "Company"), Wells Fargo Bank,
National Association, as master servicer (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and Servicing Agreement. The Purchaser hereby
certifies, represents and warrants to, and covenants with, the Company and the
Trustee that:

                  1.       The Purchaser understands that (a) the Certificates
         have not been and will not be registered or qualified under the
         Securities Act of 1933, as amended (the "Act") or any state securities
         law, (b) the Company is not required to so register or qualify the
         Certificates, (c) the Certificates may be resold only if registered and
         qualified pursuant to the provisions of the Act or any state securities
         law, or if an exemption from such registration and qualification is
         available, (d) the Pooling and Servicing Agreement contains
         restrictions regarding the transfer of the Certificates and (e) the
         Certificates will bear a legend to the foregoing effect.

                  2.       The Purchaser is acquiring the Certificates for its
         own account for investment only and not with a view to or for sale in
         connection with any distribution thereof in any manner that would
         violate the Act or any applicable state securities laws.

                                      G-1-1
<PAGE>

                  3.       The Purchaser is (a) a substantial, sophisticated
         institutional investor having such knowledge and experience in
         financial and business matters, and, in particular, in such matters
         related to securities similar to the Certificates, such that it is
         capable of evaluating the merits and risks of investment in the
         Certificates, (b) able to bear the economic risks of such an investment
         and (c) an "accredited investor" within the meaning of Rule 501 (a)
         promulgated pursuant to the Act.

                  4.       The Purchaser has been furnished with, and has had an
         opportunity to review a copy of the Pooling and Servicing Agreement and
         such other information concerning the Certificates, the Mortgage Loans
         and the Company as has been requested by the Purchaser from the Company
         or the Seller and is relevant to the Purchaser's decision to purchase
         the Certificates. The Purchaser has had any questions arising from such
         review answered by the Company or the Seller to the satisfaction of the
         Purchaser.

                  5.       The Purchaser has not and will not nor has it
         authorized or will it authorize any person to (a) offer, pledge, sell,
         dispose of or otherwise transfer any Certificate, any interest in any
         Certificate or any other similar security to any person in any manner,
         (b) solicit any offer to buy or to accept a pledge, disposition of
         other transfer of any Certificate, any interest in any Certificate or
         any other similar security from any person in any manner, (c) otherwise
         approach or negotiate with respect to any Certificate, any interest in
         any Certificate or any other similar security with any person in any
         manner, (d) make any general solicitation by means of general
         advertising or in any other manner or (e) take any other action, that
         (as to any of (a) through (e) above) would constitute a distribution of
         any Certificate under the Act, that would render the disposition of any
         Certificate a violation of Section 5 of the Act or any state securities
         law, or that would require registration or qualification pursuant
         thereto. The Purchaser will not sell or otherwise transfer any of the
         Certificates, except in compliance with the provisions of the Pooling
         and Servicing Agreement.

                                        Very truly yours,

                                        --------------------------------------
                                        (Purchaser)

                                        By:
                                           -----------------------------------

                                        Name:
                                             ---------------------------------

                                        Title:
                                              --------------------------------

                                      G-1-2
<PAGE>

                                   EXHIBIT G-2
                    FORM OF TRANSFEROR REPRESENTATION LETTER

                              ______________,200___

Opteum Mortgage Acceptance Corporation
W. 115 Century Road
Paramus, New Jersey 07652

HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 10018
Attention: Opteum Mortgage Acceptance Corporation Series 2005-1

                  Re:      Opteum Mortgage Acceptance Corporation ASSET-BACKED
                           PASS-THROUGH CERTIFICATES, SERIES 2005-1, CLASS __

Ladies and Gentlemen:

         In connection with the sale by ___________ (the "Seller") to ________
(the "Purchaser") of $_________ Initial Certificate Principal Balance of
Asset-Backed Pass-Through Certificates, Series 2005-1, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of January 1, 2005 among Opteum
Mortgage Acceptance Corporation, as company (the "Company"), Wells Fargo Bank,
National Association, as master servicer (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). The Seller hereby certifies, represents and warrants to, and
covenants with, the Company and the Trustee that:

         Neither the Seller nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Certificate, any
interest in any Certificate or any other similar security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate, any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or
negotiated with respect to any Certificate, any interest in any Certificate or
any other similar security with any person in any manner, (d) has made any
general solicitation by means of general advertising or in any other manner, or
(e) has taken any other action, that (as to any of (a) through (e) above) would
constitute a distribution of the Certificates under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section 5 of the Act or any state securities law, or that would require
registration or qualification pursuant thereto. The Seller will not act in any
manner set forth in the foregoing sentence with respect to any Certificate. The
Seller has not and will not sell or otherwise transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

                                      G-2-1
<PAGE>

                                        Very truly yours,

                                        --------------------------------------
                                        (Seller)

                                        By:
                                           -----------------------------------

                                        Name:
                                             ---------------------------------

                                        Title:
                                              --------------------------------

                                      G-2-2
<PAGE>

                                   EXHIBIT G-3
                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             Description of Rule 144A Securities, including numbers:

                     Opteum Mortgage Acceptance Corporation
                     Asset-Backed Pass-Through Certificates
                       Series 2005-1, Class ____, No. ____

                  The undersigned seller, as registered holder (the
"Transferor"), intends to transfer the Rule 144A Securities described above to
the undersigned buyer (the "Buyer").

                  1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the
Transferor hereby certifies the following facts: Neither the Transferor nor
anyone acting on its behalf has offered, transferred, pledged, sold or otherwise
disposed of the Rule 144A Securities, any interest in the Rule 144A Securities
or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities, or otherwise
approached or negotiated with respect to the Rule 144A Securities, any interest
in the Rule 144A Securities or any other similar security with, any person in
any manner, or made any general solicitation by means of general advertising or
in any other manner, or taken any other action, which would constitute a
distribution of the Rule 144A Securities under the Securities Act of 1933, as
amended (the "1933 Act"), or which would render the disposition of the Rule 144A
Securities a violation of Section 5 of the 1933 Act or require registration
pursuant thereto, and that the Transferor has not offered the Rule 144A
Securities to any person other than the Buyer or another "qualified
institutional buyer" as defined in Rule 144A under the 1933 Act.

                  2. The Buyer warrants and represents to, and covenants with,
the Transferor, the Trustee and the Master Servicer pursuant to Section 5.02 of
the Pooling and Servicing Agreement as follows:

                           a. The Buyer understands that the Rule 144A
                  Securities have not been registered under the 1933 Act or the
                  securities laws of any state.

                           b. The Buyer considers itself a substantial,
                  sophisticated institutional investor having such knowledge and
                  experience in financial and business matters that it is
                  capable of evaluating the merits and risks of investment in
                  the Rule 144A Securities.

                           c. The Buyer has been furnished with all information
                  regarding the Rule 144A Securities that it has requested from
                  the Transferor, the Trustee or the Master Servicer.

                           d. Neither the Buyer nor anyone acting on its behalf
                  has offered, transferred, pledged, sold or otherwise disposed
                  of the Rule 144A Securities, any

                                     G-3-1
<PAGE>

                  interest in the Rule 144A Securities or any other similar
                  security to, or solicited any offer to buy or accept a
                  transfer, pledge or other disposition of the Rule 144A
                  Securities, any interest in the Rule 144A Securities or any
                  other similar security from, or otherwise approached or
                  negotiated with respect to the Rule 144A Securities, any
                  interest in the Rule 144A Securities or any other similar
                  security with, any person in any manner, or made any general
                  solicitation by means of general advertising or in any other
                  manner, or taken any other action, that would constitute a
                  distribution of the Rule 144A Securities under the 1933 Act or
                  that would render the disposition of the Rule 144A Securities
                  a violation of Section 5 of the 1933 Act or require
                  registration pursuant thereto, nor will it act, nor has it
                  authorized or will it authorize any person to act, in such
                  manner with respect to the Rule 144A Securities.

                           e. The Buyer is a "qualified institutional buyer" as
                  that term is defined in Rule 144 under the 1933 Act and has
                  completed either of the forms of certification to that effect
                  attached hereto as Annex 1 or Annex 2. The Buyer is aware that
                  the sale to it is being made in reliance on Rule 144A. The
                  Buyer is acquiring the Rule 144A Securities for its own
                  account or the account of other qualified institutional
                  buyers, understands that such Rule 144 Securities may be
                  resold, pledged or transferred only (i) to a person reasonably
                  believed to be a qualified institutional buyer that purchases
                  for its own account or for the account of a qualified
                  institutional buyer to whom notice is given that the resale,
                  pledge or transfer is being made in reliance on Rule 144A, or
                  (ii) pursuant to another exemption from registration under the
                  1933 Act.

                  3. The Buyer warrants and represents to, and covenants with,
the Transferor, the Servicer and the Company that either (1) the Buyer is not an
employee benefit plan within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") ("Plan"), or a plan
within the meaning of Section 4975(e)(1) of the Internal Revenue Code of 1986
(the "Code") (also a "Plan"), and the Buyer is not directly or indirectly
purchasing the Rule 144A Securities on behalf of, as investment manager of, as
named fiduciary of, as trustee of, or with assets of a Plan, or (2) the Buyer
has provided the Trustee with the opinion letter required by section 5.02(c) of
the Pooling and Servicing Agreement.

                  4. This document may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same document.

                                     G-3-2
<PAGE>

                  IN WITNESS WHEREOF, each of the parties has executed this
document as of the date set forth below.

--------------------------------------------  ----------------------------------
          Print Name of Transferor                   Print Name of Buyer

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

Taxpayer Identification:                Taxpayer Identification:

No.                                     No.
   -----------------------------------      ------------------------------------
Date:                                   Date:
     ---------------------------------       -----------------------------------

                                     G-3-3
<PAGE>

                             ANNEX 1 TO EXHIBIT G-3

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $____________________1 in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

____     CORPORATION, ETC. The Buyer is a corporation (other than a bank,
         savings and loan association or similar institution), Massachusetts or
         similar business trust, partnership, or charitable organization
         described in Section 501(c)(3) of the Internal Revenue Code.

____     BANK. The Buyer (a) is a national bank or banking institution organized
         under the laws of any State, territory or the District of Columbia, the
         business of which is substantially confined to banking and is
         supervised by the State or territorial banking commission or similar
         official or is a foreign bank or equivalent institution, and (b) has an
         audited net worth of at least $25,000,000 as demonstrated in its latest
         annual financial statement, a copy of which is attached hereto.

____     SAVINGS AND LOAN. The Buyer (a) is a savings and loan association,
         building and loan association, cooperative bank, homestead association
         or similar institution, which is supervised and examined by a State or
         Federal authority having supervision over any such institutions or is a
         foreign savings and loan association or equivalent institution and (b)
         has an audited net worth of at least $25,000,000 as demonstrated in its
         latest annual financial statements.

____     BROKER-DEALER. The Buyer is a dealer registered pursuant to Section 15
         of the  Securities  Exchange Act of 1934.

____________________________

1       Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                     G-3-4
<PAGE>

____     INSURANCE COMPANY. The Buyer is an insurance company whose primary and
         predominant business activity is the writing of insurance or the
         reinsuring of risks underwritten by insurance companies and which is
         subject to supervision by the insurance commissioner or a similar
         official or agency of a State, territory or the District of Columbia.

____     STATE OR LOCAL PLAN. The Buyer is a plan established and maintained by
         a State, its political subdivisions, or any agency or instrumentality
         of the State or its political subdivisions, for the benefit of its
         employees.

____     ERISA PLAN. The Buyer is an employee benefit plan within the meaning of
         Title I of the Employee Retirement Income Security Act of 1974.

____     INVESTMENT ADVISER. The Buyer is an investment adviser registered under
         the Investment  Advisers Act of 1940.

____     SBIC. The Buyer is a Small Business Investment Company licensed by the
         U.S. Small Business Administration under Section 301(c) or (d) of the
         Small Business Investment Act of 1958.

____     BUSINESS DEVELOPMENT COMPANY. The Buyer is a business development
         company as defined in Section 202(a)(22) of the Investment Advisers Act
         of 1940.

____     TRUST FUND. The Buyer is a trust fund whose trustee is a bank or trust
         company and whose participants are exclusively (a) plans established
         and maintained by a State, its political subdivisions, or any agency or
         instrumentality of the State or its political subdivisions, for the
         benefit of its employees, or (b) employee benefit plans within the
         meaning of Title I of the Employee Retirement Income Security Act of
         1974, but is not a trust fund that includes as participants individual
         retirement accounts or H.R. 10 plans.

         3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

         4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

                                     G-3-5
<PAGE>

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

___      ___               Will the Buyer be purchasing the Rule 144A
Yes      No                Securities only for the Buyer's own account?

         6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

         7. The Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

                                        ---------------------------------------
                                        Print Name of Buyer

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

                                        Date:
                                             ----------------------------------

                                     G-3-6
<PAGE>

                             ANNEX 2 TO EXHIBIT G-3

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

                  The undersigned hereby certifies as follows in connection with
the Rule 144A Investment Representation to which this Certification is attached:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used.

____              The Buyer owned $_______________ in securities (other than the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A).

____              The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $____________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                  5. The Buyer is familiar with Rule 144A and understands that
each of the parties to which this certification is made are relying and will
continue to rely on the statements made

                                     G-3-7
<PAGE>

herein because one or more sales to the Buyer will be in reliance on Rule 144A.
In addition, the Buyer will only purchase for the Buyer's own account.

                  6. The undersigned will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                     G-3-8
<PAGE>

                                        ---------------------------------------
                                        Print Name of Buyer

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

                                        Date:
                                             ----------------------------------

                                        IF AN ADVISER:

                                        ---------------------------------------
                                        Print Name of Buyer

                                        Date:
                                             ----------------------------------

                                     G-3-9
<PAGE>

                                   EXHIBIT G-4
                         FORM OF TRANSFEROR CERTIFICATE

                              ______________, 200__

Opteum Mortgage Acceptance Corporation
W. 115 Century Road
Paramus, New Jersey 07652

HSBC Bank USA, National Association
452 Fifth Avenue
New York, New York 10018

Attention: Opteum Mortgage Acceptance Corporation Series 2005-1

                  Re:      Opteum Mortgage Acceptance Corporation
                           Asset-Backed Pass-Through Certificates
                           SERIES 2005-1, CLASS R

Ladies and Gentlemen:

                  This letter is delivered to you in connection with the sale by
________________________ (the "Seller") to _____________________________________
(the "Purchaser") of a ____% Percentage Interest in the Asset-Backed
Pass-Through Certificates, Series 2005-1, Class R Certificates (the
"Certificates"), issued pursuant to Section 5.02 of the Pooling and Servicing
Agreement (the "Pooling and Servicing Agreement") dated as of January 1, 2005,
among Opteum Mortgage Acceptance Corporation, as company (the "Company"), Wells
Fargo Bank, National Association, as master servicer (in such capacity, the
"Master Servicer") and as securities administrator (in such capacity, the
"Securities Administrator") and HSBC Bank USA, National Association, as trustee
(the "Trustee"). All terms used herein and not otherwise defined shall have the
meaning set forth in the Pooling and Servicing Agreement. The Seller hereby
certifies, represents and warrants to, and covenants with, the Company and the
Trustee that:

                  1. No purpose of the Seller relating to the sale of the
Certificates by the Seller to the Purchaser is or will be to impede the
assessment or collection of any tax.

                  2. The Seller understands that the Purchaser has delivered to
the Trustee and the Master Servicer a transfer affidavit and agreement in the
form attached to the Pooling and Servicing Agreement as Exhibit E-5. The Seller
does not know or believe that any representation contained therein is false.

                  3. The Seller has at the time of the transfer conducted a
reasonable investigation of the financial condition of the Purchaser as
contemplated by Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result
of that investigation, the Seller has determined that the Purchaser has
historically paid its debts as they have become due and has found no significant
evidence to indicate that the Purchaser will not continue to pay its debts as
they become due in the future. The Seller understands that the transfer of the
Certificates may not be respected for United

                                      G-4-1
<PAGE>

States income tax purposes (and the Seller may continue to be liable for United
States income taxes associated therewith) unless the Seller has conducted such
an investigation.

                  4. The Seller has no actual knowledge that the proposed
Transferee is a Disqualified Organization, an agent of a Disqualified
Organization or a Non-United States Person.

                                        Very truly yours,

                                        ---------------------------------------
                                        (Seller)

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

                                      G-4-2
<PAGE>

                                   EXHIBIT G-5
                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF                        )
                        :ss.:
COUNTY OF                       )

         ___________________, being first duly sworn, deposes, represents and
warrants:

          1.   That he/she is [Title of Officer] of [Name of Owner], a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of __________] [the United States], (the "Owner"), (record or beneficial
owner of the Class R Certificates (the "Class R Certificates") on behalf of
which he/she makes this affidavit and agreement). This Class R Certificates were
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement") dated as of January 1, 2005 among Opteum Mortgage
Acceptance Corporation, as company, Wells Fargo Bank, National Association, as
master servicer (in such capacity, the "Master Servicer") and as securities
administrator (in such capacity, the "Securities Administrator"), and HSBC Bank
USA, National Association, as trustee (the "Trustee").

          2.   That the Owner (i) is not and will not be a "disqualified
organization" as of _____________ [date of transfer] within the meaning of
Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended (the
"Code"), (ii) will endeavor to remain other than a disqualified organization for
so long as it retains its ownership interest in the Class R Certificates, and
(iii) is acquiring the Class R Certificates for its own account or for the
account of another Owner from which it has received an affidavit and agreement
in substantially the same form as this affidavit and agreement. (For this
purpose, a "disqualified organization" means the United States, any state or
political subdivision thereof, any agency or instrumentality of any of the
foregoing (other than an instrumentality all of the activities of which are
subject to tax and, except for Freddie Mac, a majority of whose board of
directors is not selected by any such governmental entity) or any foreign
government, international organization or any agency or instrumentality of such
foreign government or organization, any rural electric or telephone cooperative,
or any organization (other than certain farmers' cooperatives) that is generally
exempt from federal income tax unless such organization is subject to the tax on
unrelated business taxable income).

          3.   That the Owner is aware (i) of the tax that would be imposed on
transfers of Class R Certificates to disqualified organizations under the Code,
that applies to all transfers of Class R Certificates after March 31, 1988; (ii)
that such tax would be on the transferor, or, if such transfer is through an
agent (which person includes a broker, nominee or middleman) for a disqualified
organization, on the agent; (iii) that the person otherwise liable for the tax
shall be relieved of liability for the tax if the transferee furnishes to such
person an affidavit that the transferee is not a disqualified organization and,
at the time of transfer, such person does not have actual knowledge that the
affidavit is false; and (iv) that the Class R Certificates may be "noneconomic
residual interests" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect

                                     G-5-1
<PAGE>

to the income on such residual interest, unless no significant purpose of the
transfer was to impede the assessment or collection of tax.

          4.   That the Owner is aware of the tax imposed on a "pass-through
entity" holding Class R Certificates if at any time during the taxable year of
the pass-through entity a disqualified organization is the record holder of an
interest in such entity. (For this purpose, a "pass through entity" includes a
regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

          5.   That the Owner is aware that the Trustee will not register the
transfer of any Class R Certificates unless the transferee, or the transferee's
agent, delivers to it an affidavit and agreement, among other things, in
substantially the same form as this affidavit and agreement. The Owner expressly
agrees that it will not consummate any such transfer if it knows or believes
that any of the representations contained in such affidavit and agreement are
false.

          6.   That the Owner has reviewed the restrictions set forth on the
face of the Class R Certificates and the provisions of Section 5.02(f) of the
Pooling and Servicing Agreement under which the Class R Certificates were issued
(in particular, clause (iii)(A) and (iii)(B) of Section 5.02(f) which authorize
the Trustee to deliver payments to a person other than the Owner and negotiate a
mandatory sale by the Trustee in the event the Owner holds such Certificates in
violation of Section 5.02(f)). The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.

          7.   That the Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Class R Certificates will only be
owned, directly or indirectly, by an Owner that is not a disqualified
organization.

          8.   The Owner's Taxpayer Identification Number is _________________.

          9.   This affidavit and agreement relates only to the Class R
Certificates held by the owner and not to any other holder of the Class R
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R Certificates.

          10.  That no purpose of the Owner relating to the transfer of any of
the Class R Certificates by the Owner is or will be to impede the assessment or
collection of any tax.

          11.  That the Owner has no present knowledge or expectation that it
will be unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding. In this regard, the Owner hereby represents to
and for the benefit of the person from whom it acquired the Class R Certificate
that the Owner intends to pay taxes associated with holding such Class R
Certificate as they become due, fully understanding that it may incur tax
liabilities in excess of any cash flows generated by the Class R Certificate.

                                     G-5-2
<PAGE>

          12.  That the Owner has no present knowledge or expectation that it
will become insolvent or subject to a bankruptcy proceeding for so long as any
of the Class R Certificates remain outstanding.

          13.  The Owner is a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, provided that
with respect to any partnership or other entity treated as a partnership for
United States federal income tax purposes, all persons that own an interest in
such partnership either directly or through any entity that is not a corporation
for United States federal income tax purposes are required by the applicable
operative agreement to be United States Persons, or an estate or trust whose
income from sources without the United States is includible in gross income for
United States federal income tax purposes regardless of its connection with the
conduct of a trade or business within the United States.

          14.  (a) The Certificates (i) are not being acquired by, and will not
be transferred to, any employee benefit plan within the meaning of section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to ERISA or Section 4975 of the
Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a "Plan"),
(ii) are not being acquired with "plan assets" of a Plan within the meaning of
the Department of Labor ("DOL") regulation, 29 C.F.R. ss. 2510.3-101 or
otherwise undeR ERISA, and (iii) will not be transferred to any entity that is
deemed to be investing in plan assets within the meaning of the DOL regulation,
29 C.F.R. ss. 2510.3-101 or otherwise under ERISA; or

               (b) The Owner will provide the Trustee with an opinion of
counsel, as specified in Section 5.02(c) of the Pooling and Servicing Agreement,
acceptable to and in form and substance satisfactory to the Trustee to the
effect that the purchase of Certificates is permissible under applicable law,
will not constitute or result in any non-exempt prohibited transaction under
ERISA or Section 4975 of the Code and will not subject the Trustee, the Company,
the Securities Administrator or the Master Servicer to any obligation or
liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in the Pooling and Servicing
Agreement.

         In addition, the Owner hereby certifies, represents and warrants to,
and covenants with, the Company, the Trustee, the Securities Administrator and
the Master Servicer that the Owner will not transfer such Certificates to any
Plan or person unless either such Plan or person meets the requirements set
forth in either (a) or (b) above.

         Capitalized terms used but not defined herein shall have the meanings
assigned in the Pooling and Servicing Agreement.

                                     G-5-3
<PAGE>

          IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, by its [Title of Officer] and its corporate seal to be
hereunto attached, attested by its [Assistant] Secretary, this ______ day of
_____________, _____.

                                                 [NAME OF OWNER]

                                        By:
                                           ---------------------------------
                                                 [Name of Officer]
                                                 [Title of Officer]

[Corporate Seal]

ATTEST:

---------------------------------------
[Assistant] Secretary

         Personally appeared before me the above-named [Name of Officer], known
or proved to me to be the same person who executed the foregoing instrument and
to be the [Title of Officer] of the Owner, and acknowledged to me that such
person executed the same as such person's free act and deed and the free act and
deed of the Owner.

         Subscribed and sworn before me this ____ day of ___________, 200__.

                                        ------------------------------
                                                 NOTARY PUBLIC

                                        COUNTY OF_________________________
                                        STATE OF___________________________
                                        My Commission expires the ____ day
                                        of __________, 200__.

                                     G-5-4
<PAGE>

                                    EXHIBIT H
                             MORTGAGE LOAN SCHEDULE
                                (Filed Manually)

(In accordance with Rule 202 of Regulation S-T, this Mortgage Loan Schedule, is
being filed in paper pursuant to a continuing hardship exemption.)

                                       H-1
<PAGE>

                                    EXHIBIT I
                                   [RESERVED]

                                       I-1
<PAGE>

                                    EXHIBIT J
                                   [RESERVED]

                                       J-1
<PAGE>

                                    EXHIBIT K
                          FORM OF ASSIGNMENT AGREEMENT

         This Assignment, Assumption and Recognition Agreement (the "AAR
Agreement") is made and entered into as of January 31, 2005 (the "Closing
Date"), among Opteum Mortgage Acceptance Corporation (the "Assignor"), HSBC Bank
USA, National Association as trustee for the holders of Opteum Mortgage
Acceptance Corporation, Asset-Backed Pass-Through Certificates, Series 2005-1
(the "Assignee") and Opteum Financial Services, LLC, f/k/a Home Star Mortgage
Services, LLC (the "Company").

         Whereas, Wells Fargo Bank, N.A. (the "Master Servicer") and the Company
entered into that certain Servicing Agreement, dated as of March 5, 2004 (the
"Cenlar Servicing Agreement"), pursuant to which the Company agreed to service
certain mortgage loans (the "Cenlar Mortgage Loans") for the benefit of the
Assignee; and

         Whereas, the Assignor and the Company entered into that certain
Servicing Agreement, dated as of March 5, 2004 (the "Option One Servicing
Agreement", together with the Cenlar Servicing Agreement, the "Servicing
Agreements"), pursuant to which the Company agreed to service certain other
mortgage loans (the "Option One Mortgage Loans", together with the Cenlar
Mortgage Loans, the "Mortgage Loans") on behalf of the Assignor.

         In consideration of the mutual promises and agreements contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree that the
Mortgage Loans listed on Attachment 1 annexed hereto (the "Assigned Loans")
shall be subject to the terms of this AAR Agreement. Any capitalized term used
and not otherwise defined herein shall have the meaning assigned to such term in
the Servicing Agreements or the Pooling and Servicing Agreement (as defined
below).

ASSIGNMENT AND ASSUMPTION

          1.   Except as expressly provided for herein, the Assignor hereby
grants, transfers and assigns to the Assignee all of its right, title and
interest as in, to and under the Assigned Loans, and as they relate to the
Assigned Loans, the Servicing Agreements. Notwithstanding anything to the
contrary contained herein, the Assignor is not assigning to the Assignee any of
its right, title and interest, to and under the Servicing Agreements with
respect to any other mortgage loan other than the Assigned Loans. Except as is
otherwise expressly provided herein, the Assignor makes no representations,
warranties or covenants to the Assignee and the Assignee acknowledges that the
Assignor has no obligations to the Assignee under the terms of the Servicing
Agreements or otherwise relating to the transaction contemplated herein
(including, but not limited to, any obligation to indemnify the Assignee).

          Assignor acknowledges and agrees that upon execution of this
Agreement, with respect to the Assigned Loans, all representations, warranties
and covenants by the Company under the Servicing Agreements shall accrue to
Assignee by virtue of this Agreement.

                                      K-1
<PAGE>

REPRESENTATIONS, WARRANTIES AND COVENANTS

          2.   Assignor warrants and represents to, and covenants with, Assignee
and Company as of the date hereof that:

          a.   Attached hereto as Attachment 2 are true and correct copies of
          the Servicing Agreements, which Servicing Agreements are in full force
          and effect as of the date hereof and the provisions of which have not
          been waived, amended or modified in any respect, nor has any notice of
          termination been given thereunder;

          b.   Assignor was the lawful owner of the Assigned Loans with full
          right to transfer the Assigned Loans and any and all of its interests,
          rights and obligations under the Servicing Agreements as they relate
          to the Assigned Loans, free and clear from any and all claims and
          encumbrances; and upon the transfer of the Assigned Loans to Assignee
          as contemplated herein, Assignee shall have good title to each and
          every Assigned Loan, as well as any and all of Assignee's interests,
          rights and obligations under the Servicing Agreements as they relate
          to the Assigned Loans, free and clear of any and all liens, claims and
          encumbrances;

          c.   There are no offsets, counterclaims or other defenses available
          to the Company with respect to the Servicing Agreements;

          d.   Assignor has no knowledge of, and has not received notice of, any
          waivers under, or any modification of, any Assigned Loan;

          e.   Assignor is duly organized, validly existing and in good standing
          under the laws of the jurisdiction of its incorporation, and has all
          requisite power and authority to acquire, own and sell the Assigned
          Loans;

          f.   Assignor has full corporate power and authority to execute,
          deliver and perform its obligations under this AAR Agreement, and to
          consummate the transactions set forth herein. The consummation of the
          transactions contemplated by this AAR Agreement is in the ordinary
          course of Assignor's business and will not conflict with, or result in
          a breach of, any of the terms, conditions or provisions of Assignor's
          charter or by-laws or any legal restriction, or any material agreement
          or instrument to which Assignor is now a party or by which it is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment or decree to which Assignor or its property is subject. The
          execution, delivery and performance by Assignor of this AAR Agreement
          and the consummation by it of the transactions contemplated hereby,
          have been duly authorized by all necessary corporate action on part of
          Assignor. This AAR Agreement has been duly executed and delivered by
          Assignor and, upon the due authorization, execution and delivery by
          Assignee and the parties hereto, will constitute the valid and legally
          binding obligation of Assignor enforceable against Assignor in
          accordance with its terms except as enforceability may be limited by
          bankruptcy, reorganization, insolvency, moratorium or other similar
          laws now or hereafter in effect relating to creditors' rights
          generally, and by general principles of

                                      K-2
<PAGE>

          equity regardless of whether enforceability is considered in a
          proceeding in equity or at law;

          g.   No consent, approval, order or authorization of, or declaration,
          filing or registration with, any governmental entity is required to be
          obtained or made by Assignor in connection with the execution,
          delivery or performance by Assignor of this AAR Agreement, or the
          consummation by it of the transactions contemplated hereby. Neither
          Assignor nor anyone acting on its behalf has offered, transferred,
          pledged, sold or otherwise disposed of the Assigned Loans or any
          interest in the Assigned Loans, or solicited any offer to buy or
          accept a transfer, pledge or other disposition of the Assigned Loans,
          or any interest in the Assigned Loans or otherwise approached or
          negotiated with respect to the Assigned Loans, or any interest in the
          Assigned Loans with any Person in any manner, or made any general
          solicitation by means of general advertising or in any other manner,
          or taken any other action which would constitute a distribution of the
          Assigned Loans under the Securities Act of 1933, as amended (the "1933
          Act") or which would render the disposition of the Assigned Loans a
          violation of Section 5 of the 1933 Act or require registration
          pursuant thereto; and

          h.   There is no action, suit, proceeding, investigation or litigation
          pending or, to Assignor's knowledge, threatened, which either in any
          instance or in the aggregate, if determined adversely to Assignor,
          would adversely affect Assignor's execution or delivery of, or the
          enforceability of, this AAR Agreement, or the Assignor's ability to
          perform its obligations under this AAR Agreement.

          3.   The Assignee warrants and represents to, and covenants with, the
          Assignor and the Company as of the date hereof that:

          a.   Assignee is duly organized, validly existing and in good standing
          under the laws of the jurisdiction of its organization and has all
          requisite power and authority to hold the Assigned Loans as trustee on
          behalf of the holders of Opteum Mortgage Acceptance Corporation,
          Asset-Backed Pass-Through Certificates, Series 2005-1;

          b.   Assignee has full power and authority to execute, deliver and
          perform its obligations under this AAR Agreement, and to consummate
          the transactions set forth herein. The consummation of the
          transactions contemplated by this AAR Agreement is in the ordinary
          course of Assignee's business and will not conflict with, or result in
          a breach of, any of the terms, conditions or provisions of Assignee's
          charter or by-laws or any legal restriction, or any material agreement
          or instrument to which Assignee is now a party or by which it is
          bound, or result in the violation of any law, rule, regulation, order,
          judgment or decree to which Assignee or its property is subject. The
          execution, delivery and performance by Assignee of this AAR Agreement
          and the consummation by it of the transactions contemplated hereby,
          have been duly authorized by all necessary corporate action on part of
          Assignee. This AAR Agreement has been duly executed and delivered by
          Assignee and, upon the due authorization, execution and delivery by
          Assignor and the parties hereto, will constitute the valid and legally
          binding obligation of Assignee

                                      K-3
<PAGE>

          enforceable against Assignee in accordance with its terms except as
          enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in
          effect relating to creditors' rights generally, and by general
          principles of equity regardless of whether enforceability is
          considered in a proceeding in equity or at law;

          c.   No consent, approval, order or authorization of, or declaration,
          filing or registration with, any governmental entity is required to be
          obtained or made by Assignee in connection with the execution,
          delivery or performance by Assignee of this AAR Agreement, or the
          consummation by it of the transactions contemplated hereby;

          d.   There is no action, suit, proceeding, investigation or litigation
          pending or, to Assignee's knowledge, threatened, which either in any
          instance or in the aggregate, if determined adversely to Assignee,
          would adversely affect Assignee's execution or delivery of, or the
          enforceability of, this AAR Agreement, or the Assignee's ability to
          perform its obligations under this AAR Agreement; and

          e.   Assignee assumes for the benefit of each of Assignor and Company
          all of Assignor's rights under the Servicing Agreements but solely
          with respect to the Assigned Loans.

          4.   Company warrants and represents to, and covenants with, Assignee
          and Assignor, as of the date hereof, that:

          a.   Attached hereto as Attachment 2 are true and accurate copies of
          the Servicing Agreements, which agreements are in full force and
          effect as of the date hereof and the provisions of which have not been
          waived, amended or modified in any respect, nor has any notice of
          termination been given thereunder;

          b.   Company is duly organized, validly existing and in good standing
          under the laws of the jurisdiction of its formation, and has all
          requisite power and authority to service the Assigned Loans and
          otherwise to perform its obligations under the Servicing Agreements;

          c.   Company has full power and authority to execute, deliver and
          perform its obligations under this AAR Agreement, and to consummate
          the transactions set forth herein. The consummation of the
          transactions contemplated by this AAR Agreement is in the ordinary
          course of Company's business and will not conflict with, or result in
          a breach of, any of the terms, conditions or provisions of Company's
          charter or by-laws or any legal restriction, or any material agreement
          or instrument to which Company is now a party or by which it is bound,
          or result in the violation of any law, rule, regulation, order,
          judgment or decree to which Company or its property is subject. The
          execution, delivery and performance by Company of this AAR Agreement
          and the consummation by it of the transactions contemplated hereby,
          have been duly authorized by all necessary corporate action on part of
          Company. This AAR Agreement has been duly executed and delivered by
          Company, and, upon the due authorization, execution and delivery by
          Assignor and

                                      K-4
<PAGE>

          Assignee, will constitute the valid and legally binding obligation of
          Company, enforceable against Company in accordance with its terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in
          effect relating to creditors' rights generally, and by general
          principles of equity regardless of whether enforceability is
          considered in a proceeding in equity or at law;

          d.   No consent, approval, order or authorization of, or declaration,
          filing or registration with, any governmental entity is required to be
          obtained or made by Company in connection with the execution, delivery
          or performance by Company of this AAR Agreement, or the consummation
          by it of the transactions contemplated hereby;

          e.   Company shall establish a Custodial Account and an Escrow Account
          under the Servicing Agreements in favor of Assignee with respect to
          the Assigned Loans separate from the Custodial Account and Escrow
          Account previously established under the Servicing Agreements in favor
          of Assignor;

          f.   Pursuant to Section 6.01 of the Cenlar Servicing Agreement, the
          Company hereby restates the representations and warranties set forth
          in Section 6.01 of the Cenlar Servicing Agreement with respect to the
          Company; and

          g.   Neither this AAR Agreement nor any certification, statement,
          report or other agreement, document or instrument furnished or to be
          furnished by the Company pursuant to this AAR Agreement contains or
          will contain any materially untrue statement of fact or omits or will
          omit to state a fact necessary to make the statements contained
          therein not misleading.

          5.   Assignor hereby agrees to indemnify and hold the Assignee (and
          its successors and assigns) harmless against any and all claims,
          losses, penalties, fines, forfeitures, legal fees and related costs,
          judgments, and any other costs, fees and expenses that Assignee (and
          its successors and assigns) may sustain in any way related to any
          breach of the representations or warranties of Assignor set forth in
          this AAR Agreement or the breach of any covenant or condition
          contained herein.

RECOGNITION OF ASSIGNEE

          6.   From and after the date hereof, Company shall recognize Assignee
as owner of the Assigned Loans, and acknowledges that the Assigned Loans will be
part of a REMIC, and will service the Assigned Loans in accordance with the
Servicing Agreements but in no event in a manner that would (i) cause any REMIC
to fail to qualify as a REMIC or (ii) result in the imposition of a tax upon any
REMIC (including but not limited to the tax on prohibited transactions as
defined in Section 860F(a)(2) of the Code and the tax on contributions to a
REMIC set forth in Section 860G(d) of the Code). It is the intention of
Assignor, Company and Assignee that this AAR Agreement shall be binding upon and
for the benefit of the respective successors and assigns of the parties hereto.
Neither Company nor Assignor shall amend or agree to amend, modify, waiver, or
otherwise alter any of the terms or provisions of the Servicing

                                      K-5
<PAGE>

Agreements which amendment, modification, waiver or other alteration would in
any way affect the Assigned Loans without the prior written consent of Assignee.

         7.       Modification of Servicing Agreements:

         The Company and Assignor hereby amend the Option One Servicing
Agreement as follows:

         a.       The definition of "Custodial Account" shall be deleted and
         replaced with the following definition:

Custodial Account: The separate demand account or accounts created and
maintained pursuant to Section 4.04 which shall be entitled "Opteum Financial
Services, LLC Custodial Account in trust for HSBC Bank USA, National
Association, as trustee for the holders of Opteum Mortgage Acceptance
Corporation, Asset-Backed Pass-Through Certificates, Series 2005-1" and shall be
established at a Qualified Depository.

         b.       The definition of "Custodial Agreement" shall be amended by
         deleting the date "March 1, 2004" and replacing it with the date
         "January 1, 2005".

         c.       The definition of "Effective Date" shall be amended by
         deleting the date "March 5, 2004" and replacing it with the date
         "January 31, 2005".

         d.       The definition of "Escrow Account" shall be deleted and
         replaced with the following definition:

Escrow Account: The separate trust account or accounts created and maintained
pursuant to Section 4.06 which shall be entitled "Opteum Financial Services, LLC
Escrow Account in trust for HSBC Bank USA, National Association, as trustee for
the holders of Opteum Mortgage Acceptance Corporation, Asset-Backed Pass-Through
Certificates, Series 2005-1" and shall be established at a Qualified Depository.

         e.       The definition of "Mortgage Loan Schedule" shall be deleted
         and replaced with the following definition:

Mortgage Loan Schedule: The schedule of Mortgage Loans attached as Attachment 1
to the Assignment, Assumption and Recognition Agreement, dated as of January 31,
2005, among Opteum Mortgage Acceptance Corporation, HSBC Bank USA, National
Association, as trustee for the holders of Opteum Mortgage Acceptance
Corporation, Asset-Backed Pass-Through Certificates, Series 2005-1 and Opteum
Financial Services, LLC.

         f.       The definition of "Remittance Date" shall be amended by
         deleting the date "April 16, 2004" and replacing it with the date
         "February 18, 2005".

         g.       The following definitions shall be added to Section 1.01 of
         the Option One Servicing Agreement:

                                      K-6
<PAGE>

                  BALLOON MORTGAGE LOAN: A Mortgage Loan that provides for the
                  payment of the unamortized principal balance of such Mortgage
                  Loan in a single payment at the maturity of such Mortgage Loan
                  that is substantially greater than the preceding monthly
                  payment.

                  BALLOON PAYMENT: A payment of the unamortized principal
                  balance of a Mortgage Loan in a single payment at the maturity
                  of such Mortgage Loan that is substantially greater than the
                  preceding Monthly Payment.

         h.       The following sentence shall be added following the first
         sentence in Section 5.03 of the Option One Servicing Agreement:

                  For purposes of the preceding sentence, the Monthly Payment on
                  each Balloon Mortgage Loan with a delinquent Balloon Payment
                  is equal to the assumed monthly payment that would have been
                  due on the related Due Date based on the original principal
                  amortization schedule for the such Balloon Mortgage Loan.

         i.       Section 10.02 of the Option One Servicing Agreement shall be
deleted in its entirety.

         The Company and Assignor hereby amend the Cenlar Servicing Agreement as
follows:

         (a)      The following sentence shall be added following the first
sentence in Section 4.03 of the Cenlar Servicing Agreement:

                  For purposes of the preceding sentence, the Monthly Payment on
                  each Balloon Securitized Loan with a delinquent Balloon
                  Payment is equal to the assumed monthly payment that would
                  have been due on the related Due Date based on the original
                  principal amortization schedule for the such Balloon
                  Securitized Loan.

         b.       Subsection 7.04(d) of the Cenlar Servicing Agreement shall be
deleted in its entirety.

MISCELLANEOUS

         8.       All demands, notices and communications related to the
Assigned Loans, the Servicing Agreements and this AAR Agreement shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by registered mail, postage prepaid, as follows:

         a.       In the case of Company,
                  Opteum Financial Services, LLC
                  W. 115 Century Road
                  Paramus, New Jersey 07652

         b.       In the case of Assignor,
                  Opteum Mortgage Acceptance Corporation

                                      K-7
<PAGE>

                  W. 115 Century Road
                  Paramus, New Jersey 07652

         c.       In the case of Assignee,
                  HSBC Bank USA, National Association,
                  as Trustee
                  452 Fifth Avenue
                  New York, New York 10018
                  Attention: OMAC 2005-1
                  Telecopier No.: (212) 525-1300

         9.       The Company hereby acknowledges that Wells Fargo Bank, N.A.
(the "Master Servicer") has been appointed as the master servicer of the
Assigned Loans pursuant to the Pooling and Servicing Agreement, dated as of
January 1, 2005, among the Assignor, the Assignee and the Master Servicer, and
therefor has the right to enforce all obligations of the Company, as they relate
to the Assigned Loans, under the Servicing Agreements. Each reference to the
Owner in the Option One Servicing Agreement shall be a reference to the
Assignee. Such right will include, without limitation, the right to terminate
the Company under the Servicing Agreements upon the occurrence of an event of
default thereunder, the right to receive all remittances required to be made by
the Company under the Servicing Agreements, the right to receive all monthly
reports and other data required to be delivered by the Company under the
Servicing Agreements, the right to examine the books and records of the Company,
indemnification rights, and the right to exercise certain rights of consent and
approval relating to actions taken by the Company. The Company shall make all
distributions under the Servicing Agreements, as they relate to the Assigned
Loans, to the Master Servicer by wire transfer of immediately available funds
to:

                  OMAC  Trust 2005-1
                  Wells Fargo Bank, N.A.
                  ABA# 121000248
                  SAS Clearing
                  Account # 3970771416
                  For Further Credit to: OMAC  2005-1, Account # [________]

and the Company shall deliver all reports required to be delivered under the
Servicing Agreements, as they relate to the Assigned Loans, to the Assignee at
the address set forth in Section 8 herein and to the Master Servicer at:

                  Wells Fargo Bank, N.A.
                  9062 Old Annapolis Road
                  Columbia, Maryland 21045
                  Attention: OMAC  2005-1

         10.      THIS AAR AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE

                                      K-8
<PAGE>

PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         11.      No term or provision of this AAR Agreement may be waived or
modified unless such waiver or modification is in writing and signed by the
party against whom such waiver or modification is sought to be enforced.

         12.      This AAR Agreement shall inure to the benefit of the
successors and assigns of the parties hereto. Any entity into which Assignor,
Assignee or Company may be merged or consolidated shall, without the requirement
for any further writing, be deemed Assignor, Assignee or Company, respectively,
hereunder.

         13.      This AAR Agreement shall survive the conveyance of the
Assigned Loans, the assignment of the Servicing Agreements to the extent of the
Assigned Loans by Assignor to Assignee and the termination of the Servicing
Agreements.

         14.      This AAR Agreement may be executed simultaneously in any
number of counterparts. Each counterpart shall be deemed to be an original and
all such counterparts shall constitute one and the same instrument.

         15.      In the event that any provision of this AAR Agreement
conflicts with any provision of the Servicing Agreements with respect to the
Assigned Loans, the terms of this AAR Agreement shall control.

                                      K-9
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this AAR Agreement
on the date first above written.

<TABLE>
<CAPTION>
<S>                                                          <C>
OPTEUM MORTGAGE ACCEPTANCE CORPORATION,                      HSBC BANK USA, NATIONAL ASSOCIATION, as trustee for the
the Assignor                                                 holders  of  Opteum  Mortgage   Acceptance   Corporation,
                                                             Asset-Backed Pass-Through Certificates, Series 2005-1,
                                                             the Assignee

By:                                                          By:
   --------------------------------------------------           --------------------------------------------------
Its:                                                         Its:
    -------------------------------------------------            -------------------------------------------------
</TABLE>

OPTEUM FINANCIAL SERVICES, LLC,
The Company

By:
   --------------------------------------------------
Its:
    -------------------------------------------------

Acknowledged and Agreed:

WELLS FARGO BANK, N.A.

By:
   --------------------------------------------------
Its:
    -------------------------------------------------

                                      K-10
<PAGE>

                                  Attachment I

                                 Assigned Loans

                                      K-11
<PAGE>

                                  Attachment II

                              Servicing Agreements

                                      K-12
<PAGE>

                                   EXHIBIT L-1
            FORM CERTIFICATION TO BE PROVIDED BY THE MASTER SERVICER
                                 WITH FORM 10-K

                  Re:      Opteum Mortgage Acceptance Corporation,
                           Asset-Backed Pass-Through Certificates, Series 2005-1

                  I, [Identify the certifying individual], certify that:

                  1.       I have reviewed this annual report on Form 10-K, and
all reports on Form 8-K containing distribution or servicing reports filed in
respect of periods included in the year covered by this annual report, of Opteum
Mortgage Acceptance Corporation;

                  2.       Based on my knowledge, the information in these
reports, taken as a whole, does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading
as of the last day of the period covered by this annual report;

                  3.       Based on my knowledge, the distribution or servicing
information required to be provided to the trustee by the servicer under the
pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports;

                  4.       I am responsible for reviewing the activities
performed by the servicer under the pooling and servicing, or similar, agreement
and based upon my knowledge and the annual compliance review required under that
agreement, and except as disclosed in the reports, the servicer has fulfilled
its obligations under that agreement; and

                  5.       The reports disclose all significant deficiencies
relating to the servicer's compliance with the minimum servicing standards based
upon the report provided by an independent public accountant, after conducting a
review in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar procedure, as set forth in the pooling and servicing, or
similar, agreement, that is included in these reports.

         In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties: [the Trustee
and Sub-Servicers]

Date:
     -----------------------

----------------------------
[Signature]
[Title]
[Company]

                                      L-1-1
<PAGE>

                                   EXHIBIT L-2

                            FORM CERTIFICATION TO BE
                   PROVIDED TO MASTER SERVICER BY THE TRUSTEE

                  Re:      Opteum Mortgage Acceptance Corporation,
                           Asset-Backed Pass-Through Certificates, Series 2005-1

                  I, [Identify the certifying individual], a [______________] of
HSBC Bank USA, National Association, as Trustee, hereby certify to Wells Fargo
Bank, National Association and its officers, directors and affiliates, and with
the knowledge and intent that they will rely upon this certification, that:

                  1.       I have reviewed the annual report on Form 10-K for
the fiscal year [__], and all reports on Form 8-K containing distribution
reports filed in respect of periods included in the year covered by that annual
report, of the Issuer relating to the above-referenced trust;

                  2.       Based on my knowledge, the information in these
distribution reports prepared by the Trustee, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading as of the last day of the period
covered by that annual report; and

                  3.       Based on my knowledge, the distribution information
required to be provided by the Trustee under the Agreement is included in these
distribution reports.

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated January
1, 2005 (the "Agreement"), among Opteum Mortgage Acceptance Corporation, as
Company, Wells Fargo Bank, National Association, (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator"), and HSBC Bank USA, National Association, as Trustee.

                                        HSBC Bank USA, National Association, as
                                        Trustee

                                        By:__________________________
                                        Name:
                                        Title:
                                        Date:

                                      L-2-1
<PAGE>

                                   EXHIBIT L-3

                            FORM CERTIFICATION TO BE
                   PROVIDED TO MASTER SERVICER BY THE TRUSTEE

         Re:      Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-1

         I, [Identify the certifying individual], a [_________________] of HSBC
Bank USA, National Association, as Trustee, hereby certify to Wells Fargo Bank,
National Association and its officers, directors and affiliates, and with the
knowledge and intent that they will rely upon this certification, that:

         1.       Based on my knowledge, the distribution information required
to be provided by the Trustee under the Agreement is included in these
distribution reports.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated January 1, 2005
(the "Agreement"), among Opteum Mortgage Acceptance Corporation, as Company,
Wells Fargo Bank, National Association, (in such capacity, the "Master
Servicer") and as securities administrator (in such capacity, the "Securities
Administrator"), and HSBC Bank USA, National Association, as Trustee.

                                        HSBC Bank USA, National Association, as
                                        Trustee

                                        By:__________________________
                                        Name:
                                        Title:
                                        Date:

                                      L-3-1
<PAGE>

                                   EXHIBIT M-1
                           CENLAR SERVICING AGREEMENT

                       SERVICING AGREEMENT FOR ALT-A LOANS

         THIS SERVICING AGREEMENT (this "Agreement"), entered into as of the 5th
day of March, 2004, by and among HOME STAR MORTGAGE SERVICES, LLC, a Delaware
corporation ("Home Star"), in its capacity as seller (the "Seller"), Home Star,
in its capacity as servicer (the "Servicer") and WELLS FARGO BANK, NATIONAL
ASSOCIATION, as master servicer (the "Master Servicer"), recites and provides as
follows:

                                    RECITALS

         WHEREAS, Home Star owns and services certain residential Mortgage Loans
(the "Mortgage Loans");

         WHEREAS, CENLAR FSB, a federal savings bank (the "Sub-Servicer")
sub-services certain of the Mortgage Loans for Home Star pursuant to that
certain Sub-Servicing Agreement, dated as of March 1, 2004, by and between Home
Star and the Sub-Servicer, (the "Superseded Sub-Servicing Agreement");

         WHEREAS, Home Star, as Seller, from time to time may convey certain of
the Mortgage Loans, on a servicing-retained basis, to one or more Trusts, as
defined herein, under one or more Trust Agreements, as defined herein, in
connection with a Pass-Through Transfer, as defined herein, with Wells Fargo
Bank, National Association as the Master Servicer;

         WHEREAS, upon the Effective Date, as defined herein, of any such
Pass-Through Transfer, the Mortgage Loans shall become Securitized Loans, as
defined herein;

         WHEREAS, in connection with any such Pass-Through Transfer, the Seller
and the Master Servicer desire that the Servicer service any Securitized Loans
pursuant to this Agreement, and the Servicer has agreed to do so, subject to the
rights of the Seller and the Master Servicer to terminate the rights and
obligations of the Servicer hereunder as provided herein;

         WHEREAS, the Master Servicer shall be obligated under each Trust
Agreement, among other things, to supervise the servicing of the Securitized
Loans subject to the Trust Agreement on behalf of the related Trust, and shall
have the right to terminate the rights and obligations of the Servicer under
this Agreement or under the Agreement relating to specified Securitized Loans
upon the occurrence and continuance of an Event of Default as provided herein;

         WHEREAS, the Seller, the Servicer and the Master Servicer intend that
the NIMs Insurer and each Trustee be a third party beneficiary of this
Agreement;

         WHEREAS, the Seller and the Servicer acknowledge and agree that the
Seller will assign all of its rights and delegate all of its obligations
hereunder with regard to specified Securitized

                                     M-1-1
<PAGE>

Loans (exclusive of the Seller's rights and obligations as owner of the
servicing rights relating to such Securitized Loans) to the related Trust or
Trustee, and that each reference herein to the Seller with regard to specified
Securitized Loans is intended, unless otherwise specified, to mean the Seller or
such Trust or Trustee, as assignee of the specified Securitized Loans;

         WHEREAS, this Agreement shall supersede the Superseded Sub-Servicing
Agreement in its entirety with respect to any Securitized Loans;

         WHEREAS, the parties hereto mutually acknowledge and agree that,
pursuant to Section 7.04 of this Agreement, the Sub-Servicer will
contemporaneously herewith enter into a Sub-Servicing Acknowledgment Agreement
(the "Sub-Servicing Agreement") of even date herewith, pursuant to which the
Sub-Servicer will sub-service the Securitized Loans on behalf of the Servicer in
accordance with the terms of this Agreement and will have the benefit of certain
rights of the Servicer under this Agreement, other than those under Section 7.04
hereof.

         NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Master Servicer, the Seller and
the Servicer hereby agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

         The following terms are defined as follows (except as otherwise agreed
in writing by the parties):

         Accepted Servicing Practices: With respect to any Securitized Loan,
those mortgage servicing practices that prudent mortgage lending institutions
would employ in servicing their own portfolio of mortgage loans of the same type
as the Securitized Loans in the jurisdiction where the related Mortgaged
Property is located, giving due consideration to customary and usual standards
of practice of mortgage lenders and loan servicers administering similar
mortgage loans.

         Adjustable Rate Securitized Loan: A Securitized Loan under which the
Mortgage Interest Rate is adjusted from time to time in accordance with the
terms and provisions of the related Mortgage Note.

         Adverse REMIC Event: Taking (or causing to be taken) any action, or
failure to take (or failure to cause to be taken) any action, that, under the
REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger
the status of such REMIC as a REMIC or (ii) result in the imposition of a tax
upon such REMIC (including but not limited to the tax on prohibited transactions
as defined in Section 860F(a)(2) of the Code and the tax on prohibited
contributions set forth on Section 860G(d) of the Code).

         Advancing Person:  As defined in Section 4.03 hereof.

                                     M-1-2
<PAGE>

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

         Ancillary Income: All income derived from the Securitized Loans (other
than the (i) Servicing Fee or (ii) Prepayment Charges or Servicer Prepayment
Charge Payment Amounts attributable to the Securitized Loans), including but not
limited to late charges, penalty interest, any interest paid on funds deposited
in the Custodial Account and Escrow Account (other than interest on escrowed
funds required by law to be paid to the Mortgagor), fees received with respect
to checks or bank drafts returned by the related bank for non-sufficient funds,
assumption fees, modification fees, optional insurance administrative fees and
all other incidental fees and charges.

         Assignment of Mortgage: An assignment of a Mortgage, notice of transfer
or equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
transfer of such Mortgage to the party indicated therein, which assignment,
notice of transfer or equivalent instrument may be in the form of one or more
blanket assignments covering the Securitized Loans secured by Mortgaged
Properties located in the same jurisdiction, if permitted by law.

         Balloon Securitized Loan: Any Securitized Loan that by its original
terms or by virtue of any modification provides for an amortization schedule
extending beyond its originally scheduled Maturity Date and which has a final
scheduled payment that is proportionately large in comparison to other scheduled
payments.

         Balloon Payment: The final scheduled payment in respect of a Balloon
Securitized Loan.

         Business Day: Any day other than (i) a Saturday or Sunday or (ii) a day
on which banking and savings and loan institutions in the States of New York,
Maryland, Minnesota and, with respect to any Trust, the jurisdiction in which
the related Trustee conducts its trust business, are authorized or obligated by
law or executive order to be closed.

         Certificates: Any or all of the certificates or other securities issued
pursuant to a Trust Agreement.

         Certificate Registrar: The registrar appointed pursuant to the Trust
Agreement.

         Closing Date: The actual date of closing of any Pass-Through Transfer,
without regard to the Effective Date thereof.

         Code: The Internal Revenue Code of 1986, as it may be amended from time
to time or any successor statute thereto, and applicable U.S. Department of the
Treasury regulations issued pursuant thereto.

         Condemnation Proceeds: All awards of settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain or

                                     M-1-3
<PAGE>

condemnation, to the extent not required to be released to a Mortgagor in
accordance with the terms of the related Securitized Loan documents.

         Conventional Loan: A conventional residential first or second lien
fixed or adjustable rate Securitized Loan that is neither FHA insured nor VA
guaranteed.

         Costs: For any Person, any claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments,
and other costs and expenses of such Person.

         Credit Risk Manager: With respect to Securitized Loans covered by a
Trust Agreement, any credit risk manager or loss mitigation advisor under such
Trust Agreement.

         Custodial Account: The account created and maintained by the Servicer
pursuant to Section 3.03.

         Custodial Agreement: With respect to Securitized Loans covered by a
Trust Agreement, the custodial agreement relating to custody of such Securitized
Loans between a Custodian and the related Trustee, as acknowledged by the
Servicer, dated as of the related Effective Date.

         Custodian: A custodian of Securitized Loans under any Custodial
Agreement.

         Delinquent: For reporting purposes, a Securitized Loan is "delinquent"
when any payment contractually due thereon has not been made by the close of
business on the Due Date therefor. Such Securitized Loan is "30 days Delinquent"
if such payment has not been received by the close of business on the
corresponding day of the month immediately succeeding the month in which such
payment was first due, or, if there is not such corresponding day (e.g., as when
a 30-day month follows a 31-day month in which a payment was due on the 31st day
of such month), then on the last day of such immediately succeeding month.
Similarly for "60 days Delinquent" and the second immediately succeeding month
and "90 days Delinquent" and the third immediately succeeding month.

         Determination Date: With respect to each Remittance Date, the 15th day
of the month in which such Remittance Date occurs, or, if such 15th day is not a
Business Day, the immediately preceding Business Day.

         Depositor: With respect to Securitized Loans covered by a Trust
Agreement , the Person to which the Seller transfers Mortgage Loans, or any
successor in interest to such Person, which Person in turn transfers such
Mortgage Loans to a Trustee in a Pass-Through Transfer.

         Distressed Securitized Loan: As of any Effective Date, any related
Securitized Loan that was Delinquent in payment for a period of 90 days or more
as of the first calendar day of the month in which such Effective Date occurs,
without giving effect to any grace period permitted by the related Mortgage Note
or for which the Servicer has accepted a deed in lieu of foreclosure.

                                     M-1-4
<PAGE>

No Securitized Loan shall be considered delinquent for the purpose of this
definition by virtue of the related Mortgagor having made payment to the prior
servicer.

         Due Date: The day of the calendar month on which the Monthly Payment is
due on a Securitized Loan, exclusive of any days of grace. With respect to the
Securitized Loans for which payment from the Mortgagor is due on a day other
than the first day of the calendar month, such Securitized Loans will be treated
as if the Monthly Payment is due on the first day of the immediately succeeding
month.

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

         Effective Date: The effective date of any Pass-Through Transfer as set
forth in the Transfer Notice.

         Eligible Investments: Any one or more of the obligations and securities
listed below which investment provides for a date of maturity not later than the
Determination Date in each month:

                  (i)      direct obligations of, and obligations fully
guaranteed as to timely payment of principal and interest by, the United States
of America or any agency or instrumentality of the United States of America the
obligations of which are backed by the full faith and credit of the United
States of America, including Federal Housing Administration debentures, but
excluding any of such securities whose terms do not provide for a payment of a
fixed dollar amount upon maturity or call for redemption ("Direct Obligations")
and Freddie Mac senior debt obligations;

                  (ii)     federal funds, or demand and time deposits in,
certificates of deposits of, or bankers' acceptances issued by, any depository
institution or trust company (including U.S. subsidiaries of foreign
depositories, a Trustee, the Master Servicer or any agent of a Trustee or the
Master Servicer, acting in its respective commercial capacity) incorporated or
organized under the laws of the United States of America or any state thereof
and subject to supervision and examination by federal or state banking
authorities, so long as at the time of investment or the contractual commitment
providing for such investment the commercial paper or other short term debt
obligations of such depository institution or trust company (or, in the case of
a depository institution or trust company which is the principal subsidiary of a
holding company, the commercial paper or other short term debt or deposit
obligations of such holding company or deposit institution, as the case may be)
have been rated by each related Rating Agency in its highest short-term rating
category or one of its two highest long-term rating categories;

                  (iii)    repurchase agreements collateralized by direct
obligations of, or securities guaranteed by, Ginnie Mae or Freddie Mac with any
registered broker/dealer subject to Securities Investors' Protection Corporation
jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer
or bank has an uninsured, unsecured and unguaranteed obligation rated by each
related Rating Agency in its highest short-term rating category;

                                     M-1-5
<PAGE>

                  (iv)     securities bearing interest or sold at a discount
issued by any corporation incorporated under the laws of the United States of
America or any state thereof which have a credit rating from each related Rating
Agency, at the time of investment or the contractual commitment providing for
such investment, at least equal to one of the two highest long term credit
rating categories of each related Rating Agency; provided, however, that
securities issued by any particular corporation will not be Eligible Investments
to the extent that investment therein will cause the then outstanding principal
amount of securities issued by such corporation and held as part of the
Custodial Account to exceed 20% of the aggregate principal amount of all
Eligible Investments in the Custodial Account; provided, further, that such
securities will not be Eligible Investments if they are published as being under
review with negative implications from any Rating Agency;

                  (v)      commercial paper (including both non-interest-bearing
discount obligations and interest bearing obligations payable on demand or on a
specified date not more than 180 days after the date of issuance thereof) rated
by each related Rating Agency in its highest short-term rating category;

                  (vi)     a Qualified GIC (as defined in the Trust Agreement);

                  (vii)    certificates or receipts representing direct
ownership interests in future interest or principal payments on obligations of
the United States of America or its agencies or instrumentalities (which
obligations are backed by the full faith and credit of the United States of
America) held by a custodian in safekeeping on behalf of the holders of such
receipts; and

                  (viii)   any other demand, money market, common trust fund or
time deposit or obligation, or interest bearing or other security or investment,
rated in the highest rating category by each related Rating Agency. Such
investments in this subsection (viii) may include money market mutual funds or
common trust funds, including any fund for which a Trustee, the Master Servicer
or any affiliate thereof serves as an investment advisor, administrator,
shareholder servicing agent, and/or custodian or subcustodian, notwithstanding
that (x) the related Trustee, the Master Servicer or any affiliate thereof
charges and collects fees and expenses from such funds for services rendered,
(y) a Trustee, the Master Servicer or any affiliate thereof charges and collects
fees and expenses for services rendered pursuant to this Agreement or a Trust
Agreement, and (z) services performed for such funds and pursuant to this
Agreement may converge at any time;

provided, however, that no such instrument shall be an Eligible Investment if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations.

         Errors and Omissions Insurance: Errors and Omissions Insurance to be
maintained by the Servicer in accordance with the Master Servicing Guide.

                                     M-1-6
<PAGE>

         Escrow Account: The separate account or accounts created and maintained
pursuant to Section 3.05.

         Escrow Payments: With respect to any Securitized Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

         Event of Default: Any of the events which may result in a termination
for cause set forth in Section 8.01.

         Fannie Mae: The Federal National Mortgage Association, or any successor
thereto.

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

         FHA: The Federal Housing Administration, an agency within HUD or any
successor thereto and including the Federal Housing Commissioner and the
Secretary of HUD where appropriate under the FHA Regulation.

         Fidelity Bond: A fidelity bond to be maintained by the Servicer in
accordance with the Master Servicing Guide.

         Fixed Rate Securitized Loan: Any Securitized Loan as to which the
Mortgage Interest Rate set forth in the Mortgage Note is fixed for the term of
such Securitized Loan.

         Final Recovery Determination: With respect to any defaulted Securitized
Loan or any REO Property (other than any Securitized Loan or REO Property
repurchased from the Trust), a determination made by the Servicer that all
Insurance Proceeds, Liquidation Proceeds and other payments or recoveries which
the Servicer, in its reasonable good faith judgment, expect to be finally
recoverable in respect thereof have been so recovered.

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

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

         Ginnie Mae: The Government National Mortgage Association, or any
successor thereto.

         Holder or Certificateholder: The registered owner of any Certificate as
recorded on the books of the Certificate Registrar provided for in the related
Trust Agreement.

         Home Star: As defined in the first paragraph of this Agreement.

         Homestar Mortgage Securities Trusts: One or more trusts to be formed by
a Trust Agreement as part of a Pass-Through Transfer, pursuant to each of which
a numbered series of Certificates will be issued.

                                     M-1-7
<PAGE>

         HUD: The Department of Housing and Urban Development, or any federal
agency or official thereof which may from time to time succeed to the functions
thereof with regard to FHA Mortgage Insurance. The term "HUD," for purposes of
this Agreement, is also deemed to include subdivisions thereof such as the FHA
and Ginnie Mae.

         Insurance Proceeds: With respect to each Securitized Loan, proceeds of
insurance policies insuring the Securitized Loan or the related Mortgaged
Property, including, but not limited to, proceeds from any PMI Policy, to the
extent any such proceeds are not to be applied to the restoration and repair of
the related Mortgaged Property or released to the Mortgagor in accordance with
the procedures that the Servicer would follow in servicing mortgage loans for
its own account, subject to the terms and conditions of the related Mortgage
Note and Mortgage.

         Issuer: The issuer of any Certificates pursuant to the Trust Agreement.

         LIBOR: The three-month London InterBank Offered Rate as published in
the Wall Street Journal on the first Business Day of the month of any Remittance
Date.

         Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Securitized Loan, whether through the sale or assignment of such
Securitized Loan, trustee's sale, foreclosure sale or otherwise, or the sale of
the related REO Property, if the Mortgaged Property is acquired in satisfaction
of the Securitized Loan.

         Master Servicer: With respect to each Trust Agreement, Wells Fargo
Bank, National Association, or any successor in interest, or if any successor
Master Servicer shall be appointed as provided in such Trust Agreement, then
such successor Master Servicer.

         Master Servicing Guide: The Wells Fargo Bank, N.A. Master Servicing
Guide, original dated January, 1997, as amended July, 2001, and all amendments
or additions thereto, including as amended hereby.

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.

         MERS Eligible Securitized Loan: Any Securitized Loan that has been
designated by the Servicer as recordable in the name of MERS, as nominee.

         MERS Securitized Loan: Any Securitized Loan as to which the related
Mortgage, or an Assignment of Mortgage, has been or will be recorded in the name
of MERS, as nominee for the holder from time to time of the related Mortgage
Note.

         Monthly Advance: With respect to each Remittance Date and each
Securitized Loan, an amount equal to the Monthly Payment (with the interest
portion of such Monthly Payment adjusted to the Securitized Loan Remittance
Rate) that was due on the Securitized Loan, and that was Delinquent at the close
of business on the first day of the month in which such Remittance Date occurs,
but only to the extent that such amount is expected, in the reasonable judgment
of

                                     M-1-8
<PAGE>

the Servicer, to be recoverable from collections or other recoveries (including
Liquidation Proceeds and Insurance Proceeds) in respect of such Securitized
Loan. To the extent that the Servicer determines that any such amount is not
recoverable from collections or other recoveries in respect of such Securitized
Loan, such determination shall be evidenced by a certificate of a Servicing
Officer delivered to the Master Servicer setting forth such determination and
the procedures and considerations of the Servicer forming the basis of such
determination.

         Monthly Payment: The scheduled monthly payment of principal and
interest on a Securitized Loan.

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

         Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a first or second lien on a fee simple estate in
real property securing the Mortgage Note.

         Mortgage Interest Rate: The annual rate of interest borne on a Mortgage
Note net of any Relief Act Reduction.

         Mortgage Note: The original, executed note or other evidence of the
indebtedness of a Mortgagor secured by a Mortgage.

         Mortgaged Property: The real property securing repayment of the debt
evidenced by a Mortgage Note.

         Mortgagor: The obligor on a Mortgage Note.

         Net Sale Proceeds: The proceeds from the sale of REO Property, net of
all expenses and advances incurred by the Servicer in connection with such sale,
including, without limitation, legal fees and expenses, referral fees, brokerage
commissions, conveyance taxes and any other related expense.

         Non-MERS Eligible Securitized Loan: Any Securitized Loan other than a
MERS Eligible Securitized Loan.

         Non-MERS Securitized Loan: Any Securitized Loan other than a MERS
Securitized Loan.

         Officer's Certificate: A certificate signed by the Chairman of the
Board, the President or a vice president (however denominated), and by the
Treasurer, the Secretary, or one of the assistant treasurers or assistant
secretaries of the Servicer, the Master Servicer or the Seller, as applicable.

         Opinion of Counsel: A written opinion of counsel, who may be an
employee of the Servicer, reasonably acceptable to the related Trustee, the
Master Servicer, and the Seller, provided that any Opinion of Counsel relating
to qualification of the Securitized Loans in a REMIC or compliance with the
REMIC Provisions must be an opinion of counsel acceptable to

                                     M-1-9
<PAGE>

the related Trustee, the Master Servicer, and the Seller, who (i) is in fact
independent of the Seller and the Servicer, (ii) does not have any material
direct or indirect financial interest in either the Seller or the Servicer or
any affiliate of any such entity and (iii) is not connected with either the
Seller or the Servicer as an officer, employee, director or person performing
similar functions.

         Pass-Through Transfer: The sale or transfer by Home Star of some or all
of the Securitized Loans to a Depositor for transfer to a Trust to be formed as
part of a publicly-issued and/or privately placed, rated or unrated, mortgage
pass-through transaction or similar transaction, in each case in which Home Star
is retained as a Servicer thereunder, with Wells Fargo Bank, National
Association as the Master Servicer.

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

         PMI Insurer: Any Qualified Insurer issuing a PMI Policy with respect to
a Securitized Loan.

         PMI Policy: A policy of primary mortgage guaranty insurance issued by a
Qualified Insurer, as required by this Agreement and the Trust Agreement with
respect to certain Securitized Loans.

         Prepayment Charge: With respect to any Securitized Loan and Remittance
Date, the charges or premiums, as specified in the Prepayment Charge Schedule,
if any, due in connection with a full or partial prepayment of such Securitized
Loan during the immediately preceding Prepayment Period in accordance with the
terms thereof (but excluding any Servicer Prepayment Charge Payment Amount).

         Prepayment Charge Schedule: A data field in the schedule of Securitized
Loans to be attached to the Transfer Notice, the form of which is attached
hereto as Exhibit A, which sets forth the amount of the Prepayment Charge and
the term during which the Prepayment Charge is imposed with respect to a
Securitized Loan.

         Prepayment Interest Shortfall Amount: With respect to any Securitized
Loan that was subject to a Principal Prepayment in full or in part during any
Due Period, which Principal Prepayment was applied to such Securitized Loan
prior to such Securitized Loan's Due Date in such Due Period, the amount of
interest that would have accrued on the amount of such Principal Prepayment
during the period commencing on the date as of which such Principal Prepayment
was applied to such Securitized Loan and ending on the day immediately preceding
such Due Date, inclusive.

         Prepayment Period: With respect to each Remittance Date and any full or
partial Principal Prepayments, the calendar month immediately preceding the
month in which the related Remittance Date occurs.

                                     M-1-10
<PAGE>

         Principal Prepayment: Any payment by a Mortgagor of principal (other
than a Balloon Payment) or other recovery of principal on a Securitized Loan
that is recognized as having been received or recovered in advance of its
scheduled Due Date and applied to reduce the principal balance of the
Securitized Loan in accordance with the terms of the Mortgage Note.

         Qualified Depository: With respect to each Pass-Through Transfer, any
of (i) a depository the accounts of which are insured by the FDIC (to the limits
established by such corporation) and the debt obligations of which are rated P-1
(or its equivalent) or better by each Rating Agency rating the related
Certificates; or (ii) the corporate trust department of any bank the debt
obligations of which are rated A-2 (or its equivalent) or better by each such
Rating Agency.

         Qualified Insurer: A mortgage guaranty insurance company duly
authorized and licensed where required by law to transact mortgage guaranty
insurance business and approved as an insurer by Freddie Mac and Fannie Mae.

         Qualifying Substitute Mortgage Loan: A mortgage loan permitted under
the terms of a Trust Agreement to be substituted for a related Securitized Loan.

         Rating Agency: With respect to Certificates issued by or in connection
with a Trust, any of Fitch, Moody's or S&P which assigns a rating to such
Certificates, and their successors. If such agencies or their successors are no
longer in existence, "Rating Agencies" shall be such nationally recognized
statistical rating agencies, or other comparable Person, designated by the
Seller, written notice of which designation shall be given to the related
Trustee, the Master Servicer and the Servicer.

         Relief Act Reduction: With respect to any Securitized Loan as to which
there has been a reduction in the amount of the interest collectible thereon as
a result of the application of the Servicemembers Civil Relief Act, any amount
by which interest collectible on such Securitized Loan for the Due Date in the
related Due Period is less than the interest accrued thereon for the applicable
one-month period at the Mortgage Interest Rate without giving effect to such
reduction.

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

         Remittance Date: The 18th day (or if such 18th day is not a Business
Day, the first Business Day immediately preceding Business Day) of any calendar
month.

         REO Disposition: The final sale or other disposition by the Servicer of
any REO Property.

         REO Disposition Proceeds: All amounts received with respect to an REO
Disposition pursuant to Section 3.12.

                                     M-1-11
<PAGE>

         REO Property: A Mortgaged Property acquired by the Servicer on behalf
of the Trust through foreclosure or by deed in lieu of foreclosure pursuant to
Section 3.12 hereof.

         Residual Certificate: Any residual certificate or "Class R" Certificate
issued under any Trust Agreement.

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

         Securitized Loan: An individual Mortgage Loan that from time to time
becomes subject to this Agreement pursuant to a Pass-Through Transfer, each
Securitized Loan subject to this Agreement being identified on a schedule to the
Transfer Notice, the form of which is attached as Exhibit A hereto, which
Securitized Loan includes without limitation the Securitized Loan documents, the
Monthly Payments, Principal Prepayments, Liquidation Proceeds, Condemnation
Proceeds, Insurance Proceeds, REO Disposition Proceeds, and all other rights,
benefits, proceeds and obligations arising from or in connection with such
Securitized Loan.

         Securitized Loan Remittance Rate: With respect to each Securitized
Loan, the annual rate of interest remitted to the Master Servicer, which shall
be equal to the Mortgage Interest Rate minus the Servicing Fee Rate.

         Securitized Loan Schedule: The schedule of Securitized Loans to be
attached to the Transfer Notice, a form of which is attached hereto as Exhibit
A, setting forth information with respect to such Securitized Loans as agreed to
by the Seller, the Servicer and the Master Servicer, including, but not limited
to (i) any MERS identification number (if available) with respect to each MERS
Securitized Loan or MERS Eligible Securitized Loan, (ii) a data field indicating
whether such Securitized Loan is insured under a PMI Policy and identifying the
related Qualified Insurer, (iii) a Prepayment Charge Schedule and (iv) the
Servicing Fee Rate.

         Servicer: Home Star or its successor in interest or assigns or any
successor to the Servicer under this Agreement as herein provided.

         Servicer Prepayment Charge Payment Amount: The amount payable by the
Servicer in respect of any waived Prepayment Charges pursuant to Section 3.15
hereof.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses other than Monthly Advances (including reasonable
attorneys' fees and disbursements) incurred in the performance by the Servicer
of its servicing obligations, including, but not limited to, the cost of (a) the
preservation, inspection, restoration and protection of the Mortgaged Property,
(b) any enforcement of administrative or judicial proceedings, including
foreclosures, (c) the management and liquidation of the Mortgaged Property
(including costs incurred in connection with environmental inspections or other
related costs of foreclosure of Mortgaged Property potentially contaminated by
hazardous or toxic substance or wastes in accordance with Section 3.12 hereof)
if the Mortgaged Property is acquired in satisfaction of the Mortgage, (d)
taxes, assessments, water rates, sewer rents and other charges which are or may
become a lien

                                     M-1-12
<PAGE>

upon the Mortgaged Property, and PMI Policy premiums and fire and hazard
insurance coverage and (e) any losses sustained by the Servicer with respect to
the liquidation of the Mortgaged Property.

         Servicing Fee: With respect to each Due Period and any Securitized
Loan, an amount equal to one-twelfth the product of (i) the Servicing Fee Rate
and (ii) the Scheduled Balance of such Securitized Loan as of the related
Determination Date. The obligation of the Trustee to pay the Servicing Fee is
limited to, and the Servicing Fee is payable solely from, the interest portion
(including recoveries with respect to interest from Liquidation Proceeds to the
extent permitted by Section 3.02 of this Agreement) of such Monthly Payments
collected by the Servicer, or as otherwise provided under this Agreement, and
the Servicing Fee is subject to reduction for compensating interest under
Section 4.04 hereof.

         Servicing Fee Rate: The servicing fee rate, stated as either a number
of basis points or as a percentage, for each Securitized Loan, as reflected in
the schedule of Securitized Loans to be attached to the Transfer Notice, the
form of which is attached hereto as Exhibit A.

         Servicing File: The items pertaining to a particular Securitized Loan
including, but not limited to, the computer files, data disks, books, records,
data tapes, notes, and all additional documents generated as a result of or
utilized in originating and/or servicing each Securitized Loan, which are held
in trust for the related Trust by the Servicer.

         Servicing Officer: Any officer of the Servicer involved in or
responsible for, the administration and servicing of the Securitized Loans whose
name appears on a list of servicing officers furnished by the Servicer to the
Master Servicer upon request, as such list may from time to time be amended.

         Sub-Servicer: Cenlar FSB, a federal savings bank, pursuant to the
Sub-Servicing Agreement, or its successor in interest.

         Sub-Servicing Agreement: That certain Sub-Servicing Acknowledgment
Agreement of even date with this Agreement, by and between the Servicer and the
Sub-Servicer.

         Superseded Sub-Servicing Agreement: That certain Sub-Servicing
Agreement, dated as of March 1, 2004, by and between Home Star and the
Sub-Servicer.

         Transfer Notice: The Transfer Notice referred to in Section 2.01
hereof, in the form attached hereto as Exhibit A.

         Trust: The trust established by the Trust Agreement, the assets of
which consist of the transferred Securitized Loans and any other assets provided
for in the related Trust Agreement.

         Trust Agreement: Any trust agreement, pooling and servicing agreement,
indenture or comparable documents by and among some or all of the Issuer, the
Master Servicer, the Depositor

                                     M-1-13
<PAGE>

and a Trustee (and which may include other parties) creating a Trust and/or
otherwise effectuating a Pass-Through Transfer.

         Trustee: Any trustee or trust with respect to the transferred
Securitized Loans in any Pass-Through Transfer, or any successor in interest, or
if any successor trustee or co-trustee shall be appointed as provided in the
Trust Agreement, then such successor trustee or such co-trustee, as the case may
be.

         VA: The Veterans Administration, an agency of the United States of
America, or any successor thereto, including the Administration of Veterans
Affairs.

         Any capitalized terms used and not defined in this Agreement shall have
the meanings ascribed to such terms in the related Trust Agreement specified in
the Transfer Notice.

                                     M-1-14
<PAGE>

                                   ARTICLE II.

           PASS- THROUGH TRANSFERS; SELLER'S ENGAGEMENT OF SERVICER TO
                       PERFORM SERVICING RESPONSIBILITIES

         Section 2.01 Pass-Through Transfers.

         (a)      The Seller and the Servicer agree that from time to time the
Seller shall effect the sale or transfer of some or all of the Mortgage Loans to
a Trust to be formed as part of a Pass-Through Transfer. The Servicer shall
cooperate with the Seller in connection with any Pass-Through Transfer
contemplated by the Seller pursuant to this Section 2.01, including without
limitation providing requested information and reports to, and otherwise
cooperating with, any Credit Risk Manager. In connection therewith, the Servicer
shall provide to the Seller and any Trustee, Trust, Depositor, underwriter,
initial purchaser, NIMs Insurer or Credit Risk Manager in connection with a
Pass-Through Transfer, as the case may be: (i) any and all information and
appropriate verification of information which may be reasonably available to the
Servicer, including the Servicer's foreclosure, delinquency experience and the
Servicer's underwriting standards, whether through letters of its auditors and
counsel or otherwise, as such parties shall reasonably request; and (ii) such
additional representations, warranties, covenants, opinions of counsel, letters
from auditors, and certificates of public officials or officers of the Servicer
as are reasonably believed necessary by the Seller and any Trustee, Trust,
Depositor, underwriter, initial purchaser, NIMs Insurer or Credit Risk Manager,
as the case may be, in connection with such Pass-Through Transfer. The Servicer
shall indemnify the Depositor for any material misstatements or omissions or
alleged material misstatements or omissions contained in the information
provided pursuant to this Section 2.01(a). The Seller shall provide the Servicer
with a Transfer Notice with respect to any such Pass-Through Transfer, including
a schedule of Mortgage Loans which have been transferred, the Effective Date of
the Pass-Through Transfer and the name and address of the related Trustee. Upon
the Effective Date of such a Pass-Through Transfer, (A) the Servicer and the
Seller agree that the provisions of this Agreement shall go into effect with
respect to the Securitized Loans to which the Transfer Notice relates, and (B)
the Servicer agrees to recognize the Trustee and Trust with respect to the
transferred Mortgage Loans in the Pass-Through Transfer, or the Master Servicer
acting on their behalf, as having the same rights under this Agreement as the
Seller with respect to such transferred Mortgage Loans, including without
limitation the right to terminate the Servicer under this Agreement.

         Section 2.02 Contract for Servicing; Possession of Servicing Files.

         The Seller, by execution and delivery of this Agreement, does hereby
contract with the Servicer, subject to the terms of this Agreement, for the
servicing of the Securitized Loans. On or before each Closing Date, the Seller
shall cause to be delivered to the Servicer or to the Sub-Servicer the Servicing
Files with respect to the Securitized Loans listed in the schedule attached to
the applicable Transfer Notice. Each Servicing File delivered to the Servicer
shall be held in trust by the Servicer for the benefit of the Trust; provided,
however, that the Servicer shall have no liability for any Servicing Files (or
portions thereof) not delivered by the Seller. The Servicer's possession of any
portion of the Securitized Loan documents shall be on behalf of the

                                     M-1-15
<PAGE>

Trust for the sole purpose of facilitating servicing of the related Securitized
Loan pursuant to this Agreement, and such retention and possession by the
Servicer shall be in a custodial capacity only. The ownership of each Mortgage
Note, Mortgage, and the contents of the Servicing File shall be vested in the
Trust and the ownership of all records and documents with respect to the related
Securitized Loan prepared by or which come into the possession of the Servicer
shall immediately vest in the Trust and shall be retained and maintained, in
trust, by the Servicer on behalf of the Trust in such custodial capacity only.
The portion of each Servicing File retained by the Servicer pursuant to this
Agreement shall be segregated from the other books and records of the Servicer
and shall be appropriately marked to clearly reflect the ownership of the
related Securitized Loan by the Trust. The Servicer shall release from its
custody the contents of any Servicing File retained by it only in accordance
with this Agreement.

         Section 2.03 Books and Records.

         (a)      Subject to Section 3.01(a) hereof, as soon as practicable
after the Closing Date or the date on which a Qualifying Substitute Mortgage
Loan is delivered pursuant to a Trust Agreement, as applicable (but in no event
more than 90 days thereafter except to the extent delays are caused by the
applicable recording office), the Servicer, at the expense of the Seller, shall
cause the Mortgage or Assignment of Mortgage, as applicable, with respect to
each related MERS Eligible Securitized Loan, to be properly recorded in the name
of MERS in the public recording office in the applicable jurisdiction, or shall
ascertain that such have previously been so recorded.

         (b)      Subject to Section 3.01(a) hereof, an Assignment of Mortgage
in favor of the Trustee on behalf of the Trust shall be recorded as to each
Non-MERS Securitized Loan, unless instructions to the contrary are delivered to
the Servicer, in writing, by the Trustee, or the Servicer obtains an Opinion of
Counsel that recordation of such Assignment of Mortgage is not required. Subject
to the preceding sentence, as soon as practicable after the Closing Date (but in
no event more than 90 days thereafter except to the extent delays are caused by
the applicable recording office), the Servicer, at the expense of the Seller,
shall cause such related Assignment of Mortgage to be properly recorded in each
public recording office where such Non-MERS Eligible Securitized Loans are
recorded, unless the Servicer obtains an Opinion of Counsel that recordation of
such an Assignment of Mortgage is not required.

         (c)      Additionally, the Servicer shall prepare and execute, at the
direction of the Trustee, any note endorsements relating to any of the related
Non-MERS Securitized Loans.

         (d)      All rights arising out of the Securitized Loans shall be
vested in the related Trust, subject to the Servicer's right to service and
administer the Securitized Loans hereunder in accordance with the terms of this
Agreement. All funds received on or in connection with a Securitized Loan, other
than the Servicing Fee and other compensation to which the Servicer is entitled
as set forth herein, including but not limited to that compensation as set forth
in Section 5.01 below, shall be received and held by the Servicer in trust for
the benefit of the related Trust pursuant to the terms of this Agreement.

                                     M-1-16
<PAGE>

         (e)      Any out-of-pocket costs incurred by the Servicer pursuant to
this Section 2.03 and Section 3.01(a), including any recording or other fees in
connection with the Servicer's obtaining the necessary powers of attorney (and
which are specified herein to be an expense of the Seller), shall be reimbursed
to the Servicer by the Seller within five (5) Business Days of receipt by the
Seller of an invoice for reimbursement. The Trust shall not reimburse the Seller
for any such reimbursement to the Servicer.

                                  ARTICLE III.

                       SERVICING OF THE SECURITIZED LOANS

         Section 3.01 Servicer to Service.

         The Servicer, as an independent contractor, shall service and
administer the Securitized Loans from and after the Closing Date and shall have
full power and authority, acting alone, to do any and all things in connection
with such servicing and administration which the Servicer may deem necessary or
desirable, consistent with the terms of this Agreement and with Accepted
Servicing Practices. The Servicer may designate the sub-servicer to perform the
obligations hereunder, provided that such designation shall not relieve the
Servicer of such obligations.

         The Seller and the Servicer additionally agree as follows:

         (a)      The Servicer shall (A) record or cause to be recorded the
Mortgage or the Assignment of Mortgage, as applicable, with respect to all MERS
Eligible Securitized Loans, in the name of MERS, or shall ascertain that such
have previously been so recorded; (B) prepare or cause to be prepared all
Assignments of Mortgage with respect to all Non-MERS Eligible Securitized Loans;
(C) prepare for recording or cause to be recorded, subject to Section 2.03(b)
hereof, all Assignments of Mortgage with respect to Non-MERS Securitized Loans
in the name of the related Trust; (D) pay the recording costs pursuant to
Section 2.03 hereof; and/or (E) track such Mortgages and Assignments of Mortgage
to ensure they have been recorded. The Servicer shall be entitled to be paid by
the Seller its out-of-pocket costs for the preparation and recordation of the
Mortgages and Assignments of Mortgage. After the expenses of such recording
costs pursuant to Section 2.03 hereof shall have been paid by the Servicer, the
Servicer shall submit to the Seller a reasonably detailed invoice for
reimbursement of recording costs it incurred hereunder.

         (b)      If applicable, the Servicer shall, in accordance with the
relevant provisions of the Cranston-Gonzales National Affordable Housing Act of
1990, as the same may be amended from time to time, and the regulations provided
in accordance with the Real Estate Settlement Procedures Act, provide notice to
the Mortgagor of each Securitized Loan of the transfer of the servicing thereto
to the Servicer.

         (c)      The Servicer shall be responsible for the preparation of and
costs associated with notifications to Mortgagors of the assumption of servicing
by the Servicer.

                                     M-1-17
<PAGE>

         Consistent with the terms of this Agreement and except as provided in
Section 3.15 hereof, the Servicer may waive any late payment charge, assumption
fee or other fee (other than a Prepayment Charge) that may be collected in the
ordinary course of servicing the Securitized Loans. The Servicer shall not make
any future advances to any Mortgagor under any Securitized Loan, and (unless the
Mortgagor is in default with respect to the Securitized Loan or such default is,
in the judgment of the Servicer, reasonably foreseeable) the Servicer shall not
permit any modification of any material term of any Securitized Loan, including
any modification that would change the Mortgage Interest Rate, defer or forgive
the payment of principal or interest, reduce or increase the outstanding
principal balance (except for actual payments of principal) or change the final
maturity date on such Securitized Loan. The NIMs Insurer's prior written consent
shall be required for any modification, waiver or amendment if the aggregate
number of outstanding Securitized Loans which have been modified, waived or
amended exceeds 5% of the number of Securitized Loans in the related Trust as of
the Effective Date. In the event of any such modification which permits the
deferral of interest or principal payments on any Securitized Loan, the Servicer
shall, on the Business Day immediately preceding the Remittance Date in any
month in which any such principal or interest payment has been deferred, make a
Monthly Advance in accordance with Section 4.03, in an amount equal to the
difference between (a) such month's principal and one month's interest at the
Securitized Loan Remittance Rate on the unpaid principal balance of such
Securitized Loan and (b) the amount paid by the Mortgagor. The Servicer shall be
entitled to reimbursement for such advances to the same extent as for all other
advances made pursuant to Section 4.03. The Servicer may permit modifications to
a Securitized Loan, with the consent of the NIMs Insurer, which are authorized
by the express terms of either an allonge to the related Mortgage Note or an
addendum to the related Mortgage in existence as of the Effective Date. If Home
Star wishes to make a modification to a Securitized Loan which is not permitted
under this Section 3.01, then Home Star must repurchase such Securitized Loan
from the related Trust on the terms and conditions provided in the Trust
Agreement. Without limiting the generality of the foregoing, the Servicer shall
continue, and is hereby authorized and empowered, to execute and deliver on
behalf of itself and the related Trust, all instruments of satisfaction or
cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Securitized Loans and with respect to the
Mortgaged Properties. Upon the written request of the Servicer, the Trustee
shall execute and deliver to the Servicer, within the later of fifteen days from
the Closing Date or within fifteen days of such Servicer request, any powers of
attorney (one for each county in which any of the Mortgaged Properties are
located) and other documents, furnished to it by the Servicer and reasonably
satisfactory to the Trustee, necessary or appropriate to enable the Servicer to
carry out its servicing and administrative duties under this Agreement.

         Notwithstanding anything in this Agreement to the contrary, the
Servicer (a) shall not permit any modification with respect to any Mortgage Loan
that would change the Mortgage Interest Rate and (b) shall not (unless the
Mortgagor is in default with respect to the Mortgage Loan or such default is, in
the judgment of the Servicer, reasonably foreseeable) make or permit any
modification, waiver or amendment of any term of any Mortgage Loan that would
both (i) effect an exchange or reissuance of such Mortgage Loan under Section
1001 of the Code (or Treasury regulations promulgated thereunder) and (ii) cause
the Trust Fund to fail to qualify as a

                                     M-1-18
<PAGE>

REMIC under the Code or the imposition of any tax on "prohibited transactions"
or "contributions" after the startup date under the REMIC Provisions.

         Prior to taking any action with respect to the Mortgage Loans which is
not contemplated under the terms of this Agreement, the Servicer will obtain an
Opinion of Counsel acceptable to the NIMs Insurer and the Trustee or the Master
Servicer on its behalf with respect to whether such action could result in the
imposition of a tax upon the REMIC (including but not limited to the tax on
prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax
on contributions to a REMIC set forth in Section 860G(d) of the Code) (either
such event, an "Adverse REMIC Event"), and the Servicer shall not take any such
action or cause the Trust Fund to take any such action as to which it has been
advised that an Adverse REMIC Event could occur.

         The Servicer shall not permit the creation of any "interests" (within
the meaning of Section 860G of the Code) in the REMIC. The Servicer shall not
enter into any arrangement by which the REMIC will receive a fee or other
compensation for services nor permit the REMIC to receive any income from assets
other than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.

         Section 3.02 Collection of Securitized Loan Payments.

         Continuously from the Closing Date until the date each Securitized Loan
ceases to be subject to this Agreement, the Servicer shall proceed diligently to
collect all payments due under each of the Securitized Loans when the same shall
become due and payable and shall take special care in ascertaining and
estimating Escrow Payments and all other charges that will become due and
payable with respect to the Securitized Loans and each related Mortgaged
Property, to the end that the installments payable by the Mortgagors will be
sufficient to pay such charges as and when they become due and payable.

         Section 3.03 Establishment of and Deposits to Custodial Account.

         (a)      The Servicer shall segregate and hold all funds collected and
received pursuant to the Securitized Loans separate and apart from any of its
own funds and general assets and shall establish and maintain for each related
Trust a Custodial Account, in the form of a time deposit or demand account,
titled "Home Star Mortgage Services, LLC in trust for [Name of Trust]." The
Custodial Account shall be established with a Qualified Depository. Any funds
deposited in the Custodial Account may be invested in Eligible Investments
subject to the provisions of Section 3.11 hereof. Funds deposited in the
Custodial Account may be drawn on by the Servicer in accordance with Section
3.04 hereof. The creation of the Custodial Account shall be evidenced by a
letter agreement in the form of Exhibit B. A copy of such letter agreement shall
be furnished to each Trustee, each NIMS Insurer and the Master Servicer. The
NIMs Insurer and the Trustee shall also be notified of any change in the
location of the Custodial Account.

                                     M-1-19
<PAGE>

         (b)      The Servicer shall deposit in the Custodial Account on a daily
basis, and retain therein, the following collections received by the Servicer
and payments made by the Servicer after the Closing Date:

                  (i)      all payments on account of principal received on the
Securitized Loans, including all Principal Prepayments;

                  (ii)     all payments on account of interest received on the
Securitized Loans adjusted to the applicable Securitized Loan Remittance Rate;

                  (iii)    all Prepayment Charges received or any Servicer
Prepayment Charge Payment Amounts to be paid by the Servicer to the related
Trust;

                  (iv)     all Liquidation Proceeds;

                  (v)      all Insurance Proceeds (other than any amounts
immediately applied to the restoration or repair of the Mortgaged Property or
immediately released to the Mortgagor);

                  (vi)     all Condemnation Proceeds that are not applied to the
restoration or repair of the Mortgaged Property or released to the Mortgagor;

                  (vii)    any Prepayment Interest Shortfall Amount required to
be paid by the Servicer pursuant to Section 4.04;

                  (viii)   all Monthly Advances made by the Servicer or an
Advancing Person pursuant to Section 4.03;

                  (ix)     any amounts required to be deposited by the Servicer
in connection with the deductible clause in any blanket hazard insurance policy;

                  (x)      any amounts received with respect to or related to
any REO Property or REO Disposition Proceeds;

                  (xi)     any amounts required to be deposited pursuant to
Section 3.11 in connection with any losses realized on Eligible Investments with
respect to funds held in the Custodial Account;

                  (xii)    any amounts required to be deposited by the Servicer
pursuant to Section 3.16(a) in connection with any unpaid claims that are a
result of a breach by the Servicer or any sub-servicer of its obligations
hereunder or under a PMI Policy;

                  (xiii)   any amounts received by it under any PMI Policy; and

                  (xiv)    any other amount required hereunder to be deposited
by the Servicer in the Custodial Account.

                                     M-1-20
<PAGE>

         Notwithstanding the foregoing clause (viii), no Monthly Advances or
Servicing Advances shall be required to be made by the Servicer if such Monthly
Advance or Servicing Advance would, if made, be, in the Servicer's reasonable
judgment, nonrecoverable. The determination by the Servicer that it has made a
nonrecoverable Monthly Advance or Servicing Advance, or that any proposed
Monthly Advance or Servicing Advance would be a nonrecoverable advance, shall be
evidenced by an Officer's Certificate of the Servicer delivered to the Master
Servicer and the NIMs Insurer.

         The foregoing requirements for deposit into the Custodial Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of (i) late payment charges,
penalty interest and insufficient fund charges, (ii) assumption and modification
fees, (iii) other Ancillary Income and (iv) the Servicing Fee need not be
deposited by the Servicer into the Custodial Account.

         Any interest paid on funds deposited in the Custodial Account by the
depository institution shall accrue to the benefit of the Servicer as additional
servicing compensation and the Servicer shall be entitled to retain and withdraw
such interest from the Custodial Account pursuant to Section 3.04 of this
Agreement. Additionally, any other benefit derived from the Custodial Account
associated with the receipt, disbursement and accumulation of principal,
interest, taxes, hazard insurance, mortgage insurance, etc. shall accrue for the
benefit of the Servicer.

         Section 3.04 Permitted Withdrawals From Custodial Account.

         The Servicer shall, from time to time, withdraw funds from the
Custodial Account for the following purposes:

                  (i)      to make payments to the Master Servicer in the
amounts and in the manner provided for in Section 4.01;

                  (ii)     in the event the Servicer has elected not to retain
the Servicing Fee out of any Mortgagor payments on account of interest or other
recovery of interest with respect to a particular Securitized Loan (including
late collections of interest on such Securitized Loan, or interest portions of
Insurance Proceeds, Liquidation Proceeds or Condemnation Proceeds) prior to the
deposit of such Mortgagor payment or recovery in the Custodial Account, to pay
to itself the related Servicing Fee from all such Mortgagor payments on account
of interest or other such recovery for interest with respect to that Securitized
Loan;

                  (iii)    to pay itself investment earnings on funds deposited
in the Custodial Account;

                  (iv)     to transfer funds to another Qualified Depository in
accordance with Section 3.11 hereof;

                                     M-1-21
<PAGE>

                  (v)      to invest funds in certain Eligible Investments in
accordance with Section 3.11 hereof;

                  (vi)     to reimburse itself to the extent of funds held in
the Custodial Account for Monthly Advances of the Servicer's funds made pursuant
to Section 4.03. The Servicer's right to reimburse itself pursuant to this
subclause (vi) with respect to any Securitized Loan shall be limited to amounts
received on or in respect of the related Securitized Loan which represent late
recoveries of payments of principal or interest with respect to which a Monthly
Advance was made, it being understood that in the case of any such reimbursement
the Servicer's right thereto shall be prior to the rights of the related Trust;
provided, however, that following the final liquidation of a Securitized Loan,
the Servicer may reimburse itself for previously unreimbursed Monthly Advances
in excess of Liquidation Proceeds or Insurance Proceeds with respect to such
Securitized Loan from any funds in the Custodial Account relating to Securitized
Loans in the same Trust, it being understood, in the case of any such
reimbursement, that the Servicer's right thereto shall be prior to the rights of
the related Trust. The Servicer may recover at any time from amounts on deposit
in the Custodial Account with respect to Securitized Loans in the same Trust the
amount of any Monthly Advances that the Servicer deems nonrecoverable or that
remain unreimbursed to the Servicer from related Liquidation Proceeds after the
final liquidation of the related Securitized Loan. In addition, the Servicer
may, at any time, withdraw from the Custodial Account funds that are held for
future distribution (i.e., were not included in the principal and interest for
the preceding Remittance Date) to reimburse itself for Monthly Advances
previously made by the Servicer;

                  (vii)    to reimburse itself for unreimbursed Servicing
Advances, and for any unpaid Servicing Fees, the Servicer's right to reimburse
itself pursuant to this subclause (vii) with respect to any Securitized Loan
being limited to related Liquidation Proceeds, Condemnation Proceeds, Insurance
Proceeds, REO Disposition Proceeds and other amounts received in respect of the
related REO Property, and such other amounts as may be collected by the Servicer
from the Mortgagor or otherwise relating to the Securitized Loan, it being
understood that, in the case of any such reimbursement, the Servicer's right
thereto shall be prior to the rights of the related Trust;

                  (viii)   to reimburse the Servicer for expenses incurred by,
and reimbursable to, the Servicer pursuant to Section 6.03, but only to extent
such amounts are determined to be reimbursable by the related Trust pursuant to
Section 6.03;

                  (ix)     to reimburse itself for expenses incurred or
reimbursable to the Servicer pursuant to Section 3.12 from funds with respect to
Securitized Loans in the same Trust to the extent not previously reimbursed
under clause (vii) of this Section 3.04;

                  (x)      to withdraw funds with respect to Securitized Loans
in the same Trust necessary for the operation, management and maintenance of any
REO related property to the extent not previously reimbursed under clause (vii)
of this Section 3.04;

                  (xi)     to withdraw any funds deposited to the Custodial
Account in error; and,

                                     M-1-22
<PAGE>

                  (xii)    to clear and terminate the Custodial Account upon the
termination of this Agreement;

                  (xiii)   to reimburse the Trustee or the NIMs Insurer for
enforcement expenses incurred in respect of a breach of a representation or
warranty.

         Section 3.05 Establishment of and Deposits to Escrow Account.

         The Servicer shall segregate and hold all funds collected and received
pursuant to a Securitized Loan constituting Escrow Payments separate and apart
from any of its own funds and general assets and shall establish and maintain an
Escrow Account, in the form of a time deposit or demand account, titled "Home
Star Mortgage Services, LLC in trust for one or more Homestar Mortgage
Securities Trusts." The Escrow Account shall be established with a Qualified
Depository in a manner that shall provide maximum available insurance
thereunder. Funds deposited in the Escrow Account may be drawn on by the
Servicer in accordance with Section 3.06. The creation of the Escrow Account
shall be evidenced by a letter agreement in the form of Exhibit C. A copy of
such certification or letter agreement shall be furnished to each Trustee and
the Master Servicer.

         The Servicer shall deposit in the Escrow Account or Accounts on a daily
basis, and retain therein:

                  (i)      all Escrow Payments collected on account of the
Securitized Loans, for the purpose of effecting timely payment of any such items
as required under the terms of this Agreement; and

                  (ii)     all amounts representing Insurance Proceeds or
Condemnation Proceeds that are to be applied to the restoration or repair of any
Mortgaged Property.

         The Servicer shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 3.06. The Servicer shall retain any interest paid on funds deposited in
the Escrow Account by the depository institution, other than interest on
escrowed funds required by law to be paid to the related Mortgagor.
Additionally, any other benefit derived from the Escrow Account associated with
the receipt, disbursement and accumulation of principal, interest, taxes, hazard
insurance, mortgage insurance, etc. shall accrue to the Servicer. To the extent
required by law, the Servicer shall pay interest on escrowed funds to the
related Mortgagor notwithstanding that the Escrow Account may be non-interest
bearing or that interest paid thereon is insufficient for such purposes.

         Section 3.06 Permitted Withdrawals From Escrow Account.

         Withdrawals from the Escrow Account or Accounts may be made by the
Servicer only:

                                     M-1-23
<PAGE>

                  (i)      to effect payments of ground rents, taxes,
assessments, water rates, sewer rents, mortgage insurance premiums, condominium
charges, fire and hazard insurance premiums or other items constituting Escrow
Payments for the related Mortgage;

                  (ii)     to refund to any related Mortgagor any funds found to
be in excess of the amounts required under the terms of the related Securitized
Loan;

                  (iii)    as permitted by applicable state law, for transfer to
the Custodial Account and application to reduce the principal balance of the
related Securitized Loan in accordance with the terms of the related Mortgage
and Mortgage Note;

                  (iv)     for application to restore or repair the related
Mortgaged Property in accordance with the Master Servicing Guide;

                  (v)      to pay to the Servicer, or the related Mortgagor to
the extent required by law, any interest paid on the funds with respect to a
Securitized Loan deposited in the Escrow Account; and

                  (vi)     to reimburse itself for any Servicing Advances made
with respect to Escrow Payments for a Securitized Loan or the related Mortgaged
Properties, but only from amounts received on the related Securitized Loan which
represent late collections of Escrow Payments thereunder;

                  (vii)    to withdraw any funds deposited into the Escrow
Account in error; and

                  (viii)   to clear and terminate the Escrow Account on the
termination of this Agreement.

         The Servicer will be responsible for the administration of the Escrow
Accounts and will be obligated to make Servicing Advances to the Escrow Account
in respect of its obligations under this Section 3.06, reimbursable from the
Escrow Accounts or Custodial Account to the extent not collected from a
Mortgagor, anything to the contrary notwithstanding, when and as necessary to
avoid the lapse of insurance coverage on the related Mortgaged Property, or
which the Servicer knows, or in the exercise of the required standard of care of
the Servicer hereunder should know, is necessary to avoid the loss of such
Mortgaged Property due to a tax sale or the foreclosure as a result of a tax
lien. If any such payment has not been made and the Servicer receives notice of
a tax lien with respect to such Mortgaged Property being imposed, the Servicer
will, within ten (10) Business Days of such notice, advance or cause to be
advanced funds necessary to discharge such lien on such Mortgaged Property.

         Section 3.07 Restoration of Mortgaged Property.

         The Servicer need not obtain the approval of the Master Servicer prior
to releasing any Insurance Proceeds or Condemnation Proceeds to the Mortgagor to
be applied to the restoration or repair of the related Mortgaged Property if
such release is in accordance with Accepted

                                     M-1-24
<PAGE>

Servicing Practices. At a minimum, with respect to claims of $10,000 or more,
the Servicer shall comply with the following conditions in connection with any
such release of Insurance Proceeds or Condemnation Proceeds:

                  (i)      the Servicer shall receive satisfactory independent
verification of completion of repairs and issuance of any required approvals
with respect thereto;

                  (ii)     the Servicer shall take all steps necessary to
preserve the priority of the lien of the Mortgage, including, but not limited to
requiring waivers with respect to mechanics' and materialmen's liens.

                  (iii)    the Servicer shall verify that the Securitized Loan
is not 60 or more days delinquent; and

                  (iv)     pending repairs or restoration, the Servicer shall
place the Insurance Proceeds or Condemnation Proceeds in the Escrow Account.

         With respect to claims of less than $10,000, the Servicer shall comply
with the following conditions in connection with any such release of Insurance
Proceeds or Condemnation Proceeds:

                  (v)      the related Mortgagor shall provide an affidavit
verifying the completion of repairs and issuance of any required approvals with
respect thereto;

                  (vi)     the Servicer shall verify the total amount of the
claim with the applicable insurance company; and

                  (vii)    pending repairs or restoration, the Servicer shall
place the Insurance Proceeds or Condemnation Proceeds in the Escrow Account.

         If the Trustee is named as an additional loss payee, the Servicer is
hereby empowered to endorse any loss draft issued in respect of such a claim in
the name of the related Trust.

         Section 3.08 Fidelity Bond and Errors and Omissions Insurance.

         The Servicer shall keep in force and shall cause each sub-servicer to
keep in force during the term of this Agreement a Fidelity Bond and Errors and
Omissions Insurance the minimum coverage of which shall be at least equal to the
coverage required by the Master Servicer in the Master Servicing Guide (unless a
waiver of such requirement has been obtained by the Servicer from the Master
Servicer and NIMs Insurer). Such Fidelity Bond and Errors and Omissions
Insurance shall be maintained with recognized insurers, shall be in such form
and amount as would permit the Servicer to be qualified with the Master Servicer
as a servicer, and shall by its terms not be cancelable without thirty days'
prior written notice to the Trustee, the NIMs Insurer and the Master Servicer.
The Servicer and each sub-servicer shall be deemed to have complied with this
provision if an affiliate of the Servicer has such errors and omissions and
fidelity bond coverage and, by the terms of such insurance policy or fidelity
bond, the coverage afforded

                                     M-1-25
<PAGE>

thereunder extends to the Servicer. The Servicer shall furnish and shall cause
each sub-servicer to furnish to the Trustee, each NIMs Insurer (upon reasonable
request) and the Master Servicer a copy of each such bond and insurance policy
upon their request.

         Section 3.09 Notification of Adjustments.

         With respect to each Adjustable Rate Securitized Loan, the Servicer
shall adjust the Mortgage Interest Rate on the related interest rate adjustment
date and shall adjust the Monthly Payment on the related mortgage payment
adjustment date, if applicable, in compliance with the requirements of
applicable law and the related Mortgage and Mortgage Note. The Servicer shall
execute and deliver any and all necessary notices required under applicable law
and the terms of the related Mortgage Note and Mortgage regarding the Mortgage
Interest Rate and Monthly Payment adjustments. The Servicer shall promptly, upon
written request therefor, deliver to the Master Servicer such notifications and
any additional applicable data regarding such adjustments and the methods used
to calculate and implement such adjustments. Upon the discovery by the Servicer
or the receipt of notice from the Master Servicer that the Servicer has failed
to adjust a Mortgage Interest Rate or Monthly Payment in accordance with the
terms of the related Mortgage Note, the Servicer shall immediately deposit in
the Custodial Account from its own funds the amount of any interest loss or
deferral caused thereby and shall indemnify the Trust in respect of any
liability as a result of such shortfall.

         Section 3.10 Payment of Taxes, Insurance and Other Charges.

         With respect to each Securitized Loan, the Servicer shall maintain
accurate records reflecting the status of ground rents, taxes, assessments,
water rates and other charges which are or may become a lien upon the Mortgaged
Property and the status of fire and hazard insurance coverage and shall obtain,
from time to time, all bills for the payment of such charges (including renewal
premiums) and shall effect payment thereof prior to the applicable penalty or
termination date and at a time appropriate for securing maximum discounts
allowable, employing for such purpose deposits of the Mortgagor in the Escrow
Account which shall have been estimated and accumulated by the Servicer in
amounts sufficient for such purposes, as allowed under the terms of the Mortgage
or applicable regulations. The Servicer assumes full responsibility for the
payment of all such bills and shall effect payments of all such bills
irrespective of the Mortgagor's faithful performance in the payment of same or
the making of the Escrow Payments and shall make advances from its own funds to
effect such payments. The Servicer shall employ Accepted Servicing Practices to
ensure that the related Mortgaged Property is not subjected to a tax lien as a
result of nonpayment and that such Mortgaged Property is not left uninsured.

         Section 3.11 Protection of Accounts.

         The Servicer may transfer the Custodial Account or the Escrow Account
to a different Qualified Depository from time to time. The Servicer shall give
written notice to the Trustee and the NIMs Insurer and the Master Servicer of
the location of the Custodial Account maintained by it with respect to the
Securitized Loans when established and prior to any change thereof.

                                     M-1-26
<PAGE>

         The Servicer shall bear any expenses, losses or damages sustained by
the Trustee or the Master Servicer if the Custodial Account and/or the Escrow
Account are not demand deposit accounts.

         Amounts on deposit in the Custodial Account and the Escrow Account may
at the option of the Servicer be invested in Eligible Investments; provided that
in the event that amounts on deposit in the Custodial Account or the Escrow
Account exceed the amount fully insured by the FDIC (the "Insured Amount"), the
Servicer shall be obligated to invest the excess amount over the Insured Amount
in Eligible Investments on the same Business Day as such excess amount becomes
present in the Custodial Account or the Escrow Account. Any such Eligible
Investment shall mature no later than the Business Day immediately preceding the
related Remittance Date or other date on which funds are needed to be disbursed.
Any such Eligible Investment shall be made in the name of the Servicer in trust
for the benefit of one or more Homestar Mortgage Securities Trusts, as their
interests may appear. All income on or gain realized from any such Eligible
Investment shall be for the benefit of the Servicer and may be withdrawn at any
time by the Servicer. Any losses incurred in respect of any such investment
shall be deposited in the Custodial Account or the Escrow Account by the
Servicer out of its own funds immediately as realized.

         Section 3.12 Title, Management and Disposition of REO Property.

         In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the related Trust, or in the event the related
Trust is not authorized or permitted to hold title to real property in the state
where the REO Property is located, or would be adversely affected under the
"doing business" or tax laws of such state by so holding title, the deed or
certificate of sale shall be taken in the name of such Person or Persons as
shall be consistent with an Opinion of Counsel obtained by the Servicer from any
attorney duly licensed to practice law in the state where the REO Property is
located. The Person or Persons holding such title other than the related Trust
shall acknowledge in writing that such title is being held as nominee for the
related Trust.

         The Servicer shall manage, conserve, protect and operate each REO
Property for the related Trust solely for the purpose of its prompt disposition
and sale. The Servicer, either itself or through an agent selected by the
Servicer, shall manage, conserve, protect and operate such REO Property in the
same manner that it manages, conserves, protects and operates other foreclosed
property for its own account, and in the same manner that similar property in
the same locality as the REO Property is managed. The Servicer shall attempt to
sell the same (and may temporarily rent the same for a period not greater than
one year, except as otherwise provided below) on such terms and conditions as
the Servicer deems to be in the best interest of the related Trust.

         Notwithstanding anything to the contrary contained in this Section
3.12, in connection with a foreclosure or acceptance of a deed in lieu of
foreclosure, in the event the Servicer has reasonable cause to believe that a
Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
or if the Master Servicer otherwise requests, an environmental inspection or

                                     M-1-27
<PAGE>

review of such Mortgaged Property to be conducted by a qualified inspector shall
be arranged by the Servicer. Upon completion of the inspection, the Servicer
shall provide the Master Servicer and the NIMs Insurer with a written report of
such environmental inspection. In the event that the environmental inspection
report indicates that the Mortgaged Property is contaminated by hazardous or
toxic substances or wastes, the Servicer shall not proceed with foreclosure or
acceptance of a deed in lieu of foreclosure. In the event that the environmental
inspection report is inconclusive as to the whether or not the Mortgaged
Property is contaminated by hazardous or toxic substances or wastes, the
Servicer shall not, without the prior written approval of the Master Servicer
and the NIMs Insurer, proceed with foreclosure or acceptance of a deed in lieu
of foreclosure. The Servicer shall be reimbursed for all Servicing Advances made
pursuant to this paragraph with respect to the related Mortgaged Property from
the amounts on deposit in the Custodial Account with respect to Securitized
Loans in the same Trust.

         In the event that a Trust which has made one or more REMIC elections
acquires any REO Property in connection with a default or imminent default on a
Securitized Loan, the Servicer shall dispose of such REO Property not later than
the end of the third taxable year after the year of its acquisition by the
related Trust unless the Servicer has applied for and received a grant of
extension from the Internal Revenue Service (and provides a copy of the same to
the Master Servicer) to the effect that, under the REMIC Provisions and any
relevant proposed legislation and under applicable state law, a REMIC elected by
such Trust may hold REO Property for a longer period without adversely affecting
the REMIC status of such REMIC or causing the imposition of a federal or state
tax upon such REMIC. If the Servicer has received such an extension (and
provided a copy of the same to the Master Servicer), then the Servicer shall
continue to attempt to sell the REO Property for its fair market value for such
period longer than three years as such extension permits (the "Extended
Period"). If the Servicer has not received such an extension, and the Servicer
is unable to sell the REO Property within the period ending 3 months before the
end of such third taxable year after its acquisition by the related Trust or if
the Servicer has received such an extension, and the Servicer is unable to sell
the REO Property within the period ending three months before the close of the
Extended Period, the Servicer shall, before the end of the three-year period or
the Extended Period, as applicable, (i) purchase such REO Property at a price
equal to the REO Property's fair market value or (ii) auction the REO Property
to the highest bidder (which may be the Servicer) in an auction reasonably
designed to produce a fair price prior to the expiration of the three-year
period or the Extended Period, as the case may be. The related Trustee shall
sign any document or take any other action reasonably requested by the Servicer
which would enable the Servicer, on behalf of the related Trust, to request such
grant of extension.

         Notwithstanding any other provisions of this Agreement, no REO Property
acquired by a Trust shall be rented (or allowed to continue to be rented) or
otherwise used by or on behalf of such Trust in such a manner or pursuant to any
terms that would: (i) cause such REO Property to fail to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code; or (ii) subject
any REMIC elected by such Trust to the imposition of any federal income taxes on
the income earned from such REO Property, including any taxes imposed by reason
of Sections 860F

                                     M-1-28
<PAGE>

or 860G(c) of the Code, unless the Servicer has agreed to indemnify and hold
harmless such Trust with respect to the imposition of any such taxes.

         The Servicer shall also maintain on each REO Property hazard insurance
with extended coverage in an amount which is at least equal to the lesser of (i)
the maximum insurable value of the improvements which are a part of such
property and (ii) the outstanding Principal Balance of the Securitized Loan at
the time it becomes REO Property, to the extent required and available under the
Flood Disaster Protection Act of 1973, as amended, flood insurance in the amount
required above.

         The disposition of REO Property shall be carried out by the Servicer at
such price, and upon such terms and conditions, as the Servicer deems to be in
the best interests of the related Trust. The proceeds of sale of the REO
Property shall be promptly deposited in the Custodial Account. After the
expenses of such disposition shall have been paid, the Servicer shall reimburse
itself pursuant to Section 3.04 hereof for any Servicing Advances it incurred
with respect to such REO Property.

         The Servicer shall withdraw from the amounts on deposit in the
Custodial Account with respect to Securitized Loans in the same Trust funds
necessary for the proper operation, management and maintenance of the REO
Property, including the cost of maintaining any hazard insurance pursuant to the
Master Servicing Guide. The Servicer shall make monthly distributions on each
Remittance Date to the Trustee of the net cash flow from the REO Property (which
shall equal the revenues from such REO Property net of the expenses described in
this Section 3.12 and of any reserves reasonably required from time to time to
be maintained to satisfy anticipated liabilities for such expenses).

         Section 3.13 Real Estate Owned Reports.

         Together with the statement furnished pursuant to Section 4.02, the
Servicer shall furnish by electronic transmission to the Master Servicer and the
NIMs Insurer on or before the Remittance Date each month a statement with
respect to any REO Property covering the operation of such REO Property for the
previous month and the Servicer's efforts in connection with the sale of such
REO Property and any rental of such REO Property incidental to the sale thereof
for the previous month. That statement shall be accompanied by such other
information as the Master Servicer shall reasonably request.

         Section 3.14 MERS.

         (a)      The Servicer shall take such actions as are necessary to cause
the related Trust to be clearly identified as the owner of each MERS Securitized
Loan on the records of MERS for purposes of the system of recording transfers of
beneficial ownership of mortgages maintained by MERS.

                                     M-1-29
<PAGE>

         (b)      The Servicer shall maintain in good standing its membership in
MERS. In addition, the Servicer shall comply with all rules, policies and
procedures of MERS, including the Rules of Membership, as amended, and the MERS
Procedures Manual, as amended.

         (c)      With respect to all MERS Securitized Loans serviced hereunder,
the Servicer shall promptly notify MERS as to any transfer of beneficial
ownership or release of any security interest in such Securitized Loans.

         (d)      With respect to all MERS Securitized Loans serviced hereunder,
the Servicer shall notify MERS as to any transfer of servicing pursuant to
Section 9.01 within 10 Business Days of such transfer of servicing. The Servicer
shall cooperate with each Trustee and any successor servicer to the extent
necessary to ensure that such transfer of servicing is appropriately reflected
on the MERS system.

         Section 3.15 Waiver of Prepayment Penalties.

         Except as provided below, the Servicer or any designee of the Servicer
shall not waive any Prepayment Charge with respect to any Securitized Loan. If
the Servicer or its designee fails to collect a Prepayment Charge at the time of
the related prepayment of any Securitized Loan subject to such Prepayment
Charge, the Servicer shall pay to the Trust at such time (by deposit to the
Custodial Account) an amount equal to the amount of the Prepayment Charge not
collected. The Seller warrants that the schedule of Prepayment Charges listed in
each Transfer Notice shall be complete, true and accurate and may be relied on
by the Servicer in its calculation of Prepayment Charges. Notwithstanding the
above, the Servicer or its designee may waive a Prepayment Charge only if (i)
the related prepayment is not the result of a refinancing by the Servicer or its
designee, (ii) such waiver relates to a defaulted Securitized Loan or a
reasonably foreseeable default, (iii) such waiver is standard and customary in
servicing similar mortgage loans to the Securitized Loans, and (iv) such waiver,
in the reasonable judgment of the Servicer, would maximize recovery of total
proceeds from the Securitized Loan, taking into account the amount of such
Prepayment Charge and the related Securitized Loan. If a Prepayment Charge is
waived as permitted by meeting the standards described above, then the Servicer
is required to pay the amount of such waived Prepayment Charge, for the benefit
of the holders of the Class P Certificates (as defined in the related Trust
Agreement), by depositing such amount into the Custodial Account together with
and at the time that the amount prepaid on the related Securitized Loan is
required to be deposited into the Custodial Account.

         Within 90 days of the earlier of discovery by the Servicer or receipt
of notice by the Servicer of the breach of the representation or covenant of the
Servicer set forth in this Section 3.15 which materially and adversely affects
the interests of the Holders of the Class P Certificates in any Prepayment
Charge, the Servicer shall remedy such breach as follows: if any of the
covenants made by the Servicer in this Section 3.15 is breached, the Servicer
must pay the amount of such waived Prepayment Charge, for the benefit of the
Holders of the Class P Certificates, by depositing such amount into the
Custodial Account.

         Section 3.16 Servicing and Administration of PMI Policies.

                                     M-1-30
<PAGE>

         (a)      The Servicer shall take all such actions on behalf of the
Trustee as are necessary to service, maintain and administer PMI Policies and to
perform and enforce the rights under such Policies for the benefit of the
related Trust. Except as expressly set forth herein, the Servicer shall have
full authority on behalf of the related Trust to do anything it reasonably deems
appropriate or desirable in connection with the servicing, maintenance and
administration of the PMI Policies. The Servicer shall not take, or permit any
sub-servicer to modify or assume a Securitized Loan covered by a PMI Policy or
take any other action with respect to such Securitized Loan which would result
in non-coverage under any PMI Policy of any loss which, but for the actions of
the Servicer or the Sub-Servicer, would have been covered thereunder. If a PMI
Insurer fails to pay a claim under a PMI Policy as a result of breach by the
Servicer or a sub-servicer of its obligations hereunder or under a PMI Policy,
the Servicer shall be required to deposit in the Custodial Account on or prior
to the next succeeding Remittance Date an amount equal to such unpaid claim from
its own funds without any right to reimbursement from the related Trust. To the
extent coverage is available, the Servicer shall keep or cause to be kept in
full force and effect the Insurance Policies for as long as any Certificates
issued by the related Trust are outstanding. The Servicer shall cooperate with
each PMI Insurer and shall use its best efforts to furnish all reasonable aid,
evidence and information in the possession of the Servicer to which the Servicer
has access with respect to any Securitized Loan; provided, however,
notwithstanding anything to the contrary contained in a PMI Policy, the Servicer
shall not be required to submit any reports to a PMI Insurer until a reporting
date that is at least 15 days after the Servicer has received sufficient loan
level information from the Seller to appropriately code its servicing system in
accordance with such PMI Insurer's requirements.

         (b)      The Servicer shall deposit into the Custodial Account pursuant
to Section 3.03(xiii) hereof all Insurance Proceeds received from the PMI
Insurer under the terms of a PMI Policy.

         (c)      Notwithstanding the provisions of (a) and (b) above, the
Servicer shall not take any action in regard to any PMI Policy inconsistent with
the interests of the related Trust or the related Certificateholders or with the
rights and interests of the related Trust or the related Certificateholders
under this Agreement.

         (d)      The related Trustee shall furnish the Servicer with any powers
of attorney and other documents (within fifteen (15) days upon request from the
Servicer) in form as provided to it necessary or appropriate to enable the
Servicer to service and administer any PMI Policy; provided, however, that the
related Trustee shall not be liable for the actions of the Servicer under such
powers of attorney.

         Section 3.17 Maintenance of Hazard Insurance.

         The Servicer shall cause to be maintained for each Securitized Loan
hazard insurance such that all buildings upon the related Mortgaged Property are
insured by a generally acceptable insurer against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where such
Mortgaged Property is located in an amount which is at least equal to the lesser
of (i) the current principal balance of such Securitized Loan and (ii) the
amount necessary

                                     M-1-31
<PAGE>

to fully compensate for any damage or loss to the improvements that are a part
of such property on a replacement cost basis, in each case in an amount not less
than the amount as is necessary to avoid the application of any co-insurance
clause contained in the related hazard insurance policy.

         Any payments by the Servicer for hazard insurance, other than as set
forth in the last paragraph of this Section 3.17, shall be deemed Servicing
Advances, reimbursable in accordance with Section 3.04(vii) or (x), to the
extent not collected from the related Mortgagor. The Servicer will comply in the
performance of this Agreement with all reasonable rules and requirements of each
insurer under any such hazard policies. Any amounts to be collected by the
Servicer under any such policies (other than amounts to be applied to the
restoration or repair of the property or amounts to be released to the Mortgagor
subject to the terms and conditions of the related Mortgage and Mortgage Note)
shall be deposited in the Custodial Account, subject to withdrawal pursuant to
Section 3.04, if received in respect of a Securitized Loan. Any cost incurred by
the Servicer in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to the unpaid
principal balance of the related Securitized Loan, notwithstanding that the
terms of such Securitized Loan so permit. It is understood and agreed that no
earthquake or other additional insurance is to be required of any Mortgagor
other than pursuant to such applicable laws and regulations as shall at any time
be in force and as shall require such additional insurance. If a Mortgaged
Property or REO Property is at any time in an area identified in the Federal
Register by the Federal Emergency Management Agency as having special flood
hazards and flood insurance has been made available, the Servicer will cause to
be maintained a flood insurance policy in respect thereof. Such flood insurance
shall be in an amount equal to the lesser of (i) the unpaid principal balance of
the related Securitized Loan and (ii) the maximum amount of such insurance
available for the related Mortgaged Property under the national flood insurance
program (assuming that the area in which such Mortgaged Property is located is
participating in such program).

         In the event that the Servicer or the Sub-Servicer shall obtain and
maintain a blanket policy with an insurer having a General Policy Rating of
B:III or better in Best's Key Rating Guide (or such other rating that is
comparable to such rating) insuring against hazard losses on all of the
Securitized Loans in a Trust, it shall conclusively be deemed to have satisfied
its obligations as set forth in the first two sentences of this Section 3.17
with respect to the Securitized Loans in such Trust, it being understood and
agreed that such policy may contain a deductible clause, in which case the
Servicer shall, in the event that there shall not have been maintained on the
related Mortgaged Property or REO Property a policy complying with the first two
sentences of this Section 3.17, and there shall have been one or more losses
which would have been covered by such policy, deposit to the Custodial Account
from its own funds without right of reimbursement the amount not otherwise
payable under the blanket policy because of such deductible clause for the
benefit of the related Trust. In connection with its activities as administrator
and servicer of the Securitized Loans, the Servicer agrees to prepare and
present, on behalf of itself, the Trust and the Certificateholders, claims under
any such blanket policy in a timely fashion in accordance with the terms of such
policy. Copies of such claims shall be provided to the NIMs Insurer.

                                     M-1-32
<PAGE>

         Section 3.18 Realization Upon Defaulted Securitized Loans.

         (a)      The Servicer shall use its best efforts and, consistent with
Accepted Servicing Practices, foreclose upon or otherwise comparably convert the
ownership of properties securing such of the Securitized Loans (including
selling any such Securitized Loans other than converting the ownership of the
related properties) as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments. The
Servicer shall be responsible for all costs and expenses incurred by it in any
such proceedings; provided, however, that such costs and expenses will be
recoverable as Servicing Advances by the Servicer as contemplated in Section
3.04. The foregoing is subject to the provision that, in any case in which a
Mortgaged Property shall have suffered damage from an uninsured cause, the
Servicer shall not be required to expend its own funds toward the restoration of
such Mortgaged Property unless it has determined that such restoration will
increase the proceeds of liquidation of the related Securitized Loan after
reimbursement to itself for such expenses. In instituting foreclosures or other
similar proceedings, the Servicer shall institute such proceedings in its own
name on behalf of the related Trust, unless otherwise required by applicable law
or otherwise appropriate.

         (b)      If the Servicer determines that it is in the best economic
interest of a Trust and the Certificateholders to sell a Distressed Securitized
Loan rather than foreclosing, the Servicer may effect such a sale. The net
proceeds of such sale shall be Liquidation Proceeds.

         (c)      Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds, Liquidation Proceeds or Condemnation Proceeds, in respect of
any Securitized Loan, will be applied in the following order of priority: first,
to unpaid Servicing Fees; second, to reimburse the Servicer or any sub-servicer
for any related unreimbursed Servicing Advances and Monthly Advances pursuant to
Section 3.04; third, to accrued and unpaid interest on the Securitized Loan, to
the date of the Final Recovery Determination, or to the Due Date prior to the
Remittance Date on which such amounts are to be remitted to the Master Servicer
if not in connection with a Final Recovery Determination; and fourth, as a
recovery of principal of the Securitized Loan. The portion of the recovery so
allocated to any unpaid Servicing Fee shall be reimbursed to the Servicer or any
sub-servicer pursuant to Section 3.04.

         Section 3.19 Enforcement of Due-On-Sale Clauses; Assumption Agreement.

         The Servicer will, to the extent it has knowledge of any conveyance or
prospective conveyance of any Mortgaged Property by any Mortgagor (whether by
absolute conveyance or contract of sale, and whether or not the Mortgagor
remains or is to remain liable under the Mortgage Note and/or the Mortgage),
exercise its rights to accelerate the maturity of such Securitized Loan under
the "due-on-sale" clause, if any, applicable thereto; provided, however, that
the Servicer shall not be required to take such action if in its sole business
judgment the Servicer believes it is not in the best interests of the related
Trust and shall not exercise any such rights if prohibited by law from doing so.
If the Servicer reasonably believes it is unable under applicable law to enforce
such "due-on-sale" clause, or if any of the other conditions set forth in

                                     M-1-33
<PAGE>

the proviso to the preceding sentence apply, the Servicer will enter into an
assumption and modification agreement from or with the person to whom such
property has been conveyed or is proposed to be conveyed, pursuant to which such
person becomes liable under the Mortgage Note and, to the extent permitted by
applicable state law, the Mortgagor remains liable thereon. The Servicer is also
authorized to enter into a substitution of liability agreement with such person,
pursuant to which the original Mortgagor is released from liability and such
person is substituted as the Mortgagor and becomes liable under the Mortgage
Note, provided that no such substitution shall be effective unless such person
satisfies the underwriting criteria of the Servicer and has a credit risk rating
at least equal to that of the original Mortgagor. In connection with any
assumption or substitution, the Servicer shall apply such underwriting standards
and follow such practices and procedures as shall be normal and usual in its
general mortgage servicing activities and as it applies to other mortgage loans
owned solely by it. The Servicer shall not take or enter into any assumption and
modification agreement, however, unless (to the extent practicable in the
circumstances) it shall have received confirmation, in writing, of the continued
effectiveness of any applicable hazard insurance policy. Any fee collected by
the Servicer in respect of an assumption, modification or substitution of
liability agreement shall be retained by the Servicer as additional servicing
compensation. In connection with any such assumption, no material term of the
Mortgage Note (including but not limited to the related Mortgage Interest Rate
and the amount of the Monthly Payment) may be amended or modified, except as
otherwise required pursuant to the terms thereof. The Servicer shall notify the
related Trustee that any such substitution, modification or assumption agreement
has been completed by the Servicer, and the Servicer shall deliver to the
Custodian the executed original of such substitution, modification or assumption
agreement, which document shall be added to the related Mortgage File and shall,
for all purposes, be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof, and the
Servicer shall also deliver to the Trustee a copy of the executed substitution,
modification or assumption agreement.

         Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Securitized Loan by operation of law or by the terms of the Mortgage Note or any
assumption which the Servicer may be restricted by law from preventing, for any
reason whatever. For purposes of this Section 3.19, the term "assumption" is
deemed to also include a sale (of the Mortgaged Property) subject to the
Mortgage that is not accompanied by an assumption or substitution of liability
agreement.

         Section 3.20 Credit Risk Manager.

         The Servicer acknowledges and agrees that, under any Trust Agreement, a
Credit Risk Manager may be required to provide certain credit risk management
services as provided therein. If so, the Servicer hereby agrees to cooperate
with the Credit Risk Manager in connection with all reasonable requests made by
the Credit Risk Manager, including, without limitation, promptly providing
copies of any servicing reports and remittance advices required under this
Agreement to the Credit Risk Manager.

                                     M-1-34
<PAGE>

         Section 3.21 Compliance with Applicable Laws.

         All requirements of any federal, state or local law (including usury,
truth in lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity, disclosure or recording, predatory and abusive lending
laws) applicable to the servicing of the Mortgage Loans will be complied with by
the Servicer in all material respects.

                                   ARTICLE IV.

                           PAYMENTS TO MASTER SERVICER

         Section 4.01 Remittances.

         On each Remittance Date, no later than 3:00 p.m. New York City time,
the Servicer shall remit on a scheduled/scheduled basis by wire transfer of
immediately available funds to the Master Servicer (a) all amounts deposited in
the Custodial Account as of the close of business on the Determination Date (net
of charges against or withdrawals from the Custodial Account pursuant to Section
3.04), plus (b) all Monthly Advances, if any, which the Servicer or other
Advancing Person is obligated to make pursuant to Section 4.03, minus (c) any
amounts attributable to Principal Prepayments, Liquidation Proceeds, Insurance
Proceeds, Condemnation Proceeds or REO Disposition Proceeds received after the
applicable Due Period, which amounts shall be remitted on the following
Remittance Date, together with any additional interest required to be deposited
in the Custodial Account in connection with such Principal Prepayment in
accordance with Section 3.03 (iii) and (vii), and minus (d) any amounts
attributable to Monthly Payments collected but due on a Due Date or Due Dates
subsequent to the first day of the month in which such Remittance Date occurs,
which amounts shall be remitted on the Remittance Date next succeeding the Due
Date related to such Monthly Payment.

         With respect to any remittance received by the Master Servicer after
the Business Day on which such payment was due, the Servicer shall pay to the
Master Servicer interest on any such late payment at an annual rate equal to
LIBOR, adjusted as of the date of each change, plus four (4) percentage points,
but in no event greater than the maximum amount permitted by applicable law.
Such interest shall be deposited in the Custodial Account by the Servicer on the
date such late payment is made and shall cover the period commencing with the
day following the Remittance Date and ending with the Business Day on which such
payment is made, both inclusive. Such interest shall be remitted along with the
distribution payable on the next succeeding Remittance Date. The payment by the
Servicer of any such interest shall not be deemed an extension of time for
payment or a waiver of any Event of Default by the Master Servicer or any
applicable Trustee.

         All remittances required to be made to the Master Servicer shall be
made on a scheduled/scheduled basis to the following wire account or to such
other account as may be specified by the Master Servicer from time to time:

                  Wells Fargo Bank, National Association

                                     M-1-35
<PAGE>

                  Minneapolis, Minnesota
                  ABA# 121000248
                  Account Name:  SAS Clearing 3970771416
                  For further credit to:  Collection Account No. 18150300

         Section 4.02 Statements to Master Servicer.

         Not later than the 10th calendar day of each month (or if such calendar
day is not a Business Day, the immediately succeeding Business Day), the
Servicer shall furnish to the Master Servicer and the NIMs Insurer with respect
to each related Trust, or as the Servicer and the Master Servicer may otherwise
agree (a) a monthly remittance advice in the format set forth at Exhibit D
hereto with regard to monthly loan remittance data, Exhibit E with regard to
default mortgage loans, and Exhibit F with regard to realized losses or gains
for the period ending on the first day of such calendar month (i.e., the Due
Period) and (b) all such information required pursuant to clause (a) above in an
electronic file or other similar media reasonably acceptable to the Master
Servicer. The Servicer shall also furnish to the Master Servicer and the NIMs
Insurer (in such format mutually agreed to by the Servicer and the Master
Servicer) a monthly report detailing loan level Prepayment Charges collected
and/or waived by the Servicer in accordance with Section 3.15.

         Such monthly remittance advice shall also be accompanied with a
supplemental report provided to the Master Servicer which includes on an
aggregate basis for the previous Due Period (i) the amount of claims filed, (ii)
the amount of any claim payments made, (iii) the amount of claims denied or
curtailed and (iv) policies cancelled with respect to those Securitized Loans
covered by any PMI Policy or any other provider of primary mortgage insurance
purchased by the Trust. Notwithstanding anything to the contrary contained in a
PMI Policy, the Servicer shall not be required to submit any supplemental
reports including the foregoing data with respect to a PMI Policy until a
reporting date that is at least 15 days after the Servicer has received
sufficient loan level information from the Seller to appropriately code its
servicing system in accordance with requirements.

         In addition, not more than 60 days after the end of each calendar year,
commencing December 31, 2004, the Servicer shall provide (as such information
becomes reasonably available to the Servicer) to the Master Servicer such
information concerning the Securitized Loans and annual remittances to the
Master Servicer with respect to the Securitized Loans in each Trust as is
necessary for each Certificateholder and the NIMs Insurer to prepare its federal
income tax return. Such obligation of the Servicer shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Servicer to the Master Servicer and pursuant to any requirements
of the Code as from time to time are in force.

         Beginning with calendar year 2004, the Servicer shall provide the
Master Servicer and each Trustee with such information concerning the related
Securitized Loans as is necessary for such Trustee to prepare the related
Trust's federal income tax return and for any investor in the related
Certificates to prepare any required tax return.

                                     M-1-36
<PAGE>

         Section 4.03 Monthly Advances by Servicer.

         On the Business Day immediately preceding each Remittance Date, the
Servicer shall deposit in the Custodial Account from its own funds or from
amounts held for future distribution, or both, an amount equal to the aggregate
of all Monthly Advances relating to Monthly Payments which were due on the
Securitized Loans during the applicable Due Period and which were delinquent at
the close of business on the immediately preceding Determination Date. Any
amounts held for future distribution and so used shall be replaced by the
Servicer by deposit in the Custodial Account on or before any future Remittance
Date if funds in the Custodial Account on such Remittance Date shall be less
than remittances to the Master Servicer required to be made on such Remittance
Date. The Servicer shall keep appropriate records of such amounts and will
provide such records to the Master Servicer upon request. No provision in this
Agreement shall be construed as limiting the Servicer's right to (i) pass
through late collections on the related Securitized Loans in lieu of making
Monthly Advances (ii) reimburse itself for such Monthly Advances from late
collections on the related Securitized Loans or (iii) utilize an Advancing
Person (as defined below).

         The Servicer's obligation to make such Monthly Advances as to any
Mortgage Loan will continue through the last Monthly Payment due prior to the
payment in full of the Mortgage Loan, or through the last Remittance Date prior
to the Remittance Date for the distribution of all Liquidation Proceeds and
other payments or recoveries (including REO Disposition Proceeds, Insurance
Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan; provided,
however, that such obligation shall cease if the Servicer determines, in its
sole reasonable opinion, that advances with respect to such Mortgage Loan are
non-recoverable by the Servicer from Liquidation Proceeds, Insurance Proceeds,
Condemnation Proceeds, or otherwise with respect to a particular Mortgage Loan.

         The Servicer, with the consent of the NIMs Insurer, may enter into a
facility with any person including the Sub-Servicer which provides that such
person (an "Advancing Person") may fund Monthly Advances required under this
Section 4.03 and/or Servicing Advances, although no such facility shall reduce
or otherwise affect the Servicer's obligation to fund such Monthly Advances
and/or Servicing Advances. Any Monthly Advances and/or Servicing Advances made
by an Advancing Person shall be reimbursed to the Advancing Person in the same
manner as reimbursements would be made to the Servicer under Section 3.04 if
such Monthly Advances or Servicing Advance were funded by the Servicer.

         Section 4.04 Compensating Interest.

         The Servicer shall be required to deposit in the Custodial Account, and
retain therein with respect to each Principal Prepayment, the Prepayment
Interest Shortfall Amount, if any, for the related Due Period. Such deposit
shall be made from the Servicer's own funds, without reimbursement therefor, up
to an amount equal to the lesser of with respect to the Securitized Loans in
each Trust (i) the Prepayment Interest Shortfall Amount or (ii) the Servicing
Fee, in each case, with respect to the Securitized Loans in such Trust. The
Servicer shall not be obligated to

                                     M-1-37
<PAGE>

pay any Prepayment Interest Shortfall Amount with respect to any Relief Act
Reduction or bankruptcy.

         Section 4.05 Credit Reporting.

         For each Securitized Loan, in accordance with its current servicing
practices, the Servicer will accurately and fully report its underlying borrower
credit files to each of the following credit repositories or their successors:
Equifax Credit Information Services, Inc., Trans Union, LLC and Experian
Information Solution, Inc., on a monthly basis in a timely manner.

                                   ARTICLE V.

                          GENERAL SERVICING PROCEDURES

         Section 5.01 Servicing Compensation.

         As consideration for servicing the Securitized Loans subject to this
Agreement, the Servicer shall retain (a) the Servicing Fee for each Securitized
Loan remaining subject to this Agreement during any month and (b) Ancillary
Income. The Servicing Fee shall be payable monthly.

         The aggregate of the Servicing Fees for any month with respect to the
Securitized Loans in a Trust shall be reduced by any Prepayment Interest
Shortfall Amount with respect to the Securitized Loans in such Trust with
respect to such month. The Servicer shall be entitled to recover any unpaid
Servicing Fee out of Insurance Proceeds, Condemnation Proceeds or Liquidation
Proceeds to the extent permitted in Section 3.04 and out of amounts derived from
the operation and sale of an REO Property to the extent permitted by Section
3.12.

         Additional servicing compensation in the form of Ancillary Income shall
be retained by the Servicer only to the extent such fees or charges are received
by the Servicer. The Servicer shall also be entitled pursuant to Section 3.04
and Section 3.06 to withdraw from the Custodial Account and Escrow Account,
respectively, as additional servicing compensation, interest or other income
earned on deposits therein, subject to Section 3.11.

         The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder, including any fees due to
sub-servicers, and shall not be entitled to reimbursement thereof except as
specifically provided for herein.

         Section 5.02 Annual Audit Report.

         The Servicer shall, at its own expense, using its best efforts by
February 28 of each year, but in no event later than March 1 of each year, cause
a firm of independent public accountants (who may also render other services to
Servicer), which is a member of the American Institute of Certified Public
Accountants, to furnish to the Seller and the Master Servicer (i) year-end
audited (if available) financial statements of the Servicer and (ii) a statement
to the effect that such firm

                                     M-1-38
<PAGE>

has examined certain documents and records for the preceding fiscal year (or
during the period from the date of commencement of such Servicer's duties
hereunder until the end of such preceding fiscal year in the case of the first
such certificate) and that, on the basis of such examination conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers, such firm is of the opinion that Servicer's overall servicing
operations have been conducted in compliance with the Uniform Single Attestation
Program for Mortgage Bankers except for such exceptions that, in the opinion of
such firm, the Uniform Single Attestation Program for Mortgage Bankers requires
it to report, in which case such exceptions shall be set forth in such
statement.

         Section 5.03 Annual Officer's Certificate.

         The Servicer, at its own expense, will, using its best efforts by
February 28 of each year, but in no event later than March 1 of each year,
deliver to the Seller and the Master Servicer a Servicing Officer's certificate
stating, as to each signer thereof, that (i) a review of the activities of the
Servicer during such preceding fiscal year and of performance under this
Agreement has been made under such officers' supervision, and (ii) to the best
of such officers' knowledge, based on such review, the Servicer has fulfilled
all its obligations under this Agreement for such year, or, if there has been a
default in the fulfillment of all such obligations, specifying each such default
known to such officers and the nature and status thereof including the steps
being taken by the Servicer to remedy such default.

         Section 5.04. Servicer's Certification.

         (a)      An officer of the Servicer shall, using its best efforts by
February 28 of each year, but no later than March 1 of each year, (or if not a
Business Day, the immediately preceding Business Day), or at any other time upon
thirty (30) days written request, execute and deliver an Officer's Certificate
to the Master Servicer for the benefit of such Master Servicer and its officers,
directors, agents and affiliates, certifying as to the following matters:

                  (i)      Based on my knowledge, the information in the annual
statement of compliance furnished pursuant to Section 5.03, the annual
independent public accountant's servicing report furnished pursuant to Section
5.02 and all servicing reports, officer's certificates and other information
relating to the servicing of the Securitized Loans submitted to the Master
Servicer taken as a whole, does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading
as of the date of this certification;

                  (ii)     The servicing information required to be provided to
the Master Servicer by the Servicer under this Agreement has been provided to
the Master Servicer;

                  (iii)    I am responsible for reviewing the activities
performed by the Servicer under the Agreement and based upon the review required
by the Agreement, and except as disclosed in the annual statement of compliance,
the annual independent public accountant's servicing report and all servicing
reports, officer's certificates and other information relating to

                                     M-1-39
<PAGE>

the servicing of the Securitized Loans submitted to the Master Servicer, the
Servicer has, as of the date of this certification fulfilled its obligations
under the Agreement; and

                  (iv)     I have disclosed to the Master Servicer all
significant deficiencies relating to the Servicer's compliance with the minimum
servicing standards in accordance with a review conducted in compliance with the
Uniform Single Attestation Program for Mortgage Bankers or similar standard as
set forth in the Agreement.

         (b)      The Servicer shall indemnify and hold harmless the Master
Servicer and its officers, directors, agents and affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments and other costs and expenses arising out of or based
upon a breach by the Servicer or any of its officers, directors, agents or
affiliates of its obligations under Sections 5.02, 5.03 or 5.04 or the
negligence, bad faith or willful misconduct of the Servicer in connection
therewith. If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Master Servicer, then the Servicer agrees that
it shall contribute to the amount paid or payable by the Master Servicer as a
result of losses, claims, damages or liabilities of the Master Servicer in such
proportion as is appropriate to reflect the relative fault of the Master
Servicer on the one hand and the Servicer on the other in connection with a
breach of the Servicer's obligations under Sections 5.02, 5.03 or 5.04 or the
Servicer's negligence, bad faith or willful misconduct in connection therewith.

         Section 5.05 Access to Servicer Records.

         The Seller or the NIMs Insurer shall have the right to examine and
audit, at its expense, upon reasonable notice to the Servicer, during business
hours or at such other times as might be reasonable under applicable
circumstances, any and all of the books, records, documentation or other
information of the Servicer, or held by another for the Servicer or on its
behalf or otherwise, which relate to the performance or observance by the
Servicer of the terms, covenants or conditions of this Agreement.

         The Servicer shall provide to the Seller, the NIMs Insurer and any
supervisory agents or examiners representing a state or federal governmental
agency having jurisdiction over the Seller access to any documentation regarding
the Mortgage Loans in the possession of the Servicer which may be required by
any applicable regulations. Such access shall be afforded without charge, upon
reasonable request, during normal business hours and at the offices of the
Servicer, and in accordance with the applicable federal or state government
regulations.

                                   ARTICLE VI.

                           REPRESENTATIONS, WARRANTIES
                                 AND AGREEMENTS

         Section 6.01 Representations, Warranties and Agreements of the
Servicer.

                                     M-1-40
<PAGE>

         The Servicer, as a condition to the consummation of the transactions
contemplated hereby, hereby makes the following representations and warranties
to the Seller, the Depositor, the Trustee and the Master Servicer as of the
Closing Date:

         (a)      Due Organization and Authority. The Servicer is duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has all licenses necessary to carry on its business as now being
conducted and either it or its designated sub-servicer is licensed, qualified
and in good standing in each state where a Mortgaged Property is located if the
laws of such state require licensing or qualification in order to conduct a
servicing business of the type provided for herein, and in any event the
Servicer or its designated sub-servicer is in compliance with the laws of any
such state to the extent necessary to ensure the enforceability of the terms of
this Agreement; the Servicer has the full power and authority to execute and
deliver this Agreement and, together with such sub-servicer, to perform in
accordance herewith; the execution, delivery and performance of this Agreement
(including all instruments of transfer to be delivered pursuant to this
Agreement) by the Servicer and the consummation of the transactions contemplated
hereby have been duly and validly authorized; this Agreement evidences the
valid, binding and enforceable obligation of the Servicer and all requisite
action has been taken by the Servicer to make this Agreement valid and binding
upon the Servicer in accordance with its terms;

         (b)      Ordinary Course of Business. The consummation of the
transactions contemplated by this Agreement, taking into account the role of its
sub-servicer, is in the ordinary course of business of the Servicer;

         (c)      No Conflicts. Neither the execution and delivery of this
Agreement, the acquisition of the servicing responsibilities by the Servicer or
the transactions contemplated hereby, nor the fulfillment of or compliance with
the terms and conditions of this Agreement, will conflict with or result in a
breach of any of the terms, conditions or provisions of the Servicer's
organizational documents or any legal restriction or any agreement or instrument
to which the Servicer is now a party or by which it is bound, or constitute a
default or result in an acceleration under any of the foregoing, or, taking into
account the role of its designated sub-servicer, result in the violation of any
law, rule, regulation, order, judgment or decree to which the Servicer or its
property is subject, or impair the ability of the Servicer to service the
Securitized Loans, or impair the value of the Securitized Loans;

         (d)      Ability to Perform. The Servicer does not believe, nor does it
have any reason or cause to believe, that it, together with the Sub-Servicer,
cannot perform each and every covenant contained in this Agreement;

         (e)      No Litigation Pending. There is no action, suit, proceeding or
investigation pending or, to the best of our knowledge, threatened against the
Servicer which, either in any one instance or in the aggregate, may result in
any material adverse change in the business, operations, financial condition,
properties or assets of the Servicer, or in any material impairment of the right
or ability of the Servicer to carry on its business substantially as now
conducted, or in any material liability on the part of the Servicer, or which
would draw into question the validity of

                                     M-1-41
<PAGE>

this Agreement or of any action taken or to be taken in connection with the
obligations of the Servicer contemplated herein, or which would be likely to
impair materially the ability of the Servicer together with the Sub-Servicer to
perform under the terms of this Agreement;

         (f)      No Consent Required. No consent, approval, authorization or
order of any court or governmental agency or body is required for the execution,
delivery and performance by the Servicer together with the Sub-Servicer of or
compliance by the Servicer together with the Sub-Servicer with this Agreement;

         (g)      Ability to Service. The Servicer is an approved
seller/servicer of conventional residential Securitized Loans for Fannie Mae and
Freddie Mac, and, together with those of its designated sub-servicer, shall
ensure that there are the facilities, procedures, and experienced personnel
necessary for the sound servicing of the Securitized Loans. The Servicer is in
good standing to service Securitized Loans for Freddie Mac. The Servicer is a
member in good standing of the MERS system, if applicable;

         (h)      No Untrue Information. Neither this Agreement nor any
statement, report or other document furnished or to be furnished by the Servicer
pursuant to this Agreement or in connection with the transactions contemplated
hereby contains any untrue material statement of fact or omits to state a
material fact necessary to make the statements contained therein not misleading;

         (i)      No Commissions to Third Parties. The Servicer has not dealt
with any broker or agent or anyone else, other than the Sub-Servicer, who might
be entitled to a fee or commission in connection with this transaction other
than the Seller; and

         (j)      No Waiver of Prepayment Charges. The Servicer will not waive
any Prepayment Charge unless it is waived in accordance with the standard set
forth in Section 3.15.

         Section 6.02 Remedies for Breach of Representations and Warranties of
the Servicer.

         It is understood and agreed that the representations and warranties set
forth in Section 6.01 shall survive the engagement of the Servicer to perform
the servicing responsibilities as of any Closing Date hereunder and the delivery
of the Servicing Files to the Servicer and shall inure to the benefit of the
Seller, any Depositor, the Master Servicer and each Trust, NIMs Insurer and
Trustee. Upon discovery by any of the Servicer, the Master Servicer, the
Trustee, NIMs Insurer, any Depositor or the Seller of a breach of any of the
foregoing representations and warranties which materially and adversely affects
the ability of the Servicer, together with its designated sub-servicer, to
perform its duties and obligations under this Agreement or otherwise materially
and adversely affects the value of the Securitized Loans, the Mortgaged
Property, the priority of the security interest on such Mortgaged Property or
the interest of the Seller, any Depositor, the Master Servicer, NIMs Insurer,
the related Trust or the related Trustee, the party discovering such breach
shall give prompt written notice to the others.

                                     M-1-42
<PAGE>

         Within 60 days of the earlier of either discovery by or notice to the
Servicer of a breach of a representation or warranty set forth in Section 6.01
which materially and adversely affects the ability of the Servicer, together
with its designated sub-servicer, to perform its duties and obligations under
this Agreement or otherwise materially and adversely affects the value of the
Securitized Loans, the Mortgaged Property or the priority of the security
interest on such Mortgaged Property, the Servicer shall use its best efforts
promptly to cure such breach in all material respects and, if such breach cannot
be cured, the Servicer shall, at the option of the Trustee, assign the
Servicer's rights and obligations under this Agreement (or respecting the
affected Securitized Loans) with respect to a Trust to a successor servicer
selected by the related Trustee with the prior consent and approval of the
Master Servicer. Such assignment shall be made in accordance with Section 9.01
and 9.02.

         In addition, the Servicer shall indemnify the Seller, the Master
Servicer, NIMs Insurer, any Depositor and each Trustee and hold each of them
harmless against any Costs resulting from any claim, demand, defense or
assertion based on or grounded upon, or resulting from, a breach of the
Servicer's representations and warranties contained in this Agreement. It is
understood and agreed that the remedies set forth in this Section 6.02
constitute the sole remedies of the Seller, the Master Servicer, any Depositor,
and each Trust and Trustee hereunder respecting a breach of the foregoing
representations and warranties.

         Any cause of action against the Servicer relating to or arising out of
the breach of any representations and warranties made in Section 6.01 shall
accrue upon (i) discovery of such breach by the Servicer or notice thereof by
the Seller, the Master Servicer, NIMs Insurer, any Depositor or a Trustee to the
Servicer, (ii) failure by the Servicer to cure such breach within the applicable
cure period, and (iii) demand upon the Servicer by the Seller, any Depositor,
NIMs Insurer, the Master Servicer or a Trustee for compliance with this
Agreement.

         Section 6.03 Additional Indemnification by the Servicer; Third Party
Claims.

         The Servicer shall indemnify the Seller, any Depositor, NIMs Insurer,
each Trustee, the Master Servicer and each Trust and hold them harmless against
any and all Costs that any such indemnified party may sustain in any way related
to (i) the failure of the Servicer to perform its duties and service the related
Securitized Loans in material compliance with the terms of this Agreement or
(ii) the failure of the Servicer to cause any event to occur which would have
occurred if the Servicer were applying Accepted Servicing Practices under this
Agreement. The Servicer shall immediately notify the Seller, any related
Depositor, NIMs Insurer, the Master Servicer, the related Trustee or any other
relevant party if a claim is made by a third party with respect to this
Agreement or the related Securitized Loans, assume (with the prior written
consent of the indemnified party) the defense of any such claim and pay all
expenses in connection therewith, including counsel fees, promptly pay,
discharge and satisfy any judgment or decree which may be entered against it or
any indemnified party in respect of such claim and follow any written
instructions received from such indemnified party in connection with such claim.
The Servicer shall be promptly reimbursed by the related Trust or Trusts for all
amounts advanced by it pursuant to the preceding sentence except when the claim
is in any way related to the Servicer's

                                     M-1-43
<PAGE>

indemnification pursuant to Section 6.02, or the failure of the Servicer,
together with its designated sub-servicer, to service and administer the
Securitized Loans in material compliance with the terms of this Agreement. In
the event a dispute arises between an indemnified party and the Servicer with
respect to any of the rights and obligations of the parties pursuant to this
Agreement, and such dispute is adjudicated in a court of law, by an arbitration
panel or any other judicial process, then the losing party shall indemnify and
reimburse the winning party for all attorneys' fees and other costs and expenses
related to the adjudication of said dispute.

         Section 6.04 Indemnification with Respect to Certain Taxes and Loss of
REMIC Status.

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

                                  ARTICLE VII.

                                  THE SERVICER

         Section 7.01 Merger or Consolidation of the Servicer.

         The Servicer shall keep in full effect its existence, rights and
franchises as a limited liability company, and shall obtain and preserve its
qualification to do business as a foreign entity in each jurisdiction in which
such qualification is or shall be necessary to perform its obligations as
contemplated by this Agreement.

         Any Person into which the Servicer may be merged or consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Servicer shall be a party, or any Person succeeding to the business of the
Servicer, shall, with the prior written consent of the Master Servicer, be the
successor of the Servicer hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary

                                     M-1-44
<PAGE>

notwithstanding; provided, however, that the successor or surviving Person shall
be an institution (i) having a net worth of not less than $25,000,000, and (ii)
which is a Freddie Mac-approved or Fannie Mae-approved servicer in good
standing.

         Section 7.02 Limitation on Liability of the Servicer and Others.

         Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Seller, the Master
Servicer, any Depositor, any Trust or any Trustee hereunder for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Servicer or any such person against any breach of
warranties or representations made herein, or failure to perform its obligations
in strict compliance with any standard of care set forth in this Agreement, or
any liability which would otherwise be imposed by reason of any breach of the
terms and conditions of this Agreement. The Servicer and any director, officer,
employee or agent of the Servicer may rely in good faith on any document of any
kind prima facie properly executed and submitted by any Person respecting any
matters arising hereunder. The Servicer shall not be under any obligation to
appear in, prosecute or defend any legal action which is not incidental to its
duties to service the Securitized Loans in accordance with this Agreement and
which in its opinion may involve it in any expense or liability; provided,
however, that the Servicer may, with the consent of the related Trustee, NIMs
Insurer and the Master Servicer, undertake any such action which it deems
necessary or desirable in respect of this Agreement and the rights and duties of
the parties hereto. In such event, the Servicer shall be entitled to
reimbursement from the related Trust for the reasonable legal expenses and costs
of such action.

         Section 7.03 Limitation on Resignation and Assignment by the Servicer.

         The Servicer shall neither assign its rights under this Agreement or
the servicing hereunder nor delegate its duties hereunder or any portion
thereof, or sell or otherwise dispose of all or substantially all of its
property or assets without, in each case, the prior written consent of the
Seller, the Master Servicer and the related Trustee and the NIMs Insurer, which
consent, in the case of an assignment of rights or delegation of duties, shall
be granted or withheld in the discretion of the Seller, the Master Servicer and
the related Trustee, and which consent, in the case of a sale or disposition of
all or substantially all of the property or assets of the Servicer, shall not be
unreasonably withheld; provided, that in each case, there must be delivered to
the Seller, the Master Servicer and the related Trustee and NIMs Insurer a
letter from the applicable Rating Agency or Rating Agencies to the effect that
such transfer of servicing or sale or disposition of assets will not result in a
qualification, withdrawal or downgrade of the then-current rating of any of the
Certificates, and provided further, without any consent or notice the Servicer
may delegate its servicing duties hereunder to the Sub-Servicer pursuant to the
Sub-Servicing Agreement. Notwithstanding the foregoing, the Servicer, without
the consent of the Seller, the Master Servicer and the related Trustee, may
retain third-party contractors to perform certain servicing and loan
administration functions, including without limitation, hazard insurance
administration, tax payment and administration, flood certification and
administration, collection

                                     M-1-45
<PAGE>

services and similar functions; provided, however, that the retention of such
contractors by Servicer shall not limit the obligation of the Servicer to
service the Securitized Loans pursuant to the terms and conditions of this
Agreement.

         The Servicer shall not resign from the obligations and duties hereby
imposed on it with respect to the Securitized Loans in a Trust except by mutual
consent of the Seller, the Master Servicer and the related Trustee, with the
consent of the NIMs Insurer, or upon the determination that its duties hereunder
are no longer permissible under applicable law and such incapacity cannot be
cured by the Servicer. Any such determination permitting the resignation of the
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to
the Seller, the Master Servicer and the related Trustee and NIMs Insurer which
Opinion of Counsel shall be in form and substance acceptable to the Seller, the
Master Servicer and the related Trustee and NIMs Insurer. No such resignation
shall become effective until a successor acceptable to the Master Servicer shall
have assumed the Servicer's responsibilities and obligations hereunder in the
manner provided in Section 9.01.

         Without in any way limiting the generality of this Section 7.03, in the
event that the Servicer either shall assign this Agreement or the servicing
responsibilities hereunder or delegate its duties hereunder or any portion
thereof or sell or otherwise dispose of all or substantially all of its property
or assets, without the prior written consent of the Seller, the Master Servicer
and the Trustee and NIMs Insurer (except as provided by the first paragraph of
this Section 7.03 and Section 7.04), then such parties shall have the right to
terminate this Agreement upon notice given as set forth in Section 8.01, without
any payment of any penalty or damages and without any liability whatsoever to
the Servicer or any third party.

         Section 7.04 Sub-Servicing Agreements; Sub-Servicing Acknowledgment
Agreement; Successor Sub-Servicer.

         (a)      The Servicer may enter into sub-servicing agreements, with the
consent of the NIMs Insurer, for any servicing and administration of the
Securitized Loans with any institution which (i) is an approved Fannie Mae or
Freddie Mac Seller/Servicer as indicated in writing, and (ii) represents and
warrants that it is in compliance with the laws of each state as necessary to
enable it to perform its obligations under such sub-servicing agreement. For
this purpose, sub-servicing shall not be deemed to include the use of a tax
service, or services for reconveyance, insurance or brokering REO Property. The
Servicer shall give prior written notice to the Master Servicer, the Trustee and
NIMs Insurer of the appointment of any sub-servicer and shall furnish to the
Master Servicer, the Trustee and NIMs Insurer a copy of such sub-servicing
agreement. For purposes of this Agreement, the Servicer shall be deemed to have
received payments on Securitized Loans immediately upon receipt by any
sub-servicer of such payments. Any such sub-servicing agreement shall be
acceptable to the Master Servicer and the related Trustee and NIMs Insurer and
shall be consistent with and not violate the provisions of this Agreement. Each
sub-servicing agreement shall provide that a successor servicer shall have the
option to terminate such agreement without payment of any fees if the
predecessor Servicer is terminated or resigns.

                                     M-1-46
<PAGE>

         (b)      The Servicer, with the consent of the NIMs Insurer, may
terminate any sub-servicing agreement to which it is a party in accordance with
the terms and conditions of such sub-servicing agreement and either itself
directly service the related Securitized Loans or enter into a sub-servicing
agreement with a successor sub-servicer that qualifies under Section 7.04(a).

         (c)      Notwithstanding any sub-servicing agreement or the provisions
of this Agreement relating to agreements or arrangements between the Servicer
and a sub-servicer or reference to actions taken through a sub-servicer or
otherwise, the Servicer shall remain obligated and primarily liable to the
Trustee, the Master Servicer, the Trust and the Certificateholders for the
servicing and administering of the Securitized Loans in accordance with the
provisions hereof without diminution of such obligation or liability by virtue
of such sub-servicing agreements or arrangements or by virtue of indemnification
from the sub-servicer and to the same extent and under the same terms and
conditions as if the Servicer alone were servicing and administering the
Securitized Loans. The Servicer shall be entitled to enter into any agreement
with a sub-servicer for indemnification of the Servicer by such sub-servicer and
nothing contained in this Agreement shall be deemed to limit or modify such
indemnification.

         (d)      In the event of a Subservicer Termination Trigger, the
Servicer shall terminate the related Subservicer at the direction of the NIMS
Insurer. Following such termination, the Servicer shall have the right to
service such Securitized Loans without the use of a Subservicer or to engage a
new Subservicer acceptable to the NIMS Insurer pursuant to a Subservicing
Agreement, which is not in conflict with the terms of this Agreement.
Notwithstanding the foregoing, the Servicer shall retain the ownership of all
servicing rights with respect to the related Securitized Loans and no such
direction of termination of a Subservicer shall be deemed to diminish such
ownership.

         Section 7.05 Inspection.

         The Servicer shall offer each Trustee, NIMs Insurer and the Master
Servicer, upon reasonable advance notice, during normal business hours, access
to all records maintained by the Servicer in respect of its rights and
obligations hereunder and access to officers of the Servicer responsible for
such obligations. Upon request, the Servicer shall furnish to each Trustee, NIMs
Insurer and the Master Servicer its most recent publicly available financial
statements and such other information relating to its capacity to perform its
obligations under this Agreement.

                                  ARTICLE VIII.

                                   TERMINATION

         Section 8.01 Termination for Cause.

         This Agreement shall be terminable at the option of the Master Servicer
or the related Trustee if any of the following events of default exist on the
part of the Servicer:

                                     M-1-47
<PAGE>

                  (i)      any failure by the Servicer to remit to the Master
Servicer any payment required to be made under the terms of this Agreement which
continues unremedied for a period of one Business Day after the date upon which
written notice of such failure, requiring the same to be remedied, shall have
been received by the Servicer from the Master Servicer, the NIMs Insurer or a
related Trustee; or

                  (ii)     failure by the Servicer duly to observe or perform in
any material respect any other of the covenants or agreements on the part of the
Servicer set forth in this Agreement (except with respect to its obligations
under Section 5.02, 5.03 or 5.04) which continues unremedied for a period of 15
days following the Servicer's receipt of written notice of such failure from the
Master Servicer, the NIMs Insurer or a related Trustee; or

                  (iii)    failure by the Servicer to maintain its license or to
cause its designated sub-servicer to do business or service residential
Securitized Loans in any jurisdiction, if required by such jurisdiction, where a
Mortgaged Property is located; or

                  (iv)     a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a conservator or receiver
or liquidator in any insolvency, readjustment of debt, including bankruptcy,
marshaling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Servicer and such decree or order shall have remained in force undischarged or
unstayed for a period of 60 days; or

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

                  (vi)     the Servicer shall admit in writing its inability to
pay its debts generally as they become due, file a petition to take advantage of
any applicable insolvency, bankruptcy or reorganization statute, make an
assignment for the benefit of its creditors, voluntarily suspend payment of its
obligations or cease its normal business operations for three Business Days; or

                  (vii)    the Servicer ceases to meet or to cause its
designated sub-servicer to meet the qualifications of a Fannie Mae or Freddie
Mac seller/servicer; or

                  (viii)   the Servicer attempts to assign the servicing of the
Securitized Loans or its right to servicing compensation hereunder or the
Servicer attempts to sell or otherwise dispose of all or substantially all of
its property or assets or to assign this Agreement or the servicing
responsibilities hereunder or to delegate its duties hereunder or any portion
thereof, in each case without complying fully with the provisions of Section
7.03 or Section 7.04; or

                  (ix)     failure by the Servicer to duly perform, within the
required time period, its obligations under Sections 5.02, 5.03 or 5.04 which
failure continues unremedied for a period of fifteen (15) days after the date on
which written notice of such failure, requiring the same to be

                                     M-1-48
<PAGE>

remedied, shall have been given to the Servicer by any party to this Servicing
Agreement, by the NIMs Insurer or by any master servicer responsible for master
servicing the Securitized Loans pursuant to a securitization of such Securitized
Loans.

         In each and every such case, so long as an event of default shall not
have been remedied within the applicable cure period, in addition to whatever
rights the Master Servicer or a related Trustee may have at law or equity to
damages, including injunctive relief and specific performance, the Trustee or
the Master Servicer, by notice in writing to the Servicer, and with the consent
of the other party, may (and, at the request of the NIMs Insurer, shall)
terminate all the rights and obligations of the Servicer under this Agreement
and in and to the servicing contract established hereby and the proceeds
thereof.

         Upon receipt by the Servicer of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the
Securitized Loans or otherwise, shall pass to and be vested in a successor
servicer appointed by the Trustee or the Master Servicer, as the case may be,
with the consent of the other party and the NIMs Insurer. Upon written request
from the Master Servicer, the Servicer shall prepare, execute and deliver to the
successor servicer or the Trustee any and all documents and other instruments,
place in such successor's possession all Servicing Files, and do or cause to be
done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and
endorsement or assignment of the Securitized Loans and related documents, at the
Servicer's sole expense. The Servicer shall cooperate with the Master Servicer
and such successor in effecting the termination of the Servicer's
responsibilities and rights hereunder, including without limitation, the
transfer to such successor for administration by it of all cash amounts which
shall at the time be credited by the Servicer to the Custodial Account or Escrow
Account or thereafter received with respect to the Securitized Loans.

         By a written notice, the Trustee or the Master Servicer, with the
consent of the other parties and the NIMs Insurer, may waive any default by the
Servicer in the performance of its obligations hereunder and its consequences.
Upon any waiver of a past default, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereon except to the extent
expressly so waived.

         Section 8.02 Termination Without Cause.

         (a)      This Agreement shall terminate upon: (i) the later of (a) the
distribution of the final payment or liquidation proceeds on the last
Securitized Loan to the Master Servicer or the Trust, and (b) the disposition of
all REO Property acquired upon foreclosure of the last Securitized Loan and the
remittance of all funds due hereunder or (ii) mutual consent of the Servicer and
the Master Servicer in writing, provided such termination is also acceptable to
the applicable Rating Agency or Rating Agencies and the NIMs Insurer. In
addition, with the prior written consent of the Master Servicer and the NIMs
Insurer, the Seller or its designee may terminate this Agreement with respect to
all of the Securitized Loans, without cause, provided, that the Seller or its
designee gives the Servicer 30 days' notice. Any such notice of termination

                                     M-1-49
<PAGE>

shall be in writing and delivered to the Servicer, NIMs Insurer and the Master
Servicer by registered mail to the address set forth in Section 9.03. The Seller
or its designee and the Servicer shall comply with the termination procedures
set forth in Section 9.01 hereof. All unreimbursed Servicing Fees, Servicing
Advances and Monthly Advances still owing the Servicer shall be paid by the
Seller or its designee or the successor servicer from its own funds within 5
Business Days of the date of such termination without right of reimbursement
from the Trust. In connection with any termination pursuant to clause (ii) of
the first sentence of this Section 8.02(a), all unreimbursed Servicing Fees,
Servicing Advances and Monthly Advances still owing the Servicer shall be paid
at the time of such termination by the Trust.

         Upon a termination of the Servicer for cause pursuant to Section 8.01,
all unreimbursed Servicing Fees, Servicing Advances and Monthly Advances still
owing the Servicer shall be paid by the Trust as such amounts are received from
the related Securitized Loans. In connection with any termination pursuant to
the second sentence of this Section 8.02(a), the Seller or its designee or the
successor servicer will be responsible for reimbursing the Servicer for all
unreimbursed out-of-pocket Servicing Advances, Monthly Advances and Servicing
Fees and other reasonable and necessary out-of-pocket costs associated with any
transfer of servicing at the time of such transfer of servicing. Any invoices
received by the Servicer after termination will be forwarded to the Seller or
its designee, and the Seller or its designee or the successor servicer shall pay
such invoices within five (5) Business Days upon receipt from the Servicer.

         (b)      In the event that the Servicer decides to terminate its
obligations under this Agreement as set forth in clause (ii) of Section 8.02(a),
the Servicer agrees that it will continue to service the Securitized Loans
beyond the prescribed termination date until such time as the Trustee, using
reasonable commercial efforts, is able to appoint, with the consent of the NIMs
Insurer, a successor servicer acceptable to the NIMs Insurer and the Master
Servicer and otherwise meeting the characteristics of Sections 7.01 and 9.01.

                                   ARTICLE IX.

                            MISCELLANEOUS PROVISIONS

         Section 9.01 Successor to the Servicer.

         Simultaneously with the termination of the Servicer's responsibilities
and duties under this Agreement (a) pursuant to Sections 6.02, 7.03, 8.01 or
8.02(a)(ii), the Master Servicer shall (i) within 90 days of the Servicer's
receipt of notice of such termination, succeed to and assume all of the
Servicer's responsibilities, rights, duties and obligations under this Agreement
(except that the Master Servicer shall immediately assume all of the obligations
of the Servicer to make Monthly Advances), or (ii) appoint a successor
acceptable to the NIMs Insurer having the characteristics set forth in clauses
(i) and (ii) of Section 7.01 and which shall succeed to all rights and assume
all of the responsibilities, duties and liabilities of the Servicer under this
Agreement simultaneously with the termination of the Servicer's
responsibilities, duties and liabilities under this Agreement; or (b) as a
result of termination of the Servicer without cause by the Seller pursuant to
Section 8.02 hereof, the Seller shall appoint a successor acceptable to the NIMs

                                     M-1-50
<PAGE>

Insurer having the characteristics set forth in clauses (i) and (ii) of Section
7.01 and which shall succeed to all rights and assume all of the
responsibilities, duties and liabilities of the Servicer under this Agreement
simultaneously with the termination of the Servicer's responsibilities, duties
and liabilities under this Agreement. If the NIMs Insurer requests, the Master
Servicer shall appoint a successor servicer as provided in the preceding
sentence. Any successor to the Servicer shall be subject to the approval of the
Master Servicer and the Trustee and, to the extent required by the Trust
Agreement, shall be a member in good standing of the MERS system (if any of the
Securitized Loans are MERS Eligible Securitized Loans, unless such Securitized
Loans are withdrawn from MERS and Assignments of Mortgage are recorded in favor
of the Trust at the expense of the successor servicer). The final approval of a
successor servicer shall be conditioned upon the receipt by the Trustee, the
Master Servicer, NIMs Insurer and the Seller of a letter from the applicable
Rating Agency or Rating Agencies to the effect that such transfer of servicing
will not result in a qualification, withdrawal or downgrade of the then-current
rating of any of the Certificates. In connection with such appointment and
assumption, the Master Servicer or the Seller, as applicable, may make such
arrangements for the compensation of such successor out of payments on
Securitized Loans as it and such successor shall agree, provided, however, that
no such compensation shall be in excess of the Servicing Fee permitted under
this Agreement. In the event that the Servicer's duties, responsibilities and
liabilities under this Agreement should be terminated pursuant to the
aforementioned sections, the Servicer shall discharge such duties and
responsibilities during the period from the date it acquires knowledge of such
termination until the effective date thereof with the same degree of diligence
and prudence which it is obligated to exercise under this Agreement, and shall
take no action whatsoever that might impair or prejudice the rights or financial
condition of its successor. The resignation or removal of the Servicer pursuant
to the aforementioned sections shall not become effective until a successor
servicer shall be appointed pursuant to this Section 9.01, or until the Master
Servicer succeeds to and assumes all of the Servicer's responsibilities, rights,
duties and obligations pursuant to this Section 9.01, and shall in no event
relieve the Servicer of the representations and warranties made pursuant to
Section 6.01 and the remedies available to the Trustee, the Trust, the Master
Servicer, NIMs Insurer and the Seller under Section 6.02 and 6.03, it being
understood and agreed that the provisions of such Sections 6.01, 6.02 and 6.03
shall be applicable not only to such successor servicer but also to the Servicer
notwithstanding any such resignation or termination of the Servicer, or the
termination of this Agreement. Notwithstanding the foregoing, the Master
Servicer, in its capacity as successor servicer, shall not be responsible for
the lack of information and/or documents that it cannot obtain through
reasonable efforts.

         Within a reasonable period of time, but in no event longer than 30 days
after the appointment of a successor entity, the Servicer shall prepare, execute
and deliver to the successor entity any and all documents and other instruments,
place in such successor's possession all Servicing Files, and do or cause to be
done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and
endorsement of the Mortgage Notes and related documents, and the preparation and
recordation of Assignments of Mortgage. The Servicer shall cooperate with the
Master Servicer or the Seller, as applicable, and such successor in effecting
the termination of the Servicer's responsibilities and rights hereunder and the
transfer of servicing responsibilities to the successor servicer, including

                                     M-1-51
<PAGE>

without limitation, the transfer to such successor for administration by it of
all cash amounts which shall at the time be credited by the Servicer to the
Custodial Account or Escrow Account or thereafter received with respect to the
Securitized Loans.

         Any successor servicer appointed as provided herein shall execute,
acknowledge and deliver to the Trustee, the Servicer, the Master Servicer, NIMs
Insurer and the Seller an instrument (i) accepting such appointment, wherein the
successor shall make the representations and warranties set forth in Section
6.01 (including a representation that the successor servicer is a member of
MERS, unless none of the Securitized Loans are MERS Securitized Loans or MERS
Eligible Securitized Loans or any such Securitized Loans have been withdrawn
from MERS and Assignments of Mortgage are recorded in favor of the Trust) and
provide for the same remedies set forth in Section 6.02 and Section 6.03 herein
(ii) an assumption of the due and punctual performance and observance of each
covenant and condition to be performed and observed by the Servicer under this
Agreement, whereupon such successor servicer shall become fully vested with all
the rights, powers, duties, responsibilities, obligations and liabilities of the
Servicer, with like effect as if originally named as a party to this Agreement.
Any termination or resignation of the Servicer or termination of this Agreement
pursuant to Sections 6.02, 7.03, 8.01 or 8.02 shall not affect any claims that
the Seller, the Depositor, the Master Servicer, NIMs Insurer or the Trustee may
have against the Servicer arising out of the Servicer's actions or failure to
act prior to any such termination or resignation. In addition, in the event any
successor servicer is appointed pursuant to Section 8.03 of this Agreement, such
successor servicer must satisfy the conditions relating to the transfer of
servicing set forth in the Trust Agreement.

         The Servicer shall deliver promptly to the successor servicer the funds
in the Custodial Account and Escrow Account and all Securitized Loan documents
and related documents and statements held by it hereunder and the Servicer shall
account for all funds and shall execute and deliver such instruments and do such
other things as may reasonably be required to more fully and definitively vest
in the successor all such rights, powers, duties, responsibilities, obligations
and liabilities of the Servicer.

         Upon a successor's acceptance of appointment as such, the Servicer
shall notify the Trustee, the Master Servicer, NIMs Insurer, the Seller and the
Depositor of such appointment in accordance with the procedures set forth in
Section 9.03.

         Section 9.02 Costs.

         The Seller shall pay any legal fees and expenses of its attorneys.
Costs and expenses incurred in connection with the transfer of the servicing
responsibilities pursuant to Section 9.01 or pursuant to any other provision of
this Agreement, including fees for delivering Servicing Files, shall be paid by
the Seller. Subject to Sections 2.03 and 3.01(a), the Seller shall pay the costs
associated with the preparation, delivery and recording of Assignments of
Mortgages.

         Section 9.03 Notices.

                                     M-1-52
<PAGE>

         All demands, notices, consents, reports, directions, instructions,
statements and other communications hereunder shall be in writing and shall be
deemed to have been duly given if sent by facsimile or mailed by overnight
courier, addressed as follows (or such other address as may hereafter be
furnished to the other parties by like notice):

                  (i)      if to the Seller:
                           Home Star Mortgage Services, LLC
                           W. 115 Century Road
                           Paramus, New Jersey 07652
                           Attention: Frank Plenskofski
                           Facsimile: (201) 225-2878

                  (ii)     if to the Servicer:
                           Home Star Mortgage Services, LLC
                           W. 115 Century Road
                           Paramus, New Jersey 07652
                           Attention: Frank Plenskofski
                           Facsimile: (201) 225-2878

                  (iii)    if to the Master Servicer:
                           Wells Fargo Bank,
                           National Association
                           9062 Old Annapolis Road
                           Columbia, Maryland 21045
                           Attention: Corporate Trust Services --
                                      Home Star Master Servicing
                           Facsimile: (410) 884-2360

                  (iv)     if to the Trustee:
                           The address shown in the Transfer Notice

         Any such communication hereunder shall be deemed to have been received
on the date delivered to or received at the premises of the addressee.

         Section 9.04 Severability Clause.

         Any part, provision, representation or warranty of this Agreement which
is prohibited or which is held to be void or unenforceable shall be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of
this Agreement which is prohibited or unenforceable or is held to be void or
unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Securitized Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof. If the invalidity of any
part, provision, representation or warranty of this Agreement shall deprive any
party of the economic benefit

                                     M-1-53
<PAGE>

intended to be conferred by this Agreement, the parties shall negotiate, in
good-faith, to develop a structure the economic effect of which is as close as
possible to the economic effect of this Agreement without regard to such
invalidity.

         Section 9.05 No Personal Solicitation.

         From and after the related Closing Date, the Servicer hereby agrees
that it will not take any action or permit or cause any action to be taken by
any of its agents or affiliates, or by any independent contractors or
independent mortgage brokerage companies on the Servicer's behalf, to
personally, by telephone or mail, solicit the Mortgagor under any Securitized
Loan for the purpose of refinancing such Securitized Loan; provided, that the
Servicer may solicit any Mortgagor for whom the Servicer has received a request
for verification of mortgage status, a request for demand for payoff, a
mortgagor initiated written or verbal communication indicating a desire to
prepay the related Securitized Loan, or the mortgagor initiates a title search,
provided further, it is understood and agreed that promotions undertaken by the
Servicer or any of its affiliates which (i) concern optional insurance products
or other additional projects or (ii) are directed to mailing lists or customers
of affiliated companies or the general public at large, including without
limitation, mass mailings based on commercially acquired mailing lists,
newspaper, radio and television advertisements shall not constitute solicitation
under this Section 9.05 nor is the Servicer prohibited from responding to
unsolicited requests or inquiries made by a Mortgagor or an agent of a
Mortgagor.

         Section 9.06 Counterparts.

         This Agreement may be executed simultaneously in any number of
counterparts. Each counterpart shall be deemed to be an original, and all such
counterparts shall constitute one and the same instrument.

         Section 9.07 Place of Delivery and 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 THE LAWS OF THE
STATE OF NEW YORK, NOTWITHSTANDING NEW YORK OR OTHER CHOICE OF LAW RULES TO THE
CONTRARY.

         Section 9.08 Further Agreements.

         The Seller and the Servicer each agree to execute and deliver to the
other such reasonable and appropriate additional documents, instruments or
agreements as may be necessary or appropriate to effectuate the purposes of this
Agreement.

         Section 9.09 Intention of the Parties.

                                     M-1-54
<PAGE>

         It is the intention of the parties that the Seller is conveying, and
the Servicer is receiving, only a contract for servicing the Securitized Loans.
Accordingly, the parties hereby acknowledge that each Trust remains the sole and
absolute owner of the related Securitized Loans and all rights (other than the
servicing rights) related thereto.

         Section 9.10 Successors and Assigns; Assignment of Servicing Agreement.

         This Agreement shall bind and inure to the benefit of and be
enforceable by the Servicer, the Seller , each Trustee (with respect to related
Securitized Loans), the NIMs Insurer and the Master Servicer and their
respective successors and assigns. This Agreement shall not be assigned, pledged
or hypothecated by the Servicer to a third party except in accordance with
Section 7.03 and shall not be assigned, pledged or hypothecated by the Seller
except as and to the extent provided in Section 9.11.

         Section 9.11 Assignment by Seller.

         The Seller shall have the right, with the consent of the NIMs Insurer,
upon notice to but without the consent of the Servicer, to assign, in whole or
in part (but exclusive of such Seller's rights and obligations as owner of the
servicing rights relating to Securitized Loans), its interest under this
Agreement with respect to Securitized Loans which will be owned by the related
Trust to the related Depositor, which in turn shall assign such rights to such
Trust, and such Trust then shall succeed to all such rights of the Seller under
this Agreement. All references to the Seller in this Agreement shall be deemed
to include its assignee or designee and any subsequent assignee or designee,
specifically including, with respect to each Securitized Loan, the related Trust
and the related Trustee.

         Section 9.12 Amendment.

         This Agreement may be amended in writing from time to time by the
parties, with the prior written consent of the Trustee and the NIMs Insurer;
provided that the party requesting such amendment shall, at its own expense,
provide the other parties and such Trustee and the NIMs Insurer with an Opinion
of Counsel that (i)such amendment is permitted under the terms of this
Agreement, (ii) the Servicer has complied with all applicable requirements of
this Agreement, and (iii)) such amendment will not materially adversely affect
the interest of any Trust or the related Certificateholders in the Securitized
Loans.

         Any such amendment shall be deemed not to adversely affect in any
material respect any of the interest of Certificateholders in the Securitized
Loans if each related Trustee and the NIMs Insurer receives written confirmation
from the applicable Rating Agency or Rating Agencies that such amendment will
not cause such Rating Agency or Rating Agencies to reduce, qualify or withdraw
the then current rating assigned to the related Certificates (and any Opinion of
Counsel requested by a party in connection with any such amendment may rely
expressly on such confirmation as the basis therefor).

         Section 9.13 Waivers.

                                     M-1-55
<PAGE>

         No term or provision of this Agreement may be waived or modified unless
such waiver or modification is in writing, signed by the party against whom such
waiver or modification is sought to be enforced.

         Section 9.14 Exhibits.

         The exhibits to this Agreement are hereby incorporated and made a part
hereof and are an integral part of this Agreement.

         Section 9.15 Intended Third Party Beneficiary.

         Notwithstanding any provision herein to the contrary, the parties to
this Agreement agree that it is appropriate, in furtherance of the intent of
such parties as set forth herein, that each Trustee, each Trust and each NIMs
Insurer receive the benefit of the provisions of this Agreement as an intended
third party beneficiary of this Agreement to the extent of such provisions with
respect to the related Securitized Loans. The Servicer shall have the same
obligations to the related Trustee, the related Trust and the related NIMs
Insurer as if it were a party to this Agreement, and each Trustee, Trust and
NIMs Insurer shall have the same rights and remedies to enforce the provisions
of this Agreement as if it were a party to this Agreement. The Servicer shall
only take direction from the Master Servicer or NIMs Insurer (if direction by
the Master Servicer or NIMs Insurer, as applicable, is required under this
Agreement) unless otherwise directed by this Agreement. Notwithstanding the
foregoing, all rights and obligations of a Trust, the related Trustee, the
related NIMs Insurer and the Master Servicer hereunder (other than the right to
indemnification) with respect to the related Securitized Loans shall terminate
upon the termination of such Trust pursuant to the related Trust Agreement.

         Section 9.16 Confidentiality.

         The Trustee and the Master Servicer hereby agree to hold and treat all
Confidential Information (as defined below) in confidence and in accordance with
this Section 9.16. Such Confidential Information will not, without the prior
written consent of the Servicer, be disclosed or used by any Trustee or the
Master Servicer or by its subsidiaries, affiliates, directors, officers,
employees, agents or controlling persons (collectively, the "Information
Recipients") other than for the purposes of this Agreement or for the purposes
specified in the related Trust Agreement. Disclosure that is not in violation of
the Right to Financial Privacy Act of 1978, as amended, the Gramm-Leach-Bliley
Act of 1999 (the "G-L-B Act") or other applicable law by the Trustee or the
Master Servicer of any Confidential Information at the request of its outside
auditors or governmental regulatory authorities in connection with an
examination of any Trustee or the Master Servicer by any such authority or for
the purposes specified in any Trust Agreement or this Agreement shall not
constitute a breach of its obligations under this Section 9.19, and shall not
require the prior consent of the Servicer.

         As used herein, "Confidential Information" means non-public personal
information (as defined in the G-L-B Act and its enabling regulations issued by
the Federal Trade Commission) regarding borrowers. Confidential Information
shall not include information which (i) is or

                                     M-1-56
<PAGE>

becomes generally available to the public other than as a result of disclosure
by a Trustee or the Master Servicer or any of its Information Recipients; (ii)
was available to the related Trustee or the Master Servicer on a
non-confidential basis from a person or entity other than the Servicer prior to
its disclosure by the Servicer to such Trustee; (iii) is required to be
disclosed by a governmental authority or related governmental agencies or as
otherwise required by law; (iv) becomes available to the related Trustee or the
Master Servicer on a non-confidential basis from a person or entity other than
the Servicer who, to the best knowledge of the related Trustee or the Master
Servicer, is not otherwise bound by a confidentiality agreement with the
Servicer, and is not otherwise prohibited from transmitting the information to
such Trustee or the Master Servicer, or (v) is released pursuant to the Trust
Agreement or this Agreement.

         Section 9.17 General Interpretive Principles.

         For purposes of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires:

         (a)      the terms defined in this Agreement have the meanings assigned
to them in this Agreement and include the plural as well as the singular, and
the use of any gender herein shall be deemed to include the other gender;

         (b)      accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles;

         (c)      references herein to "Articles", "Sections", "Subsections",
"Paragraphs", and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;

         (d)      a reference to a Subsection without further reference to a
Section is a reference to such Subsection as contained in the same Section in
which the reference appears, and this rule shall also apply to Paragraphs and
other subdivisions;

         (e)      the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
provision;

         (f)      the term "include" or "including" shall mean by reason of
enumeration; and

         (g)      this Agreement shall be construed as a separate agreement with
respect to the Securitized Loans held by each Trust, and references to the
rights of the Master Servicer, Trustee or any NIMs Insurer shall apply
separately with respect to each Trust.

         Section 9.18 Reproduction of Documents.

         This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications which may hereafter be
executed, (b) documents received by any party at the closing, and (c) financial
statements, certificates and other information previously

                                     M-1-57
<PAGE>

or hereafter furnished, may be reproduced by any photographic, photostatic,
microfilm, micro-card, miniature photographic or other similar process. The
parties agree that any such reproduction shall be as admissible in evidence as
the original itself in any judicial or administrative proceeding, whether or not
the original is in existence and whether or not such reproduction was made by a
party in the regular course of business, and that any enlargement, facsimile or
further reproduction of such reproduction shall likewise be admissible in
evidence.

                                     M-1-58
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed hereto by their respective officers thereunto duly authorized as of the
date first above written.

                                    HOME STAR MORTGAGE SERVICES, LLC,
                                    as Seller

                                    By:
                                    Name:
                                    Title:

                                    HOME STAR MORTGAGE SERVICES, LLC,
                                    as Servicer

                                    By:
                                    Name:
                                    Title:

                                    WELLS FARGO BANK, NATIONAL
                                    ASSOCIATION,
                                    as Master Servicer

                                    By:
                                    Name:
                                    Title:

                                     M-1-59
<PAGE>

                                    EXHIBIT A

                             FORM OF TRANSFER NOTICE

                                     [Date]

Home Star Mortgage Services, LLC, as Servicer
W. 115 Century Road
Paramus, New Jersey  07652

Cenlar FSB, as Sub-Servicer
P.O. Box 77400
425 Phillips Boulevard
Trenton, New Jersey 08628

You are hereby notified that as of [date] (the "Effective Date"), the
undersigned has transferred the Securitized Loans listed on the attached
schedule (the "Securitized Loans") to Homestar Mortgage Securities Trust 200_ -
__ (the "Trust"). The attached schedule also contains a field which sets forth
the Servicing Fee Rate(s) and the Prepayment Charge Schedule. You agree to
service such Securitized Loans as Securitized Loans under that certain Servicing
Agreement dated as of March 5, 2004 (the "Servicing Agreement"), by and among
Home Star Mortgage Services, LLC ("Home Star"), as servicer (the "Servicer"),
Home Star, as seller (the "Seller") and Wells Fargo Bank, National Association,
as master servicer (the "Master Servicer"), and that certain Sub-Servicing
Acknowledgment Agreement dated of even date therewith (the "Sub-Servicing
Agreement"), by and between the Servicer and Cenlar FSB (the "Sub-Servicer"). In
addition, you shall recognize the Trust or the Master Servicer or
____________________ (the "Trustee"), acting as agents for the Trust, as having
the same rights as Home Star as Seller under the Servicng Agreement with respect
to such transferred Securitized Loans. The address for notice for the Trustee
for these Securitized Loans is __________________________________.

                                        HOME STAR MORTGAGE SERVICES, LLC, as
                                        Seller

                                        By:
Acknowledged by:

HOME STAR MORTGAGE SERVICES, LLC, as Servicer

By:
Name:
Title:

CENLAR FSB, as Sub-Servicer
By:
Name:

                                      A-1
<PAGE>

Title:

                                      A-2
<PAGE>

                                    EXHIBIT B

                       CUSTODIAL ACCOUNT LETTER AGREEMENT

                                                                _______ __, 20__
To:     ___________________________
        ___________________________
        ___________________________
         (the "Depository")

         As Servicer under the Servicing Agreement, dated as of March 5, 2004,
by and among Home Star Mortgage Services, LLC ("Home Star"), as servicer (the
"Servicer"), Home Star, as seller (the "Seller") and Wells Fargo Bank, National
Association, as master servicer (the "Master Servicer") (the "Agreement"), we
hereby authorize and request you to establish an account as the Custodial
Account pursuant to Section 3.03 of the Agreement, to be designated as "Home
Star Mortgage Services, LLC, as Servicer for Wells Fargo Bank, National
Association, as Master Servicer, and in trust for one or more Homestar Mortgage
Securities Trusts." All deposits in the account shall be subject to withdrawal
therefrom by order signed by the Servicer. This letter is submitted to you in
duplicate. Please execute and return one original to us.

                                   HOME STAR MORTGAGE SERVICES, LLC, as Servicer

                                   By:
                                   Name:
                                   Title:

         The undersigned, as Depository, hereby certifies that the above
described account has been established under Account Number __________, at the
office of the Depository indicated above, and agrees to honor withdrawals on
such account as provided above.

                                   Depository

                                   By:
                                   Name:
                                   Title:
                                   Date:

                                      B-1
<PAGE>

                                    EXHIBIT C

                         ESCROW ACCOUNT LETTER AGREEMENT

                                                                _______ __, 20__
To:     ___________________________
        ___________________________
        ___________________________
         (the "Depository")

         As Servicer under the Servicing Agreement, dated as of March 5, 2004,
by and among Home Star Mortgage Services, LLC ("Home Star"), as servicer (the
"Servicer"), Home Star, as seller (the "Seller") and Wells Fargo Bank, National
Association, as master servicer (the "Master Servicer") (the "Agreement"), we
hereby authorize and request you to establish an account as the Escrow Account
pursuant to Section 3.05 of the Agreement, to be designated as "Home Star
Mortgage Services, LLC, as Servicer for Wells Fargo Bank, National Association,
as Master Servicer, and in trust for one or more Homestar Mortgage Securities
Trusts." All deposits in the account shall be subject to withdrawal therefrom by
order signed by the Servicer. This letter is submitted to you in duplicate.
Please execute and return one original to us.

                                   HOME STAR MORTGAGE SERVICES, LLC, as Servicer

                                   By:
                                   Name:
                                   Title:

         The undersigned, as Depository, hereby certifies that the above
described account has been established under Account Number __________, at the
office of the Depository indicated above, and agrees to honor withdrawals on
such account as provided above.

                                   Depository

                                   By:
                                   Name:
                                   Title:
                                   Date:

                                      C-1
<PAGE>

                                    EXHIBIT D

                        MONTHLY SERVICER REPORTING FORMAT

The format should be:
1. Record length of 240
2. ASCII
3. All dates should have DD of "01".

<TABLE>
<CAPTION>
                                                                                        COBOL
#        M/O      Field Name                            Position         Length       "Picture"         Justify
<S>      <C>      <C>                                   <C>              <C>          <C>               <C>
1.       O        Master Servicer No.                   001-002          2
2.       O        Unit Code                             003-004          2
3.       M        Loan Number                           005-014          10           X(10)
4.       O        Borrower Name                         015-034          20           X(20)
5.       O        Old Payment Amount                    035-045          11           S(9)V9(02)
6.       O        Old Loan Rate                         046-051          6            9(2)V9(04)
7.       O        Servicer Fee Rate                     052-057          6            9(2)V9(04)
8.       M        Servicer Ending Balance               058-068          11           S9(9)V9(02)
9.       M        Servicer Next Due Date                069-076          8            CCYYMMDD
10.      O        Curtail Amt 1 - Before                077-087          11           S9(9)V9(02)
11.      O        Curtail Date 1                        088-095          8            CCYYMMDD
12.      O        Curtail Amt 1 - After                 096-106          11           S9(9)V9(02)
13       O        Curtail Amt 2 - Before                107-117          11           S9(9)V9(02)
14.      O        Curtail Date                          118-125          8            CCYYMMDD
15.      O        Curtail Amt 2 - After                 126-136          11           9(9)V9(02)
16.      O        Curtail Amt 3 - Before                137-147          11           9(9)V9(02)
17.      O        Curtail Date                          148-155          8            CCYYMMDD
18       O        Curtail Amt 3 - After                 156-166          11           9(9)V9(02)
19       O        New Payment Amount                    167-177          11           9(9)V9(02)
20.      O        New Loan Rate                         178-183          6            (2)V9(04)
21.      O        Index Rate                            184-189          6            (2)V9(04)
22.      O        Remaining Term                        190-192          3            (3)
23.      O        Liquidation Amount                    193-203          11           9(9)V9(02)
24.      O        Action Code                           204-205          2            (02)
25.      O        Scheduled Principal                   206-216          11           9(9)V9(02)
26.      O        Scheduled Interest                    217-227          11           9(9)V9(02)
27.      O        Scheduled Ending Balance              228-238          11           9(9)V9(02)
28.      O        FILLER                                239-240          2            (02)
Trailer Record
1.       O        Number of Records                     001-006          6            9(06)
2.       O        FILLER                                007-240          234          X(234)
Field Names and Descriptions:
</TABLE>

                                      D-1
<PAGE>

<TABLE>
<CAPTION>
Field Name                              Description
<S>                                     <C>
Master Servicer No.                     Hard code as "01" used internally
Unit Code                               Hard code as "  " used internally
Loan Number                             Investor's loan number
Borrower Name                           Last name of borrower
Old Payment Amount                      P&I amount used for the applied payment
Old Loan Rate                           Gross interest rate used for the applied payment
Servicer Fee Rate                       Servicer's fee rate
Servicer Ending Balance                 Ending actual balance after a payment has been applied
Servicer Next Due Date                  Borrower's next due date for a payment
Curtailment Amount 1 - Before           Amount of curtailment applied before the payment
Curtailment Date 1                      Date of  curtailment  should  coincide  with the  payment
                                        date applicable to the curtailment
Curtailment Amount 1 - After            Amount of curtailment applied after the payment
Curtailment Amount 2 - Before           Amount of curtailment applied before the payment
Curtailment Date 2                      Date of  curtailment  should  coincide  with the  payment
                                        date applicable to the curtailment
Curtailment Amount 2 - After            Amount of curtailment applied after the payment
Curtailment Amount 3 - Before           Amount of curtailment applied before the payment
Curtailment Date 3                      Date of  curtailment  should  coincide  with the  payment
                                        date applicable to the curtailment
Curtailment Amount 3 - After            Amount of curtailment applied after the payment
New Payment Amount                      For ARM, Equal,  or Buydown loans,  when a payment change
                                        occurs, this is the scheduled payment
New                                     Loan Rate For ARM loans, when the gross interest rate
                                        change occurs, this is the scheduled rate
</TABLE>

                                      D-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                     <C>
Index Rate                              For ARM  loans,  the index rate used in  calculating  the
                                        new gross interest rate
Remaining Term                          For ARM  loans,  the  number of  months  left on the loan
                                        used  to determine the new P&I amount
Liquidation Amount                      The payoff amount of the loan
Action Code For delinquent loans:       12 -- Relief Provisions
                                        15 -- Bankruptcy/Litigation
                                        20 -- Referred for Deed-in-lieu, short sale
                                        30 -- Referred to attorney to begin foreclosure
                                        60 -- Loan Paid in full
                                        70 -- Real Estate Owned
Scheduled Principal                     Amount of principal from borrower payment due to bondholder
Scheduled Interest                      Amount of interest from borrower payment due to bondholder
Scheduled Ending Balance                Ending scheduled balance of loan
FILLER                                  Should be filled with spaces
</TABLE>

                                      D-3
<PAGE>

                                    EXHIBIT E

               Wells Fargo Bank Master Servicing Default Reporting
                             DATA FIELD REQUIREMENTS

Data must be submitted to Wells Fargo Bank in an Excel spreadsheet format with
fixed field names and data type. The Excel spreadsheet should be used as a
template consistently every month when submitting data.

Table: Delinquency

Name                                 Type                         Character Size
Servicer Loan #                      Number (Double)              10
Investor Loan #                      Number (Double)              10
Servicer Investor #                  Text                         3
Borrower Name                        Text                         20
Address                              Text                         30
State                                Text                         2
Zip                                  Text                         10
Due Date                             Date/Time                    8
Wells Fargo Action Code              Text                         2
FC Approval Date                     Date/Time                    8
File Referred to Attorney            Date/Time                    8
NOD                                  Date/Time                    8
Complaint Filed                      Date/Time                    8
Sale Published                       Date/Time                    8
Target Sale Date                     Date/Time                    8
Actual Sale Date                     Date/Time                    8
Loss Mit Approval Date               Date/Time                    8
Loss Mit Type                        Text                         5
Loss Mit Code                        Number                       2
Loss Mit Estimated Completion Date   Date/Time                    8
Loss Mit Actual Completion Date      Date/Time                    8
Loss Mit Broken Plan Date            Date/Time                    8
BK Chapter                           Text                         6
BK Filed Date                        Date/Time                    8
Post Petition Due                    Date/Time                    8
Motion for Relief                    Date/Time                    8
Lift of Stay                         Date/Time                    8
Reason For Delinquency               Text                         10
Occupant Code                        Text                         10
Eviction Start Date                  Date/Time                    8
Eviction Completed Date              Date/Time                    8
List Price                           Currency                     8

                                      E-1
<PAGE>

List Date                            Date/Time                    8
Accepted Offer Price                 Currency                     8
Accepted Offer Date                  Date/Time                    8
Estimated REO Effective Date         Date/Time                    8
Actual REO Sale Date                 Date/Time                    8
Servicer Comments                    Text                         200
Modification Exp. Date               Date/Time                    8
Fannie Mae Del. Status Code          Text                         2
Fannie Mae Del. Reason Code          Text                         2
BK Discharge/Dismissal Date          Date/Time                    8
Property Damage Date                 Date/Time                    8
Property Repair Amount               Currency                     8
BK Hearing Date                      Date/Time                    8
POC Date                             Date/Time                    8
POC Amount                           Currency                     8
BK Case Number                       Text                         30 Maximum
F/C Sale Amount                      Currency                     8
Redemption Exp. Date                 Date/Time                    8
Property Value Date                  Date/Time                    8
Current Property Value               Currency                     8
Repaired Property Value              Currency                     8
BPO Y/N                              Text                         1
Current LTV                          Currency                     8
Property Condition Code              Text                         2
Property Inspection Date             Date/Time                    8
MI Cancellation Date                 Date/Time                    8
MI Claim Filed Date                  Date/Time                    8
MI Claim Amount                      Currency                     8
MI Claim Reject Date                 Date/Time                    8
MI Claim Resubmit Date               Date/Time                    8
MI Claim Paid Date                   Date/Time                    8
MI Claim Amount Paid                 Currency                     8
Pool Claim Filed Date                Date/Time                    8
Pool Claim Amount                    Currency                     8
Pool Claim Reject Date               Date/Time                    8
Pool Claim Paid Date                 Date/Time                    8
Pool Claim Amount Paid               Currency                     8
Pool Claim Resubmit Date             Date/Time                    8
FHA Part A Claim Filed Date          Date/Time                    8
FHA Part A Claim Amount              Currency                     8
FHA Part A Claim Paid Date           Date/Time                    8
FHA Part A Claim Paid Amount         Currency                     8
FHA Part B Claim Filed Date          Date/Time                    8
FHA Part B Claim Amount              Currency                     8

                                      E-2
<PAGE>

FHA Part B Paid Date                 Date/Time                    8
FHA Part B Claim Paid Amount         Currency                     8
V A Claim Filed Date                 Date/Time                    8
V A Claim Paid Date                  Date/Time                    8
V A Claim Paid Amount                Currency                     8

The Action Code Field should show the applicable numeric code to indicate that a
special action is being taken. The Action Codes are the following:

12-Relief Provisions (i.e. Sailors & Soldiers Relief Act)
15-Bankruptcy/Litigation
20-Loss Mitigation-Workout
30-Referred for Foreclosure
60-Payoff
65-Repurchase
70-REO-Held for Sale
71- Third Party Sale/Condemnation
72-REO-Pending Conveyance-Pool Insurance claim filed

Wells Fargo Bank will accept alternative Action Codes to those above, provided
that the Codes are consistent with industry standards. If Action Codes other
than those above are used, the Servicer must supply Wells Fargo Bank with a
description of each of the Action Codes prior to sending the file.

Description of Action Codes:

Action Code 12- To report a Securitized Loan for which the Borrower has been
granted relief for curing a delinquency.

Action Code 15 - To report a borrower filing bankruptcy and for all active
bankruptcies.

Action Code 20 - To report that the Borrower has agreed to some form of loss
mitigation/workout. Examples of these include Short Sale, Deed-in-Lieu of
Foreclosure, Formal Forbearance Agreements, Modifications, etc.

Action Code 30 - To report a loan that has been referred to attorney for
foreclosure.

Action Code 60 - To report that a Securitized Loan has been paid in full either
at, or prior to, maturity.

Action Code 65- To report that the Servicer is repurchasing the Securitized
Loan.

Action Code 70 -To report that a Securitized Loan has been foreclosed or a
deed-in-lieu of foreclosure has been accepted, and the Servicer, on behalf of
the owner of the Securitized Loan, has acquired the property and may dispose of
it.

                                      E-3
<PAGE>

Action Code 71 -To report that a Securitized Loan has been foreclosed and a
third party acquired the property, or a total condemnation of the property has
occurred.

Action Code 72 -To report that a Securitized Loan has been foreclosed, or a
deed-in-lieu has been accepted, and the property may be conveyed to the mortgage
insurer and the pool insurance claim has been filed. Also to be used for
completed HUDNA foreclosures where the property is pending conveyance to HUDNA.

The Loss Mit Type field should show the approved Loss Mitigation arrangement.
The following are acceptable:
*******
o        ASU M - Approved Assumption
o        BAP - Borrower Assistance Program
o        CO - Charge Off
o        DIL - Deed-in-Lieu
o        FFA - Formal Forbearance Agreement
o        MOD - Loan Modification
o        PRE - Pre-Sale
o        SS - Short Sale
o        MISC- Anything else approved by the PMI or Pool Insurer

Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
provided that they are consistent with industry standards. If Loss Mitigation
Types other than those above are used, the Servicer must supply Wells Fargo Bank
with a description of each of the Loss Mitigation Types prior to sending the
file.

The Occupant Code field should show the current status of the property. The
acceptable codes are:

o        Mortgagor
o        Tenant
o        Unknown
o        Vacant

                                      E-4
<PAGE>

The RFD field should show the Reason for Default. The acceptable codes are
below, or we can accept Fannie Mae Delinquency Reason Codes.

Delinquency Code       Delinquency Description
      AB               Abandonment of property
      AA               Arm Adjustment Problem
      BK               Bankruptcy
      06               Borrower Complaint
      BOC              Borrower Out of Country
      BU               Business Failure
      CL               Casualty Loss
      JC               Change in Job
      CD               Chronic Delinquent
      CSP              Chronic Slow Pay
      CI               Commission Income
      DIF              Death in Family
      08               Deceased
      00               Defective Loan
      DT               Delinquent Property Tax
      FIRE             Disability
      DS               Disregard
      Dl               Divorce
      DD               Domestic Difficulties
      EA               Earthquake
      ENV              Environmental
      ECO              Excessive Credit Obligation
      FA               Family Death
      FE               Family Emergency
      FI               Family Illness
      FD               Financial Difficulty
      05               Foreclosure or Borrower moved or skipped
      FFP              Formal Forbearance Plan
      FR               Fraud
      G                Garnishment
      HU               Hurricane
      IT               Illegal Transfer
      B1               Illness of Borrower
      IP               Inability to Sell Property
      IC               Incarcerated
      IN               Income Reduction
      LIT              Involved in Litigation
      IRS              IRS Lien
      JD               Judgment
      LB               Language Barrier

                                      E-5
<PAGE>

      LM               Legal Matter
      LS               Legal Separation
      MA               Marital Difficulties
      ME               Medical
      03               Medical/Illness in Family
      MD               Mortgagor Death
      ND               Natural Disaster
      NC               No Contact with borrower
      NSF              Non Sufficient Funds
      09               Other
      01               Over Obligated
      OV               Overextended
      PAD              Payment Dispute
      PP               Payment Plan Established
      POP              Payoff Pending
      PE               Pending Sale
      PS               Previous Servicer Problem
      PB               Promise to Pay Broken
      PR               Property Damage
      PD               Property Devaluation
      REFI             Refinance Pending
      RELO             Relocation (Job Related)
      JRP              Relocation (Personal)l
      RE               Rental
      10               REO
      SI               Seasonal Income
      SE               Self Employed
      SP               Servicing Problems
      SR               Slow Receivables
      02               Unemployed/Reduced Income
      UE               Unemployment
      UK               Unknown
      UTP              Unwilling to Pay

                                      E-6
<PAGE>

                                    EXHIBIT F

WELLS FARGO BANK, N.A.
Form 332

Calculation of Realized Loss

Purpose

To provide the Servicer with a form for the calculation of any Realized Loss (or
gain) as a result of a Securitized Loan having been foreclosed and Liquidated.

Distribution

The Servicer will prepare the form in duplicate and send the original together
with evidence of conveyance of title and appropriate supporting documentation to
the Master Servicer with the Monthly Accounting Reports which supports the
Securitized Loan's removal from the Securitized Loan Activity Report. The
Servicer will retain the duplicate for its own records.

Due Date

With respect to any liquidated Securitized Loan, the form will be submitted to
the Master Servicer no later than the date on which statements are due to the
Master Servicer under Section 4.02 of this Agreement (the "Statement Date") in
the month following receipt of final liquidation proceeds and supporting
documentation relating to such liquidated Securitized Loan; provided, that if
such Statement Date is not at least 30 days after receipt of final liquidation
proceeds and supporting documentation relating to such liquidated Securitized
Loan, then the form will be submitted on the first Statement Date occurring
after the 30th day following receipt of final liquidation proceeds and
supporting documentation.

Preparation Instructions

The numbers on the form correspond with the numbers listed below.

1.       The actual Unpaid Principal Balance of the Securitized Loan.
2.       The Total Interest Due less the aggregate amount of servicing fee that
         would have been earned if all delinquent payments had been made as
         agreed.
3-7.     Complete as necessary. All line entries must be supported by copies of
         appropriate statements, vouchers, receipts, canceled checks, etc., to
         document the expense. Entries not properly documented will not be
         reimbursed to the Servicer.
8.       Accrued Servicing Fees based upon the Scheduled Principal Balance of
         the Securitized Loan as calculated on a monthly basis.
10.      The total of lines 1 through 9.

Credits

                                      F-1
<PAGE>

11-17.   Complete as necessary. All line entries must be supported by copies of
         the appropriate claims forms, statements, payment checks, etc. to
         document the credit. If the Securitized Loan is subject to a Bankruptcy
         Deficiency, the difference between the Unpaid Principal Balance of the
         Note prior to the Bankruptcy Deficiency and the Unpaid Principal
         Balance as reduced by the Bankruptcy Deficiency should be input on line
         16.
18.      The total of lines 11 through 17.

Total Realized Loss (or Amount of Any Gain)

19.      The total derived from subtracting line 18 from 10. If the amount
         represents a realized gain, show the amount in parenthesis ( )

                                      F-2
<PAGE>

WELLS FARGO BANK, N.A.
CALCULATION OF REALIZED LOSS

WELLS FARGO BANK, N.A. Trust:  ___________________________
Prepared by:  __________________    Date:  _______________
Phone:  ______________________

Servicer Loan No.                    Servicer Name              Servicer Address

WELLS FARGO BANK, N.A.
Loan No._____________________________
Borrower's Name:________________________________________________________
Property
Address:________________________________________________________________
Liquidation and Acquisition Expenses:
Actual Unpaid Principal Balance of Securitized Loan  $ _______________(1)
Interest accrued at Net Rate         ________________(2)
Attorney's Fees    ________________(3)
Taxes     ________________(4)
Property Maintenance        ________________(5)
MI/Hazard Insurance Premiums         ________________(6)
Hazard Loss Expenses        ________________(7)
Accrued Servicing Fees      ________________(8)
Other (itemize)    ________________(9)
____________________________________________    $_________________
____________________________________________     _________________
____________________________________________     _________________
____________________________________________     _________________
Total Expenses    $ ______________(10)
Credits:
Escrow Balance    $ ______________(11)
HIP Refund   ________________(12)
Rental Receipts   ________________(13)
Hazard Loss Proceeds ________________(14)
Primary Mortgage Insurance Proceeds ________________(15)
Proceeds from Sale of Acquired Property ________________(16)
Other (itemize)   ________________(17)
____________________________________________     _________________
____________________________________________     _________________
Total Credits     $________________(18)
Total Realized Loss (or Amount of Gain) $________________(19)

                                      F-3
<PAGE>

                                   EXHIBIT M-2
                     SERVICING AGREEMENT FOR SUBPRIME LOANS

THIS IS A SERVICING AGREEMENT, dated as of March 5, 2004 (the "Agreement"), and
is executed between Homestar Mortgage Acceptance Corp. (the "Owner") and Home
Star Mortgage Services LLC (the "Servicer").

                              W I T N E S S E T H:

         WHEREAS, the Owner and the Servicer desire that, from and after the
Effective Date, the Mortgage Loans which are subject to this Agreement will be
serviced by the Servicer on behalf of the Owner in accordance with the terms and
provisions of this Agreement.

         NOW, THEREFORE, in consideration of the mutual agreements hereinafter
set forth, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Owner and the Servicer agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01. Defined Terms.

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

         Accepted Servicing Practices: With respect to any Mortgage Loan, all
applicable federal, state and local laws and regulations and the standards
employed by the Servicer in servicing similar mortgage loans for its own
account, giving due consideration to those mortgage servicing practices and
procedures (including collection practices and procedures) of mortgage banking
institutions which service mortgage loans of the same type as such Mortgage Loan
in the jurisdiction where the related Mortgaged Property is located, giving due
consideration to customary and usual standards of practice of mortgage lenders
and loan servicers administering similar mortgage loans.

         Adjustment Date: As to each ARM Loan, the date on which the Mortgage
Interest Rate is adjusted in accordance with the terms of the related Mortgage
Note and Mortgage.

         Agreement: This Servicing Agreement including all exhibits hereto,
amendments hereof and supplements hereto.

         Ancillary Income: All income derived from the Mortgage Loans (other
than the (i) Servicing Fee or (ii) prepayment charges attributable to the
Mortgage Loans), including but not limited to late charges, any interest paid on
funds deposited in the Custodial Account and Escrow Account (other than interest
on escrowed funds required by law to be paid to the Mortgagor), fees received
with respect to checks or bank drafts returned by the related bank for
non-sufficient

                                     M-2-1
<PAGE>

funds, assumption fees, optional insurance administrative fees and all other
incidental fees and charges.

         ARM Loan: A first lien, conventional, 1-4 family residential Mortgage
Loan with an interest rate which adjusts from time to time in accordance with
the related Index and is subject to a Periodic Rate Cap and a Lifetime Rate Cap
and which may permit conversion to a fixed interest rate.

         Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a
legal holiday in the State of New York or the jurisdiction in which the Servicer
conducts its servicing activities, or (iii) a day on which banking and savings
and loan institutions in the State of New York or the jurisdiction in which the
Servicer conducts its servicing activities are authorized or obligated by law or
executive order to be closed.

         Code: The Internal Revenue Code of 1986, as it may be amended from time
to time, or any successor statute thereto, and applicable U.S. Department of the
Treasury regulations issued pursuant thereto.

         Condemnation Proceeds: All awards or settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain or condemnation, to the extent not
required to be released to a Mortgagor in accordance with the terms of the
related Mortgage Loan Documents.

         Custodial Account: The separate demand account or accounts created and
maintained pursuant to Section 4.04 which shall be entitled "HMAC 2004-1
Custodial Account in trust for [Owner], Owner of Whole Loan Mortgages" and shall
be established at a Qualified Depository.

         Custodial Agreement: The Custodial Agreement dated as of March 1, 2004
among HSBC Bank (USA), the Owner and Wells Fargo Bank, N.A., providing for the
custody of Mortgage Loan Documents.

         Custodian: Wells Fargo Bank, N.A, or such other Custodian as the Owner
shall designate.

         Determination Date: The 15th day of any month, or if such 15th day is
not a Business Day, the first Business Day immediately preceding such 15th day.

         Due Date: With respect to any Mortgage Loan, each day on which payments
of principal and interest are required to be paid in accordance with the terms
of the related Mortgage Note, exclusive of any days of grace.

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

         Effective Date:  March 5, 2004.

                                     M-2-2
<PAGE>

         Escrow Account: The separate trust account or accounts created and
maintained pursuant to Section 4.06 which shall be entitled "HMAC 2004-1 Escrow
Account, in trust for [Owner], Owner of Whole Loan Mortgages and various
Mortgagors" and shall be established at a Qualified Depository.

         Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other related
Mortgage Loan Document.

         Escrow Mortgage Loan: The Mortgage Loans for which the Servicer has
established an Escrow Account for items constituting Escrow Payments.

         Event of Default: Any one of the conditions or circumstances enumerated
in Section 9.01.

         Fannie Mae: Fannie Mae, or any successor thereto.

         Fannie Mae Guide: The Fannie Mae Selling Guide and the Fannie Mae
Servicing Guide and all amendments or additions thereto.

         Fidelity Bond: A fidelity bond to be maintained by the Servicer
pursuant to Section 4.12.

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

         Freddie Mac Guide: The Freddie Mac Selling Guide and the Freddie Mac
Servicing Guide and all amendments or additions thereto.

         Full Principal Prepayment: A Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

         GAAP: Generally accepted accounting principles and procedures,
consistently applied.

         HUD: The United States Department of Housing and Urban Development or
any successor thereto.

         Index: With respect to each ARM Loan, the index, as specified in the
related Mortgage Note, used to determine the Mortgage Interest Rate on each
Adjustment Date on such ARM Loan.

         Index Rate: With respect to each ARM Loan, on each Adjustment Date, the
rate per annum equal to the Index, calculated as provided in the related
Mortgage Note.

         Insurance Proceeds: With respect to each Mortgage Loan, proceeds of
insurance policies insuring the Mortgage Loan or the related Mortgaged Property.

                                     M-2-3
<PAGE>

         Lifetime Rate Cap: With respect to each ARM Loan, the maximum Mortgage
Interest Rate over the term of such Mortgage Loan, as specified in the related
Mortgage Note.

         Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, other than amounts
received following the acquisition of an REO Property pursuant to Section 4.13.

         Margin: With respect to each ARM Loan, the fixed percentage amount set
forth in the related Mortgage Note which is added to the Index in order to
determine the related Mortgage Interest Rate.

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.

         MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage,
or an Assignment of Mortgage, has been or will be recorded in the name of MERS,
as nominee for the holder from time to time of the related Mortgage Note.

         Monthly Advance: The portion of each Monthly Payment that is delinquent
with respect to each Mortgage Loan at the close of business on the Determination
Date required to be advanced by the Servicer pursuant to Section 5.03 on the
Business Day immediately preceding the Remittance Date of the related month.

         Monthly Payment: With respect to each Mortgage Loan, the scheduled
monthly payment of principal and interest thereon which is payable by the
related Mortgagor under the related Mortgage Note.

         Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a lien on real property securing the Mortgage Note.

         Mortgage Interest Rate: The annual rate at which interest accrues on
any Mortgage Loan in accordance with the provisions of the related Mortgage
Note, and in the case of an ARM Loan, as adjusted from time to time on each
Adjustment Date for such Mortgage Loan to equal the Index Rate for such Mortgage
Loan plus the Margin for such Mortgage Loan, and subject to the limitations on
such interest rate imposed by the Periodic Rate Cap and the Lifetime Rate Cap.

         Mortgage Loan: An individual Mortgage Loan described herein and as
further identified on the Mortgage Loan Schedule, which Mortgage Loan includes
without limitation the Mortgage Loan Documents, the Monthly Payments, Principal
Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
REO Disposition Proceeds and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan.

         Mortgage Loan Documents: With respect to each Mortgage Loan, the
original mortgage loan legal documents held by the Owner or by a Custodian on
the Owner's behalf.

                                     M-2-4
<PAGE>

         Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the
annual rate of interest remitted to the Owner, which shall be equal to the
related Mortgage Interest Rate minus the Servicing Fee Rate.

         Mortgage Loan Schedule: The schedule of Mortgage Loans attached hereto
as Exhibit A.

         Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage.

         Mortgaged Property: The underlying real property securing repayment of
the debt evidenced by a Mortgage Note.

         Mortgagor: The obligor on a Mortgage Note.

         Non-Escrow Mortgage Loan: Any Mortgage Loan which is not an Escrow
Mortgage Loan.

         Nonrecoverable Advance: Any Monthly Advance previously made by the
Servicer pursuant to Section 5.03 or any Servicing Advance which, in the good
faith judgment of the Servicer, will not be ultimately recoverable by the
Servicer from Liquidation Proceeds or other proceeds of the related Mortgage
Loan. The determination by the Servicer that is has made a Nonrecoverable
Advance, shall be evidenced by an Officer's Certificate of the Servicer
delivered to the Owner and the NIMs Insurer and detailing the reasons for such
determination.

         Officers' Certificate: A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Vice President or an
Assistant Vice President or by the Treasurer or the Secretary or one of the
Assistant Treasurers or Assistant Secretaries of the Servicer, and delivered to
the Owner as required by this Agreement.

         Opinion of Counsel: A written opinion of counsel, who may be an
employee of the party on behalf of whom the opinion is being given, reasonably
acceptable to the other party.

         Owner: Homestar Mortgage Acceptance Corp., its successors in interest
and assigns.

         Partial Principal Prepayment: A Principal Prepayment by a Mortgagor in
part but not in full of the outstanding principal balance of a Mortgage Loan.

         Periodic Rate Cap: With respect to each ARM Loan, the maximum number of
percentage points by which the Mortgage Interest Rate may increase or decrease
on any Adjustment Date.

         Permitted Investments: Any one or more of the following obligations or
securities:

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

                                     M-2-5
<PAGE>

         (ii)     (a) demand or time deposits, federal funds or bankers'
acceptances issued by any depository institution or trust company incorporated
under the laws of the United States of America or any state thereof and subject
to supervision and examination by federal and/or state banking authorities,
provided that the commercial paper and/or the short-term deposit rating and/or
the long-term unsecured debt obligations or deposits of such depository
institution or trust company at the time of such investment or contractual
commitment providing for such investment are rated in one of the two highest
rating categories by each Rating Agency and (b) any other demand or time deposit
or certificate of deposit that is fully insured by the FDIC;

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

         (iv)     securities bearing interest or sold at a discount issued by
any corporation incorporated under the laws of the United States of America or
any state thereof that are rated in the highest rating categories by each Rating
Agency at the time of such investment or contractual commitment providing for
such investment; provided, however, that securities issued by any particular
corporation will not be Permitted Investments to the extent that investments
therein will cause the then outstanding principal amount of securities issued by
such corporation and held as Permitted Investments to exceed 10% of the
aggregate outstanding principal balances and amounts of all the Permitted
Investments;

         (v)      commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a specified
date not more than one year after the date of issuance thereof) which are rated
in the highest rating categories by each Rating Agency at the time of such
investment;

         (vi)     any other demand, money market or time deposit, obligation,
security or investment as may be acceptable to each Rating Agency and the NIMs
Insurer; and

         (vii)    any money market funds the collateral of which consists of
obligations fully guaranteed by the United States of America or any agency or
instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America (which may
include repurchase obligations secured by collateral described in clause (i))
and which money market funds are rated in one of the two highest rating
categories by each Rating Agency;

provided, however, that no instrument or security shall be a Permitted
Investment if such instrument or security evidences a right to receive only
interest payments with respect to the obligations underlying such instrument or
if such security provides for payment of both principal and interest with a
yield to maturity in excess of 120% of the yield to maturity at par; and
provided further that any such instrument or security must be payable on demand
or on a

                                     M-2-6
<PAGE>

specified date not later than the Remittance Date on which amounts held
therein are required to be distributed.

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

         Prepayment Interest Shortfall: With respect to any Mortgage Loan that
was subject to a Full Principal Prepayment or Partial Principal Prepayment
during any Due Period, which Full Principal Prepayment or Partial Principal
Prepayment was applied to such Mortgage Loan prior to such Mortgage Loan's Due
Date in such Due Period, the amount of interest (adjusted to the applicable
Mortgage Loan Remittance Rate) that would have accrued on the amount of such
Full Principal Prepayment or Partial Principal Prepayment during the period
commencing on the date as of which such Full Principal Prepayment or Partial
Principal Prepayment was applied to such Mortgage Loan and ending on the day
immediately preceding such Due Date, inclusive.

         Primary Mortgage Insurance Policy: Each primary policy of mortgage
insurance, or any replacement policy therefor obtained by the Servicer pursuant
to Section 4.08.

         Prime Rate: The prime rate of U.S. money center banks as published from
time to time in The Wall Street Journal.

         Principal Prepayment: Any payment or other recovery of principal on a
Mortgage Loan, full or partial, which is received in advance of its scheduled
Due Date, including any prepayment charge or premium thereon, and which is not
accompanied by an amount of interest representing scheduled interest due on any
date or dates in any month or months subsequent to the month of prepayment.

         Qualified Depository: A deposit account or accounts maintained with a
federal or state chartered depository institution the deposits in which are
insured by the FDIC to the applicable limits and the short-term unsecured debt
obligations of which (or, in the case of a depository institution that is a
subsidiary of a holding company, the short-term unsecured debt obligations of
such holding company) are rated A-2 by Standard & Poor's Ratings Services or
Prime-1 by Moody's Investors Service, Inc. (or a comparable rating if another
rating agency is specified by the Owner by written notice to the Servicer) at
the time any deposits are held on deposit therein.

         Qualified Insurer: An insurance company duly qualified as such under
the laws of the states in which the Mortgaged Properties are located, duly
authorized and licensed in such states to transact the applicable insurance
business and to write the insurance provided.

         Rating Agency: Standard & Poor's Ratings Service, a division of The
McGraw Hill Companies Inc., Moody's Investors Service, Inc. or Fitch, Inc.

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

                                     M-2-7
<PAGE>

         REMIC Provisions: The provisions of the federal income tax law relating
to a REMIC, which appear at Section 860A through 860G of Subchapter M of Chapter
1, Subtitle A of the Code, and related provisions, and regulations, rulings or
pronouncements promulgated thereunder, as the foregoing may be in effect from
time to time.

         Remittance Date: The 18th day of any month, or if such 18th day is not
a Business Day, the first Business Day immediately preceding such 18th day. The
first Remittance Date shall occur on April 16, 2004.

         REO Disposition: The final sale by the Servicer of any REO Property.

         REO Disposition Proceeds: Amounts received by the Servicer in
connection with a related REO Disposition.

         REO Property: A Mortgaged Property acquired by the Servicer on behalf
of the Owner as described in Section 4.13.

         Servicer: Home Star Mortgage Services LLC, or any of its successors in
interest or any successor under this Agreement appointed as herein provided.

         Servicing Advances: All customary, reasonable and necessary
"out-of-pocket" costs and expenses (including reasonable attorneys' fees and
disbursements) incurred in the performance by the Servicer of its servicing
obligations relating to each Mortgage Loan, including the cost of (a) the
inspection, preservation, restoration and protection of the Mortgaged Property,
(b) any enforcement, administrative or judicial proceedings, or any legal work
or advice specifically related to servicing the Mortgage Loans, including
foreclosures, bankruptcies, condemnations, drug seizures, elections,
foreclosures by subordinate or superior lienholders, and other legal actions
incidental to the servicing of the Mortgage Loans (provided that such expenses
are reasonable and that the Servicer specifies the Mortgage Loan(s) to which
such expenses relate), (c) the management and liquidation of the Mortgaged
Property if the Mortgaged Property is acquired in full or partial satisfaction
of the Mortgage, (d) taxes, assessments, water rates, sewer rates and other
charges which are or may become a lien upon the Mortgaged Property, and Primary
Mortgage Insurance Policy premiums and fire and hazard insurance coverage and
(e) compliance with the obligations under Section 4.08.

         Servicing Fee: With respect to each Mortgage Loan, the amount of the
annual fee the Owner shall pay to the Servicer, which shall, for a period of one
full month, be equal to one-twelfth of the product of (a) the applicable
Servicing Fee Rate and (b) the outstanding principal balance of such Mortgage
Loan. Such fee shall be payable monthly, computed on the basis of the same
principal amount and period respecting which any related interest payment on a
Mortgage Loan is computed. The obligation of the Owner to pay the Servicing Fee
is limited to, and the Servicing Fee is payable from the interest portion of
such Monthly Payments, Liquidation Proceeds, Insurance Proceeds, REO Disposition
Proceeds and Condemnation Proceeds collected by the Servicer or as otherwise
provided under Section 4.05.

                                     M-2-8
<PAGE>

         Servicing Fee Rate: 0.50%.

         Servicing File: The documents, records and other items pertaining to a
particular Mortgage Loan, and any additional documents relating to such Mortgage
Loan as are in, or as may from time to time come into, the Servicer's
possession.

         Servicing Officer: Any officer of the Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name appears on a list of servicing officers furnished by the Servicer to the
Owner upon request, as such list may from time to time be amended.

         Trust Agreement: Any trust agreement, pooling and servicing agreement,
indenture or comparable documents by and among some or all of the Owner, the
Master Servicer and a Trustee (and which may include other parties) creating a
trust and/or otherwise effectuating a pass-through transfer.

         Any capitalized terms used and not defined herein shall have the
meanings ascribed to such terms in the related Trust Agreement.

                                   ARTICLE II
        SERVICING OF MORTGAGE LOANS; POSSESSION OF SERVICING FILES; BOOKS
                AND RECORDS; DELIVERY OF MORTGAGE LOAN DOCUMENTS

         Section 2.01 Servicing of Mortgage Loans.

         The Servicer does hereby agree to service the Mortgage Loans, from and
after the Effective Date, pursuant to the terms of this Agreement. The Mortgage
Loans subject to this Agreement are described in the Mortgage Loan Schedule
attached hereto.

         Section 2.02 Maintenance of Servicing Files.

         The Servicer shall maintain a Servicing File consisting of all
documents necessary to service the Mortgage Loans. The possession of each
Servicing File by the Servicer is for the sole purpose of servicing the related
Mortgage Loan, and such retention and possession by the Servicer is in a
custodial capacity only. The Servicer acknowledges that the ownership of each
Mortgage Loan is vested in the Owner. All rights arising out of the Mortgage
Loans including all funds received on or in connection with the Mortgage Loans
and all records or documents with respect to the Mortgage Loans prepared by or
which come into the possession of the Servicer shall be received and held by the
Servicer for the sole purpose of servicing the Mortgage Loans and such retention
and possession by the Servicer is in a custodial capacity only in trust for the
exclusive benefit of the Owner as the owner of the related Mortgage Loans. Any
portion of the related Servicing Files retained by the Servicer shall be
appropriately identified in the Servicer's computer system to reflect clearly
the ownership of the related Mortgage Loans by the Owner. The Servicer shall
release its custody of the contents of the related Servicing Files only in
accordance with written instructions of the Owner, except when such release is
required as

                                     M-2-9
<PAGE>

incidental to the Servicer's servicing of the Mortgage Loans, such written
instructions shall not be required.

         Section 2.03 Books and Records.

         The Servicer shall be responsible for maintaining, and shall maintain,
a complete set of books and records for the Mortgage Loans which shall be
appropriately identified in the Servicer's computer system to clearly reflect
the ownership of the Mortgage Loan by the Owner. In particular, the Servicer
shall maintain in its possession, available for inspection by the Owner, or its
designee and shall deliver to the Owner upon demand, evidence of compliance with
all federal, state and local laws, rules and regulations, and requirements of
Fannie Mae and Freddie Mac, as applicable, including documentation as to the
method used in determining the applicability of the provisions of the Flood
Disaster Protection Act of 1973, as amended, to the Mortgaged Property,
documentation evidencing insurance coverage and eligibility of any condominium
project for approval by Fannie Mae and periodic inspection reports as required
by Section 4.13. To the extent that original documents are not required for
purposes of realization of Liquidation Proceeds or Insurance Proceeds, documents
maintained by the Servicer may be in the form of microfilm or microfiche or such
other reliable means of recreating original documents, including optical imagery
techniques . The Servicer shall maintain with respect to each Mortgage Loan and
shall make available for inspection by the Owner or its designee, upon
reasonable prior notice, the related Servicing File (or copies thereof) during
the time the Owner retains ownership of a Mortgage Loan and thereafter in
accordance with applicable laws and regulations.

         Section 2.04 Transfer of Mortgage Loans.

         No transfer of a Mortgage Loan may be made unless such transfer is in
compliance with the terms hereof. For the purposes of this Agreement, the
Servicer shall be under no obligation to deal with any person with respect to
this Agreement or any Mortgage Loan unless a notice of the transfer of such
Mortgage Loan has been delivered to the Servicer in accordance with this Section
2.04. The Owner may, subject to the terms of this Agreement, sell and transfer
one or more of the Mortgage Loans in accordance with Section 11.10; provided,
however, that the transferee will not be deemed to be an Owner hereunder binding
upon the Servicer unless such transferee shall agree in writing to be bound by
the terms of this Agreement and an assignment and assumption of this Agreement
reasonably acceptable to the Servicer. The Owner also shall advise the Servicer
in writing of the transfer. Upon receipt of notice of the permitted transfer,
the Servicer shall mark its books and records to reflect such assignee's
ownership of the related Mortgage Loans, and the previous Owner shall be deemed
released from its obligations hereunder with respect to such Mortgage Loans from
and after the date of such sale or transfer without the necessity of any action
on the part of the Servicer. If the Servicer receives notification of a
transfer, including a final loan schedule, less than five (5) Business Days
before the last Business Day of the month, the Servicer's duties to remit and
report as required by Section 5 shall begin with the next Due Period.

         Section 2.05 Delivery of Mortgage Loan Documents.

                                     M-2-10
<PAGE>

         The Servicer shall forward to the Custodian on behalf of the Owner
original documents evidencing an assumption, modification, consolidation or
extension of any Mortgage Loan entered into in accordance with Section 4.01 or
6.01 promptly after their execution; provided, however, that the Servicer shall
provide the Custodian on behalf of the Owner with a certified true copy of any
such document submitted for recordation promptly after its execution, and shall
provide the original of any document submitted for recordation or a copy of such
document certified by the appropriate public recording office to be a true and
complete copy of the original promptly after receipt thereof, but in no event
later than 240 days after its execution, provided, however, that if delivery is
not completed within 240 days solely due to delays in making such delivery by
reason of the fact that such documents shall not have been returned by the
appropriate recording office, the Servicer shall continue to use its best
efforts to obtain such documents and effect delivery as soon as possible after
its receipt thereof.

         From time to time the Servicer may have a need for Mortgage Loan
Documents to be released by the Custodian. If the Servicer shall require any of
the Mortgage Loan Documents, the Servicer shall notify the Custodian in writing
of such request in the form of the request for release attached hereto as
Exhibit D. During the time that any such documentation is held by the Servicer,
such possession is in trust for the benefit of the Owner, and the Servicer shall
return such documentation to the Custodian upon the request of the Owner or when
the Servicer's need therefore no longer exists.

         Section 2.06 Tax Service Contracts.

         In the event that a Mortgage Loan is not subject to a fully assignable
life of loan tax servicer contract with Fidelity National Real Estate Tax
Service which is assignable to the Servicer or any subsequent Servicer without
the payment of any cost or fee, the Servicer shall acquire a tax service
contract for any such Mortgage Loan. The Servicer shall deliver an invoice to
the Owner with respect to the costs of acquiring such tax service contracts, and
Owner shall remit the cost of such tax service contracts to the Servicer within
ten business days of receipt of invoice.

                                   ARTICLE III
          REPRESENTATIONS AND WARRANTIES OF THE SERVICER AND THE OWNER

         Section 3.01 Representations of the Servicer.

         The Servicer hereby represents, warrants and covenants to the Owner
that, as of the Effective Date:

         (a)      The Servicer is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization and has all
licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in each state where a Mortgaged
Property is located if the laws of such state require licensing or qualification
in order to conduct business of the type conducted by the Servicer, and in any
event the Servicer is in compliance with the laws of any such state to the
extent necessary to ensure the enforceability of

                                     M-2-11
<PAGE>

the related Mortgage Loan and the servicing of such Mortgage Loan in accordance
with the terms of this Agreement; the Servicer has the full corporate power and
authority to execute and deliver this Agreement and to perform in accordance
herewith; the execution, delivery and performance of this Agreement (including
all instruments of transfer to be delivered pursuant to this Agreement) by the
Servicer and the consummation of the transactions contemplated hereby have been
duly and validly authorized; this Agreement evidences the valid, binding and
enforceable obligation of the Servicer; and all requisite corporate action has
been taken by the Servicer to make this Agreement valid and binding upon the
Servicer in accordance with its terms;

         (b)      The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Servicer, who is in the
business of servicing loans;

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

         (d)      No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Servicer of or compliance by the Servicer with this
Agreement, or if required, such approval has been obtained prior to the
Effective Date;

         (e)      The Servicer is an approved seller/servicer of conventional
residential mortgage loans for Fannie Mae or Freddie Mac, with the facilities,
procedures, and experienced personnel necessary for the sound servicing of
mortgage loans of the same type as the Mortgage Loans. The Servicer is a HUD
approved mortgagee and is in good standing to service mortgage loans for Fannie
Mae or Freddie Mac, and no event has occurred, including but not limited to a
change in insurance coverage, which would make the Servicer unable to comply
with Fannie Mae or Freddie Mac eligibility requirements or which would require
notification to either Fannie Mae or Freddie Mac;

         (f)      Neither this Agreement nor any statement, report or other
document furnished or to be furnished pursuant to this Agreement or in
connection with the transactions contemplated hereby contains any untrue
statement of fact or omits to state a fact necessary to make the statements
contained therein, in light of the circumstances under which they were made, not
misleading; and

         (g)      No Waiver of prepayment charges. The Servicer will not waive
any prepayment charge unless it is waived in accordance with the standard set
forth in Section 4.16.

         Section 3.02 Representations of the Owner.

                                     M-2-12
<PAGE>

         The Owner represents, warrants and covenants to the Servicer as of the
Effective Date:

         (a)      The Owner is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization;

         (b)      The Owner has the full power and authority to execute and
deliver this Agreement and to perform in accordance herewith; the execution,
delivery and performance of this Agreement (including all instruments of
transfer to be delivered pursuant to this Agreement) by the Owner and the
consummation of the transactions contemplated hereby have been duly and validly
authorized; this Agreement evidences the valid, binding and enforceable
obligation of the Owner; and all requisite action has been taken by the Owner to
make this Agreement valid and binding upon the Owner in accordance with its
terms; and

         (c)      The Owner holds the entire legal and beneficial title to each
Mortgage Loan. The information provided to Servicer by Owner, and each Mortgage
File, is complete, true and accurate in all material respects.

                                   ARTICLE IV
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

         Section 4.01 Servicer to Act as Servicer.

         The Servicer, as independent contract servicer, shall service and
administer the Mortgage Loans in accordance with this Agreement and with
Accepted Servicing Practices (giving due consideration to the Owner's reliance
on the Servicer), and shall have full power and authority, acting alone, to do
or cause to be done any and all things in connection with such servicing and
administration which the Servicer may deem necessary or desirable and consistent
with the terms of this Agreement and with Accepted Servicing Practices. If
reasonably required by the Servicer, the Owner shall furnish the Servicer with
any powers of attorney and other documents necessary or appropriate to enable
the Servicer to carry out its servicing and administrative duties under this
Agreement.

         Consistent with the terms of this Agreement, the Servicer may, with the
consent of the NIMs Insurer, waive, modify or vary any term of any Mortgage Loan
or consent to the postponement of any such term or in any manner grant
indulgence to any Mortgagor if in the Servicer's reasonable and prudent
determination such waiver, modification, postponement or indulgence is not
materially adverse to the Owner; provided, however, that unless the related
Mortgagor is in default with respect to the Mortgage Loan or such default is, in
the judgment of the Servicer, reasonably foreseeable, the Servicer shall not
permit any modification with respect to any Mortgage Loan that would change the
Mortgage Interest Rate, forgive the payment of principal or interest, reduce or
increase the outstanding principal balance (except for actual payments of
principal) or change the final maturity date on such Mortgage Loan, and,
provided further, that the NIMs Insurer's prior written consent shall be
required for any modification, waiver or amendment if the aggregate number of
outstanding Mortgage Loans which have been modified, waived or amended exceeds
5% of the number of Mortgage Loans subject to this

                                     M-2-13
<PAGE>

Agreement as of the Effective Date. In the event of any such modification which
permits the deferral of interest or principal payments on any Mortgage Loan, the
Servicer shall, on the Business Day immediately preceding the related Remittance
Date in any month in which any such principal or interest payment has been
deferred, deposit in the Custodial Account from its own funds, in accordance
with Section 4.04 and Section 5.03, the difference between (a) such month's
principal and one month's interest at the related Mortgage Loan Remittance Rate
on the unpaid principal balance of such Mortgage Loan and (b) the amount paid by
the Mortgagor. The Servicer shall be entitled to reimbursement for such advances
to the same extent as for all other advances pursuant to Section 4.05. Without
limiting the generality of the foregoing, the Servicer shall continue, and is
hereby authorized and empowered, to prepare, execute and deliver, all
instruments of satisfaction or cancellation, or of partial or full release,
discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the Mortgaged Properties.

         Notwithstanding anything in this Agreement to the contrary, if a REMIC
election is made, the Servicer shall not (unless the related Mortgagor is in
default with respect to the Mortgage Loan or such default is, in the judgment of
the Servicer, reasonably foreseeable) make or permit any modification, waiver or
amendment of any term of any Mortgage Loan that would both (i) effect an
exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or
Treasury regulations promulgated thereunder) and (ii) cause the related REMIC to
fail to qualify as a REMIC under the Code or the imposition of any tax on
"prohibited transactions" or "contributions" after the "startup date" of such
REMIC under the REMIC Provisions.

         The Servicer shall perform all of its servicing responsibilities
hereunder or may, with the consent of the NIMs Insurer, cause a subservicer to
perform any such servicing responsibilities on its behalf, but the use by the
Servicer of a subservicer shall not release the Servicer from any of its
obligations hereunder and the Servicer shall remain responsible hereunder for
all acts and omissions of each subservicer as fully as if such acts and
omissions were those of the Servicer. Any such subservicer must be a Fannie Mae
approved seller/servicer or a Freddie Mac approved seller/servicer in good
standing and no event shall have occurred, including but not limited to, a
change in insurance coverage, which would make it unable to comply with the
eligibility requirements for seller/servicers imposed by Fannie Mae or Freddie
Mac, or which would require notification to Fannie Mae or Freddie Mac. The
Servicer shall pay all fees and expenses of each subservicer from its own funds,
and a subservicer's fee shall not exceed the Servicing Fee.

         At the cost and expense of the Servicer, without any right of
reimbursement from the Custodial Account, with the consent of the NIMs Insurer,
the Servicer shall be entitled to terminate the rights and responsibilities of a
subservicer and arrange for any servicing responsibilities to be performed by a
successor subservicer meeting the requirements in the preceding paragraph;
provided, however, that nothing contained herein shall be deemed to prevent or
prohibit the Servicer, at the Servicer's option, with the consent of the NIMs
Insurer, from electing to service the related Mortgage Loans itself. In the
event that the Servicer's responsibilities and duties under this Agreement are
terminated pursuant to Section 8.04, 9.01 or 10.01, and if requested to do so by
the Owner or the NIMs Insurer, the Servicer shall at its own

                                     M-2-14
<PAGE>

cost and expense terminate the rights and responsibilities of each subservicer
effective as of the date of termination of the Servicer. The Servicer shall pay
all fees, expenses or penalties necessary in order to terminate the rights and
responsibilities of each subservicer from the Servicer's own funds without
reimbursement from the Owner. Each subservicing agreement shall provide that a
successor servicer shall have the option to terminate such agreement with
payment of any fees if the predecessor Servicer is terminated or resigns.

         Notwithstanding any of the provisions of this Agreement relating to
agreements or arrangements between the Servicer and a subservicer or any
reference herein to actions taken through a subservicer or otherwise, the
Servicer shall not be relieved of its obligations to the Owner and shall be
obligated to the same extent and under the same terms and conditions as if it
alone were servicing and administering the Mortgage Loans. The Servicer shall be
entitled to enter into an agreement with a subservicer for indemnification of
the Servicer by the subservicer and nothing contained in this Agreement shall be
deemed to limit or modify such indemnification.

         Any subservicing agreement and any other transactions or services
relating to the Mortgage Loans involving a subservicer shall be deemed to be
between such subservicer and Servicer alone, and the Owner shall have no
obligations, duties or liabilities with respect to such Subservicer including no
obligation, duty or liability of Owner to pay such subservicer's fees and
expenses. For purposes of distributions and advances by the Servicer pursuant to
this Agreement, the Servicer shall be deemed to have received a payment on a
Mortgage Loan when a subservicer has received such payment.

         Section 4.02 Collection of Mortgage Loan Payments.

         Continually from the date hereof until the date each Mortgage Loan
ceases to be subject to this Agreement, the Servicer shall proceed with
reasonable diligence and in accordance with Accepted Servicing Practices, to
collect all payments due under each Mortgage Loan when the same shall become due
and payable. Further, the Servicer shall take reasonable care in ascertaining
and estimating annual ground rents, taxes, assessments, water rates, fire and
hazard insurance premiums, mortgage insurance premiums, and all other charges
that, as provided in the Mortgage Loan Documents, will become due and payable to
the end that the installments payable by the Mortgagors will be sufficient to
pay such charges as and when they become due and payable.

         Section 4.03 Realization Upon Defaulted Mortgage Loans.

         The Servicer shall use its reasonable efforts, consistent with Accepted
Servicing Practices, to foreclose upon or otherwise comparably convert the
ownership of properties securing such of the Mortgage Loans as come into and
continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 4.01. The Servicer shall
use its reasonable efforts to realize upon defaulted Mortgage Loans in such
manner as will maximize the receipt of principal and interest by the Owner,
taking into account, among other things, the timing of foreclosure proceedings.
The foregoing is subject to the provisions that, in any case in which any
Mortgaged Property shall have suffered damage, the Servicer shall

                                     M-2-15
<PAGE>

not be required to expend its own funds toward the restoration of such property
unless it shall determine in its discretion (i) that such restoration will
increase the proceeds of liquidation of the related Mortgage Loan to the Owner
after reimbursement to itself for such expenses, and (ii) that such expenses
will be recoverable by the Servicer through Insurance Proceeds or Liquidation
Proceeds from the related Mortgaged Property, as contemplated in Section 4.05.
The Servicer shall be responsible for all costs and expenses incurred by it in
any such proceedings or functions as Servicing Advances; provided, however, that
it shall be entitled to reimbursement therefor as provided in Section 4.05.
Notwithstanding anything to the contrary contained herein, in connection with a
foreclosure or acceptance of a deed in lieu of foreclosure, in the event the
Servicer has reasonable cause to believe that a Mortgaged Property is
contaminated by hazardous or toxic substances or wastes, or if the Owner
otherwise requests an environmental inspection or review of such Mortgaged
Property, such an inspection or review is to be conducted by a qualified
inspector. Upon completion of the inspection, the Servicer shall promptly
provide the Owner and the NIMs Insurer with a written report of the
environmental inspection. After reviewing the environmental inspection report,
the Owner (with the consent of the NIMs Insurer) shall direct the Servicer as to
how the Servicer shall proceed with respect to the Mortgaged Property, and the
Servicer shall follow the Owner's directions with respect thereto.

         Section 4.04 Establishment of Custodial Accounts; Deposits in Custodial
Accounts.

         The Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan separate and apart from any of its own funds and
general assets and shall establish and maintain one or more Custodial Accounts.
Any funds in a Custodial Account may be invested in Permitted Investments for
the benefit of the Owner (with any income earned thereon for the benefit of the
Servicer), provided that in the event that amounts on deposit in the Custodial
Account exceed the amount fully insured by the FDIC (the "Insured Amount"), the
Servicer shall be obligated to invest the excess amount over the Insured Amount
in Permitted Investments on the same Business Day as such excess amount becomes
present in the Custodial Account. Any such Permitted Investment shall mature no
later than the Business Day immediately preceding the related Remittance Date.
Funds deposited in the Custodial Account may be drawn on by the Servicer only in
accordance with Section 4.05. The creation of any Custodial Account shall be
evidenced by an account certification in the form shown in Exhibit B hereto. The
original of such account certification shall be furnished to the Owner, or a
copy to the NIMs Insurer, upon reasonable request. The NIMs Insurer, Master
Servicer and the Trustee shall be notified of any change in the location of the
Custodial Account. The Servicer acknowledges and agrees that the Servicer shall
bear any losses incurred with respect to Permitted Investments. The amount of
any such losses shall be immediately deposited by the Servicer in the Custodial
Account, out of the Servicer's own funds, with no right to reimbursement
therefor.

         The Servicer shall deposit in the Custodial Account within two (2)
Business Days of Servicer's receipt, and retain therein, the following
collections:

         (i)      all payments on account of principal, including Principal
Prepayments, on the Mortgage Loans;

                                     M-2-16
<PAGE>

         (ii)     all payments on account of interest on the Mortgage Loans
adjusted to the related Mortgage Loan Remittance Rate;

         (iii)    all Liquidation Proceeds;

         (iv)     any net amounts received by the Servicer in connection with
any REO Property pursuant to Section 4.13;

         (v)      all Insurance Proceeds including amounts required to be
deposited pursuant to Sections 4.08, 4.10 and 4.11, other than proceeds to be
held in a restricted escrow account and applied to the restoration or repair of
the Mortgaged Property or released to the Mortgagor in accordance with Accepted
Servicing Practices, the Mortgage Loan Documents or applicable law;

         (vi)     all Condemnation Proceeds affecting any Mortgaged Property
other than proceeds to be held in a restricted escrow account and applied to the
restoration or repair of the Mortgaged Property or released to the Mortgagor in
accordance with Accepted Servicing Practices, the Mortgage Loan Documents or
applicable law;

         (vii)    any Monthly Advances as provided in Section 5.03;

         (viii)   any amounts required to be deposited in the Custodial Account
pursuant to Sections 4.01, 4.14, 6.01 and 6.02; and

         (ix)     with respect to each Full Principal Prepayment or Partial
Principal Prepayment, any Prepayment Interest Shortfall, to the extent of the
Servicer's aggregate Servicing Fee received with respect to the related Due
Period (the "Compensating Interest Amount").

         The foregoing requirements for deposit in the Custodial Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of Servicing Fees and
Ancillary Income need not be deposited by the Servicer in the Custodial Account
and may be retained by the Servicer as compensation.

         Section 4.05 Permitted Withdrawals From the Custodial Account.

         The Servicer may, from time to time, make withdrawals from the
Custodial Account for the following purposes:

         (i)      to make payments to the Owner in the amounts and in the manner
provided for in Section 5.01;

         (ii)     to reimburse itself for Monthly Advances, the Servicer's right
to reimburse itself pursuant to this subclause (ii) being limited to amounts
received on the related Mortgage Loan which represent late collections (net of
the related Servicing Fees) of principal and/or interest respecting which any
such Monthly Advance was made;

                                     M-2-17
<PAGE>

         (iii)    to reimburse itself for unreimbursed Servicing Advances and
Monthly Advances and unpaid Servicing Fees, the Servicer's right to reimburse
itself pursuant to this subclause (iii) with respect to any Mortgage Loan being
limited to Liquidation Proceeds, Condemnation Proceeds, and Insurance Proceeds
and REO Disposition Proceeds related to such Mortgage Loan;

         (iv)     to pay to itself as servicing compensation (a) any interest
earned on funds in the Custodial Account (all such interest to be withdrawn
monthly not later than each Remittance Date) and (b) any Servicing Fee to which
the Servicer is entitled in accordance with the terms hereof to the extent such
Servicing Fee has not been paid to or retained by the Servicer;

         (v)      to reimburse itself for any Nonrecoverable Advances;

         (vi)     to transfer funds to another Qualified Depository in
accordance with Section 4.09 hereof;

         (vii)    to remove funds deposited in the Custodial Account in error by
the Servicer; and

         (viii)   to clear and terminate the Custodial Account upon the
termination of this Agreement.

         Section 4.06 Establishment of Escrow Accounts; Deposits in Escrow
Accounts.

         The Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan which constitute Escrow Payments separate and
apart from any of its own funds and general assets and shall establish and
maintain one or more Escrow Accounts. Any funds deposited in an Escrow Account
may be invested in Permitted Investments. Funds deposited in an Escrow Account
may be drawn on by the Servicer in accordance with Section 4.07. The creation of
any Escrow Account shall be evidenced by an account certification in the form
shown in Exhibit C. The original of such account certification shall be
furnished to the Owner upon request. The Servicer acknowledges and agrees that
the Servicer shall bear any losses incurred with respect to Permitted
Investments. The amount of any such losses shall be immediately deposited by the
Servicer in the Escrow Account out of the Servicer's own funds, with no right to
reimbursement therefor.

         The Servicer shall deposit in the Escrow Account or Accounts within two
(2) Business Days of Servicer's receipt, and retain therein:

         (i)      all Escrow Payments collected on account of the Mortgage
Loans, for the purpose of effecting timely payment of any items as are required
under the terms of this Agreement; and

         (ii)     all Servicing Advances for Mortgagors whose Escrow Payments
are insufficient to cover escrow disbursements.

         The Servicer shall make withdrawals from an Escrow Account only to
effect such payments as are required under this Agreement, and for such other
purposes as shall be as set

                                     M-2-18
<PAGE>

forth in and in accordance with Section 4.07. Except as provided in Section
4.07, the Servicer shall be entitled to retain any interest paid on funds
deposited in an Escrow Account by the Qualified Depository.

         Section 4.07 Permitted Withdrawals From Escrow Account.

         Withdrawals from the Escrow Account may be made by the Servicer only:

         (i)      to effect timely payments of ground rents, taxes, assessments,
water rates, fire and hazard insurance premiums, Primary Mortgage Insurance
Policy premiums, if applicable, and comparable items;

         (ii)     to reimburse the Servicer for any Servicing Advance made by
the Servicer with respect to a related Mortgage Loan but only from amounts
received on the related Mortgage Loan which represent late payments or
collections of Escrow Payments thereunder;

         (iii)    to refund to the Mortgagor any funds as may be determined to
be overages;

         (iv)     for transfer to the Custodial Account in connection with the
liquidation of a Mortgage Loan or an acquisition of REO Property;

         (v)      to pay to the Servicer, or to the Mortgagor to the extent
required by law, any interest paid on the funds deposited in the Escrow Account;

         (vi)     to remove funds placed in an Escrow Account in error by the
Servicer; and

         (vii)    to clear and terminate the Escrow Account on the termination
of this Agreement.

         As part of its servicing duties, the Servicer shall pay to the
Mortgagors interest on funds in an Escrow Account, to the extent required by
law, and to the extent that interest earned on funds in the Escrow Account is
insufficient, shall pay such interest from its own funds, without any
reimbursement therefor.

         Section 4.08 Payment of Taxes, Insurance and Other Charges, Maintenance
of Primary Mortgage Insurance Policies, Collections Thereunder.

         With respect to each Mortgage Loan, the Servicer shall maintain
accurate records reflecting the status of ground rents, taxes, assessments,
water rates and other charges which are or may become a lien upon the Mortgaged
Property and the status of Primary Mortgage Insurance Policy premiums and fire
and hazard insurance coverage and, with regard to Escrow Mortgage Loans, shall
obtain, from time to time, all bills for the payment of such charges, including
renewal premiums and shall effect payment thereof prior to the applicable
penalty or termination date and at a time appropriate for securing maximum
discounts allowable, employing for such purpose deposits of the Mortgagor in the
Escrow Account which shall have been estimated and accumulated by the Servicer
in amounts sufficient for such purposes, as allowed under the terms of the
Mortgage or applicable law. To the extent that the Mortgage does not provide for
Escrow

                                     M-2-19
<PAGE>

Payments, the Servicer shall use commercially reasonable efforts consistent with
Accepted Servicing Practices to determine that any such payments are made by the
Mortgagor when due. With regard to Escrow Mortgage Loans, the Servicer assumes
full responsibility for the timely payment of all such bills and shall effect
timely payments of all such bills irrespective of the Mortgagor's faithful
performance in the payment of same or the making of the Escrow Payments and
shall make advances from its own funds to effect such payments. With regard to
Non-Escrow Mortgage Loans, the Servicer shall make Servicing Advances to effect
such payments within such time period as to avoid the loss of the related
Mortgaged Property by foreclosure of a tax or other lien and to ensure that the
Mortgaged Property is not uninsured for any reason.

         The Servicer shall maintain in full force and effect each Primary
Mortgage Insurance Policy, that as of the Effective Date, was in full force and
effect with respect to any Mortgage Loan. Such coverage will be maintained and
will not be waived by the Servicer except in accordance with applicable law. The
Servicer shall not cancel, except in accordance with applicable law, or refuse
to renew any Primary Mortgage Insurance Policy that is in force as of the
Effective Date unless a replacement Primary Mortgage Insurance Policy for such
canceled or nonrenewed policy is obtained from and maintained with a Qualified
Insurer. The Servicer shall not take any action which would result in
noncoverage under any applicable Primary Mortgage Insurance Policy of any loss
which, but for the actions of the Servicer would have been covered thereunder.
In connection with any assumption or substitution agreement entered into or to
be entered into pursuant to Section 6.01, the Servicer shall promptly notify the
insurer under the related Primary Mortgage Insurance Policy, if any, of such
assumption or substitution of liability in accordance with the terms of such
policy and shall take all actions which may be required by such insurer as a
condition to the continuation of coverage under the Primary Mortgage Insurance
Policy. If such Primary Mortgage Insurance Policy is terminated as a result of
such assumption or substitution of liability, the Servicer shall obtain a
replacement Primary Mortgage Insurance Policy as provided above.

         In connection with its activities as servicer, the Servicer agrees to
prepare and present, on behalf of itself and the Owner, claims to the insurer
under any Private Mortgage Insurance Policy in a timely fashion in accordance
with the terms of such Primary Mortgage Insurance Policy and, in this regard, to
take such action as shall be necessary to permit recovery under any Primary
Mortgage Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to
Section 4.04, any amounts collected by the Servicer under any Primary Mortgage
Insurance Policy shall be deposited in the Custodial Account, subject to
withdrawal pursuant to Section 4.05.

         Section 4.09 Transfer of Accounts.

         The Servicer may transfer the Custodial Account or the Escrow Account
to a different Qualified Depository from time to time. The Servicer shall notify
the Owner and the NIMs Insurer of any such transfer.

         Section 4.10 Maintenance of Hazard Insurance.

                                     M-2-20
<PAGE>

         The Servicer shall cause to be maintained for each Mortgage Loan fire
and hazard insurance with extended coverage as is customary in the area where
the Mortgaged Property is located in an amount which is equal to the lesser of
(i) the maximum insurable value of the improvements securing such Mortgage Loan
and (ii) the greater of (a) the outstanding principal balance of the Mortgage
Loan, and (b) the percentage such that the proceeds thereof shall be sufficient
to prevent the Mortgagor and/or the mortgagee from becoming a co-insurer. If the
Mortgaged Property is in an area identified in the Federal Register by the
Federal Emergency Management Agency as being a special flood hazard area that
has federally-mandated flood insurance requirements, the Servicer will cause to
be maintained a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration with a generally acceptable
insurance carrier, in an amount representing coverage not less than the least of
(i) the outstanding principal balance of the Mortgage Loan, (ii) the maximum
insurable value of the improvements securing such Mortgage Loan and (iii) the
maximum amount of insurance which is available under the Flood Disaster
Protection Act of 1973, as amended. The Servicer shall also maintain on each REO
Property, fire and hazard insurance with extended coverage in an amount which is
at least equal to the maximum insurable value of the improvements which are a
part of such property, liability insurance and, to the extent required and
available under the Flood Disaster Protection Act of 1973, as amended, flood
insurance in an amount as provided above. Any amounts collected by the Servicer
under any such policies other than amounts to be deposited in a restricted
escrow account and applied to the restoration or repair of the Mortgaged
Property or REO Property, or released to the Mortgagor in accordance with the
Servicer's normal servicing procedures, shall be deposited in the Custodial
Account, subject to withdrawal pursuant to Section 4.05. It is understood and
agreed that no other additional insurance need be required by the Servicer or
the Mortgagor or maintained on property acquired in respect of the Mortgage
Loans, other than as provided for under applicable state or federal laws and
regulations as shall at any time be in force and as shall require such
additional insurance. All such policies shall be endorsed with standard
mortgagee clauses with loss payable to the Servicer and its successors and/or
assigns and shall provide for at least thirty days prior written notice of any
cancellation, reduction in the amount or material change in coverage to the
Servicer. The Servicer shall not interfere with the Mortgagor's freedom of
choice in selecting either his insurance carrier or agent; provided, however,
that the Servicer shall not accept any such insurance policies from insurance
companies unless such companies currently reflect a General Policy Rating in
Best's Key Rating Guide of B:III or better and are licensed to do business in
the state wherein the property subject to the policy is located. All insurance
policies maintained pursuant to this Section 4.10 shall be maintained with a
Qualified Insurer.

         Section 4.11 Blanket Hazard Insurance.

         In the event that the Servicer shall obtain and maintain a blanket
policy with a Qualified Insurer insuring against fire and hazards of extended
coverage on all of the Mortgage Loans and provides coverage in an amount equal
to the amount required under Section 4.10, and otherwise complies with the
requirements of Section 4.10, the Servicer shall be deemed conclusively to have
satisfied its obligations under Section 4.10, it being understood and agreed
that such blanket policy may contain a deductible clause, in which case the
Servicer shall, in the event that there

                                     M-2-21
<PAGE>

shall not have been maintained on the related Mortgaged Property a policy
complying with Section 4.10, and there shall have been a loss which would have
been covered by such policy, deposit in the Custodial Account the difference, if
any, between the amount that would have been payable under a policy complying
with Section 4.10 and the amount paid under such blanket policy. Upon the
request of the Owner, the Servicer shall cause to be delivered to the Owner a
certified true copy of such policy and a statement from the insurer thereunder
that such policy shall in no event be terminated or materially modified without
30 days prior written notice to the Owner.

         Section 4.12 Fidelity Bond, Errors and Omissions Insurance.

         The Servicer shall maintain, at its own expense, with a Qualified
Insurer, a blanket Fidelity Bond and an errors and omissions insurance policy,
with broad coverage with responsible companies that meet the requirements of
Fannie Mae on all officers, employees and other persons acting in any capacity
with regard to the Mortgage Loans and who handle funds, money, documents and
papers relating to the Mortgage Loans. The Fidelity Bond and errors and
omissions insurance shall be in the form of the Mortgage Banker's Blanket Bond
and shall protect and insure the Servicer against losses, including forgery,
theft, embezzlement, fraud, errors and omissions and negligent acts of such
persons. Such Fidelity Bond and errors and omissions insurance shall also
protect and insure the Servicer against losses in connection with the failure to
maintain any insurance policies required pursuant to this Agreement and the
release or satisfaction of a Mortgage Loan without having obtained payment in
full of the indebtedness secured thereby. No provision of this Section 4.12
requiring the Fidelity Bond and errors and omissions insurance shall diminish or
relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such Fidelity Bond and insurance
policy shall be at least equal to the corresponding amounts acceptable to Fannie
Mae in the Fannie Mae Guide or by Freddie Mac in the Freddie Mac Guide. The
Servicer shall, upon request of Owner and the NIMs Insurer, deliver to the Owner
and the NIMs Insurer a certificate from the surety and the insurer as to the
existence of the Fidelity Bond and errors and omissions insurance policy and
shall obtain a statement from the surety and the insurer that such Fidelity Bond
or insurance policy shall in no event be terminated or materially modified
without thirty days prior written notice to the Owner and the NIMs Insurer. The
Servicer shall notify the Owner and the NIMs Insurer within five Business Days
of receipt of notice that such Fidelity Bond or insurance policy will be, or has
been, materially modified or terminated.

         Section 4.13 Title, Management and Disposition of REO Property.

         In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the Owner or its designee. Any such Person or
Persons holding such title other than the Owner shall acknowledge in writing
that such title is being held as nominee for the benefit of the Owner.

         The Servicer shall assume the responsibility for marketing each REO
Property in accordance with Accepted Servicing Practices. Thereafter, the
Servicer shall continue to provide certain administrative services to the Owner
relating to such REO Property as set forth in this

                                     M-2-22
<PAGE>

Section 4.13. The REO Property must be sold within three years following the end
of the calendar year of the date of acquisition if a REMIC election has been
made with respect to the arrangement under which the Mortgage Loans and REO
Property are held, unless (i) the Servicer shall have delivered to the Owner an
Opinion of Counsel acceptable to the Owner and the NIMs Insurer, to the effect
that the holding by the related trust of such Mortgaged Property subsequent to
such three-year period (and specifying the period beyond such three-year period
for which the Mortgaged Property may be held) will not result in the imposition
of taxes on "prohibited transactions" of the related trust as defined in Section
860F of the Code, or cause the related REMIC to fail to qualify as a REMIC, in
which case the related trust may continue to hold such Mortgaged Property
(subject to any conditions contained in such Opinion of Counsel), or (ii) the
Servicer shall have applied for, prior to the expiration of such three-year
period, an extension of such three-year period in the manner contemplated by
Section 856(e)(3) of the Code, in which case the three-year period shall be
extended by the applicable period. If a period longer than three years is
permitted under the foregoing sentence and is necessary to sell any REO
Property, the Servicer shall report monthly to the Owner as to progress being
made in selling such REO Property.

         Notwithstanding any other provision of this Agreement, if a REMIC
election has been made, no Mortgaged Property held by a REMIC shall be rented
(or allowed to continue to be rented) or otherwise used for the production of
income by or on behalf of the related trust or sold in such a manner or pursuant
to any terms that would (i) cause such Mortgaged Property to fail to qualify at
any time as "foreclosure property" within a meaning of Section 860G(a)(8) of the
Code, (ii) subject the related trust to the imposition of any federal or state
income taxes on "net income from foreclosure property" with respect to such
Mortgaged Property within the meaning of Section 860G(c) of the Code, or (iii)
cause the sale of such Mortgaged Property to result in the receipt by the
related trust or any income from non-permitted assets as described in Section
860F(a) (2)(B) of the Code, unless the Servicer has agreed to indemnify and hold
harmless the related trust with respect to the imposition of any such taxes.

         The Servicer shall, either itself or through an agent selected by the
Servicer and in accordance with Accepted Servicing Practices, manage, conserve,
protect and operate each REO Property. Each REO Disposition shall be carried out
by the Servicer at such price and upon such terms and conditions as the Servicer
deems to be in the best interest of the Owner and the related terms and
conditions are results of arm's-length negotiation. The REO Disposition Proceeds
from the sale of the REO Property shall be promptly deposited in the Custodial
Account. As soon as practical thereafter, the expenses of such sale shall be
paid and the Servicer shall reimburse itself for any related Servicing Advances,
Monthly Advances, made pursuant to Section 5.03, and unpaid Servicing Fees.

         The Servicer shall cause each REO Property to be inspected promptly
upon the acquisition of title thereto and shall cause each REO Property to be
inspected at a frequency consistent with Accepted Servicing Practices. The
Servicer shall make or cause the inspector to make a written report of each such
inspection. Such reports shall be retained in the Servicing File and copies
thereof shall, upon reasonable request, be forwarded by the Servicer to the
Owner.

                                     M-2-23
<PAGE>

         Section 4.14 Notification of Adjustments.

         With respect to each Mortgage Loan, the Servicer shall adjust the
Mortgage Interest Rate on the related Interest Rate Adjustment Date in
compliance with requirements of applicable law and the related electronic data
received on the Mortgage and Mortgage Note. The Servicer shall execute and
deliver any and all necessary notices required under applicable law and the
terms of the related electronic data received on the Mortgage Note and Mortgage
regarding the Mortgage Interest Rate adjustments. The Servicer shall promptly,
upon written request by the Owner, deliver to the Owner such notifications and
any additional applicable data regarding such adjustments and the methods used
to calculate and implement such adjustments. Upon the discovery by the Servicer
or the receipt of notice from the Owner that the Servicer has failed to adjust a
Mortgage Interest Rate in accordance with the terms of the related Mortgage Note
and Mortgage, the Servicer shall immediately deposit in the Custodial Account
from its own funds the amount of any interest loss or deferral caused to the
Owner thereby and shall indemnify the Owner in respect of any liability as a
result of such shortfall; provided, however, that the Servicer shall not have an
obligation to pay any interest loss if the failure to appropriately adjust such
Mortgage Interest Rate is the direct result of inaccurate or incomplete
information in the electronic file provided in accordance with Section 2.01(iii)
hereof.

         Section 4.15 Compliance with Applicable Laws.

         All requirements of any federal, state or local law applicable to the
servicing of the Mortgage Loans will be complied with by the Servicer in all
material respects.

         Section 4.16 Waiver of Prepayment Penalties.

         Except as provided below, the Servicer or any designee of the Servicer
shall not waive any prepayment charge with respect to any Mortgage Loan. If the
Servicer or its designee fails to collect a prepayment charge at the time of the
related prepayment of any Mortgage Loan subject to such prepayment charge, the
Servicer shall pay to the Owner at such time (by deposit to the Custodial
Account) an amount equal to the amount of the prepayment charge not collected.
The Owner warrants that the schedule of prepayment charges provided to the
Servicer shall be complete, true and accurate and may be relied on by the
Servicer in its calculation of prepayment charges. Notwithstanding the above,
the Servicer or its designee may waive a prepayment charge only if (i) the
related prepayment is not the result of a refinancing by the Servicer or its
designee, (ii) such waiver relates to a defaulted Mortgage Loan or a reasonably
foreseeable default, (iii) such waiver is standard and customary in servicing
similar mortgage loans to the Mortgage Loans, and (iv) such waiver, in the
reasonable judgment of the Servicer, would maximize recovery of total proceeds
from the Mortgage Loan, taking into account the amount of such prepayment charge
and the related Mortgage Loan. If a prepayment charge is waived as permitted by
meeting the standards described above, then the Servicer is required to pay the
amount of such waived prepayment charge, for the benefit of the holders of the
Class P Certificates (as defined in the related Trust Agreement), by depositing
such amount into the Custodial Account together with and at the time that the
amount prepaid on the related Mortgage Loan is required to be deposited into the
Custodial Account.

                                     M-2-24
<PAGE>

         Within 90 days of the earlier of discovery by the Servicer or receipt
of notice by the Servicer of the breach of the representation or covenant of the
Servicer set forth in this Section 4.16 which materially and adversely affects
the interests of the Holders of the Class P Certificates in any prepayment
charge, the Servicer shall remedy such breach as follows: if any of the
covenants made by the Servicer in this Section 4.16 is breached, the Servicer
must pay the amount of such waived prepayment charge, for the benefit of the
Holders of the Class P Certificates, by depositing such amount into the
Custodial Account.

                                    ARTICLE V
                              PAYMENTS TO THE OWNER

         Section 5.01 Remittances.

         On each Remittance Date the Servicer shall remit, by wire transfer of
immediately available funds, to the Owner (a) all amounts deposited in the
Custodial Account as of the close of business on the Determination Date (net of
charges against or withdrawals from the Custodial Account pursuant to Section
4.05), plus (b) all amounts, if any, which the Servicer is obligated to
distribute pursuant to Section 5.03, minus (c) any amounts attributable to
Principal Prepayments received after the end of the preceding month which
amounts shall be remitted on the following Remittance Date, together with the
Compensating Interest Amount required to be deposited in the Custodial Account
in connection with such Principal Prepayment in accordance with Section
4.04(ix); minus (d) any amounts attributable to Monthly Payments collected but
due on a Due Date or Dates subsequent to the first day of the month of the
Remittance Date, which amounts shall be remitted on the related Remittance Date
next succeeding the Due Period for such amounts.

         With respect to any remittance received by the Owner after the Business
Day on which such payment was due, the Servicer shall pay to the Owner interest
on any such late payment at an annual rate equal to the Prime Rate, adjusted as
of the date of each change, plus two percentage points, but in no event greater
than the maximum amount permitted by applicable law. Such interest shall be
deposited in the Custodial Account by the Servicer on the date such late payment
is made and shall cover the period commencing with the day following such
Business Day and ending with the Business Day on which such payment is made,
both inclusive. Such interest shall be remitted along with the distribution
payable on the next succeeding related Remittance Date. The payment by the
Servicer of any such interest shall not be deemed an extension of time for
payment or a waiver of any Event of Default by the Servicer.

         Section 5.02 Statements to the Owner.

         Not later than the tenth (10) calendar day, or if such day is not a
Business Day, the first Business Day immediately preceding the tenth calendar
day of the month of the related Remittance Date, the Servicer shall furnish to
the Owner and the NIMs Insurer, a monthly remittance advice in the format set
forth in Exhibit F attached hereto (or in such other electronic format mutually
agreed to by the Servicer and Owner), with regard to monthly loan remittance
data and Exhibit G (or in such other electronic format mutually agreed to by the
Servicer and

                                     M-2-25
<PAGE>

Owner) with respect to defaulted mortgage loans, with a trial balance report
attached thereto, and such other loan level information reasonably available to
the Servicer and requested by the Owner. The Servicer shall also furnish to the
Owner and the NIMs Insurer (in such format mutually agreed to by the Servicer
and the Owner) a monthly report detailing loan level prepayment charge collected
and/or waived by the Servicer in accordance with Section 4.16.

         Section 5.03 Monthly Advances by the Servicer.

         On the Business Day immediately preceding each Remittance Date, the
Servicer shall deposit in the Custodial Account from its own funds or from
amounts held for future distribution an amount equal to all Monthly Payments
(with interest adjusted to the Mortgage Loan Remittance Rate) which were due on
the Mortgage Loans during the applicable Due Period and which were delinquent at
the close of business on the immediately preceding Determination Date or which
were deferred pursuant to Section 4.01. Any amounts held for future distribution
and so used shall be replaced by the Servicer by deposit in the Custodial
Account on or before any future Remittance Date if funds in the Custodial
Account on such Remittance Date shall be less than payments to the Owner
required to be made on such Remittance Date. The Servicer's obligation to make
such Monthly Advances as to any Mortgage Loan will continue through the last
Monthly Payment due prior to the payment in full of the Mortgage Loan, or
through the last Remittance Date prior to the Remittance Date for the
distribution of all Liquidation Proceeds and other payments or recoveries
(including REO Disposition Proceeds, Insurance Proceeds and Condemnation
Proceeds) with respect to the Mortgage Loan; provided, however, that such
obligation shall cease if the Servicer determines, in its sole reasonable
opinion, that advances with respect to such Mortgage Loan are non-recoverable by
the Servicer from Liquidation Proceeds, Insurance Proceeds, Condemnation
Proceeds, or otherwise with respect to a particular Mortgage Loan. In the event
that the Servicer determines that any such advances are non-recoverable, the
Servicer shall provide the Owner with a certificate signed by an officer of the
Servicer evidencing such determination.

         Section 5.04 Liquidation Reports.

         Upon the foreclosure sale of any Mortgaged Property or the acquisition
thereof by the Owner pursuant to a deed-in-lieu of foreclosure, the Servicer
shall submit to the Owner and the NIMs Insurer a liquidation report in the
format set forth in Exhibit H attached hereto (or in such other format mutually
agreed to by the Servicer and Owner) with respect to such Mortgaged Property.
The Servicer shall also provide reports on the status of REO Property containing
such information as Owner may reasonably require.

                                   ARTICLE VI
                          GENERAL SERVICING PROCEDURES

         Section 6.01 Assumption Agreements.

         The Servicer shall, to the extent it has knowledge of any conveyance or
prospective conveyance by any Mortgagor of a Mortgaged Property (whether by
absolute conveyance or by

                                     M-2-26
<PAGE>

contract of, sale, and whether or not the Mortgagor remains or is to remain
liable under the Mortgage Note and/or the Mortgage), exercise its rights to
accelerate the maturity of such Mortgage Loan under any "due-on-sale" clause to
the extent permitted by law; provided, however, that the Servicer shall not
exercise any such rights if prohibited by law or the terms of the Mortgage Note
from doing so or if the exercise of such rights would impair or threaten to
impair any recovery under the related Primary Mortgage Insurance Policy, if any.
If the Servicer reasonably believes it is unable under applicable law to enforce
such "due-on-sale" clause, the Servicer shall enter into an assumption agreement
with the person to whom the Mortgaged Property has been conveyed or is proposed
to be conveyed, pursuant to which such person becomes liable under the Mortgage
Note and, to the extent permitted by applicable state law, the Mortgagor remains
liable thereon. If an assumption is allowed pursuant to this Section 6.01, the
Servicer, with the prior consent of the primary mortgage insurer, if any, is
authorized to enter into a substitution of liability agreement with the person
to whom the Mortgaged Property has been conveyed or is proposed to be conveyed
pursuant to which the original mortgagor is released from liability and such
Person is substituted as mortgagor and becomes liable under the related Mortgage
Note. Any such substitution of liability agreement shall be in lieu of an
assumption agreement.

         In connection with any such assumption or substitution of liability,
the Servicer shall follow its underwriting practices and procedures. With
respect to an assumption or substitution of liability, the Mortgage Interest
Rate borne by the related Mortgage Note and the amount of the Monthly Payment
may not be changed. The Servicer shall notify the Owner that any such
substitution of liability or assumption agreement has been completed by
forwarding to the Owner the original of any such substitution of liability or
assumption agreement, which document shall be added to the related Mortgage Loan
Documents and shall, for all purposes, be considered a part of such related
mortgage file to the same extent as all other documents and instruments
constituting a part thereof. All fees collected by the Servicer for entering
into an assumption or substitution of liability agreement shall belong to the
Servicer.

         Notwithstanding the foregoing paragraphs of this section or any other
provision of this Agreement, the Servicer shall not be deemed to be in default,
breach or any other violation of its obligations hereunder by reason of any
assumption of a Mortgage Loan by operation of law or any assumption which the
Servicer may be restricted by law from preventing, for any reason whatsoever.
For purposes of this Section 6.01, the term "assumption" is deemed to also
include a sale of the Mortgaged Property subject to the Mortgage that is not
accompanied by an assumption or substitution of liability agreement.

         Section 6.02 Satisfaction of Mortgages and Release of Mortgage Loan
Documents.

         Upon the payment in full of any Mortgage Loan, the Servicer will
immediately notify the Custodian with a certification and request for release by
a Servicing Officer, which certification shall include a statement to the effect
that all amounts received in connection with such payment which are required to
be deposited in the Custodial Account pursuant to Section 4.04 have been so
deposited, and a request for delivery to the Servicer of the portion of the
Mortgage Loan

                                     M-2-27
<PAGE>

Documents held by the Custodian. Upon receipt of such certification and request,
the Owner shall, or shall cause, the Custodian to release, in accordance with
the terms of the Custodial Agreement, the related Mortgage Loan Documents to the
Servicer and the Servicer shall prepare and execute under the authority of a
power of attorney delivered to the Servicer by the Owner any satisfaction or
release. No expense incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Custodial Account.

         In the event the Servicer satisfies or releases a Mortgage without
having obtained payment in full of the indebtedness secured by the Mortgage or
should it otherwise prejudice any right the Owner may have under the mortgage
instruments, the Servicer, upon written demand, shall remit to the Owner within
two Business Days the then outstanding principal balance of the related Mortgage
Loan by deposit thereof in the Custodial Account. The Servicer shall maintain
the Fidelity Bond and errors and omissions insurance insuring the Servicer
against any loss it may sustain with respect to any Mortgage Loan not satisfied
in accordance with the procedures set forth herein.

         From time to time and as appropriate for the servicing or foreclosure
of the Mortgage Loans, including for the purpose of collection under any Primary
Mortgage Insurance Policy, upon request of the Servicer and delivery to the
Custodian of a servicing receipt signed by a Servicing Officer, all as provided
in the Custodial Agreement, the Servicer may request the Custodian to release to
the Servicer the portion of the Mortgage Loan Documents held by the Custodian to
the Servicer. Such servicing receipt shall obligate the Servicer to promptly
return the related Mortgage Loan Documents to the Custodian, when the need
therefor by the Servicer no longer exists, unless the Mortgage Loan has been
liquidated and the Liquidation Proceeds relating to the Mortgage Loan have been
deposited in the Custodial Account or such documents have been delivered to an
attorney, or to a public trustee or other public official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property either judicially or non-judicially, and
the Servicer has promptly delivered to the Owner or the Custodian a certificate
of a Servicing Officer certifying as to the name and address of the Person to
which such documents were delivered and the purpose or purposes of such
delivery.

         Section 6.03 Servicing Compensation.

         As compensation for its services hereunder, the Servicer shall be
entitled to withdraw from the Custodial Account or to retain from interest
payments on the Mortgage Loans the amounts provided for as the Servicer's
Servicing Fee. Additional servicing compensation in the form of Ancillary Income
shall be retained by the Servicer. The Servicer shall be required to pay all
expenses incurred by it in connection with its servicing activities hereunder
and shall not be entitled to reimbursement therefor except as specifically
provided for.

         Section 6.04 Annual Statement as to Compliance.

         The Servicer shall deliver to the Owner and the Master Servicer, on or
before May 15, each year beginning May 15, 2005, an Officer's Certificate,
stating that (i) a review of the

                                     M-2-28
<PAGE>

activities of the Servicer during the preceding calendar year and of performance
under this Agreement or similar agreements has been made under such officer's
supervision, and (ii) to the best of such officer's knowledge, based on such
review, the Servicer has fulfilled all its responsibilities and obligations
under this Agreement throughout such year, or, if there has been a default in
the fulfillment of any such responsibilities and obligation, specifying each
such default known to such officer and the nature and status thereof and the
action being taken by the Servicer to cure such default.

         Section 6.05 Annual Independent Certified Public Accountants' Servicing
Report.

         On or before [May 15th of each year beginning May 15, 2005], the
Servicer shall, or shall cause each related subservicer to, at its expense,
cause a firm of independent public accountants which is a member of the American
Institute of Certified Public Accountants to furnish a statement to the Owner to
the effect that such firm has examined certain documents and records relating to
the servicing of the mortgage loans similar in nature and that such firm is of
the opinion that the provisions of this or similar Agreements have been complied
with, and that, on the basis of such examination conducted in compliance with
the Uniform Single Attestation Program for Mortgage Bankers, nothing has come to
their attention which would indicate that such servicing has not been conducted
in compliance therewith, except for (i) such exceptions as such firm shall
believe to be immaterial, and (ii) such other exceptions as shall be set forth
in such statement. By providing Owner and the Master Servicer a copy of a
Uniform Single Attestation Program Report from their independent public
accountant's on an annual basis, Servicer shall be considered to have fulfilled
its obligations under this Section 6.05.

         Section 6.06 Owner's Right to Examine Servicer Records.

         The Owner or the NIMs Insurer shall have the right to examine and
audit, at its expense, upon reasonable notice to the Servicer, during business
hours or at such other times as might be reasonable under applicable
circumstances, any and all of the books, records, documentation or other
information of the Servicer, or held by another for the Servicer or on its
behalf or otherwise, which relate to the performance or observance by the
Servicer of the terms, covenants or conditions of this Agreement.

         The Servicer shall provide to the Owner, the NIMs Insurer and any
supervisory agents or examiners representing a state or federal governmental
agency having jurisdiction over the Owner access to any documentation regarding
the Mortgage Loans in the possession of the Servicer which may be required by
any applicable regulations. Such access shall be afforded without charge, upon
reasonable request, during normal business hours and at the offices of the
Servicer, and in accordance with the applicable federal or state government
regulations.

         Section 6.07 Compliance with REMIC Provisions.

         If a REMIC election has been made with respect to the arrangement under
which the Mortgage Loans and REO Property are held, the Servicer shall not take
any action, cause the REMIC to take any action or fail to take (or fail to cause
to be taken) any action that, under the

                                     M-2-29
<PAGE>

REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger
the status of the REMIC as a REMIC or (ii) result in the imposition of a tax
upon the REMIC (including but not limited to the tax on "prohibited
transactions" as defined in Section 860F(a)(2) of the Code and the tax on
"contribution" to a REMIC set forth in Section 860G(d) of the Code unless the
Servicer has received an Opinion of Counsel (at the expense of the party seeking
to take such actions) to the effect that the contemplated action will not
endanger such REMIC status or result in the imposition of any such tax.

         Section 6.08 Non-solicitation.

         The Servicer shall not conduct any solicitation targeted to the
Mortgagors for the purpose of inducing or encouraging the early prepayment or
refinancing of the related Mortgage Loans. It is understood and agreed that
promotions undertaken by the Servicer or any agent or affiliate of the Servicer
which are directed to the general public at large, including mass mailings based
on commercially acquired mailing lists, newspaper, radio and television
advertisements, shall not constitute solicitation under this Section 6.08 nor is
the Servicer prohibited from responding to unsolicited requests or inquiries
made by a Mortgagor or an agent of a Mortgagor.

         Section 6.09 Annual Certification and Indemnification.

         (a)      With respect to any Mortgage Loans that are subject to a
pass-through transfer or other securitization (a "Securitization") in which the
filing of a Sarbanes-Oxley Certification directly with the Securities and
Exchange Commission is required, by May 15th of each year or in connection with
any additional Sarbanes-Oxley Certification required to be filed upon thirty
(30) days written request, an officer of the Servicer shall execute and deliver
an Officer's Certification substantially in the form attached hereto as Exhibit
E, to the entity filing the Sarbanes-Oxley Certification directly with the
Securities and Exchange Commission (the "Sarbanes Certifying Party") for the
benefit of such entity and such entity's affiliates and the officers, directors
and agents of such entity.

         (b)      The Servicer shall indemnify and hold harmless the Sarbanes
Certifying Party and its officers, directors, agents and affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach by the Servicer or any of its officers, directors, agents or
affiliates of its obligations under Sections 6.04, 6.05 and 6.09 or the
negligence, bad faith or willful misconduct of the Servicer in connection
therewith. If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Sarbanes Certifying Party, then the Servicer
agrees that it shall contribute to the amount paid or payable by the Sarbanes
Certifying Party as a result of the losses, claims, damages or liabilities of
the Sarbanes Certifying Party in such proportion as is appropriate to reflect
the relative fault of the Sarbanes Certifying Party on the one hand and the
Servicer on the other in connection with a breach of the Servicer's obligations
under Sections 6.04, 6.05 and 6.09 or the Servicer's negligence, bad faith or
willful misconduct in connection therewith.

                                   ARTICLE VII

                                     M-2-30
<PAGE>

                       REPORTS TO BE PREPARED BY SERVICER

         Section 7.01 Servicer Shall Provide Information as Reasonably Required.

         The Servicer shall furnish to the Owner or the NIMs Insurer upon
reasonable request, during the term of this Agreement, such periodic, special or
other reports or information, whether or not provided for herein, as shall be
necessary, reasonable or appropriate with respect to the purposes of this
Agreement. The Servicer may negotiate with the Owner or the NIMs Insurer for a
reasonable fee for providing such report or information, unless (i) the Servicer
is required to supply such report or information pursuant to any other section
of this Agreement, or (ii) the report or information has been requested in
connection with Internal Revenue Service or other regulatory agency
requirements. All such reports or information shall be provided by and in
accordance with all reasonable instructions and directions given by the Owner or
the NIMs Insurer. The Servicer agrees to execute and deliver all such
instruments and take all such action as the Owner, or the NIMs Insurer, from
time to time, may reasonably request in order to effectuate the purpose and to
carry out the terms of this Agreement.

                                  ARTICLE VIII
                                  THE SERVICER

         Section 8.01 Indemnification; Third Party Claims.

         The Servicer agrees to indemnify the Owner, its successors and assigns,
and any agent of the Owner, and the NIMs Insurer (each an "Indemnified Person")
and hold each such Indemnified Person harmless from and against any and all
claims, losses, damages, penalties, fines, forfeitures, legal fees and related
costs, judgments, and any other costs, fees and expenses that such Indemnified
Person may sustain in any way related to the failure of the Servicer to perform
its duties and service the Mortgage Loans in strict compliance with the terms of
this Agreement and for breach of any representation, warranty or covenant of the
Servicer contained herein. The Servicer shall notify the Owner and the NIMs
Insurer in accordance with Section 11.04 herein of any claim made by a third
party against the Servicer, the Owner or both, with respect to this Agreement,
the Mortgage Loans and/or any alleged act by Owner. The Owner shall assume the
defense of any such claim and pay all costs and expenses (including reasonable
legal fees and expenses) of defending the Servicer and itself against any such
claim other than (i) any loss, liability or expense related to the Servicer's
failure to perform Servicer's duties in strict compliance with this Agreement;
and (ii) any loss, liability or expense incurred by reason of the Servicer's
willful misfeasance, bad faith or negligence in the performance of its duties
hereunder or by reason of reckless disregard of its obligations and duties
hereunder. The Owner shall promptly pay, discharge and satisfy any judgment or
decree that may be entered against it in respect of such claim. If in any event,
the Servicer incurred any expenses or fees related to the above, the Owner shall
reimburse the Servicer within thirty (30) Business Days upon receipt of an
invoice from the Servicer of all amounts advanced by the Servicer pursuant to
the preceding sentence.

         Section 8.02 Merger or Consolidation of the Servicer.

                                     M-2-31
<PAGE>

         The Servicer shall keep in full effect its existence, rights and
franchises as a corporation under the laws of the state of its incorporation
except as permitted herein, and will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Mortgage Loans and to perform its
duties under this Agreement.

         Any Person into which the Servicer may be merged or consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Servicer shall be a party, or any Person succeeding to the business of the
Servicer whether or not related to loan servicing, shall be the successor of the
Servicer hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person shall
be an institution (i) having a GAAP net worth of not less than $25,000,000, (ii)
the deposits of which are insured by the FDIC, or which is a HUD-approved
mortgagee whose primary business is in origination and servicing of first lien
1-4 family mortgage loans, and (iii) which is a Fannie Mae or Freddie Mac
approved seller/servicer in good standing. Furthermore, in the event the
Servicer transfers or otherwise disposes of all or substantially all of its
assets to an affiliate of the Servicer, such affiliate shall satisfy the
condition above, and shall also be fully liable to the Owner for all of the
Servicer's obligations and liabilities hereunder.

         Section 8.03 Limitation on Liability of the Servicer and Others.

         Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Owner for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment made in good faith; provided, however,
that this provision shall not protect the Servicer or any such person against
any breach of warranties or representations made herein, or failure to perform
its obligations in compliance with any standard of care set forth in this
Agreement, or any liability which would otherwise be imposed under this
Agreement. The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on any document of any kind prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Servicer shall not be under any obligation to appear in, prosecute or defend
any legal action which is not incidental to its duties to service the Mortgage
Loans in accordance with this Agreement and which in its opinion may involve it
in any expenses or liability; provided, however, that the Servicer may, with the
consent of the Owner and the NIMs Insurer, undertake any such action which it
may deem necessary or desirable with respect to this Agreement and the rights
and duties of the parties hereto. In such event, the reasonable legal expenses
and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities for which the Owner will be liable, the Owner
shall reimburse the Servicer within thirty days of receipt by the Owner of a
billing statement from the Servicer providing reasonable detail with respect
thereto, unless the Owner is disputing such charges, in which event the Owner
shall reimburse the Company as promptly as feasible upon resolution of such
dispute.

         Section 8.04 Servicer Not to Resign.

                                     M-2-32
<PAGE>

         The Servicer shall not assign this Agreement or resign from the
obligations and duties hereby imposed on it except by mutual consent of the
Servicer and the Owner, with the consent of the NIMs Insurer or upon the
determination that its duties hereunder are no longer permissible under
applicable law and such incapacity cannot be cured by the Servicer. Any such
determination permitting the resignation of the Servicer shall be evidenced by
an Opinion of Counsel to such effect delivered to the Owner and the NIMs Insurer
which Opinion of Counsel shall be in form and substance acceptable to the Owner
and the NIMs Insurer. No such resignation shall become effective until a
successor shall have assumed the Servicer's responsibilities and obligations
hereunder in the manner provided in Section 11.01. Notwithstanding the
foregoing, the Servicer, without the consent of the Owner, may retain
third-party contractors to perform certain servicing and loan administration
functions, including without limitation hazard insurance administration, tax
payment and administration, flood certification and administration, collection
services and similar functions, provided, however, that the retention of such
contractors by Servicer shall not limit the obligation of the Servicer to
service the Mortgage Loans pursuant to the terms and conditions of this
Agreement.

         Section 8.05 No Transfer of Servicing.

         With respect to the retention of the Servicer to service the Mortgage
Loans hereunder, the Servicer acknowledges that the Owner and the NIMs Insurer
have in reliance upon the Servicer's independent status, the adequacy of its
servicing facilities, plan, personnel, records and procedures, its integrity,
reputation and financial standing and the continuance thereof. Without in any
way limiting the generality of this section, the Servicer shall not either
assign this Agreement or the servicing hereunder or delegate its rights or
duties hereunder or any portion thereof, or sell or otherwise dispose of all or
substantially all of its property or assets, without the prior written approval
of the Owner and the NIMs Insurer.

                                   ARTICLE IX
                                     DEFAULT

         Section 9.01 Events of Default.

         Each of the following shall constitute an Event of Default on the part
of the Servicer:

         (i)      any failure by the Servicer to remit to the Owner any payment
required to be made under the terms of this Agreement which continues unremedied
for a period of two (2) Business Days after written notice thereof from the
Owner or the NIMs Insurer (it being understood that this subparagraph shall not
affect Servicer's obligation pursuant to Section 5.01 to pay default interest on
any remittance received by the Owner after the Business Day on which such
payment was due); or

         (ii)     any failure by the Servicer duly to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Servicer set forth in this Agreement (other than with respect to Sections, 6.04,
6.05 and 6.09), the breach of which has a material adverse effect and which
continue unremedied for a period of sixty days (except that such number of days

                                     M-2-33
<PAGE>

shall be fifteen in the case of a failure to pay any premium for any insurance
policy required to be maintained under this Agreement and such failure shall be
deemed to have a material adverse effect) after the date on which written notice
of such failure, requiring the same to be remedied, shall have been given to the
Servicer by the Owner or the NIMs Insurer; or

         (iii)    a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a conservator or receiver
or liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling of
assets and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against the Servicer and
such decree or order shall have remained in force undischarged or unstayed for a
period of sixty days; or

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

         (v)      the Servicer shall admit in writing its inability to pay its
debts generally as they become due, file a petition to take advantage of any
applicable insolvency, bankruptcy or reorganization statute, make an assignment
for the benefit of its creditors, voluntarily suspend payment of its obligations
or cease its normal business operations for two Business Days; or

         (vi)     the Servicer ceases to meet the qualifications of a Fannie Mae
or Freddie Mac servicer; or

         (vii)    the Servicer attempts to assign its right to servicing
compensation hereunder or the Servicer attempts, without the consent of the
Owner and the NIMs Insurer, to sell or otherwise dispose of all or substantially
all of its property or assets or to assign this Agreement or the servicing
responsibilities hereunder or to delegate its duties hereunder or any portion
thereof except as otherwise permitted herein;

         (viii)   the Servicer ceases to be qualified to transact business in
any jurisdiction where it is currently so qualified, but only to the extent such
non-qualification materially and adversely affects the Servicer's ability to
perform its obligations hereunder; or

         (ix)     failure by the Servicer to duly perform, within the required
time period, its obligations under Section 6.04, Section 6.05 or Section 6.09 of
this Agreement which failure continues unremedied for a period of fifteen (15)
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Servicer by any party to this
Agreement, the NIMs Insurer or by any master servicer responsible for master
servicing the Mortgage Loans pursuant to a securitization of such Mortgage
Loans.

         In each and every such case, so long as an Event of Default shall not
have been remedied, the Owner with the consent of the NIMs Insurer, by notice in
writing to the Servicer may (and at the request of the NIMs Insurer, shall), in
addition to whatever rights the Owner may have under

                                     M-2-34
<PAGE>

Section 8.01 and at law or equity to damages, including injunctive relief and
specific performance, terminate all the rights and obligations of the Servicer
under this Agreement and in and to the Mortgage Loans and the proceeds thereof
without compensating the Servicer for the same.

         From and after the receipt by the Servicer of such written notice, all
authority and power of the Servicer under this Agreement, whether with respect
to the Mortgage Loans or otherwise, shall pass to and be vested in the successor
appointed pursuant to Section 11.01. Upon written request from the Owner, the
Servicer shall prepare, execute and deliver, any and all documents and other
instruments, place in such successor's possession all Servicing Files, and do or
accomplish all other acts or things reasonably necessary or appropriate to
effect the purposes of such notice of termination, including, but not limited
to, notification to MERS at the Servicer's sole expense. The Servicer agrees to
cooperate with the Owner and such successor in effecting the termination of the
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to such successor for administration by it of all cash amounts, net
of unreimbursed Servicing Advances and Monthly Advances, which shall at the time
be credited by the Servicer to the Custodial Account or Escrow Account or
thereafter received with respect to the Mortgage Loans.

         Section 9.02 Waiver of Defaults.

         The Owner with the consent of the NIMs Insurer may waive, only by
written notice, any default by the Servicer in the performance of its
obligations hereunder and its consequences. Upon any such waiver of a past
default, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon except to the extent expressly so waived in
writing.

                                    ARTICLE X
                                   TERMINATION

         Section 10.01 Termination.

         The respective obligations and responsibilities of the Servicer shall
terminate upon the earliest to occur of the following: (i) the later of the
final payment or other liquidation (or any advance with respect thereto) of the
last Mortgage Loan or the disposition of any REO Property and the remittance of
all funds due hereunder; (ii) by 30 days' written mutual consent of the Servicer
and the Owner with the consent of the NIMs Insurer; (iii) termination by the
Owner pursuant to Section 9.01; and (iv) upon resignation of the Servicer in
accordance with Section 8.04;. Simultaneously with any such termination and, in
the case of (ii), (iii) or (iv) of the preceding sentence, the transfer of
servicing hereunder, the Servicer shall be entitled to be reimbursed for any
outstanding Servicing Advances and Monthly Advances as such amounts are received
from the related Mortgage Loans or as otherwise provided herein for a servicer
that has not been terminated. In no event shall the Servicer be entitled to any
termination fee or other

                                     M-2-35
<PAGE>

compensation with respect to any termination of this Agreement or the Servicer's
rights hereunder, in whole or in part.

         Section 10.02 Subservicing Termination Trigger.

         In the event of a Subservicer Termination Trigger (as defined in the
related Trust Agreement), the Servicer shall terminate the related Subservicer
at the direction of the NIMS Insurer. Following such termination, the Servicer
shall have the right to service such Mortgage Loans without the use of a
Subservicer or to engage a new Subservicer acceptable to the NIMS Insurer
pursuant to a Subservicing Agreement, which is not in conflict with the terms of
this Agreement. Notwithstanding the foregoing, the Servicer shall retain the
ownership of all servicing rights with respect to the related Mortgage Loans and
no such direction of termination of a Subservicer shall be deemed to diminish
such ownership.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

         Section 11.01 Successor to the Servicer.

         Upon termination of the Servicer's responsibilities and duties under
this Agreement pursuant to Sections 8.04, 8.05 or 9.01, the Owner shall (i)
succeed to and assume all of the Servicer's responsibilities, rights, duties and
obligations under this Agreement, or (ii) appoint a successor acceptable to the
NIMs Insurer having the characteristics set forth in Section 8.02 and which
shall succeed to all rights and assume all of the responsibilities, duties and
liabilities of the Servicer under this Agreement prior to the termination of the
Servicer's responsibilities, duties and liabilities under this Agreement. If the
NIMs Insurer requests, the Master Servicer shall appoint a successor servicer as
provided in the preceding sentence. In connection with such appointment and
assumption, the Owner may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as the Owner with the consent of the
NIMs Insurer and such successor shall agree. In the event that the Servicer's
duties, responsibilities and liabilities under this Agreement should be
terminated pursuant to the aforementioned sections, the Servicer shall discharge
such duties and responsibilities during the period from the date it acquires
knowledge of such termination until the effective date thereof with the same
degree of diligence and prudence which it is obligated to exercise under this
Agreement, and shall take no action whatsoever that might impair or prejudice
the rights or financial condition of its successor. The resignation or removal
of the Servicer pursuant to the aforementioned sections shall not become
effective until a successor shall be appointed pursuant to this section and
shall in no event relieve the Servicer of the representations and warranties
made pursuant to Article III and the remedies available to the Owner under
Section 8.01, it being understood and agreed that the provisions of such Article
III and Section 8.01 shall be applicable to the Servicer notwithstanding any
such resignation or termination of the Servicer, or the termination of this
Agreement.

         Any successor appointed as provided herein shall execute, acknowledge
and deliver to the Servicer and to the Owner an instrument accepting such
appointment, whereupon such successor shall become fully vested with all the
rights, powers, duties, responsibilities, obligations and

                                     M-2-36
<PAGE>

liabilities of the Servicer, with like effect as if originally named as a party
to this Agreement. Any termination or resignation of the Servicer or termination
of this Agreement pursuant to Section 8.04, 8.05 or 9.01 shall not affect any
claims that the Owner may have against the Servicer arising prior to any such
termination or resignation.

         The Servicer shall promptly deliver to the successor the funds in the
Custodial Account and the Escrow Account and the Servicing Files and related
documents and statements held by it hereunder and the Servicer shall account for
all funds. All unreimbursed Monthly Advances and Servicing Advances shall be
paid by the Owner to the replaced servicer as such amounts are received from the
related Mortgage Loans or are otherwise reimbursable hereunder. The Servicer
shall execute and deliver such instruments and do such other things as may
reasonably be required to more fully and definitely vest and confirm in the
successor all such rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer. In addition, the Servicer shall promptly take all
other actions reasonably requested by Owner or the NIMs Insurer with respect to
MERS Mortgage Loans and MERS to effectuate and evidence the transfer of
servicing and/or ownership thereof in accordance with the terms of this
Agreement.

         Upon a successor's acceptance of appointment as such, the Owner shall
notify the Servicer of such appointment.

         Section 11.02 Amendment.

         This Agreement may be amended from time to time by the Servicer and the
Owner, with the consent of the NIMs Insurer, by written agreement signed by the
Servicer and the Owner.

         Section 11.03 Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS. THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 11.04 Notices.

         Any demands, notices or other communications permitted or required
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, and
return receipt requested or transmitted by telecopier and confirmed by a similar
mailed writing, as follows:

         (i)      if to the Servicer with respect to servicing issues:

                  Home Star Mortgage Services LLC
                  W. 115 Century Road
                  Paramus, New Jersey 07652

                                     M-2-37
<PAGE>

                  Attention:

         (ii)     if to the Owner:

                  Homestar Mortgage Acceptance Corp.
                  W. 115 Century Road
                  Paramus, New Jersey 07652
                  Attention:

or such other address as may hereafter be furnished to the other party by like
notice. Any such demand, notice, or communication hereunder shall be deemed to
have been received on the date delivered to or received at the premises of the
address (as evidenced, in the case of registered or certified mail, by the date
noted on the return receipt).

         Section 11.05 Severability of Provisions.

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

         Section 11.06 Exhibits and Schedules.

         The exhibits, schedules and other addenda and supplements to this
Agreement are hereby incorporated and made a part hereof and are an integral
part of this Agreement.

         Section 11.07 General Interpretive Principles.

         For purposes of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires:

         (i)      the terms defined in this Agreement have the meanings assigned
to them in this Agreement and include the plural as well as the singular, and
the use of any gender herein shall be deemed to include the other gender;

         (ii)     accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles;

         (iii)    references herein to "Articles," "Sections," "Subsections,"
"Paragraphs," and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;

         (iv)     a reference to a Subsection without further reference to a
Section is a reference to such Subsection as contained in the same Section in
which the reference appears, and this rule shall also apply to Paragraphs and
other subdivisions;

                                     M-2-38
<PAGE>

         (v)      the words "herein," "hereof," "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
provision;

         (vi)     the term "include" or "including" shall mean without
limitation by reason of enumeration; and

         (vii)    to the extent that some, but not all, of the Mortgage Loans
are transferred pursuant to Section 11.10 hereof, this Agreement shall be
construed as a separate agreement with respect to such Mortgage Loans and
references to the rights of the Owner shall apply separately with respect to
each Owner.

         Section 11.08 Reproduction of Documents.

         This Agreement and all documents relating hereto, including, without
limitation, (i) consents, waivers and modifications which may hereafter be
executed, (ii) documents received by any party at the closing, and (iii)
financial statements, certificates and other information previously or hereafter
furnished, may be reproduced by any photographic, photostatic, microfilm,
micro-card, miniature photographic or other similar process. The parties agree
that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original
is in existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.

         Section 11.09 Confidentiality of Information.

         Each party recognizes that, in connection with this Agreement, it may
become privy to non-public information regarding the financial condition,
operations and prospects of the other party. Except as required to be disclosed
by law, each party agrees to keep all non-public information regarding the other
party strictly confidential, and to use all such information solely in order to
effectuate the purpose of this Agreement. Additionally, with respect to each
Mortgage Loan and the related Mortgagor, the Servicer and the Owner shall comply
with Title V of the Gramm Leach Bliley Act of 1999 and all applicable
regulations promulgated thereunder.

         Section 11.10 Assignment by the Owner.

         The Owner shall have the right, with the consent of the NIMs Insurer,
without the consent of the Servicer but subject to the limits set forth in this
Agreement hereof, to assign its interest under this Agreement with respect to
some or all of the Mortgage Loans, and designate any person to exercise any
rights of the Owner hereunder and the assignee or designee shall accede to the
rights and obligations hereunder of the Owner with respect to such Mortgage
Loans. The Servicer shall not be obligated to recognize any such assignee or
designee unless such person executes an assignment and assumption agreement
reasonably acceptable to the Servicer. All references to the Owner in this
Agreement shall be deemed to include its assignees or designees.

         Section 11.11 No Partnership.

                                     M-2-39
<PAGE>

         Nothing herein contained shall be deemed or construed to create a
co-partnership or joint venture between the parties hereto and the services of
the Servicer shall be rendered as an independent contractor and not as agent for
Owner.

         Section 11.12 Counterparts; Successors and Assigns.

         This Agreement may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement. Subject to Section 8.05, this Agreement
shall inure to the benefit of and be binding upon the Servicer, the NIMs Insurer
and the Owner and their respective successors and assigns.

         Section 11.13 Entire Agreement.

         Each of the Servicer and the Owner acknowledges that no
representations, agreements or promises were made to it by the other party or
any of its employees other than those representations, agreements or promises
specifically contained herein. This Agreement sets forth the entire
understanding between the parties hereto with respect to the matters set forth
herein, and shall be binding upon all successors of both parties.

         Section 11.14 Further Agreements.

         The Servicer and the Owner each agrees to execute and deliver to the
other such reasonable and appropriate additional documents, instruments or
agreements as may be necessary or appropriate to effectuate the purpose of this
Agreement.

         Section 11.15 Third Party Beneficiary.

         For purposes of this Agreement, any Master Servicer and the NIMs
Insurer shall be considered a third party beneficiary to this Agreement entitled
to all the rights and benefits accruing to any Master Servicer and the NIMs
Insurer herein as if it were a direct party to this Agreement.

                                     M-2-40
<PAGE>

         IN WITNESS WHEREOF, the Servicer and the Owner have caused their names
to be signed hereto by their respective officers thereunto duly authorized as of
the date and year first above written.

                                     HOMESTAR MORTGAGE ACCEPTANCE CORP.

                                     By:
                                     Name:
                                     Title:

                                     HOMESTAR MORTGAGE SERVICES, LLC

                                     By:
                                     Name:
                                     Title:

                                     M-2-41
<PAGE>

                                    EXHIBIT A

                             MORTGAGE LOAN SCHEDULE

                             Available Upon Request

                                      A-1
<PAGE>

                                    EXHIBIT B

                    FORMS OF CUSTODIAL ACCOUNT CERTIFICATIONS

                         CUSTODIAL ACCOUNT CERTIFICATION

                                                                        , 20

         Home Star Mortgage Services LLC hereby certifies that it has
established the account described below as a Custodial Account pursuant to
Section 4.04 of the Servicing Agreement, dated as of March 5, 2004.

Title of Account:       HMAC 2004-_ in trust for the Purchaser and/or subsequent
                        purchasers of Mortgage Loans, andvarious Mortgagors -
                        P & I

Address of office or branch
of the Servicer at which
Account is maintained:

                                     HOME STAR MORTGAGE SERVICES LLC
                                     Servicer

                                     By:
                                     Name:
                                     Title:

                                      B-1
<PAGE>

                                    EXHIBIT C

                     FORMS OF ESCROW ACCOUNT CERTIFICATIONS

                          ESCROW ACCOUNT CERTIFICATION

                                                                         , 20

         Home Star Mortgage Services LLC hereby certifies that it has
established the account described below as an Escrow Account pursuant to Section
4.06 of the Servicing Agreement, dated as of March 5, 2004.

Title of Account:       HMAC 2004-_ in trust for the Purchaser and/or subsequent
purchasers of Mortgage Loans, and various Mortgagors - T & I

Address of office or branch
of the Servicer at which
Account is maintained:

                                     HOME STAR MORTGAGE SERVICES LLC
                                     Servicer

                                     By:
                                     Name:
                                     Title:

                                      C-1
<PAGE>

                                    EXHIBIT D

                        REQUEST FOR RELEASE OF DOCUMENTS

To:      Wells Fargo Bank, N.A.
         1015 10th Avenue S.E.
         Mpls., MN  55414
         Attn:  ________________

         Re:      Custodial Agreement dated as of October 1, 2004, among HSBC
                  Bank (USA), Homestar Mortgage Acceptance Corp. and Wells Fargo
                  Bank, N.A., as Custodian

         In connection with the administration of the Mortgage Loans held by you
as Custodian for the Owner pursuant to the above-captioned Custody Agreement, we
request the release, and hereby acknowledge receipt, of the Custodian's Mortgage
File for the Mortgage Loan described below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):
_______           1.       Mortgage Paid in Full
_______           2.       Foreclosure
_______           3.       Substitution
_______           4.       Other Liquidation (Repurchases, etc.)
_______           5.       Nonliquidation  [Reason:____________________________]

Address to which Custodian should
Deliver the Custodian's Mortgage File:      ____________________________________
                                            ____________________________________
                                            ____________________________________

                                            By:_________________________________
                                                      (authorized signer)

Issuer:_____________________________________
                                     Address:___________________________________
       _____________________________________
Date:_______________________________________

Custodian
Wells Fargo Bank, N.A.

Please acknowledge the execution of the above request by your signature and date
below:

_____________________________________                   ________________________

                                      D-1
<PAGE>

Signature                                               Date

Documents returned to Custodian:
_____________________________________                   ________________________
Custodian

                                      D-2
<PAGE>

                                    EXHIBIT E

                      FORM OF SARBANES-OXLEY CERTIFICATION

         I, __________________________, certify to Wells Fargo Bank, N.A., and
its officers, directors, agents and affiliates (the "Sarbanes Certifying
Party"), and with the knowledge and intent that they will rely upon this
certification, that:

         (i)      Based on my knowledge, the information relating to the
Mortgage Loans and the servicing thereof submitted by the Servicer to the
Sarbanes Certifying Party which is used in connection with preparation of the
reports on Form 8-K and the annual report on Form 10-K filed with the Securities
and Exchange Commission with respect to the Securitization, taken as a whole,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
date of this certification;

         (ii)     The servicing information required to be provided to the
Sarbanes Certifying Party by the Servicer under the Agreement has been provided
to the Sarbanes Certifying Party;

         (iii)    I am responsible for reviewing the activities performed by the
Servicer and by each related subservicer under the Agreement and based upon the
review required by the Agreement, and except as disclosed in the Annual
Statement of Compliance, the Annual Independent Public Accountant's Servicing
Report and all servicing reports, officer's certificates and other information
relating to the servicing of the Mortgage Loans submitted to the Sarbanes
Certifying Party, the Servicer and each related subservicer has, as of the date
of this certification, fulfilled its obligations under the Agreement; and

         (iv)     I have disclosed to the Sarbanes Certifying Party all
significant deficiencies relating to the Servicer's and/or each related
subservicer's compliance with the minimum servicing standards in accordance with
a review conducted in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or similar standard as set forth in the Agreement.

         Capitalized words not otherwise defined herein have the meaning
assigned to them in the Servicing Agreement dated March 5, 2004 by and between
Homestar Mortgage Acceptance Corp. as Owner and Home Star Mortgage Services LLC
as Servicer.

         IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
of the Servicer.

Dated:                                 By:
Name:
Title:

                                      E-1
<PAGE>

                                    EXHIBIT F

                        MONTHLY SERVICER REPORTING FORMAT

                   (RYLAND) FORMAT, SERVICER PERIOD REPORTING

The format should be:
1. Record length of 240
2. ASCII
3. All dates should have DD of "01".

<TABLE>
<CAPTION>
                                                                                       COBOL
#      M/O      Field Name                               Position        Length      "Picture"           Justify
<S>    <C>      <C>                                      <C>             <C>         <C>                 <C>
1.     O        Master Servicer No.                      001-002         2
2.     O        Unit Code                                003-004         2
3.     M        Loan Number                              005-014         10          X(10)
4.     O        Borrower Name                            015-034         20          X(20)
5.     O        Old Payment Amount                       035-045         11          S(9)V9(02)
6.     O        Old Loan Rate                            046-051         6           9(2)V9(04)
7.     O        Servicer Fee Rate                        052-057         6           9(2)V9(04)
8.     M        Servicer Ending Balance                  058-068         11          S9(9)V9(02)
9.     M        Servicer Next Due Date                   069-076         8           CCYYMMDD
10.    O        Curtail Amt 1 - Before                   077-087         11          S9(9)V9(02)
11.    O        Curtail Date 1                           088-095         8           CCYYMMDD
12.    O        Curtail Amt 1 - After                    096-106         11          S9(9)V9(02)
13     O        Curtail Amt 2 - Before                   107-117         11          S9(9)V9(02)
14.    O        Curtail Date                             118-125         8           CCYYMMDD
15.    O        Curtail Amt 2 - After                    126-136         11          9(9)V9(02)
16.    O        Curtail Amt 3 - Before                   137-147         11          9(9)V9(02)
17.    O        Curtail Date                             148-155         8           CCYYMMDD
18     O        Curtail Amt 3 - After                    156-166         11          9(9)V9(02)
19     O        New Payment Amount                       167-177         11          9(9)V9(02)
20.    O        New Loan Rate                            178-183         6           (2)V9(04)
21.    O        Index Rate                               184-189         6           (2)V9(04)
22.    O        Remaining Term                           190-192         3           (3)
23.    O        Liquidation Amount                       193-203         11          9(9)V9(02)
24.    O        Action Code                              204-205         2           (02)
25.    O        Scheduled Principal                      206-216         11          9(9)V9(02)
26.    O        Scheduled Interest                       217-227         11          9(9)V9(02)
27.    O        Scheduled Ending Balance                 228-238         11          9(9)V9(02)
28.    O        FILLER                                   239-240         2           (02)
Trailer Record
1.     O        Number of Records                        001-006         6           9(06)
2.     O        FILLER                                   007-240         234         X(234)
</TABLE>

                                      F-1
<PAGE>

Field Names and Descriptions:

<TABLE>
<CAPTION>
Field Name                           Description
<S>                                  <C>
Master Servicer No.                  Hard code as "01" used internally
Unit Code                            Hard code as "  " used internally
Loan Number                          Investor's loan number
Borrower Name                        Last name of borrower
Old Payment Amount                   P&I amount used for the applied payment
Old Loan Rate                        Gross interest rate used for the applied payment
Servicer Fee Rate                    Servicer's fee rate
Servicer Ending Balance              Ending actual balance after a payment has been applied
Servicer Next Due Date               Borrower's next due date for a payment
Curtailment Amount 1 - Before        Amount of curtailment applied before the payment
Curtailment Date 1                   Date of curtailment should coincide with the payment date applicable
                                     to the curtailment
Curtailment Amount 1 - After         Amount of curtailment applied after the payment
Curtailment Amount 2 - Before        Amount of curtailment applied before the payment
Curtailment Date 2                   Date of curtailment  should coincide with the payment date applicable
                                     to the curtailment
Curtailment Amount 2 - After         Amount of curtailment applied after the payment
Curtailment Amount 3 - Before        Amount of curtailment applied before the payment
Curtailment Date 3                   Date of curtailment  should coincide with the payment date applicable
                                     to the curtailment
Curtailment Amount 3 - After         Amount of curtailment applied after the payment
New Payment Amount                   For ARM, Equal, or Buydown loans, when a payment change occurs, this is
                                     the scheduled payment
</TABLE>

                                      F-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                  <C>
New Loan Rate                        For ARM loans, when the gross interest rate change occurs, this is the
                                     scheduled rate
Index Rate                           For ARM  loans,  the  index  rate used in  calculating  the new gross
                                     interest rate
Remaining Term                       For  ARM  loans,  the  number  of  months  left on the  loan  used to
                                     determine the new P&I amount
Liquidation Amount                   The payoff amount of the loan
Action Code                          For delinquent loans:
                                     12 -- Relief Provisions
                                     15 -- Bankruptcy/Litigation
                                     20 -- Referred for Deed-in-lieu, short sale
                                     30 -- Referred to attorney to begin foreclosure
                                     60 -- Loan Paid in full
                                     70 -- Real Estate Owned
Scheduled Principal                  Amount of principal from borrower payment due to bondholder
Scheduled Interest                   Amount of interest from borrower payment due to bondholder
Scheduled Ending Balance             Ending scheduled balance of loan
FILLER                               Should be filled with spaces
</TABLE>

                                      F-3
<PAGE>

                                    EXHIBIT G

Data must be submitted to Wells Fargo Bank in an Excel spreadsheet format with
fixed field names and data type. The Excel spreadsheet should be used as a
template consistently every month when submitting data for all loans that are 60
days + delinquent and/or in bankruptcy, foreclosure or REO.

Table: Delinquency

<TABLE>
<CAPTION>

<S>                                                 <C>                       <C>
Name                                                Type                      Max Character Size
Servicer Loan #                                     Number                    10
Investor Loan #                                     Number                    10
Servicer Investor #                                 Text                      3
Borrower Name                                       Text                      20
Address                                             Text                      30
State                                               Text                      2
Zip                                                 Text                      5
Due Date                                            Date/Time                 8
Loan Type                                           Text                      8
BK Filed Date                                       Date/Time                 8
BK Chapter                                          Text                      6
BK Case Number                                      Text                      30 Maximum
Post Petition Due                                   Date/Time                 8
Motion for Relief                                   Date/Time                 8
Lift of Stay                                        Date/Time                 8
BK Discharge/Dismissal Date                         Date/Time                 8
Loss Mit Approval Date                              Date/Time                 8
Loss Mit Type                                       Text                      5
Loss Mit Code                                       Number                    2
Loss Mit Estimated Completion Date                  Date/Time                 8
Loss Mit Actual Completion Date                     Date/Time                 8
FC Approval Date                                    Date/Time                 8
File Referred to Attorney                           Date/Time                 8
NOD                                                 Date/Time                 8
Complaint Filed                                     Date/Time                 8
Scheduled Sale Date                                 Date/Time                 8
Actual Sale Date                                    Date/Time                 8
F/C Sale Amount                                     Currency                  8
Eviction Start Date                                 Date/Time                 8
Eviction Completed Date                             Date/Time                 8
List Price                                          Currency                  8
List Date                                           Date/Time                 8
Accepted Offer Price                                Currency                  8
Accepted Offer Date                                 Date/Time                 8
</TABLE>

                                      G-1
<PAGE>

<TABLE>
<CAPTION>

<S>                                                 <C>                       <C>
Estimated REO Closing Date                          Date/Time                 8
Actual REO Sale Date                                Date/Time                 8
Occupant Code                                       Text                      10
Property Condition Code                             Text                      2
Property Inspection Date                            Date/Time                 8
Property Value Date                                 Date/Time                 8
Current Property Value                              Currency                  8
Repaired Property Value                             Currency                  8
Current LTV                                         Currency                  8
FNMA Delinquent Status Code                         Text                      2
FNMA Delinquent Reason Code                         Text                      3

If applicable:
MI Cancellation Date                                Date/Time                 8
MI Claim Filed Date                                 Date/Time                 8
MI Claim Amount                                     Currency                  8
MI Claim Reject Date                                Date/Time                 8
MI Claim Resubmit Date                              Date/Time                 8
MI Claim Paid Date                                  Date/Time                 8
MI Claim Amount Paid                                Currency                  8
Pool Claim Filed Date                               Date/Time                 8
Pool Claim Amount                                   Currency                  8
Pool Claim Reject Date                              Date/Time                 8
Pool Claim Paid Date                                Date/Time                 8
Pool Claim Amount Paid                              Currency                  8
Pool Claim Resubmit Date                            Date/Time                 8
FHA Part A Claim Filed Date                         Date/Time                 8
FHA Part A Claim Amount                             Currency                  8
FHA Part A Claim Paid Date                          Date/Time                 8
FHA Part A Claim Paid Amount                        Currency                  8
FHA Part B Claim Filed Date                         Date/Time                 8
FHA Part B Claim Amount                             Currency                  8
FHA Part B Claim Paid Date                          Date/Time                 8
FHA Part B Claim Paid Amount                        Currency                  8
VA Claim Filed Date                                 Date/Time                 8
VA Claim Paid Date                                  Date/Time                 8
VA Claim Paid Amount                                Currency                  8
</TABLE>

                                      G-2
<PAGE>

The Loss Mit Type field should show the approved Loss Mitigation arrangement.
The following are acceptable:

o      ASUM-           Approved Assumption
o      BAP-                Borrower Assistance Program
o      CO-             Charge Off
o      DIL-            Deed-in-Lieu
o      FFA-            Formal Forbearance Agreement
o      MOD-            Loan Modification
o      PRE-            Pre-Sale
o      SS-             Short Sale
o      MISC-               Anything else approved by the PMI or Pool Insurer

Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
provided that they are consistent with industry standards. If Loss Mitigation
Types other than those above are used, the Servicer must supply Wells Fargo Bank
with a description of each of the Loss Mitigation Types prior to sending the
file.

The Occupant Code field should show the current status of the property. The
acceptable codes are:

o      Mortgagor
o      Tenant
o      Unknown
o      Vacant

The Property Condition field should show the last reported condition of the
property. The acceptable codes are:

o      Damaged
o      Excellent
o      Fair
o      Gone
o      Good
o      Poor
o      Special Hazard
o      Unknown

                                      G-3
<PAGE>

The FNMA Delinquent Reason Code field should show the Reason for Default. The
following FNMA Delinquency Reason Codes to be used are below.

Delinquency Code        Delinquency Description
001    FNMA-Death of principal mortgagor
002    FNMA-Illness of principal mortgagor
003    FNMA-Illness of mortgagor's family member
004    FNMA-Death of mortgagor's family member
005    FNMA-Marital difficulties
006    FNMA-Curtailment of income
007    FNMA-Excessive Obligation
008    FNMA-Abandonment of property
009    FNMA-Distant employee transfer
011    FNMA-Property problem
012    FNMA-Inability to sell property
013    FNMA-Inability to rent property
014    FNMA-Military Service
015    FNMA-Other
016    FNMA-Unemployment
017    FNMA-Business failure
019    FNMA-Casualty loss
022    FNMA-Energy environment costs
023    FNMA-Servicing problems
026    FNMA-Payment adjustment
027    FNMA-Payment dispute
029    FNMA-Transfer of ownership pending
030    FNMA-Fraud
031    FNMA-Unable to contact borrower
INC    FNMA-Incarceration

                                      G-4
<PAGE>

The FNMA Delinquent Status Code field should show the Status of Default. The
following FNMA Delinquency Status Codes to be used are below.

Status Code       Status Description
09     Forbearance
17     Pre-foreclosure Sale Closing Plan Accepted
24     Government Seizure
26     Refinance
27     Assumption
28     Modification
29     Charge-Off
30     Third Party Sale
31     Probate
32     Military Indulgence
43     Foreclosure Started
44     Deed-in-Lieu Started
49     Assignment Completed
61     Second Lien Considerations
62     Veteran's Affairs-No Bid
63     Veteran's Affairs-Refund
64     Veteran's Affairs-Buydown
65     Chapter 7 Bankruptcy
66     Chapter 11 Bankruptcy
67     Chapter 13 Bankruptcy

                                      G-5
<PAGE>

                                    EXHIBIT H

WELLS FARGO BANK,  N.A.
Form 332

Calculation of Realized Loss

Purpose

To provide the Servicer with a form for the calculation of any Realized Loss (or
gain) as a result of a Mortgage Loan having been foreclosed and Liquidated.

Distribution

The Servicer will prepare the form in duplicate and send the original together
with evidence of conveyance of title and appropriate supporting documentation to
the Master Servicer with the Monthly Accounting Reports which supports the
Mortgage Loan's removal from the Mortgage Loan Activity Report. The Servicer
will retain the duplicate for its own records.

Due Date

With respect to any liquidated Mortgage Loan, the form will be submitted to the
Master Servicer no later than the date on which statements are due to the Master
Servicer under Section 4.02 of this Agreement (the "Statement Date") in the
month following receipt of final liquidation proceeds and supporting
documentation relating to such liquidated Mortgage Loan; provided, that if such
Statement Date is not at least 30 days after receipt of final liquidation
proceeds and supporting documentation relating to such liquidated Mortgage Loan,
then the form will be submitted on the first Statement Date occurring after the
30th day following receipt of final liquidation proceeds and supporting
documentation.

Preparation Instructions

The numbers on the form correspond with the numbers listed below.
1.       The actual Unpaid Principal Balance of the Mortgage Loan.
2.       The Total Interest Due less the aggregate amount of servicing fee that
         would have been earned if all delinquent payments had been made as
         agreed.
3-7.     Complete as necessary. All line entries must be supported by copies of
         appropriate statements, vouchers, receipts, canceled checks, etc., to
         document the expense. Entries not properly documented will not be
         reimbursed to the Servicer.
8.       Accrued Servicing Fees based upon the Scheduled Principal Balance of
         the Mortgage Loan as calculated on a monthly basis.
10.      The total of lines 1 through 9.

Credits

                                      H-1
<PAGE>

11-17.   Complete as necessary. All line entries must be supported by copies of
         the appropriate claims forms, statements, payment checks, etc. to
         document the credit. If the Mortgage Loan is subject to a Bankruptcy
         Deficiency, the difference between the Unpaid Principal Balance of the
         Note prior to the Bankruptcy Deficiency and the Unpaid Principal
         Balance as reduced by the Bankruptcy Deficiency should be input on line
         16.
18.      The total of lines 11 through 17.

Total Realized Loss (or Amount of Any Gain)

19.      The total derived from subtracting line 18 from 10. If the amount
         represents a realized gain, show the amount in parenthesis ( ).

                                      H-2
<PAGE>

                             WELLS FARGO BANK, N.A.
                          CALCULATION OF REALIZED LOSS

WELLS FARGO BANK,  N.A. Trust:  ___________________________
Prepared by:  __________________    Date:  _______________
Phone:  ______________________

Servicer Loan No.                  Servicer Name                Servicer Address

WELLS FARGO BANK, N.A.
Loan No._____________________________
Borrower's Name:________________________________________________________
Property
Address:________________________________________________________________
Liquidation and Acquisition Expenses:
Actual Unpaid Principal Balance of Mortgage Loan $ _______________(1)
Interest accrued at Net Rate ________________(2)
Attorney's Fees ________________(3)
Taxes ________________(4)
Property Maintenance ________________(5)
MI/Hazard Insurance Premiums ________________(6)
Hazard Loss Expenses ________________(7)
Accrued Servicing Fees ________________(8)
Other (itemize) ________________(9)
_____________________________   $________________
_____________________________    ________________
_____________________________    ________________
Total Expenses $ ______________(10)
Credits:
Escrow Balance $ ______________(11)
HIP Refund  ________________(12)
Rental Receipts ________________(13)
Hazard Loss Proceeds ________________(14)
Primary Mortgage Insurance Proceeds ________________(15)
Proceeds from Sale of Acquired Property ________________(16)
Other (itemize) ________________(17)
_____________________________    ________________
_____________________________    ________________
Total Credits $________________(18)
Total Realized Loss (or Amount of Gain) $________________(19)

                                      H-3
<PAGE>

                                    EXHIBIT N
                               CUSTODIAL AGREEMENT
                               -------------------

                  THIS CUSTODIAL AGREEMENT (as amended and supplemented from
time to time, the "Agreement"), dated as of January 31, 2005, by and among HSBC
Bank USA, National Association, not individually but solely as trustee under the
Pooling and Servicing Agreement defined below (including its successors under
the Pooling and Servicing Agreement defined below, the "Trustee"), OPTEUM
MORTGAGE ACCEPTANCE CORPORATION, as depositor (together with any successor in
interest, the "Company"), WELLS FARGO BANK, N.A., as master servicer and
securities administrator (together with any successor in interest or successor
under the Pooling and Servicing Agreement referred to below, the "Master
Servicer") and WELLS FARGO BANK, N.A., as custodian (together with any successor
in interest or any successor appointed hereunder, the "Custodian").

                                WITNESSETH THAT:

                  WHEREAS, the Company, the Master Servicer, the Securities
Administrator and the Trustee have entered into a Pooling and Servicing
Agreement, dated as of January 31, 2005, relating to the issuance of OMAC
Mortgage Trust 2005-1, Asset-Backed Pass-Through Certificates, Series 2005-1 (as
in effect on the date of this Agreement, the "Original Pooling and Servicing
Agreement," and as amended and supplemented from time to time, the "Pooling and
Servicing Agreement'); and

                  WHEREAS, the Custodian has agreed to act as agent for the
Trustee for the purposes of receiving and holding certain documents and other
instruments delivered by the Company or the Master Servicer under the Pooling
and Servicing Agreement, all upon the terms and conditions and subject to the
limitations hereinafter set forth;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements hereinafter set forth, the Trustee, the Company,
the Master Servicer, the Securities Administrator and the Custodian hereby agree
as follows:

                                   SECTION 1.

                                   DEFINITIONS

                  1.1      Capitalized terms used in this Agreement and not
defined herein shall have the meanings assigned in the Original Pooling and
Servicing Agreement, unless otherwise required by the context herein.

                                   SECTION 2.

                          CUSTODY OF MORTGAGE DOCUMENTS

                                      N-1
<PAGE>

                  2.1      CUSTODIAN TO ACT AS AGENT: ACCEPTANCE OF MORTGAGE
FILES. The Custodian, as the duly appointed custodial agent of the Trustee for
these purposes, acknowledges (subject to any exceptions noted in the Initial
Certification referred to in Section 2.3(a)), receipt of the Mortgage Files
relating to the Mortgage Loans identified on the schedule attached hereto (the
"Mortgage Files") and declares that it holds and will hold such Mortgage Files
as agent for the Trustee, in trust, for the use and benefit of all present and
future Certificateholders.

                  2.2      RECORDATION OF ASSIGNMENTS. Within 30 days after the
Closing Date, the Company shall complete or cause to be completed the
Assignments in the name of "HSBC Bank USA, National Association, as trustee
under the Pooling and Servicing Agreement relating to Opteum Mortgage Acceptance
Corporation, Asset-Backed Pass-Through Certificates, Series 2005-1" (or shall
prepare or cause to be prepared new forms of Assignment in the name of the
Trustee). For each Mortgaged Property in a state, if any, which is specifically
excluded from the Opinion of Counsel delivered by the Company to the Trustee and
the Custodian, each such Assignment shall be recorded in the appropriate public
office for real property records, and returned to the Custodian, at no expense
to the Custodian.

                  2.3      REVIEW OF MORTGAGE FILES.

         (a)      On or prior to the Closing Date, in accordance with Section
2.02 of the Pooling and Servicing Agreement, the Custodian shall deliver to the
Trustee an Initial Certification in the form annexed hereto as Exhibit One
evidencing receipt (subject to any exceptions noted therein) of a Mortgage File
for each of the Mortgage Loans listed on the Schedule attached hereto (the
"Mortgage Loan Schedule").

         (b)      Not later than 180 days after the Closing Date, the Custodian
shall review the Mortgage Files as provided in Section 2.02 of the Pooling and
Servicing Agreement and deliver to the Company and the Trustee a Final
Certification in the form annexed hereto as Exhibit Two evidencing the
completeness of the Mortgage Files.

         (c)      In reviewing the Mortgage Files as provided herein and in the
Pooling and Servicing Agreement, the Custodian shall make no representation as
to and shall not be responsible to verify (i) the validity, legality,
enforceability, due authorization, recordability, sufficiency or genuineness of
any of the documents included in any Mortgage File or (ii) the collectibility,
insurability, effectiveness or suitability of any of the documents in any
Mortgage File.

         Upon receipt of written request from the Trustee, the Custodian shall
as soon as practicable supply the Trustee with a list of all of the documents
relating to the Mortgage Loans missing from the Mortgage Files.

                  2.4      CUSTODIAN TO COOPERATE: RELEASE OF MORTGAGE FILES.
Upon receipt of notice from the Trustee or the Master Servicer of a repurchase
of a Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement or the
Pooling and Servicing Agreement, and that the purchase price therefore has been
deposited in the Custodial Account or the Certificate Account,

                                      N-2
<PAGE>

then the Custodian agrees to promptly release the related Mortgage File to the
Seller or other party at the direction of the Trustee.

                  Upon the Custodian's receipt of a request for release (a
"Request for Release") substantially in the form of Exhibit F to the Pooling and
Servicing Agreement signed by a servicing officer of the Servicer or a Servicing
Officer of the Master Servicer stating that it has received payment in full of a
Mortgage Loan or that payment in full will be escrowed in a manner customary for
such purposes, the Custodian agrees promptly to release to the Servicer or the
Master Servicer the related Mortgage File. The Company shall deliver to the
Custodian and the Custodian agrees to accept the Mortgage Note and other
documents constituting the Mortgage File with respect to any Substitute Mortgage
Loan.

                  From time to time as is appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any Primary Insurance Policy, the Servicer (or if the Servicer does not, the
Master Servicer) shall deliver to the Custodian a Request for Release signed by
a Servicing Officer requesting that possession of the Mortgage File be released
to the Servicer and certifying as to the reason for such release and that such
release will not invalidate any insurance coverage provided in respect of the
Mortgage Loan under any of the Insurance Policies. Upon receipt of the
foregoing, the Custodian shall deliver the Mortgage File to the Servicer. The
Servicer shall cause the Mortgage File or any document therein so released to be
returned to the Custodian when the need therefore by the Servicer no longer
exists, unless (i) the Mortgage Loan has been liquidated and the Liquidation
Proceeds relating to the Mortgage Loan have been deposited in the Custodial
Account or the Certificate Account or (ii) the Mortgage File or such document
has been delivered to an attorney, or to a public trustee or other public
official as required by law, for purposes of initiating or pursuing legal action
or other proceedings for the foreclosure of the Mortgaged Property either
judicially or non-judicially, and the Servicer has delivered to the Custodian a
certificate of a servicing officer certifying as to the name and address of the
Person to which such Mortgage File or such document was delivered and the
purpose or purposes of such delivery.

                  At any time that the Servicer is required to deliver to the
Custodian a Request for Release, the Servicer shall deliver two copies of the
Request for Release if delivered in hard copy or the Servicer may furnish such
Request for Release electronically in a form acceptable to the Custodian, in
which event the servicing officer transmitting the same shall be deemed to have
signed the Request for Release. In connection with any Request for Release of a
Mortgage File because of a repurchase of a Mortgage Loan, such Request for
Release shall be followed by an assignment of mortgage, without recourse,
representation or warranty from the Trustee to the Seller and the related
Mortgage Note shall be endorsed without recourse by the Trustee and be returned
to the Seller. In connection with any Request for Release of a Mortgage File
because of the payment in full of a Mortgage Loan, such Request for Release
shall be accompanied by a certificate of satisfaction or other similar
instrument to be executed by or on behalf of the Trustee and returned to the
Servicer.

                                      N-3
<PAGE>

                  2.5      ASSUMPTION AGREEMENTS. In the event that any
assumption agreement, substitution of liability agreement or sale of servicing
agreement is entered into with respect to any Mortgage Loan subject to this
Agreement in accordance with the terms and provisions of the Pooling and
Servicing Agreement, the Master Servicer, to the extent provided in the
Servicing Agreement, shall enforce the obligation of the Servicer to notify the
Custodian that such assumption or substitution agreement has been completed by
forwarding to the Custodian the original of such assumption or substitution
agreement, which shall be added to the related Mortgage File and, for all
purposes, shall be considered a part of such Mortgage File to the same extent as
all other documents and instruments constituting parts thereof.

                  2.6      ENDORSEMENT OF MORTGAGE NOTES. Within 45 days after
the Closing Date, the Custodian shall endorse each Mortgage Note in the name of
"HSBC Bank USA, National Association, as trustee under the Pooling and Servicing
Agreement relating to Opteum Mortgage Acceptance Corporation, Asset-Backed
Pass-Through Certificates, Series 2005-1".

                                   SECTION 3.

                            CONCERNING THE CUSTODIAN

                  3.1      CUSTODIAN AS BAILEE AND AGENT OF THE TRUSTEE. With
respect to each Mortgage Note, Mortgage and other documents constituting each
Mortgage File which are delivered to the Custodian, the Custodian is exclusively
the bailee and custodial agent of the Trustee and has no instructions to hold
any Mortgage Note or Mortgage for the benefit of any person other than the
Trustee and the Certificateholders and undertakes to perform such duties and
only such duties as are specifically set forth in this Agreement and in the
Pooling and Servicing Agreement. Except upon compliance with the provisions of
Section 2.4 of this Agreement, no Mortgage Note, Mortgage or Mortgage File shall
be delivered by the Custodian to the Company, the Servicer or the Master
Servicer or otherwise released from the possession of the Custodian.

                  3.2      CUSTODIAN MAY OWN CERTIFICATES. The Custodian in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Custodian.

                  3.3      MASTER SERVICER TO PAY CUSTODIAN'S FEES AND EXPENSES.
The Master Servicer covenants and agrees to pay to the Custodian from time to
time, and the Custodian shall be entitled to, reasonable compensation for all
services rendered by it in the exercise and performance of any of the powers and
duties hereunder of the Custodian, and the Master Servicer will pay or reimburse
the Custodian upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Custodian in accordance with any of the
provisions of this Agreement (including the reasonable compensation and the
expenses and disbursements of its counsel and of all persons not regularly in
its employ), except any such expense, disbursement or advance as may arise from
its negligence or bad faith or to the extent that such cost or expense is
indemnified by the Trust Fund pursuant to the Pooling and Servicing Agreement.

                                      N-4
<PAGE>

                  3.4      CUSTODIAN MAY RESIGN; TRUSTEE MAY REMOVE CUSTODIAN.
The Custodian may resign from the obligations and duties hereby imposed upon it
as such obligations and duties relate to its acting as Custodian of the Mortgage
Loans. Upon receiving such written notice of resignation, the Trustee shall
either take custody of the Mortgage Files itself and give prompt written notice
thereof to the Company, the Master Servicer, the Securities Administrator and
the Custodian, or promptly appoint a successor Custodian by written instrument,
in duplicate, one copy of which instrument shall be delivered to the resigning
Custodian and one copy to the successor Custodian. If the Trustee shall not have
taken custody of the Mortgage Files and no successor Custodian shall have been
so appointed and have accepted appointment within 30 days after the giving of
such written notice of resignation, the resigning Custodian may petition any
court of competent jurisdiction for the appointment of a successor Custodian.

                  The Trustee may, with or without cause, upon at least 60 days
notice remove and discharge the Custodian from the performance of its duties
with the consent of the Master Servicer. In such event, the Trustee shall
appoint, or petition a court of competent jurisdiction to appoint, a successor
Custodian hereunder. Any successor Custodian shall be a depository institution
subject to supervision or examination by federal or state authority, shall be
able to satisfy the other requirements contained in Section 3.6 hereof and shall
be unaffiliated with the Servicer or the Company.

                  Any resignation or removal of the Custodian and appointment of
a successor Custodian pursuant to any of the provisions of this Section 3.4
shall become effective upon acceptance of appointment by the successor
Custodian. The Trustee shall give prompt notice to the Company and the Master
Servicer of the appointment of any successor Custodian. No successor Custodian
shall be appointed by the Trustee without the prior approval of the Company and
the Master Servicer.

                  3.5      MERGER OR CONSOLIDATION OF CUSTODIAN. Any Person into
which the Custodian may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Custodian shall be a party, or any Person succeeding
to the business of the Custodian, shall be the successor of the Custodian
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

                  3.6      REPRESENTATIONS OF THE CUSTODIAN. The Custodian
hereby represents that it is a depository institution subject to supervision or
examination by a federal or state authority, has a combined capital and surplus
of at least $15,000,000 and is qualified to do business in the jurisdictions in
which it will hold any Mortgage File.

                  3.7      STANDARD OF CARE; INDEMNIFICATION. Neither the
Custodian nor any parent, affiliate, subsidiaries, directors, officers, agents
or employees shall have any liability arising from or related to this Custodial
Agreement or any related document or agreement, except for any such liability
resulting from the Custodian's negligence or willful misconduct. The Custodian
shall be indemnified and held harmless from the Trust Fund to the extent
provided in Section 6.03 of the Pooling and Servicing Agreement.

                                      N-5
<PAGE>

                  3.8      RELIANCE; LIMITATION OF CUSTODIAN'S DUTIES. The
Custodian shall have no duties or obligations other than those specifically set
forth herein or as may subsequently be agreed to in writing by the parties
hereto. The Custodian: (a) may consult with counsel and any Opinion of Counsel
shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in accordance with
such Opinion of Counsel; and shall not be liable for any error of judgment, or
for any act done or step taken or omitted by it, in good faith, except for any
such liability resulting from the Custodian's negligence or willful misconduct;
(b) shall use the same degree of care and skill as is reasonably expected of
financial institutions acting in comparable capacities, provided that this
subsection shall not be interpreted to impose upon the Custodian a higher
standard of care than that set forth above; (c) will be regarded as making no
representations and having no responsibilities (except as expressly set forth
herein) as to the validity, sufficiency, value, genuineness, ownership or
transferability of the Mortgage Loans, and will not be required to and will not
make any representations as to the validity, value, genuineness, ownership or
transferability of the Mortgage Loans; (d) may rely on and shall be protected in
acting upon any certificate, instrument, opinion, notice, letter, telegram,
facsimile or other document delivered to it and in good faith believed by it to
be genuine and to have been signed by the proper party or parties; and (e) may
rely on and shall be protected in acting upon the written instructions of the
Company or the Trustee and such employees and representatives of the Company or
the Trustee as the Company or the Trustee may hereinafter designate in writing.

                                   SECTION 4.

                            MISCELLANEOUS PROVISIONS

                  4.1.     NOTICES. All notices, requests, consents and demands
and other communications required under this Agreement or pursuant to any other
instrument or document delivered hereunder shall be in writing and, unless
otherwise specifically provided, may be delivered personally, by telegram or
telex, or by registered or certified mail, postage prepaid, return receipt
requested, at the addresses specified on the signature page hereof (unless
changed by the particular party whose address is stated herein by similar notice
in writing), in which case the notice will be deemed delivered when received.

                  4.2.     AMENDMENTS. No modification or amendment of or
supplement to this Agreement shall be valid or effective unless the same is in
writing and signed by all parties hereto, and neither the Company, the Master
Servicer, the Securities Administrator, nor the Trustee shall enter into any
amendment hereof except as permitted by the Pooling and Servicing Agreement. The
Trustee shall give prompt notice to the Custodian of any amendment or supplement
to the Pooling and Servicing Agreement and furnish the Custodian with written
copies thereof.

                  4.3.     GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED A
CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                                      N-6
<PAGE>

                  4.4.     RECORDATION OF AGREEMENT. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Company and at the Trust's expense, but
only upon direction accompanied by an Opinion of Counsel reasonably satisfactory
to the Company to the effect that the failure to effect such recordation is
likely to materially and adversely affect the interests of the
Certificateholders.

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

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

                                          [Signature Page Follows]

                                      N-7
<PAGE>

         IN WITNESS WHEREOF, this Agreement is executed as of the date first
above written.

<TABLE>
<CAPTION>

<S>                                                         <C>
Address:                                                    HSBC Bank USA, National Association, not individually
                                                            but solely as Trustee
452 Fifth Avenue
New York, New York 10018
                                                            By:_______________________________
Attention:                                                  Name:
Telecopy:                                                   Title:
Confirmation:

Address:                                                    OPTEUM MORTGAGE ACCEPTANCE CORPORATION

W. 115 Century Road
Paramus, New Jersey 07652                                   By:_______________________________
                                                            Name:
                                                            Title:

Address:                                                    WELLS FARGO BANK, N.A., as Master Servicer

9062 Old Annapolis Road
Columbia, Maryland 21045                                    By:_______________________________
                                                            Name:
                                                            Title:

Address:                                                    WELLS FARGO BANK, N.A., as Custodian

9062 Old Annapolis Road                                     By:_______________________________
Columbia, Maryland 21045                                    Name:
                                                            Title:
</TABLE>

                                      N-8
<PAGE>

STATE OF NEW YORK      )
                       )ss.:
COUNTY OF NEW YORK     )

         On the ___ day of January 2005 before me, a notary public in and for
said State, personally appeared ____________________, known to me to be a
_______________ of HSBC Bank USA, National Association, a national banking
association that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation and acknowledged to me that
such corporation executed the within instrument.

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

                                                     Notary Public

[SEAL]

                                      N-9
<PAGE>

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

         On the ___ day of January 2005 before me, a notary public in and for
said State, personally appeared ______________, known to me to be an
___________________ of Wells Fargo Bank, N.A., a national banking association
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said national banking association, and acknowledged to
me that such national banking association executed the within instrument.

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

                                                     Notary Public

[SEAL]

                                      N-10
<PAGE>

STATE OF NEW JERSEY        )
                           )ss.:
COUNTY OF _________        )

         On the ___ day of January 2005 before me, a notary public in and for
said State, personally appeared _______________, known to me to be a
_____________ of Opteum Mortgage Acceptance Corporation, one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                                     Notary Public

[Notarial Seal]

                                      N-11
<PAGE>

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

         On the ___ day of January 2005 before me, a notary public in and for
said State, personally appeared ______________, known to me to be an
___________________ of Wells Fargo Bank, N.A., a national banking association
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said national banking association, and acknowledged to
me that such national banking association executed the within instrument.

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

                                                     Notary Public

[Notarial Seal]

                                      N-12
<PAGE>

                                   EXHIBIT ONE

                     FORM OF CUSTODIAN INITIAL CERTIFICATION

                                                          January 31, 2005

HSBC Bank USA, National Association       Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                          W. 115 Century Road
New York, New York 10018                  Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation, OMAC Mortgage Trust
         2005-1, Asset-Backed Pass-Through Certificates, Series 2005-1

         Re:      Custodial Agreement, dated as of January 31, 2005, by and
                  among HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, N.A. relating to
                  OMAC Mortgage Trust 2005-1, Asset-Backed PASS-THROUGH
                  CERTIFICATES, SERIES 2005-1

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, dated as of January 1, 2005 among Opteum Mortgage Acceptance
Corporation, HSBC Bank USA, National Association, and Wells Fargo Bank, N.A.,
the undersigned, as custodian (the "Custodian"), hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on the attachment hereto) it has reviewed the
Mortgage File, and has determined that: (1) all documents required to be
included in the Mortgage File are in its possession and (2) such documents have
been reviewed by it and appear regular on their face and relate to such Mortgage
Loan.

         The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Custodial and Pooling and Servicing Agreements. The Custodian
makes no representations as to and shall not be responsible to verify: (i) the
validity, legality, sufficiency, enforceability, due authorization,
recordability or genuineness of any of the documents contained in each Mortgage
File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, (ii)
the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan, or (iii) the existence of any assumption, modification, written
assurance or substitution agreement with respect to any Mortgage File if no such
documents appear in the Mortgage File delivered to the Custodian.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                      N-13
<PAGE>

                                                WELLS FARGO BANK, N.A.,
                                                as Custodian

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

                                      N-14
<PAGE>

                                   EXHIBIT TWO

                      FORM OF CUSTODIAN FINAL CERTIFICATION

                                                           __________, 20__

HSBC Bank USA, National Association       Opteum Mortgage Acceptance Corporation
452 Fifth Avenue                          W. 115 Century Road
New York, New York 10018                  Paramus, New Jersey 07652

         Attention: Opteum Mortgage Acceptance Corporation, OMAC Mortgage Trust
         2005-1, Asset-Backed Pass-Through Certificates, Series 2005-1

         Re:      Custodial Agreement, dated as of January 31, 2005, by and
                  among HSBC Bank USA, National Association, Opteum Mortgage
                  Acceptance Corporation and Wells Fargo Bank, N.A. relating to
                  OMAC Mortgage Trust 2005-1, Asset-Backed PASS-THROUGH
                  CERTIFICATES, SERIES 2005-1

Ladies and Gentlemen:

                  In accordance with Section 2.3 of the above-captioned
Custodial Agreement and subject to Section 2.02 of the Pooling and Servicing
Agreement, the undersigned, as Custodian, hereby certifies that it has received
a Mortgage File with respect to each Mortgage Loan listed in the Mortgage Loan
Schedule containing with respect to each Mortgage Loan:

                  (i)      the original Mortgage Note (including all riders
         thereto) bearing all intervening endorsements necessary to show a
         complete chain of endorsements from the original payee, endorsed "Pay
         to the order of _____without recourse", via original signature, and, if
         previously endorsed, signed in the name of the last endorsee by a duly
         qualified officer of the last endorsee or, with respect to any Mortgage
         Loan as to which the original Mortgage Note has been permanently lost
         or destroyed and has not been replaced, a Lost Note Affidavit. If the
         Mortgage Loan was acquired by the last endorsee in a merger, the
         endorsement must be by "[name of last endorsee], successor by merger to
         [name of the predecessor]." If the Mortgage Loan was acquired or
         originated by the last endorsee while doing business under another
         name, the endorsement must be by "[name of last endorsee], formerly
         known as [previous name]." The Custodian has endorsed the Mortgage Note
         in the name of "HSBC Bank USA, National Association, as trustee under
         the Pooling and Servicing Agreement relating to Opteum Mortgage
         Acceptance Corporation, Asset-Backed Pass-Through Certificates, Series
         2005-1" for each Mortgage Note;

                  (ii)     The original recorded Mortgage, noting the presence
         of the MIN of the Mortgage Loan and either language indicating that the
         Mortgage Loan is a MOM loan or

                                      N-15
<PAGE>

         if the Mortgage Loan was not a MOM loan at origination, the original
         Mortgage and the assignment thereof to MERS, with evidence of recording
         indicated thereon; provided that if such document is not included
         because of a delay by the public recording office where such document
         has been delivered for recordation or such office as a matter of policy
         does not return the original of such document or if such original
         Mortgage has been lost, the Seller shall include or cause to be
         included a copy thereof certified by the appropriate recording office,
         if available;

                  (iii)    the original Assignment of Mortgage in blank, in form
         and substance acceptable for recordation in the jurisdiction in which
         the related mortgage property is located and signed in the name of the
         Last Endorsee by an authorized officer; unless the Mortgage Loan is
         registered on the MERS system;

                  (iv)     The original intervening Assignments, if any and if
         available, with evidence of recording thereon, showing an unbroken
         chain of title to the Mortgage from the originator thereof to Person
         assigning it to the Trustee (or to MERS, if the Mortgage Loan is
         registered on the MERS(R) System); provided that if such document is
         not included because of a delay by the public recording office where
         such document has been delivered for recordation or such office as a
         matter of policy does not return the original of such document, the
         Seller shall include or cause to be included a copy thereof certified
         by the appropriate recording office, if available;

                  (v)      The originals of each assumption, modification or
         substitution agreement, if any and if available, relating to the
         Mortgage Loan; and

                  (vi)     the original title insurance policy, or, if such
         policy has not been issued, any one of an original or a copy of the
         preliminary title report, title binder or title commitment on the
         Mortgaged Property with the original policy of the insurance to be
         delivered promptly following the receipt thereof;

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement
or in the Pooling and Servicing Agreement, as applicable.

                                                   WELLS FARGO BANK, N.A.,
                                                   as Custodian

                                                   By:__________________________
                                                   Name:________________________
                                                   Title:_______________________

                                      N-16
<PAGE>

                                    EXHIBIT O
                                   [RESERVED]

                                       O-1
<PAGE>

                                    EXHIBIT P
                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

This MORTGAGE LOAN PURCHASE AGREEMENT (this "Agreement"), dated as of January 1,
2005 "(the Cut-off Date"), is made between Opteum Financial Services, LLC (the
"Seller") and Opteum Mortgage Acceptance Corporation (the "Purchaser").

                              W I T N E S S E T H:
                               - - - - - - - - - -

                  WHEREAS, the Seller owns the Mortgage Loans indicated on the
Mortgage Loan Schedule attached as Exhibit 1 hereto (the "Mortgage 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 Mortgage Loans;

                  WHEREAS, the parties hereto desire that the Seller sell the
Mortgage Loans to the Purchaser (other than the servicing rights with respect
thereto), and that the Seller make certain representations and warranties and
undertake certain obligations with respect to the Mortgage Loans;

                  WHEREAS, pursuant to the terms of a Pooling and Servicing
Agreement, to be dated as of the Cut-off Date (the "Pooling and Servicing
Agreement"), among the Purchaser, as seller, HSBC Bank USA, National
Association, as trustee (the "Trustee") and Wells Fargo Bank, N.A., as master
servicer and securities administrator (the "Master Servicer"), the Purchaser
will issue Asset-Backed Pass-Through Certificates, Series 2005-1 (the
"Certificates");

                  NOW, THEREFORE, inconsideration of the mutual covenants herein
contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.1. DEFINITIONS. For all purposes of this Mortgage
Loan Purchase 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 Pooling and Servicing
Agreement. All other capitalized terms used herein shall have the meanings
specified herein.

                                   ARTICLE II

                  SALE OF MORTGAGE LOANS AND RELATED PROVISIONS

                  Section 2.1.      SALE OF MORTGAGE LOANS.

                                      P-1
<PAGE>

         (a)      The Seller, by the execution and delivery of this Agreement,
         does hereby sell, assign, set over, and otherwise convey to the
         Purchaser, without recourse but subject to the terms of this Agreement,
         (i) all of its right, title and interest in the Mortgage Loans
         identified on Exhibit 1 as of the Closing Date, including the related
         Cut-off Date Principal Balance, all interest accruing thereon on and
         after the Cut-off Date, and all collections of interest and principal
         due after the Cut-off Date, other than the servicing rights with
         respect thereto, (ii) the Seller's interest in any insurance policies
         and (iii) all proceeds of the foregoing.

         (b)      In connection with any transfer pursuant to this Section 2.1,
         the Seller agrees (i) to cause the books and records of the Seller to
         indicate that the Mortgage Loans have been sold to the Purchaser
         pursuant to this Agreement and (ii) to deliver to the Purchaser the
         Mortgage Loan Schedule which is attached as Exhibit 1 to this
         Agreement, and to the Pooling and Servicing Agreement, as which is
         incorporated by reference herein.

         (c)      In connection with such conveyances by the Seller, the Seller
         shall on behalf of the Purchaser deliver to, and deposit with the
         Trustee, on or before the Closing Date, the following documents or
         instruments with respect to each Mortgage Loan:

                  (i)      the original Mortgage Note (including all riders
                  thereto) bearing all intervening endorsements necessary to
                  show a complete chain of endorsements from the original payee,
                  endorsed "Pay to the order of _____without recourse", via
                  original signature, and, if previously endorsed, signed in the
                  name of the last endorsee by a duly qualified officer of the
                  last endorsee or, with respect to any Mortgage Loan as to
                  which the original Mortgage Note has been permanently lost or
                  destroyed and has not been replaced, a Lost Note Affidavit
                  with indemnity. If the Mortgage Loan was acquired by the last
                  endorsee in a merger, the endorsement must be by "[name of
                  last endorsee], successor by merger to [name of the
                  predecessor]." If the Mortgage Loan was acquired or originated
                  by the last endorsee while doing business under another name,
                  the endorsement must be by "[name of last endorsee], formerly
                  known as [previous name]." Within 45 days after the Closing
                  Date, the Seller shall endorse or cause to be endorsed the
                  Mortgage Note in the name of "HSBC Bank USA, National
                  Association, as trustee under the Pooling and Servicing
                  Agreement relating to Opteum Mortgage Acceptance Corporation,
                  Asset-Backed Pass-Through Certificates, Series 2005-1" for
                  each Mortgage Note;

                  (ii)     The original recorded Mortgage, noting the presence
                  of the MIN of the Mortgage Loan and language indicating that
                  the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM
                  Loan, with evidence of recording indicated thereon; provided
                  that if such document is not included because of a delay by
                  the public recording office where such document has been
                  delivered for recordation or such office as a matter of policy
                  does not return the original of such document or if such

                                      P-2
<PAGE>

                  original Mortgage has been lost, the Seller shall include or
                  cause to be included a copy thereof certified by the
                  appropriate recording office, if available;

                  (iii)    unless the Mortgage Loan is registered on the MERS(R)
                  System, an original duly executed Assignment of the Mortgage
                  in recordable form from the Seller or the originator, as
                  applicable, to "HSBC Bank USA, National Association, as
                  trustee under the Pooling and Servicing Agreement relating to
                  Opteum Mortgage Acceptance Corporation, Asset-Backed
                  Pass-Through Certificates, Series 2005-1" for each Mortgage
                  Note;

                  (iv)     The original intervening Assignments, if any and if
                  available, with evidence of recording thereon, showing an
                  unbroken chain of title to the Mortgage from the originator
                  thereof to Person assigning it to the Trustee (or to MERS, if
                  the Mortgage Loan is registered on the MERS(R) System and
                  noting the presence of a MIN); provided that if such document
                  is not included because of a delay by the public recording
                  office where such document has been delivered for recordation
                  or such office as a matter of policy does not return the
                  original of such document, the Seller shall include or cause
                  to be included a copy thereof certified by the appropriate
                  recording office, if available;

                  (v)      The originals of each assumption, modification or
                  substitution agreement, if any and if available, relating to
                  the Mortgage Loan; and

                  (vi)     the original title insurance policy, or, if such
                  policy has not been issued, any one of an original or a copy
                  of the preliminary title report, title binder or title
                  commitment on the Mortgaged Property with the original policy
                  of the insurance to be delivered promptly following the
                  receipt thereof;

         The Seller need not cause to be recorded any Assignment in any
jurisdiction under the laws of which, as evidenced by an Opinion of Counsel
delivered by the Seller to the Trustee and the Rating Agencies, the recordation
of such Assignment is not necessary to protect the Trustee's interest in the
related Mortgage Loan; PROVIDED, HOWEVER, notwithstanding the delivery of any
Opinion of Counsel, each Assignment shall be submitted for recording by the
Seller, at no expense to the Trust or the Trustee, upon the earliest to occur
of: (i) reasonable direction by the Holders of Certificates evidencing at least
25% of the Voting Rights, (ii) the occurrence of a Event of Default under the
Pooling and Servicing Agreement, (iii) the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Seller, (iv) the occurrence of a
servicing transfer as described in Section 7.02 of the Pooling and Servicing
Agreement and (v) if the Seller is not the Master Servicer, the occurrence of a
bankruptcy, insolvency or foreclosure relating to the Mortgagor under the
related Mortgage. Upon receipt of written notice from the Trustee that recording
of the Assignments is required pursuant to one or more of the conditions set
forth in the preceding sentence, the Seller shall be required to deliver such
Assignments for recording as provided above, promptly and in any event within 30
days following receipt of such notice. The Seller shall furnish the Trustee, or
its designated agent, with a copy of each Assignment submitted

                                      P-3
<PAGE>

for recording. In the event that any such Assignment is lost or returned
unrecorded because of a defect therein, the Seller shall promptly have a
substitute Assignment prepared or have such defect cured, as the case may be,
and thereafter cause each such Assignment to be duly recorded.

                  To the extent an Assignment referred to in clause (c)(iii)
above is required to be recorded (including, without limitation, Assignments for
states which are not covered by the Opinion of Counsel in the prior paragraph),
the Seller at its own expense shall complete and submit it for recording in the
appropriate public office for real property records, with such Assignment
completed in favor of the Trustee. While such Assignment to be recorded is being
recorded, the Trustee shall retain a photocopy of such Assignment. If any
Assignment is lost or returned unrecorded to the Trustee because of any defect
therein, the Seller is required to prepare a substitute Assignment or cure such
defect, as the case may be, and the Seller shall cause such substitute
Assignment to be recorded in accordance with this paragraph.

                  Notwithstanding anything to the contrary contained in this
Section 2.1, in those instances where the public recording office retains the
original Mortgage after it has been recorded, the Seller shall be deemed to have
satisfied its obligations hereunder upon delivery to the Trustee of a copy of
such Mortgage certified by the public recording office to be a true and complete
copy of the recorded original thereof.

                  If any Assignment is lost or returned unrecorded to the
Trustee because of any defect therein, the Seller shall prepare a substitute
Assignment or cure such defect, as the case may be, and the Seller shall cause
such Assignment to be recorded in accordance with this Section 2.1.

                  If a defect in any Mortgage File is discovered which
materially and adversely affects the value of the related Mortgage Loan, or the
interests of the Certificateholders in such Mortgage Loan, including if any
document required to be delivered to the Trustee has not been delivered
(provided that a Mortgage File will not be deemed to contain a defect for an
unrecorded Assignment under clause (c) (iii) above if the Seller has submitted
such Assignment for recording pursuant to the terms of the following paragraph),
the Seller shall either (i) purchase such Mortgage Loan from the Trust Fund at
the Purchase Price within 90 days after the date on which the Seller was
notified of such defect; provided, that if such defect would cause the Mortgage
Loan to be other than a "qualified mortgage" as defined in Section 860G(a)(3) of
the Code, any such cure or repurchase must occur within 90 days from the date
such breach was discovered, or cure such defect, or (ii) substitute a Qualified
Substitute Mortgage Loan for the related Mortgage Loan upon the same terms and
conditions set forth in Section 3.1 hereof for substitutions.

                  The Seller shall exercise its best reasonable efforts to
deliver or cause to be delivered to the Custodian on behalf of the Trustee
within 120 days of the Closing Date, with respect to the Mortgage Loans, the
original or a photocopy of the title insurance policy with respect to each such
Mortgage Loan assigned to the Purchaser pursuant to this Section 2.1.

                                      P-4
<PAGE>

                  In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Seller further agrees that it will cause,
at the Seller's own expense, as of the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Seller to the
Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection with such Mortgage Loans. The Seller and the Purchaser further
agree that they will not, and will not permit the Master Servicer to, alter the
codes referenced in this paragraph with respect to any Mortgage Loan during the
term of this Agreement unless and until such Mortgage Loan is repurchased in
accordance with the terms of this Agreement.

                  The Purchaser hereby acknowledges its acceptance of all right,
title and interest to the Mortgage Loans and other property, now existing and
hereafter created, conveyed to it pursuant to this Section 2.1, other than with
respect to servicing rights with respect to the Mortgage Loans. In addition to
the foregoing, on the Closing Date the Seller assigns to the Purchaser all of
its right, title and interest in the Servicing Agreements.

         (d)      The parties hereto intend that the transaction set forth
         herein constitutes a sale by the Seller to the Purchaser of all the
         Seller's right, title and interest in and to the Mortgage Loans (other
         than with respect to the related servicing rights) and other property
         as and to the extent described above. In the event the transaction set
         forth herein is deemed not to be a sale, the Seller hereby grants to
         the Purchaser a security interest in (i) all of the Seller's right,
         title and interest in, to and under the Mortgage Loans (other than with
         respect to the related servicing rights), (ii) all of Seller's interest
         in any insurance policies and (iii) all proceeds of the foregoing and
         such other property, to secure all of the Seller'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 (which shall have been submitted for filing as
         of the Closing Date with respect to the aggregate Stated Principal
         Balance of the Mortgage Loans), 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 Purchaser's interests in each Mortgage Loan and the proceeds
         thereof.

                  Section 2.2. PAYMENT OF PURCHASE PRICE FOR THE MORTGAGE LOANS.

         (a)      The purchase price for the Mortgage Loans (other than with
         respect to the servicing rights thereto) shall be the sum of (1) $[ - ]
         and (2) a 100% Percentage Interest in the Class P, Class C and Class R
         Certificates.

                                      P-5
<PAGE>

         (b)      In consideration of the sale of the Mortgage Loans from the
         Seller to the Purchaser on the Closing Date, the Purchaser shall (1)
         pay to the Seller on the Closing Date by wire transfer of immediately
         available funds to a bank account designated by the Seller, the amount
         specified above in clause (a)(1) and (2) cause the transfer to the
         Seller of the Certificates in clause (a)(2).

                                   ARTICLE III

               REPRESENTATIONS AND WARRANTIES;REMEDIES FOR BREACH

                  Section 3.1. SELLER REPRESENTATIONS AND WARRANTIES. The Seller
hereby represents and warrants to the Purchaser as of the Closing Date (or if
otherwise specified below, as of the date so specified) that:

                  (a)      with respect to the Seller:

                  (i)      the Seller is a limited liability company duly
                  organized, validly existing and in good standing under the
                  laws of the State of Delaware;

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

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

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

                                      P-6
<PAGE>

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

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

                  (vii)    the Seller's chief executive office and principal
                  place of business are located in the County of Bergen in the
                  State of New Jersey.

                  (b)      with respect to the Mortgage Loans:

                  (i)      as of the Cut-off Date, the information set forth in
                  the Mortgage Loan Schedule hereto is true and correct in all
                  material respects;

                  (ii)     immediately prior to the transfer to the Purchaser,
                  the Seller was the sole owner of beneficial title and holder
                  of, and had good title to, each Mortgage and Mortgage Note
                  relating to the Mortgage Loans and is conveying the same free
                  and clear of any and all liens, claims, encumbrances,
                  participation interests, equities, pledges, charges or
                  security interests of any nature and the Seller has full right
                  and authority to sell or assign the same pursuant to this
                  Agreement;

                  (iii)    no selection procedure reasonably believed by the
                  Seller to be adverse to the interests of the
                  Certificateholders or the Trust was utilized in selecting the
                  Mortgage Loans;

                  (iv)     each Mortgage Loan constitutes a "qualified mortgage"
                  under Section 860G(a)(3)(A) of the Code and Treasury
                  Regulation Section 1.860G-2(a)(1);

                  (v)      the information set forth under the caption "The
                  Mortgage Pool--General" and "--Mortgage Loan Characteristics"
                  in the Prospectus Supplement is true and correct in all
                  material respects;

                                      P-7
<PAGE>

                  (vi)     as of the Cut-off Date, no Mortgage Loan is 30 or
                  more days past due. The Seller has not advanced funds, or
                  induced, solicited or knowingly received any advance of funds
                  from a party other than the owner of the related Mortgaged
                  Property, directly or indirectly, for the payment of any
                  amount required by the Mortgage Note or Mortgage;

                  (vii)    there are no delinquent taxes or assessment liens
                  against the related Mortgaged Property;

                  (viii)   no default, breach, violation or waiver exists under
                  the mortgage documents, and no modifications to the mortgage
                  documents have been made that have not been reflected in the
                  Mortgage Loan Schedule;

                  (ix)     all buildings upon, or comprising part of, the
                  Mortgaged Property are insured by an insurer acceptable to
                  Fannie Mae and Freddie Mac against loss by fire, hazards of
                  extended coverage and such other hazards as are customary in
                  the area where the Mortgaged Property is located, and such
                  insurer is licensed to do business in the state where the
                  Mortgaged Property is located. All such insurance policies
                  contain a standard mortgagee clause naming the originator, its
                  successors and assigns as mortgagee and Seller has received no
                  notice that all premiums thereon have not been paid. The
                  amount of the Mortgage Loan covered by these insurance
                  policies is in accordance with the standards of Fannie Mae or
                  Freddie Mac. If upon origination of the Mortgage Loan, the
                  Mortgaged Property was, or was subsequently deemed to be, in
                  an area identified in the Federal Register by the Federal
                  Emergency Management Agency as having special flood hazards
                  (and such flood insurance has been made available), which
                  require under applicable law that a flood insurance policy
                  meeting the requirements of the current guidelines of the
                  Federal Insurance Administration (or any successor thereto) be
                  obtained, such flood insurance policy is in effect which
                  policy is with a generally acceptable carrier in an amount
                  representing coverage not less than the least of (A) the
                  principal balance of the related Mortgage Loan, (B) the
                  minimum amount required to compensate for damage or loss on a
                  replacement cost basis, or (C) the maximum amount of insurance
                  that is available under the Flood Disaster Protection Act of
                  1973. The Mortgage obligates the Mortgagor thereunder to
                  maintain all such insurance at Mortgagor's cost and expense
                  and, on the Mortgagor's failure to do so, authorizes the
                  holder of the Mortgage to maintain such insurance at
                  Mortgagor's cost and expense and to obtain reimbursement
                  therefor from the Mortgagor;

                  (x)      all parties which have had any interest in the
                  Mortgage Loan, whether as mortgagee, assignee, pledgee or
                  otherwise, are (or during the period in which they held and
                  disposed of such interest, were) in compliance with any and
                  all applicable "doing business" and licensing requirements of
                  the state wherein the Mortgaged Property is located;

                                      P-8
<PAGE>

                  (xi)     as of the Closing Date, there is no mechanics' lien
                  or claim for work, labor or material affecting the Mortgaged
                  Property except those which are insured against by the title
                  insurance policy;

                  (xii)    as of the Closing Date, there is no valid offset,
                  defense or counterclaim to any Mortgage Note or Mortgage, and,
                  to the best of the Seller's knowledge or the knowledge of the
                  related servicer, no such offset, defense or counterclaim has
                  been asserted with respect thereto;

                  (xiii)   as of the Closing Date, the physical property subject
                  to any Mortgage is free of material damage and is in good
                  repair and, to the best of the Seller's knowledge or the
                  knowledge of the related servicer, there is no proceeding for
                  the total or partial condemnation thereof;

                  (xiv)    all improvements which were considered in determining
                  the appraised value of the related Mortgaged Property lay
                  wholly within the boundaries and building restriction lines of
                  the Mortgaged Property, and no improvements on adjoining
                  properties encroach upon the Mortgaged Property;

                  (xv)     at the time of origination, no improvement located on
                  or being part of the Mortgaged Property was in violation of
                  any applicable zoning and subdivision laws or ordinances;

                  (xvi)    to the best of the Seller's knowledge, all
                  inspections, licenses and certificates required to be made or
                  issued with respect to all occupied portions of the Mortgaged
                  Property and, with respect to the use and occupancy of the
                  same, including but not limited to certificates of occupancy,
                  have been made or obtained from the appropriate authorities;

                  (xvii)   as of the origination date of each Mortgage Loan, the
                  related Mortgaged Property is lawfully permitted to be
                  occupied under applicable law;

                  (xviii)  each Mortgage Loan is and will be a mortgage loan
                  arising out of the originator's practice in accordance with
                  the underwriting guidelines of the related originator. The
                  Seller has no knowledge of any fact that should have led it to
                  expect at the time of the initial creation of an interest in
                  the Mortgage Loan that such Mortgage Loan would not be paid in
                  full when due;

                  (xix)    each original Mortgage has been recorded or is in the
                  process of being recorded in the appropriate jurisdictions
                  wherein such recordation is required to perfect the lien
                  thereof for the benefit of the Trust Fund;

                                      P-9
<PAGE>

                  (xx)     if an Assignment is included in the Mortgage File,
                  such Assignment is in recordable form and is acceptable for
                  recording under the laws of the jurisdiction in which the
                  Mortgaged Property is located;

                  (xxi)    the related Mortgage File contains each of the
                  documents and instruments specified;

                  (xxii)   the Mortgage Loans are being serviced according to
                  the guidelines of the Seller, as servicer;

                  (xxiii)  the Mortgage Note and the Mortgage have not been
                  altered or modified in any material respect, except by a
                  written instrument which has been recorded, and the substance
                  of any such alteration or modification has been approved by
                  the title insurer, to the extent required by the related
                  policy. No instrument of alteration or modification has been
                  executed by the Seller or any other person in the chain of
                  title from the Seller, and no Mortgagor has been released, in
                  whole or in part, except in connection with an assumption
                  agreement approved by the title insurer;

                  (xxiv)   the Mortgage has not been satisfied, subordinated,
                  rescinded or canceled, in whole or in part, and the Mortgaged
                  Property has not been released from the lien of the Mortgage,
                  in whole or in part, nor has any instrument been executed that
                  would effect any such satisfaction, subordination, rescission,
                  cancellation or release;

                  (xxv)    a lender's title policy or binder, or other assurance
                  of title insurance customary in a form acceptable to Fannie
                  Mae or Freddie Mac was issued at origination and each policy
                  or binder is valid and remains in full force and effect;

                  (xxvi)   the Mortgaged Property consists of a contiguous
                  parcel of real property with single-family residence erected
                  thereon, or a two- to four- family dwelling, or an individual
                  condominium unit, or an individual unit in a planned unit
                  development or a DE MINIMIS planned unit development. To the
                  best of the Seller's knowledge, the Mortgaged Property does
                  not consist of any of the following property types: (a)
                  co-operative units, (b) mobile homes and (c) manufactured
                  homes (as defined in the Fannie Mae Originator-Servicer's
                  Guide), except when the appraisal indicates that the home is
                  of comparable construction to a stick or beam construction
                  home, is readily marketable, has been permanently affixed to
                  the site and is not in a mobile home "park." The Mortgaged
                  Property is either a fee simple estate or a residential lease.
                  If any of the Mortgage Loans are secured by a leasehold
                  interest, with respect to each leasehold interest: the use of
                  leasehold estates for residential properties is an accepted
                  practice in the area where the related Mortgaged Property is
                  located; residential property in such area consisting of
                  leasehold estates is readily marketable; the lease is recorded
                  and no party is in any way in breach of any provision of such
                  lease; the leasehold is in full force and

                                      P-10
<PAGE>

                  effect and is not subject to any prior lien or encumbrance by
                  which the leasehold could be terminated or subject to any
                  charge or penalty; and the remaining term of the lease does
                  not terminate less than ten years after the maturity date of
                  such Mortgage Loan;

                  (xxvii)  the Mortgage File contains an appraisal of the
                  related Mortgaged Property which satisfied the standards of
                  Fannie Mae and Freddie Mac and was made and signed, prior to
                  the approval of the Mortgage Loan application, by a qualified
                  appraiser, duly appointed by the Seller, who had no interest,
                  direct or indirect in the Mortgaged Property or in any loan
                  made on the security thereof, whose compensation is not
                  affected by the approval or disapproval of the Mortgage Loan
                  and who met the minimum qualifications of Fannie Mae and
                  Freddie Mac. Each appraisal of the Mortgage Loan was made in
                  accordance with the relevant provisions of the Financial
                  Institutions Reform, Recovery, and Enforcement Act of 1989;

                  (xxviii) in the event the Mortgage constitutes a deed of
                  trust, a trustee, duly qualified under applicable law to serve
                  as such, has been properly designated and currently so serves
                  and is named in the Mortgage, and no fees or expenses are or
                  will become payable by the Purchaser to the trustee under the
                  deed of trust, except in connection with a trustee's sale
                  after default by the Mortgagor;

                  (xxix)   none of the Mortgage Loans are "buydown" mortgage
                  loans or graduated payment mortgage loans;

                  (xxx)    the Mortgage is a legal, valid, existing and
                  enforceable first lien on the Mortgaged Property, including
                  all improvements on the Mortgaged Property, if any, subject
                  only to (1) the lien of current real property taxes and
                  assessments not yet due and payable, (2) covenants, conditions
                  and restrictions, rights of way, easements and other matters
                  of the public record as of the date of recording being
                  acceptable to mortgage lending institutions generally and
                  specifically referred to in the lender's title insurance
                  policy delivered to the originator of the Mortgage Loan and
                  which do not materially and adversely affect the Appraised
                  Value of the Mortgaged Property and (3) other matters to which
                  like properties are commonly subject which do not materially
                  and adversely affect the benefits of the security intended to
                  be provided by the Mortgage. The Seller has full right to sell
                  and assign the Mortgage to the Purchaser;

                  (xxxi)   each Mortgagor who is a party to the Mortgage Note is
                  a natural person;

                  (xxxii)  all requirements of any federal, state or local law
                  (including usury, truth in lending, real estate settlement
                  procedures, consumer credit protection, equal credit
                  opportunity, disclosure or recording, predatory and abusive
                  lending laws)

                                      P-11
<PAGE>

                  applicable to the acquisition, origination and servicing of
                  such Mortgage Loan have been complied with in all material
                  respects;

                  (xxxiii) none of the Mortgage Loans are (a) loans subject to
                  12 CFR Part 226.31, 12 CFR Part 226.32 or 12 CFR Part 226.34
                  of Regulation Z, the regulation implementing TILA, which
                  implements the Home Ownership and Equity Protection Act of
                  1994, as amended ("HOEPA"), (b) loans subject to, or in
                  violation of, any applicable state or local law, ordinance or
                  regulation similar to HOEPA or (c) classified and/or defined
                  as a "high cost home loan" under any federal, state or local
                  law;

                  (xxxiv)  none of the Mortgage Loans secured by Mortgaged
                  Property in the States of Georgia, New York, Arkansas,
                  Kentucky and Florida is a "high cost home loan" as defined in
                  the Georgia Fair Lending Act, as amended (the "Georgia Act"),
                  the Arkansas Home Loan Protection Act, as amended (the
                  "Arkansas Act"), Kentucky Revised Statutes ss.360.100, as
                  amended (the "Kentucky Act"), the Florida Home Loan Protection
                  Act ss.494.007 (the "Florida Act"), and the New York Predatory
                  Lending Law, codified as N.Y. Banking Law ss.6-I, N.Y. Gen.
                  Bus. Law ss.771-a, and N.Y. Real Prop. Acts Law ss.1302
                  (together, the "New York Act"), respectively;

                  (xxxv)   none of the Mortgage Loans are subject to the New
                  York Act; none of the Mortgage Loans secured by Mortgaged
                  Property in the District of Columbia is a "covered loan" as
                  defined in the District of Columbia Home Loan Protection Act
                  ss.26-1151.01 (the "D.C. Act"); none of the Mortgage Loans
                  secured by Mortgaged Property in Maine is a "high-rate,
                  high-fee mortgage" as defined in Maine Consumer Credit Code --
                  Truth In Lending ss.8-103 (the "Maine Act"); none of the
                  Mortgage Loans secured by Mortgaged Property in Nevada is a
                  "home loan" as defined in Nevada Revised Statutes title 52, as
                  amended by Assembly Bill No. 284, 72nd Session (Nevada 2003)
                  (the "Nevada Act"); and all the Mortgage Loans that are
                  subject to the Georgia Act, the New York Act, the Arkansas
                  Act, the Kentucky Act, the Florida Act, the D.C. Act, the
                  Maine Act and the Nevada Act comply with the requirements of
                  each such legislation;

                  (xxxvi)  each Prepayment Charge is enforceable and was
                  originated in compliance with all applicable federal, state,
                  and local laws;

                  (xxxvii) no Mortgage Loan is a High Cost Loan or Covered Loan,
                  as applicable (as such terms are defined in Standard & Poor's
                  LEVELS(R) Glossary, Version 5.6 Revised, Appendix E, attached
                  hereto as Exhibit 2) and no Mortgage Loan originated on or
                  after October 1, 2002 through March 6, 2003 is governed by the
                  "Georgia Fair Lending Act";

                  (xxxviii) to the best of the Seller's knowledge, there is no
                  breach, default, violation or event of acceleration existing
                  under the Mortgage or the Mortgage Note and no event which,
                  with the passage of time or with notice and the expiration of
                  any grace or cure period, would constitute a default, breach,
                  violation or event of acceleration;

                                      P-12
<PAGE>

                  (xxxix)  the related Mortgage Note and Mortgage are genuine
                  and each is the legal, valid and binding obligation of the
                  maker thereof, enforceable in accordance with its terms except
                  as such enforcement may be limited by bankruptcy, insolvency,
                  reorganization or other similar laws affecting the enforcement
                  of creditors' rights generally and by general equity
                  principles (regardless of whether such enforcement is
                  considered in a proceeding in equity or at law). To the best
                  of Seller's knowledge, all parties to the Mortgage Note and
                  Mortgage had legal capacity to execute the Mortgage Note and
                  Mortgage and each Mortgage Note and Mortgage have been duly
                  and properly executed by such parties;

                  (xl)     the proceeds of each Mortgage Loan have been fully
                  disbursed, and except with respect to any escrow holdbacks as
                  set forth in the underwriting guidelines of the related
                  originator, there is no requirement for future advances
                  thereunder and any and all requirements as to completion of
                  any on-site or off-site improvements and as to disbursement
                  from any escrow funds therefore have been complied with;

                  (xli)    the related Mortgage contains customary and
                  enforceable provisions which render the rights and remedies of
                  the holder thereof adequate for the realization against the
                  Mortgaged Property of the benefits of the security, including
                  (1) in the case of Mortgage designated as a deed of trust, by
                  trustee's sale, and (2) otherwise by judicial foreclosure;

                  (xlii)   the Mortgage contains an enforceable provision for
                  the acceleration of the payment of the unpaid principal
                  balance of the Mortgage Loan in the event that the Mortgaged
                  Property is sold or transferred without the prior written
                  consent of the mortgagee thereunder, except as may be limited
                  by applicable law;

                  (xliii)  with respect to each adjustable-rate Mortgage Loan,
                  all adjustments to the Mortgage Rate and monthly payment have
                  been done in accordance with the terms of the related Mortgage
                  Note;

                  (xliv)   the information set forth in the Mortgage Loan
                  Schedule with respect to the Prepayment Charges is true and
                  correct in all material respects; and

                  (xlv)    no foreclosure proceedings are pending against the
                  Mortgaged Property and the Mortgage Loan is not subject to any
                  pending bankruptcy or insolvency proceeding, and to the best
                  of the Seller's knowledge or the knowledge of the related
                  servicer, no material litigation or lawsuit relating to the
                  Mortgage Loan is pending.

                                      P-13
<PAGE>

                  It is understood and agreed that the representations and
warranties set forth in this Section 3.1 shall survive the sale of the Mortgage
Loans from the Seller to the Purchaser and shall inure to the benefit of the
Purchaser, its successors and assigns, notwithstanding any restrictive or
qualified endorsement on any Mortgage Note or assignment of Mortgage or the
examination of any Mortgage File. It is understood by the parties hereto that a
breach of the representations and warranties made Section 3.1(b)(xxxii),
(xxxiii), (xxxiv), (xxxv), (xxxvi), (xxxvii) or (xliv) will be deemed to
materially and adversely affect the value of the related Mortgage Loan or the
interest of the Purchaser.

                  Upon discovery or receipt of notice by the Seller, the
Purchaser or the Trustee of a breach of any representation or warranty of the
Seller set forth in clause (b) above which breach materially and adversely
affects the value of the Mortgage Loans or the interests of the Purchaser, the
Certificateholders or the Trustee in any of the Mortgage Loans delivered to the
Purchaser pursuant to this Agreement, the party discovering or receiving notice
of such breach shall give prompt written notice to the others. In the case of
any such breach of a representation or warranty set forth in clause (b) above,
the Seller shall, within 90 days from the date that the Seller was notified or
otherwise obtained knowledge of such breach, either (i) cure such breach in all
material respects or (ii) purchase such Mortgage Loan from the Trust Fund at the
Purchase Price; provided that if such breach would cause the Mortgage Loan to be
other than a "qualified mortgage" as defined in Section 860G(a)(3) of the Code,
any such cure or repurchase must occur within 90 days from the date such breach
was discovered; and provided, further, that (A) in the case of a breach of the
representation and warranty concerning the Mortgage Loan Schedule contained in
clause (b)(i), if such breach relates to any field on the Mortgage Loan Schedule
which identifies any Prepayment Charge or (B) in the case of a breach of
representation (xlix) or the unenforceability of any Prepayment Charge due to
subsequent changes in law, then, in each case, in lieu of purchasing such
Mortgage Loan from the Trust Fund at the Purchase Price, the Seller shall pay
the amount of the Prepayment Charge (net of any amount previously collected by
or paid to the Trust Fund in respect of such Prepayment Charge), and the Seller
shall have no right to repurchase (or, as detailed below, substitute for) such
Mortgage Loan. However, subject to the approval of the Purchaser and except as
specified above, the Seller shall have the option to substitute a Qualified
Substitute Mortgage Loan or Loans for such Mortgage Loan if such substitution
occurs within two years following the Closing Date, except that if the breach
would cause the Mortgage Loan to be other than a "qualified mortgage" as defined
in Section 860G(a)(3) of the Code, any such substitution must occur within 90
days from the date the breach was discovered if such 90 day period expires
before two years following the Closing Date. If the breach of representation and
warranty that gave rise to the obligation to repurchase or substitute a Mortgage
Loan pursuant to this Section 3.1 was the representation set forth in clause
(xxxii), (xxxiii), (xxxiv), (xxxv), (xxxvi), (xxxvii) or (xliv) of this Section
3.1(b), then the Seller shall pay to the Trust Fund, concurrently with and in
addition to the remedies provided in the third preceding sentence, an amount
equal to any liability, penalty or the expense that was actually incurred and
paid out of or on behalf of the Trust Fund, and that directly resulted from such
breach, or if incurred and paid by the Trust Fund thereafter, concurrently with
such payment. The obligations of the Seller to cure, purchase or substitute a
Qualified Substitute Mortgage Loan shall constitute the Purchaser's, the
Trustee's and the Certificateholders' sole and exclusive remedy

                                      P-14
<PAGE>

under this Agreement or otherwise respecting a breach of representations or
warranties hereunder with respect to the Mortgage Loans.

                  In the event that the Seller elects to substitute a Qualified
Substitute Mortgage Loan or Loans for a Deleted Mortgage Loan pursuant to this
Section 3.1(b), the Seller shall deliver to the Trustee and the Master Servicer,
as appropriate, with respect to such Qualified Substitute Mortgage Loan or
Loans, the original Mortgage Note, the Mortgage, an Assignment of the Mortgage
in recordable form, and such other documents and agreements as are required by
Section 2.1, with the Mortgage Note endorsed as required by Section 2.1. No
substitution will be made in any calendar month after the Determination Date for
such month. Monthly Payments due with respect to Qualified Substitute Mortgage
Loans in the month of substitution, to the extent received by the Master
Servicer, will be retained by the Master Servicer and remitted by the Master
Servicer to the Seller on the next succeeding Distribution Date. After the month
of substitution, the Seller shall be entitled to retain all amounts received in
respect of such Deleted Mortgage Loan. Upon such substitution, the Mortgage Loan
Schedule shall be amended to reflect the addition of the Qualified Substituted
Mortgage Loan or Loans, the Qualified Substitute Mortgage Loan or Loans shall be
subject to the terms of this Agreement in all respects, and the Seller shall be
deemed to have made the non-statistical representations and warranties with
respect to the Qualified Substitute Mortgage Loan contained in Section 3.1(b) as
of the date of substitution.

                  In connection with the substitution of one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (if any) by which the aggregate principal
balance of all such Qualified Substitute Mortgage Loans as of the date of
substitution is less than the aggregate Stated Principal Balance of all such
Deleted Mortgage Loans (in each case after application of the principal portion
of the Monthly Payments due in the month of substitution that are to be
distributed to Certificateholders in the month of substitution). The Seller
shall provide the Master Servicer on the day of substitution for immediate
deposit into the Custodial Account the amount of such shortfall, without any
reimbursement therefor. The Seller shall give notice in writing to the Trustee
of such event, which notice shall be accompanied by an Officer's Certificate as
to the calculation of such shortfall and by an Opinion of Counsel to the effect
that such substitution will not cause (a) any federal tax to be imposed on any
REMIC created pursuant to the Pooling and Servicing Agreement, including without
limitation, any federal tax imposed on "prohibited transactions" under Section
860F(a)(1) of the Code or on "contributions after the startup date" under
Section 860G(d)(1) of the Code or (b) any portion of any REMIC created pursuant
to the Pooling and Servicing Agreement to fail to qualify as a REMIC at any time
that any Certificate is outstanding. The costs of any substitution as described
above, including any related assignments, opinions or other documentation in
connection therewith shall be borne by the Seller.

                  Any cause of action against the Seller or relating to or
arising out of a breach by the Seller of any representations and warranties made
in clause (b) above shall accrue as to any Mortgage Loan upon (i) discovery of
such breach by the Seller or notice thereof by the party

                                      P-15
<PAGE>

discovering such breach and (ii) failure by the Seller to cure such breach,
purchase such Mortgage Loan or substitute a Qualified Substitute Mortgage Loan
pursuant to the terms hereof.

                  Section 3.2. THE PURCHASER'S REPRESENTATIONS AND WARRANTIES.
The Purchaser hereby represents and warrants to the Seller as of the Closing
Date (or if otherwise specified below, as of the date so specified) that:

(a)      the Purchaser is a corporation duly organized, validly existing and in
         good standing under the laws of the State of Delaware;

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

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

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

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

         (f)      except as previously disclosed to the Purchaser in the
         Prospectus Supplement, there are no actions, suits or proceedings
         pending or, to the best of the Purchaser's knowledge, threatened
         against the Purchaser, before or by any court, administrative agency,
         arbitrator or governmental body (i) with respect to any of the
         transactions contemplated by this Agreement or (ii) with respect to any
         other matter which in the judgment of the Purchaser if determined
         adversely to the Purchaser or would reasonably

                                      P-16
<PAGE>

         be expected to materially and adversely affect the Purchaser's ability
         to perform its obligations under this Agreement; and the Purchaser is
         not in default with respect to any order of any court, administrative
         agency, arbitrator or governmental body so as to materially and
         adversely affect the transactions contemplated by this Agreement.

                                   ARTICLE IV

                               SELLER'S COVENANTS

                  Section 4.1. COVENANTS OF THE SELLER. The Seller hereby
covenants that, except for the transfer hereunder with respect to the Mortgage
Loans, the Seller will not sell, pledge, assign or transfer to any other Person,
or grant, create, incur or assume any Lien on, any Mortgage Loan, whether now
existing or hereafter created, or any interest therein (other than the servicing
rights with respect thereto); the Seller will notify the Trustee, as assignee of
the Purchaser, of the existence of any Lien (other than as provided above) on
any Mortgage Loan immediately upon discovery thereof; and the Seller will defend
the right, title and interest of the Trustee, on behalf of the Trust Fund, in,
to and under the Mortgage Loans, whether now existing or hereafter created,
against all claims of third parties claiming through or under the Seller.

                                      P-17
<PAGE>

                                    ARTICLE V

                      LIMITATION ON LIABILITY OF THE SELLER

                  Section 5.1. LIMITATION ON LIABILITY OF THE SELLER. None of
the directors, officers, employees or agents of the Seller shall be under any
liability to the Purchaser hereunder, 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. Except as and to the extent
expressly provided in the Pooling and Servicing Agreement, the Custodial
Agreement and this Agreement, the Seller shall not be under any liability to the
Trust Fund, the Trustee or the Certificateholders thereunder. The Seller and any
director, officer, employee or agent of the Seller 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.

                              ARTICLE VITERMINATION

                  Section 6.1. TERMINATION. The respective obligations and
responsibilities of the Seller and the Purchaser created hereby shall terminate
upon the termination of the Trust Fund pursuant to the terms of the Pooling and
Servicing Agreement.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

                  Section 7.1. AMENDMENT. This Agreement may be amended from
time to time by the Seller and the Purchaser, by written agreement signed by the
Seller and the Purchaser.

                  Section 7.2. 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 7.3. 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 Seller:

                                    Opteum Financial Services, LLC
                                    W. 115 Century Road
                                    Paramus, New Jersey 07652
                                    Attention: General Counsel

                                      P-18
<PAGE>

or, such other address as may hereafter be furnished to the Purchaser in writing
by the Seller.

                           (ii)     if to the Purchaser:

                                    Opteum Mortgage Acceptance Corporation
                                    W. 115 Century Road
                                    Paramus, New Jersey 07652
                                    Attention: General Counsel

or such other address as may hereafter be furnished to the Seller in writing by
the Purchaser.

                  Section 7.4. 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 or
enforceability of the other provisions of this Agreement.

                  Section 7.5. RELATIONSHIP OF PARTIES. Nothing herein contained
shall be deemed or construed to create a partnership or joint venture between
the parties hereto, and the services of the Seller shall be rendered as an
independent contractor and not as agent for the Purchaser.

                  Section 7.6. COUNTERPARTS. This Agreement may be executed in
two or more counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts together shall constitute one and the same Agreement.

                  Section 7.7. SURVIVAL. The representations and warranties made
herein by the Seller and the provisions of Article V hereof shall survive the
purchase of the Mortgage Loans hereunder.

                  Section 7.8. FURTHER AGREEMENTS. The Purchaser and the Seller
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. Each of the Purchaser and the Seller agrees to use
its best reasonable efforts to take all actions necessary to be taken by it to
cause the Certificates to be issued and rated in the highest rating category by
each of the Rating Agencies, with the Certificates to be offered pursuant to the
Purchaser's shelf registration statement, and each party will cooperate with the
other in connection therewith.

                  Section 7.9. INTENTION OF THE PARTIES. It is the intention of
the parties that the Purchaser is purchasing, and the Seller is selling, the
Mortgage Loans (other than the servicing rights with respect thereto), rather
than a loan by the Purchaser to the Seller secured by the Mortgage Loans.
Accordingly, the parties hereto each intend to treat this transaction with
respect to the Mortgage Loans for federal income tax purposes as a sale by the
Seller, and a purchase by

                                      P-19
<PAGE>

the Purchaser, of the Mortgage Loans (other than the servicing rights with
respect thereto). The Purchaser will have the right to review the Mortgage Loans
and the Related Documents to determine the characteristics of the Mortgage Loans
which will affect the federal income tax consequences of owning the Mortgage
Loans and the Seller will cooperate with all reasonable requests made by the
Purchaser in the course of such review.

                  Section 7.10. SUCCESSORS AND ASSIGNS; ASSIGNMENT OF PURCHASE
AGREEMENT. This Agreement shall bind and inure to the benefit of and be
enforceable by the Seller, the Purchaser and their respective successors and
assigns. The obligations of the Seller under this Agreement cannot be assigned
or delegated to a third party without the consent of the Purchaser, which
consent shall be at the Purchaser's sole discretion. The parties hereto
acknowledge that the Purchaser is acquiring the Mortgage Loans for the purpose
of assigning the Mortgage Loans to the Trustee, on behalf of the Trust Fund, for
the benefit of the Certificateholders. As an inducement to the Purchaser to
purchase the Mortgage Loans, the Seller acknowledges and consents to the
assignment by the Purchaser to the Trustee, on behalf of the Trust Fund of all
of the Purchaser's rights against the Seller pursuant to this Agreement and to
the enforcement or exercise of any right or remedy against the Seller pursuant
to this Agreement by the Purchaser. Such enforcement of a right or remedy by the
Trustee, on behalf of the Trust Fund, shall have the same force and effect as if
the right or remedy had been enforced or exercised by the Purchaser directly.

                                      P-20
<PAGE>

                  IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their names to be signed to this Mortgage Loan Purchase Agreement by their
respective officers thereunto duly authorized as of the day and year first above
written.

                                       OPTEUM MORTGAGE ACCEPTANCE CORPORATION
                                       as Purchaser

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       OPTEUM FINANCIAL SERVICES, LLC
                                       as Seller

                                       By: _____________________________________
                                       Name:
                                       Title:

                                      P-21
<PAGE>

                                    EXHIBIT 1

                             MORTGAGE LOAN SCHEDULE

                                      P-22
<PAGE>

                                    EXHIBIT 2

          Appendix E of the Standard & Poor's Glossary For File Format
                        For LEVELS(R) Version 5.6 Revised

Standard & Poor's has categorized loans governed by anti-predatory lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee
liability and (b) the tests and thresholds set forth in those laws. Note that
certain loans classified by the relevant statute as Covered are included in
Standard & Poor's High Cost Loan Category because they included thresholds and
tests that are typical of what is generally considered High Cost by the
industry.

                                      P-23
<PAGE>

STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                             NAME OF ANTI-PREDATORY                      CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                  LENDING LAW/EFFECTIVE DATE                    ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Arkansas                            Arkansas  Home Loan  Protection  Act,  Ark. Code   High Cost Home Loan
                                    Ann. ss.ss. 23-53-101 ET SEQ.
                                    Effective July 16, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Cleveland Heights, OH               Ordinance  No.  72-2003  (PSH),   Mun.  Code       Covered Loan
                                    ss.ss. 757.01 ET SEQ.
                                    Effective June 2, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Colorado                            Consumer Equity Protection,  Colo. Stat. Ann.      Covered Loan
                                    ss.ss. 5-3.5-101 ET SEQ.
                                    Effective for covered loans offered or entered
                                    into  on  or  after January 1, 2003.  Other
                                    provisions of the Act took effect on June 7,
                                    2002
----------------------------------  -------------------------------------------------  --------------------------------
Connecticut                         Connecticut Abusive Home Loan Lending Practices    High Cost Home Loan
                                    Act, Conn. Gen. Stat. ss.ss. 36a-746 ET SEQ.
                                    Effective October 1, 2001
----------------------------------  -------------------------------------------------  --------------------------------
District of Columbia                Home Loan Protection Act,  D.C. Code               Covered Loan
                                    ss.ss. 26-1151.01 ET SEQ.
                                    Effective  for loans closed on or after January
                                    28, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Florida                             Fair Lending Act,  Fla.  Stat.  Ann. ss.ss.        High Cost Home Loan
                                    494.0078 et SEQ.
                                    Effective October 2, 2002
----------------------------------  -------------------------------------------------  --------------------------------
Georgia  (Oct.  1, 2002 -           Georgia  Fair  Lending  Act,  Ga.  Code Ann.       High Cost Home Loan
Mar. 6, 2003)                       ss.ss. 7-6A-1 ET SEQ.
                                    Effective October 1, 2002 - March 6, 2003
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-24
<PAGE>

<TABLE>
<CAPTION>

----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Georgia as amended  (Mar. 7, 2003   Georgia  Fair  Lending  Act,  Ga.  Code Ann.       High Cost Home Loan
- current)                          ss.ss. 7-6A-1 ET SEQ.
                                    Effective  for loans closed on or after March 7,
                                    2003
----------------------------------  -------------------------------------------------  --------------------------------
HOEPA Section 32                    Home  Ownership  and  Equity  Protection  Act      High Cost Loan
                                    of 1994, 15 U.S.C. ss. 1639, 12 C.F.R.  ss.ss.
                                    226.32 and 226.34
                                    Effective October 1, 1995, amendments October
                                    1, 2002
----------------------------------  -------------------------------------------------  --------------------------------
Illinois                            High Risk Home Loan Act, Ill. Comp.  Stat.  tit.   High Risk Home Loan
                                    815, ss.ss. 137/5 ET SEQ.
                                    Effective  January 1, 2004  (prior to this date,
                                    regulations under  Residential  Mortgage License
                                    Act effective from May 14, 2001)
----------------------------------  -------------------------------------------------  --------------------------------
Indiana                             Indiana Home Loan  Practices Act, Ind. Code Ann.   High Cost Home Loan
                                    ss.ss. 24-9-1-1 ET SEQ.
                                    Effective for loans originated on or after
                                    January 1, 2005.
----------------------------------  -------------------------------------------------  --------------------------------
Kansas                              Consumer   Credit  Code,   Kan.  Stat.  Ann.       High  Loan  to  Value  Consumer
                                    ss.ss. 16a-1-101 ET SEQ.                           Loan (ID. ss. 16a-3-207) and;
                                    Sections 16a-1-301 and 16a-3-207 became            High APR  Consumer  Loan (ID. ss.
                                    effective April 14, 1999; Section 16a-3-308a       16a-3-308a)
                                    became effective July 1, 1999
----------------------------------  -------------------------------------------------  --------------------------------
Kentucky                            2003 KY H.B.  287 - High Cost Home Loan Act, Ky.   High Cost Home Loan
                                    Rev. Stat. ss.ss. 360.100 ET SEQ.
                                    Effective June 24, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Maine                               Truth in Lending,  Me. Rev.  Stat.  tit. 9-A,      High Rate High Fee Mortgage
                                    ss.ss. 8-101 ET SEQ.
                                    Effective September 29, 1995 and as amended
                                    from time to time
----------------------------------  -------------------------------------------------  --------------------------------
Massachusetts                       Part 40 and  Part  32,  209  C.M.R.  ss.ss.        High Cost Home Loan
                                    32.00 ET seq. and 209 C.M.R. ss.ss. 40.01 ET
                                    SEQ.
                                    Effective  March 22, 2001 and amended  from time
                                    to time
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-25
<PAGE>

<TABLE>
<CAPTION>

----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
                                    Massachusetts Predatory Home Loan Practices Act    High Cost Home Mortgage Loan
                                    Mass. Gen. Laws ch. 183C,  ss.ss. 1 ET SEQ.
                                    Effective November 7, 2004
----------------------------------  -------------------------------------------------  --------------------------------
Nevada                              Assembly  Bill  No.  284,  Nev.  Rev.  Stat.       Home Loan
                                    ss.ss. 598D.010 ET SEQ.
                                    Effective October 1, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Jersey                          New Jersey Home Ownership  Security Act of 2002,   High Cost Home Loan
                                    N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.
                                    Effective for loans closed on or after  November
                                    27, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New York                            N.Y. Banking Law Article 6-l                       High Cost Home Loan
                                    Effective  for  applications  made  on or  after
                                    April 1, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Mexico                          Home Loan  Protection  Act, N.M.  Rev.  Stat.      High Cost Home Loan
                                    ss.ss. 58-21A-1 ET SEQ.
                                    Effective  as of January 1, 2004;  Revised as of
                                    February 26, 2004
----------------------------------  -------------------------------------------------  --------------------------------
North Carolina                      Restrictions  and  Limitations on High Cost Home   High Cost Home Loan
                                    Loans, N.C. Gen. Stat. ss.ss. 24-1.1E ET SEQ.
                                    Effective July 1, 2000; amended October 1,
                                    2003 (adding open-end lines of credit)
----------------------------------  -------------------------------------------------  --------------------------------
Ohio                                H.B. 386  (codified  in various  sections of the   Covered Loan
                                    Ohio  Code),  Ohio Rev.  Code Ann. ss.ss.
                                    1349.25 ET SEQ.
                                    Effective May 24, 2002
----------------------------------  -------------------------------------------------  --------------------------------
Oklahoma                            Consumer Credit Code (codified in various          Subsection 10 Mortgage
                                    sections of Title 14A)
                                    Effective July 1, 2000; amended effective
                                    January 1, 2004
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-26
<PAGE>

<TABLE>
<CAPTION>

----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
South Carolina                      South  Carolina  High  Cost  and  Consumer  Home   High Cost Home Loan
                                    Loans Act, S.C. Code Ann. ss.ss. 37-23-10 ET SEQ.
                                    Effective  for loans  taken on or after  January
                                    1, 2004
----------------------------------  -------------------------------------------------  --------------------------------
West Virginia                       West Virginia Residential Mortgage Lender,         West Virginia Mortgage Loan
                                    Broker and Servicer Act, W. Va. Code Ann. ss.ss.   Act Loan
                                    31-17-1 ET SEQ.
                                    Effective June 5, 2002
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

STANDARD & POOR'S COVERED LOAN CATEGORIZATION
---------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                              NAME OF ANTI-PREDATORY                       CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                   LENDING LAW/EFFECTIVE DATE                     ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Georgia  (Oct.  1, 2002 - Mar. 6,   Georgia  Fair  Lending  Act,  Ga.  Code Ann.       Covered Loan
2003)                               ss.ss. 7-6A-1 ET SEQ.
                                    Effective October 1, 2002 - March 6, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Jersey                          New Jersey Home Ownership  Security Act of 2002,   Covered Home Loan
                                    N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                    Effective November 27, 2003 - July 5, 2004
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-27
<PAGE>

STANDARD & POOR'S HOME LOAN CATEGORIZATION
---------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                              NAME OF ANTI-PREDATORY                       CATEGORY UNDER APPLICABLE
       STATE/JURISDICTION                   LENDING LAW/EFFECTIVE DATE                     ANTI-PREDATORY LENDING LAW
----------------------------------  -------------------------------------------------  --------------------------------
<S>                                 <C>                                                <C>
Georgia  (Oct.  1, 2002 - Mar. 6,   Georgia  Fair  Lending  Act,  Ga.  Code Ann.       Home Loan
2003)                               ss.ss. 7-6A-1 ET SEQ.
                                    Effective October 1, 2002 - March 6, 2003
----------------------------------  -------------------------------------------------  --------------------------------
Indiana                             Indiana Home Loan  Practices Act, Ind. Code Ann.   Home Loan
                                    ss.ss. 24-9-1-1 ET SEQ.
                                    Effective for loans originated on or after
                                    January 1, 2005.
----------------------------------  -------------------------------------------------  --------------------------------
New Jersey                          New Jersey Home Ownership  Security Act of 2002,   Home Loan
                                    N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.
                                    Effective for loans closed on or after  November
                                    27, 2003
----------------------------------  -------------------------------------------------  --------------------------------
New Mexico                          Home Loan  Protection Act, N.M. Rev. Stat. .       Home Loan
                                    ss. ss 58-21A-1 ET SEQ.
                                    Effective  as of January 1, 2004;  Revised as of
                                    February 26, 2004
----------------------------------  -------------------------------------------------  --------------------------------
North Carolina                      Restrictions  and  Limitations on High Cost Home   Consumer Home Loan
                                    Loans, N.C. Gen. Stat. ss.ss. 24-1.1E ET SEQ.
                                    Effective July 1, 2000; amended October 1,
                                    2003 (adding open-end lines of credit)
----------------------------------  -------------------------------------------------  --------------------------------
South Carolina                      South  Carolina  High  Cost  and  Consumer  Home   Consumer Home Loan
                                    Loans Act, S.C. Code Ann. ss.ss. 37-23-10 ET SEQ.
                                    Effective  for loans  taken on or after  January
                                    1, 2004
----------------------------------  -------------------------------------------------  --------------------------------
</TABLE>

                                      P-28

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