Document:

THORNBURG MORTGAGE FUNDING, INC.

                                                             as Purchaser

                                                                  and

                                                 THORNBURG MORTGAGE HOME LOANS, INC.,

                                                               as Seller

                                                 TMFI MORTGAGE LOAN PURCHASE AGREEMENT

                                                       Dated as of July 1, 2007

                                              (Adjustable Rate and Hybrid Mortgage Loans)

                                              Thornburg Mortgage Securities Trust 2007-3
                                                 Mortgage-Backed Notes, Series 2007-3

                                                           Table of Contents
                                                                                                                Page

ARTICLE I. DEFINITIONS AND SCHEDULES..............................................................................2

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

ARTICLE II. SALE OF MORTGAGE LOANS AND THE CONTRACTUAL RIGHTS; PAYMENT OF PURCHASE PRICE..........................2

         Section 2.01.     Sale of Mortgage Loans; Assignment of the Contractual Rights...........................2
         Section 2.02.     Obligations of the Seller Upon Sale....................................................2
         Section 2.03.     Payment of Purchase Price for the Mortgage Loans.......................................3

ARTICLE III. REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH..................................................3

         Section 3.01      Seller Representations and Warranties Relating to the Mortgage Loans...................3
         Section 3.02.     Seller's Representations and Warranties................................................4
         Section 3.03      Remedies for Breach of Representations and Warranties..................................5

ARTICLE IV. SELLER'S COVENANTS      6

         Section 4.01.     Covenants of the Seller................................................................6

ARTICLE V. INDEMNIFICATION          6

         Section 5.01.     Indemnification........................................................................6

ARTICLE VI. TERMINATION             7

         Section 6.01.     Termination............................................................................7

ARTICLE VII. MISCELLANEOUS PROVISIONS.............................................................................7

         Section 7.01.     Amendment..............................................................................7
         Section 7.02.     Governing Law..........................................................................7
         Section 7.03.     Notices................................................................................7
         Section 7.04.     Severability of Provisions.............................................................8
         Section 7.05.     Counterparts...........................................................................8
         Section 7.06.     Further Agreements.....................................................................8
         Section 7.07.     Intention of the Parties...............................................................9
         Section 7.08.     Successors and Assigns: Assignment of Purchase Agreement...............................9

Schedule I:       Mortgage Loan Schedule........................................................................I-1
Schedule II:      List of Servicers and Servicing Agreements...................................................II-1
Schedule III:     Seller's Representations and Warranties Relating to Mortgage Loans..........................III-1

                  THIS TMFI MORTGAGE  LOAN PURCHASE  AGREEMENT,  dated as of July 1, 2007 (the  "Agreement"),  is made and entered into
between Thornburg  Mortgage Home Loans, Inc., a Delaware  corporation (the "Seller") and Thornburg  Mortgage Funding,  Inc., a Delaware
corporation (the "Purchaser").

                                                          W I T N E S S E T H

                  WHEREAS,  the Seller is the owner of the notes or other evidence of indebtedness  (the "Mortgage Notes") so indicated
on Schedule I hereto  referred to below,  and the other  documents or instruments  constituting  the Mortgage File  (collectively,  the
"Mortgage Loans"); and

                  WHEREAS,  the Seller, as of the date hereof, owns the mortgages or deeds of trust (the "Mortgages") on the properties
(the "Mortgaged  Properties")  securing such Mortgage Loans,  including  rights to (a) any property  acquired by foreclosure or deed in
lieu of foreclosure or otherwise,  (b) the proceeds of any insurance  policies covering the Mortgage Loans or the Mortgaged  Properties
or the obligors on the Mortgage Loans and (c) the Seller's security interest in any Additional Collateral; and

                  WHEREAS, the Seller is a party to the servicing agreements  identified on Schedule II (each a "Servicing  Agreement,"
and together the "Servicing  Agreements"),  and certain of the Mortgage Loans are currently being serviced  thereunder by the servicers
identified therein; and

                  WHEREAS,  the parties  hereto desire that the Seller sell the Mortgage  Loans,  the Mortgages and the related  assets
referred to above,  and assign the Seller's  rights under the Servicing  Agreements to the Purchaser,  other than any servicing  rights
retained  pursuant to the  provisions  of the Servicing  Agreements,  but only to the extent such rights relate to the servicing of the
Mortgage Loans (the  "Contractual  Rights")  pursuant to the terms of this Agreement with the  understanding  that the Purchaser on the
Closing Date will in turn assign such Mortgage  Loans,  the Mortgages and the related assets and the  Contractual  Rights to Structured
Asset  Mortgage  Investments  II Inc., a Delaware  corporation  ("SAMI II") pursuant to the terms of the SAMI II mortgage loan purchase
agreement dated as of July 1, 2007 between the Purchaser and SAMI II (the "SAMI II MLPA"); and

                  WHEREAS,  pursuant to the terms of that certain Sale and Servicing  Agreement dated as of July 1, 2007 (the "Sale and
Servicing Agreement") among Thornburg Mortgage Securities Trust 2007-3 (the "Trust"),  as issuer (the "Issuer"),  SAMI II, as depositor
(the "Depositor"),  the Seller, as initial seller, the Purchaser,  as seller, Wells Fargo Bank, N.A., as master servicer and securities
administrator and LaSalle Bank National Association,  as indenture trustee (the "Indenture Trustee"),  SAMI II will convey the Mortgage
Loans,  the Mortgages and the related  assets,  the Contractual  Rights and rights  provided to the Purchaser  hereunder on the Closing
Date to the Issuer; and

                  WHEREAS on the Closing  Date,  the Issuer will pledge the Mortgage  Loans,  the  Mortgages  and related  assets,  the
Contractual  Rights and certain  rights  provided to the Purchaser  hereunder to the Indenture  Trustee under an Indenture  dated as of
July 1,  2007  (the  "Indenture")  between  the  Issuer  and the  Indenture  Trustee,  pursuant  to which the  Issuer  shall  issue its
Mortgage-Backed Notes, Series 2007-3 (the "Notes"), the payment of which is to be secured by such pledged assets.

                  NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein  contained,   and  other  good  and  valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

                                                              ARTICLE I.

                                                       DEFINITIONS AND SCHEDULES

         Section 1.01.     Definitions.  Any capitalized  term used but not defined herein shall have the meaning  assigned  thereto in
the Sale and Servicing Agreement and the Indenture.

                                                              ARTICLE II.

                                          SALE OF MORTGAGE LOANS AND THE CONTRACTUAL RIGHTS;
                                                       PAYMENT OF PURCHASE PRICE

         Section 2.01.     Sale of Mortgage Loans;  Assignment of the Contractual  Rights. The Seller,  concurrently with the execution
and delivery of this Agreement,  does hereby sell,  assign, set over, and otherwise convey to the Purchaser,  without recourse,  all of
its right, title and interest in, to and under (i) each Mortgage Loan,  including the related Cut-Off Date Principal  Balance,  and all
collections  in respect of interest and  principal due after the Cut-Off Date (and all  principal  received  before the Cut-Off Date to
the extent such  principal  relates to a Monthly  Payment due after the Cut-Off  Date);  (ii) property which secured such Mortgage Loan
and which has been acquired by foreclosure or deed in lieu of foreclosure;  (iii) its interest in any insurance  policies in respect of
the Mortgage Loans; (iv) any Additional Collateral with respect to the Mortgage Loans; and (v) all proceeds of any of the foregoing.

                  Concurrently  with the  execution  and delivery of this  Agreement,  the Seller  hereby  assigns to the Purchaser the
Contractual  Rights.  The Purchaser  hereby accepts such assignment,  and shall be entitled to exercise such  Contractual  Rights under
each Servicing Agreement as if the Purchaser had been a party to each such agreement.

         Section 2.02.     Obligations of the Seller Upon Sale and Assignment.  In connection with the transfer and assignment pursuant
to Section 2.01 hereof,  the Seller further agrees,  at its own expense,  on or prior to the Closing Date, (a) to indicate in its books
and records that the Mortgage  Loans have been sold to the Purchaser  pursuant to this  Agreement and (b) to deliver to the Purchaser a
computer  file  containing a true and complete  list of all such  Mortgage  Loans  specifying  for each such  Mortgage  Loan, as of the
Cut-Off Date,  (i) its account number and (ii) the Cut-Off Date  Principal  Balance and such file,  which forms a part of Schedule A to
the Sale and  Servicing  Agreement,  shall also be marked as Schedule I to this  Agreement and is hereby  incorporated  into and made a
part of this Agreement.

                  In connection with such conveyance by the Seller, the Seller shall on behalf of the Purchaser, the Depositor and the
Issuer deliver to, and deposit with the Indenture Trustee (or its custodian), on or before the Closing Date, the documents described
in Section 2.01 of the Sale and Servicing Agreement including, but not limited to, the Mortgage File and the Servicing Agreements.
In the case of the Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date and prior to execution of this
Agreement, the Seller, in lieu of delivering the related Mortgage Files, shall deliver to the Indenture Trustee on behalf of the
Purchaser, the Depositor and the Issuer an Officer's Certificate which shall include a statement to the effect that all amounts
received in connection with such prepayments that are required to be deposited in the Collection Account pursuant to Section 2.01 of
the Sale and Servicing Agreement have been so deposited.

                  The Seller  hereby  confirms to the  Purchaser  that it has made the  appropriate  entries in its general  accounting
records, to indicate that the Mortgage Loans have been transferred as directed by the Purchaser.

                  The Purchaser  hereby  acknowledges  its acceptance of all rights,  title and interests in, to and under the Mortgage
Loans and other  property,  and the  Contractual  Rights,  now existing or hereafter  created,  conveyed to it pursuant to Section 2.01
hereof.

                  The  parties  hereto  intend  that the  transaction  set forth  herein be a  non-recourse  sale by the  Seller to the
Purchaser of all of the Seller's  rights,  title and  interests  in, to and under the Mortgage  Loans and other  property  described in
Section 2.01.  Nonetheless,  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 all of the  Seller's  rights,  title and  interests  in, to and under the  Mortgage  Loans and other
property  described in Section 2.01, whether now existing or hereafter created,  to secure all of the Seller's  obligations  hereunder;
and this Agreement  shall  constitute a security  agreement  under  applicable  law. The Seller and the Purchaser  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 Contractual  Rights,  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 Indenture.

         Section 2.03.     Payment of Purchase Price for the Mortgage Loans. In  consideration  of the sale of the Mortgage Loans,  the
related  assets and the  Contractual  Rights from the Seller to the Purchaser on the Closing Date,  the Purchaser  agrees to pay to the
Seller on the Closing Date by transfer of immediately  available  funds,  an amount equal to  $1,496,172,509.18  (which amount includes
accrued  interest) (the "Purchase  Price") minus any expenses  billed to the Purchaser in connection  with the issuance and offering of
the Notes pursuant to the SAMI II Mortgage Loan Purchase Agreement.

                                                             ARTICLE III.

                                          REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

         Section 3.01.     Seller  Representations  and  Warranties  Relating  to the  Mortgage  Loans.  The  Seller  hereby  makes the
representations  and  warranties set forth in Schedule III hereto  applicable to the Mortgage Loans and by this reference  incorporated
herein,  to the  Purchaser,  as of the  Closing  Date  or,  if  applicable,  such  other  date as may be  specified  therein,  with the
understanding  that the Purchaser  pursuant to the terms of the SAMI II Mortgage Loan Purchase  Agreement will assign to the Depositor,
which will assign to the Issuer,  which will assign to the Indenture  Trustee any and all rights and remedies the respective  party may
have against the Seller arising from a breach of any such representation and warranty.

         Section 3.02.      Seller's Representations and Warranties. The Seller represents,  warrants and covenants to the Purchaser as
of the Closing Date or as of such other date specifically provided herein:

                  (i)       the Seller is duly organized,  validly existing and in good standing as a corporation  under the laws of the
State of Delaware and is and will remain in compliance  with the laws of each state in which any  Mortgaged  Property is located to the
extent necessary to fulfill its obligations hereunder;

                  (ii)      the Seller has the power and authority to hold each Mortgage  Loan, to sell each Mortgage  Loan, to execute,
deliver  and  perform,  and to enter  into and  consummate,  all  transactions  contemplated  by this  Agreement.  The  Seller has duly
authorized  the  execution,  delivery and  performance  of this  Agreement,  has duly  executed and delivered  this  Agreement and this
Agreement,  assuming due authorization,  execution and delivery by the Purchaser,  constitutes a legal, valid and binding obligation of
the Seller,  enforceable  against it in accordance  with its terms except as the  enforceability  thereof may be limited by bankruptcy,
insolvency or reorganization or other similar laws in relation to the rights of creditors generally;

                  (iii)     the execution and delivery of this Agreement by the Seller and the  performance  of and compliance  with the
terms of this Agreement will not violate the Seller's  certificate of  incorporation  or by-laws or constitute a material default under
or result in a material  breach or  acceleration  of, any material  contract,  agreement or other  instrument  to which the Seller is a
party or which may be applicable to the Seller or its assets;

                  (iv)      the Seller is not in violation of, and the  execution  and delivery of this  Agreement by the Seller and its
performance  and  compliance  with the terms of this  Agreement will not constitute a violation with respect to, any order or decree of
any court or any order or regulation of any federal,  state,  municipal or governmental  agency having  jurisdiction over the Seller or
its assets,  which violation might have consequences that would materially and adversely affect the condition  (financial or otherwise)
or the operation of the Seller or its assets or might have  consequences  that would materially and adversely affect the performance of
its obligations and duties hereunder;

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

                  (vi)      the Seller has good,  marketable and indefeasible title to the Mortgage Loans, free and clear of any and all
liens, pledges, charges or security interests of any nature encumbering the Mortgage Loans;

                  (vii)     the Mortgage Loans are not being  transferred by the Seller with any intent to hinder,  delay or defraud any
creditors of the Seller;

                  (viii)    there are no actions or proceedings  against, or investigations known to it of, the Seller before any court,
administrative  or other  tribunal (A) that might  prohibit its entering  into this  Agreement,  (B) seeking to prevent the sale of the
Mortgage Loans or the  consummation  of the  transactions  contemplated  by this Agreement or (C) that might prohibit or materially and
adversely affect the performance by the Seller of its obligations under, or validity or enforceability of, this Agreement;

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

                  (x)       the consummation of the  transactions  contemplated by this Agreement are in the ordinary course of business
of the Seller,  and the transfer,  assignment  and  conveyance of the Mortgage  Notes and the Mortgages by the Seller  pursuant to this
Agreement are not subject to the bulk transfer or any similar statutory provisions.

         Section 3.03.     Remedies  for  Breach  of  Representations  and  Warranties.  It is  understood  and  agreed  that  (i)  the
representations  and  warranties set forth in Sections 3.01 and 3.02 and the provisions of Article V, shall survive the purchase of the
Mortgage  Loans and the  Contractual  Rights  hereunder  (and in the case of Section  3.01,  shall survive  delivery of the  respective
Mortgage  Files  to the  Indenture  Trustee  pursuant  to the SAMI II  Mortgage  Loan  Purchase  Agreement  and the Sale and  Servicing
Agreement) and shall inure to the benefit of the Purchaser and its assigns  notwithstanding  any  restrictive or qualified  endorsement
on any Mortgage  Note or  Assignment  or the  examination  or lack of  examination  of any Mortgage  File and (ii) the remedies for the
breach of such  representations  and warranties  and for the failure to deliver the documents  referred to in Section 2.02 hereof shall
be as set forth in Section 2.04 of the Sale and Servicing Agreement.

                  With respect to the representations and warranties numbered (iii), (xiv), (xvii), (xviii), (xxix), (xxxii) and
(xxxiii) set forth on Schedule III hereto that are made to the best of the Seller's knowledge or as to which the Seller has no
knowledge, if it is discovered by the Depositor, the Master Servicer or the Indenture Trustee that the substance of such
representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan
or the interest therein of the Noteholders then, notwithstanding the Seller's lack of knowledge with respect to the substance of such
representation and warranty being inaccurate at the time the representation or warranty was made, such inaccuracy shall be deemed a
breach of the applicable representation or warranty.

                                                              ARTICLE IV.

                                                          SELLER'S COVENANTS

         Section 4.01.     Covenants of the Seller.  The Seller hereby covenants that, except for the transfer  hereunder,  it will not
sell,  pledge,  assign or transfer to any other Person,  or grant,  create,  incur,  assume or suffer to exist any Lien on any Mortgage
Loan,  or any interest  therein;  it will notify the  Purchaser,  of the existence of any Lien on any Mortgage  Loan  immediately  upon
discovery  thereof;  and it will defend the right,  title and interest of the Purchaser and its assigns,  in, to and under the Mortgage
Loans, against all claims of third parties claiming through or under the Seller;  provided,  however, that nothing in this Section 4.01
shall  prevent or be deemed to prohibit the Seller from  suffering to exist upon any of the Mortgage  Loans any Liens for  municipal or
other local taxes and other governmental  charges if such taxes or governmental  charges shall not at the time be due and payable or if
the Seller shall  currently be contesting  the validity  thereof in good faith by appropriate  proceedings  and shall have set aside on
its books adequate reserves with respect thereto.

                                                              ARTICLE V.

                                                            INDEMNIFICATION

         Section 5.01.     Indemnification.  The Seller  agrees to indemnify  and to hold each of the  Purchaser,  the  Depositor,  the
Issuer,  the  Indenture  Trustee,  each of the officers and  directors of each such entity and each person or entity who controls  each
such entity or person  harmless  against any and all claims,  losses,  penalties,  fines,  forfeitures,  legal fees and related  costs,
judgments,  and any other costs, fees and expenses that the Purchaser,  the Depositor,  the Issuer, the Indenture Trustee,  or any such
person or entity may  sustain in any way related to the  failure of the Seller to perform  its duties in  compliance  with the terms of
this Agreement.  The Seller shall immediately notify the Purchaser,  the Depositor,  the Issuer and the Indenture Trustee if a claim is
made under this  provision.  The Seller  shall  assume the  defense of any such claim and pay all  expenses  in  connection  therewith,
including  reasonable  counsel fees,  and promptly pay,  discharge and satisfy any judgment or decree which may be entered  against the
Purchaser, the Depositor, the Issuer, the Indenture Trustee or any such person or entity in respect of such claim.

                                                              ARTICLE VI.

                                                              TERMINATION

         Section 6.01.     Termination.  The  respective  obligations  and  responsibilities  of the Seller and the  Purchaser  created
hereby shall  terminate,  except for the respective  indemnity  obligations as provided  herein,  upon the  termination of the Sale and
Servicing Agreement as provided in Article X thereof.

                                                             ARTICLE VII.

                                                       MISCELLANEOUS PROVISIONS

         Section 7.01.     Amendment.  This  Agreement  may be amended  from time to time by the Seller  and the  Purchaser  by written
agreement signed by the parties hereto.

         Section 7.02.     Governing  Law. This Agreement  shall be governed by and construed in accordance  with the laws of the State
of New York,  without reference to its conflict of law provisions  (other than Section 5-1401 of the General  Obligations Law), and the
obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

         Section 7.03.     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:

                  if to the Seller:

                  Thornburg Mortgage Home Loans, Inc.
                  150 Washington Avenue, Suite 302
                  Santa Fe, New Mexico  87501
                  Attention:  Deborah Burns

or such other address as may hereafter be furnished to the Purchaser,  the Depositor,  the Issuer and the Indenture  Trustee in writing
by the Seller.

                  if to the Purchaser:

                  Thornburg Mortgage Funding, Inc.
                  150 Washington Avenue, Suite 302
                  Santa Fe, New Mexico  87501
                  Attention:  Deborah Burns

or such other address as may hereafter be furnished to the Seller,  the Depositor,  the Issuer and the Indenture  Trustee in writing by
the Purchaser.

                  if to the Issuer:

                  Thornburg Mortgage Securities Trust 2007-3
                  c/o Wilmington Trust Company
                  1100 North Market Street
                  Wilmington, Delaware  19801
                  Attention:  Corporate Trust Administrator (Thornburg 2007-3)

or such other address as may hereafter be furnished to the Purchaser,  the Depositor,  the Indenture  Trustee and the Seller in writing
by the Issuer.

                  If to the Indenture Trustee:

                  135 South LaSalle Street, Suite 1511
                  Chicago, Illinois  60603
                  Attention:  Global Securities and Trust Services (Thornburg 2007-3)

or such other  address as may  hereafter be  furnished to the Seller,  the  Depositor,  the Issuer and the  Purchaser in writing by the
Indenture Trustee.

                  If to the Depositor:

                  Structured Asset Mortgage Investments II Inc.
                  383 Madison Avenue
                  New York, New York  10179
                  Attention:  Baron Silverstein (Thornburg 2007-3)

or such other address as may hereafter be furnished to the Seller,  the Purchaser,  the Issuer and the Indenture  Trustee in writing by
the Depositor.

         Section 7.04.     Severability  of Provisions.  If any one or more of the covenants,  agreements,  provisions or terms of this
Agreement  shall be held  invalid for any reason  whatsoever,  then such  covenants,  agreements,  provisions  or terms shall be deemed
severable from the remaining  covenants,  agreements,  provisions or terms of this Agreement and shall in no way affect the validity of
enforceability of the other provisions of this Agreement.

         Section 7.05.     Counterparts.  This  Agreement  may be executed in one or more  counterparts  and by the  different  parties
hereto on separate  counterparts,  which may be transmitted  by telecopier  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 7.06.     Further  Agreements.  Each  party  hereto  agrees  to  execute  and  deliver  to the other  such  additional
documents,  instruments  or agreements as may be necessary or reasonable  and  appropriate to effectuate the purposes of this Agreement
or in connection with the issuance of the Notes  under the Indenture.

         Without  limiting the  generality of the foregoing,  as a further  inducement for the Purchaser to purchase the Mortgage Loans
from the Seller,  the Seller will  cooperate  with the  Purchaser,  the  Depositor  and the Issuer in  connection  with the sale of the
Notes.  In that  connection,  the Seller  will  provide to the  Purchaser  any and all  information  and  appropriate  verification  of
information,  whether through  letters of its auditors and counsel or otherwise,  as the Purchaser  shall  reasonably  request and will
provide to the Purchaser or its designee such additional representations and warranties,  covenants,  opinions of counsel, letters from
auditors,  and  certificates of public  officials or officers of the Seller as are reasonably  required in connection with the offering
of the Notes.

         Section 7.07.     Intention of the Parties.  It is the  intention of the parties  that the  Purchaser is  purchasing,  and the
Seller is selling,  the Mortgage  Loans  rather than  pledging  such  Mortgage  Loans to secure a loan by the  Purchaser to the Seller.
Accordingly,  the parties hereto each intend to treat the transaction as a sale by the Seller, and a purchase by the Purchaser,  of the
Mortgage  Loans.  The  Purchaser  will have the right to review the Mortgage  Loans and the related  Mortgage  Files 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 7.08.     Successors  and  Assigns:  Assignment  of Purchase  Agreement.  This  Agreement  shall bind and inure to the
benefit of and be enforceable by the Seller and the Purchaser and their  respective  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;  provided,  however, that the Purchaser acknowledges and agrees that the Seller may assign its obligations
hereunder to any Person into which the Seller is merged or any corporation  resulting from any merger,  conversion or  consolidation to
which the  Seller is a party or any  Person  succeeding  to the  business  of the  Seller.  The  parties  hereto  acknowledge  that the
Purchaser is acquiring the Mortgage  Loans and the  Contractual  Rights for the purpose of selling and assigning  them to the Depositor
pursuant to the SAMI II Mortgage Loan Purchase  Agreement  which in turn will sell and assign such Mortgage Loans,  Contractual  Rights
and  contractual  rights under the SAMI II Mortgage  Loan  Purchase  Agreement  to the Issuer  which will pledge them to the  Indenture
Trustee.  As an inducement to the Purchaser to purchase the Mortgage Loans,  the Seller  acknowledges and consents to the assignment by
the Purchaser to the Depositor,  and by the Depositor to the Issuer, and the pledge by the Issuer to the Indenture  Trustee,  of all of
the  Contractual  Rights and contractual  rights under the SAMI II Mortgage Loan Purchase  Agreement which may be enforced or exercised
with the same force and effect as if they had been enforced or exercised by the Purchaser directly.

         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.

                                                 THORNBURG MORTGAGE FUNDING, INC., as Purchaser

                                                 By:       /S/ Nathan Fellers                             
                                                       Name:  Nathan Fellers
                                                       Title:    Senior Vice President

                                                 THORNBURG MORTGAGE HOME LOANS, INC.,
                                                          as Seller

                                                 By:             /S/ Deborah J. Burns                     
                                                      Name:  Deborah J. Burns
                                                      Title:    Senior Vice President

STATE OF NEW MEXICO                 )
                                    )ss.:
COUNTY OF SANTA FE                  )

         On the _31_ day of __July_ 2007 before me, a Notary Public in and for said State,  personally  appeared Nathan Fellers,  known
to me to a Senior Vice President of THORNBURG  MORTGAGE FUNDING,  INC., the corporation that executed the within  instrument,  and also
known to me to be the person who executed it on behalf of said corporation,  and acknowledged to me that such corporation  executed the
within instrument.

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

__/S/ Jane C. Yates___
Notary Public

My Commission Expires on __Nov. 20, 2010___

Official Seal
Jane C. Yates
Notary Public
State of New Mexico
My Commission Expires: Nov. 20, 2010

STATE OF NEW MEXICO             )
                                )ss.:
COUNTY OF SANTE FE              )

         On the _31_ day of __July__  2007  before me, a notary  public in and for said State,  personally  appeared  Deborah J. Burns,
known to me to be a Senior Vice  President of THORNBURG  MORTGAGE  HOME LOANS,  INC., a Delaware  corporation  that executed the within
instrument,  and also known to me to be the person who  executed it on behalf of said  corporation,  and  acknowledged  to me that such
corporation executed the within instrument.

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

__/S/ Jane C. Yates___
Notary Public

My Commission Expires on __Nov. 20, 2010___

Official Seal
Jane C. Yates
Notary Public
State of New Mexico
My Commission Expires: Nov. 20, 2010

                                                                                                                             SCHEDULE I

                                                        MORTGAGE LOAN SCHEDULE

                                           [See Schedule I of Sale and Servicing Agreement]

                                                                                                                            SCHEDULE II

                                              LIST OF SERVICING AGREEMENTS (TMST 2007-3)

     1.  a) Servicing  Agreement,  dated as of March 1, 2002, among Thornburg  Mortgage Home Loans, Inc.  ("Thornburg"),  as seller and
         servicer and Wells Fargo Bank N.A. ("Wells Fargo"),  as master servicer,  as amended by the Amendment to Servicing  Agreement,
         dated as of December 1, 2002,  and as amended by the Second  Amendment  to Servicing  Agreement,  dated as of January 1, 2006,
         and (b) the Subservicing  Acknowledgement  Agreement,  dated as of March 1, 2002, between Thornburg,  as servicer,  and Cenlar
         FSB, as sub-servicer ("Cenlar"), as amended by the Amendment to Subservicing  Acknowledgement  Agreement, dated as of December
         1, 2002, and by the Second Amendment to Subservicing  Acknowledgement  Agreement,  dated as of January 1, 2006,  including the
         related  Transfer  Notice,  dated July 27, 2007, from Thornburg,  as seller,  to Thornburg,  as initial seller,  and Thornburg
         Mortgage Funding, Inc., as Seller ("TMFI"), and Cenlar, as sub-servicer.

     2.  Amended and Restated  Correspondent  Loan Purchase  Agreement,  dated as of March 25, 2002,  between  Thornburg  Mortgage Home
         Loans, Inc.  ("Thornburg") and First Republic Bank ("First Republic"),  including the related Transfer Notice,  dated July 27,
         2007, from Thornburg to First Republic.

     3.  Amended and Restated  Correspondent  Loan Purchase  Agreement,  dated as of March 27, 2002,  between  Thornburg  Mortgage Home
         Loans, Inc.  ("Thornburg")  and Colonial Savings,  F.A.  ("Colonial"),  including the related Transfer Notice,  dated July 27,
         2007, from Thornburg to Colonial.

     4.  Correspondent  Loan  Purchase  Agreement,  dated  as of  January  31,  2006,  between  Thornburg  Mortgage  Home  Loans,  Inc.
         ("Thornburg") and Mellon Trust of New England,  N.A.  ("Mellon"),  including the related Transfer Notice, dated July 27, 2007,
         from Thornburg to Mellon.

     5.  Correspondent Loan Purchase  Agreement,  dated as of April 6, 2006, between Thornburg Mortgage Home Loans, Inc.  ("Thornburg")
         and First  Horizon Home Loan Corp.  ("First  Horizon"),  including  the related  Transfer  Notice,  dated July 27, 2007,  from
         Thornburg to First Horizon.

     6.  Reconstituted  Servicing Agreement,  dated as of July 1, 2007, by and among Thornburg,  TMFI, Countrywide Home Loans Servicing
         LP ("Countrywide"),  as servicer,  LaSalle Bank National Association,  as trustee, and acknowledged by Wells Fargo Bank, N.A.,
         as master  servicer,  relating to the Mortgage Loan Purchase and Servicing  Agreement dated as of September 1, 2005 as amended
         by the Amendment  Number Two dated as of June 19, 2006 by and between  Thornburg and  Countrywide  and by the Amendment Reg AB
         dated as of July 1, 2006 by and between Thornburg and Countrywide.

     7.  Reconstituted Servicing Agreement, dated as of July 1, 2007, by and among Thornburg,  TMFI, Countrywide,  as servicer, LaSalle
         Bank National  Association,  as trustee,  and  acknowledged  by Wells Fargo Bank,  N.A., as master  servicer,  relating to the
         Mortgage Loan Purchase and Servicing  Agreement  between  Thornburg and Countrywide as seller,  dated as of April 25, 2002, as
         amended by the Amendment Reg AB dated as of July 1, 2006, by and between Thornburg and Countrywide.

     8.  Reconstituted  Servicing  Agreement dated as of July 1, 2007, by and among Thornburg,  TMFI, Morgan Stanley Credit Corporation
         ("Morgan  Stanley"),  as servicer,  Thornburg Mortgage Securities Trust 2007-3, and acknowledged by Wells Fargo Bank, N.A., as
         master servicer,  relating to the Master Servicing  Agreement between Thornburg and Morgan Stanley,  as servicer,  dated as of
         May 1, 2001, as amended by that certain  Amendment to Master  Servicing  Agreement dated as of January 1, 2003, by and between
         Thornburg and Morgan Stanley, and by the Amendment Reg AB dated as of November 1, 2006 between Thornburg and Morgan Stanley.

     9.  Reconstituted  Servicing  Agreement  dated as of July 1, 2007,  by and among  Thornburg,  TMFI,  Wells  Fargo Bank,  N.A.,  as
         servicer,  and Thornburg Mortgage  Securities Trust 2007-3 (the "Trust") and acknowledged by Wells Fargo Bank, N.A., as master
         servicer,  relating to the Master  Seller's  Warranties and Servicing  Agreement  between Lehman Brothers Bank, FSB ("Lehman")
         and Wells Fargo  dated as of May 1, 2006,  as amended by  Amendment  No. 1 to the Master  Seller's  Warranties  and  Servicing
         Agreement dated as of August 1, 2006, as modified by that certain  Assignment,  Assumption and Recognition  Agreement dated as
         of August 25, 2006.

                                                             SCHEDULE III

                                                     SELLER'S REPRESENTATIONS AND
                                                        WARRANTIES RELATING TO
                                                            MORTGAGE LOANS

         The Seller hereby  represents  and warrants to, and covenants  with,  the Purchaser  that, as to each Mortgage Loan, as of the
Closing Date:

     (i)          The information set forth in the final Mortgage Loan Schedule is complete,  true and correct in all material respects
                  and (b) the Mortgage Note or an affidavit of lost note with respect to each  Mortgage Loan has been  delivered to the
                  Purchaser or its designee.

     (ii)         As of the Cut-off Date, none of the Mortgage Loans (by Scheduled Principal Balance) were 30 or more days delinquent
                  in payment.

     (iii)        To the best of Seller's knowledge, there are no delinquent taxes, ground rents, water charges, sewer rents,
                  assessments, insurance premiums, leasehold payments, including assessments payable in future installments or other
                  outstanding charges affecting the related Mortgaged Property or escrow funds have been established in an amount
                  sufficient to pay for every such escrowed item which remains unpaid.

     (iv)         The terms of the Mortgage Note and the Mortgage (including with respect to provisions relating to any Additional
                  Collateral (if applicable)) have not been impaired, waived, altered or modified in any respect, except by written
                  instruments which have been recorded, if necessary to protect the interests of the Trust, and which are included in
                  the Mortgage File, the substance of which waiver, alteration or modification has been approved by the primary
                  mortgage guaranty insurer, if any, and by the title insurer, in each instance to the extent required by the related
                  policy and is reflected on the Mortgage Loan Schedule.  Except for any modification agreement or similar document
                  contained in the Mortgage File permitting a borrower to modify his Mortgage Loan, no instrument of waiver,
                  alteration or modification has been executed, and no Mortgagor has been released, in whole or in part, except in
                  connection with an assumption agreement approved by the primary mortgage insurer, if any, and title insurer, in each
                  instance to the extent required by the policy, and which assumption agreement is part of the Mortgage File.

     (v)          The Mortgage Note and the Mortgage (including with respect to provisions relating to any Additional Collateral (if
                  applicable)) are not subject to any right of rescission, set-off, counterclaim or defense, including the defense of
                  usury, nor will the operation of any of the terms of the Mortgage Note and Mortgage, or the exercise of any right
                  thereunder, render the Mortgage unenforceable, in whole or in part, or subject to any right of rescission, set-off,
                  counterclaim or defense, including the defense of usury, and to the Seller's knowledge no such right of rescission,
                  set-off, counterclaim or defense has been asserted with respect thereto.

     (vi)         All buildings upon the 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 the Mortgaged Property is
                  located.  All such insurance policies contain a standard mortgagee clause naming the Master Servicer or the
                  applicable Servicer, their successors and assigns as mortgagee and to Seller's knowledge all premiums thereon have
                  been paid.  If upon origination of the Mortgage Loan, the Mortgaged Property was 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) a flood insurance policy meeting the requirements of the current guidelines of
                  the Federal Insurance Administration is in effect.  The Mortgage obligates the Mortgagor thereunder to maintain all
                  such insurance at the 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 the Mortgagor's cost and expense and to seek reimbursement therefor
                  from the Mortgagor.

     (vii)        The Mortgage Loan is not a loan (A) 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, or any comparable state law (B) a "High Cost Loan" or "Covered Loan" as applicable, as such terms
                  are defined in the current Standard & Poor's LEVELS® GLOSSARY classified and/or defined as a "high cost" loan or
                  "predatory," "high cost," "threshold" or "covered" lending under any other state, federal or local law.  The
                  Mortgage Loan at the time it was made otherwise complied in all material respects with any and all requirements of
                  any federal, state or local law including, but not limited to, all predatory lending laws, usury, truth in lending,
                  real estate settlement procedures (including the Real Estate Settlement Procedures Act of 1974, as amended),
                  consumer credit protection, equal credit opportunity or disclosure laws applicable to such Mortgage Loan.

     (viii)       The Mortgage has not been satisfied, canceled or subordinated, or rescinded, in whole or in part, and the Mortgaged
                  Property has not been released from the lien of the Mortgage except for a release that does not materially impair
                  the security of the Mortgage Loan or is reflected in the Loan-to-Value Ratio, in whole or in part, nor has any
                  instrument been executed that would effect any such release, cancellation, subordination or rescission unless payoff
                  funds have been deposited in the custodial account.

     (ix)         The Mortgage (including any Negative Amortization which may arise thereunder, in the case of any Group 1 Mortgage
                  Loan) is a valid, existing and enforceable first lien on the Mortgaged Property, including all improvements on the
                  Mortgaged Property subject only to (A) the lien of current real property taxes and assessments not yet due and
                  payable, (B) covenants, conditions and restrictions, rights of way, easements and other matters of the public record
                  as of the date of recording being acceptable to mortgage lending institutions generally and either (a) specifically
                  referred to in a lender's title insurance policy delivered to the related Originator of the Mortgage Loan or (b)
                  which do not adversely affect the Appraised Value of the Mortgaged Property, and (C) other matters to which like
                  properties are commonly subject which do not materially interfere with the benefits of the security intended to be
                  provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property; and,
                  further provided, with respect to Cooperative Loans, the lien of the related cooperative corporation for unpaid
                  assessments representing the obligor's pro rata share of the cooperative corporation's payments for its blanket
                  mortgage, current and future real property taxes, insurance premiums, maintenance fees and other assessments to
                  which like collateral is commonly subject.  Any security agreement, chattel mortgage or equivalent document related
                  to and delivered in connection with the Mortgage establishes and creates a valid, existing and enforceable first
                  lien and first priority security interest on the property described therein and the Seller has full right to sell
                  and assign the same to the Purchaser.

     (x)          The Mortgage Note and the related Mortgage are genuine and each is the legal, valid and binding obligation of the
                  maker thereof, enforceable in accordance with its terms, except as the enforceability thereof may be limited by
                  bankruptcy, insolvency, or reorganization or other laws relating to the rights of creditors and general principles
                  of equity.

     (xi)         All parties to the Mortgage Note and the Mortgage had legal capacity to enter into the Mortgage Loan and to execute
                  and deliver the Mortgage Note and the Mortgage, and the Mortgage Note and the Mortgage have been duly and properly
                  executed by such parties.

     (xii)        The proceeds of the Mortgage Loan have been fully disbursed, 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 disbursements of any
                  escrow funds therefor have been complied with (except for escrow funds for exterior items which could not be
                  completed due to weather and escrow funds for the completion of swimming pools); and all costs, fees and expenses
                  incurred in making, closing or recording the Mortgage Loan have been paid, except recording fees with respect to
                  Mortgages not recorded as of the Closing Date.  Any future advances made to the Mortgagor prior to the Cut-off Date
                  have been consolidated with the outstanding principal amount secured by the Mortgage, and the secured principal
                  amount, as consolidated, bears a single interest rate and single repayment term.  The consolidated principal amount
                  does not exceed the original principal amount of the Mortgage Loan plus any Negative Amortization, in the case of
                  any Group 1 Mortgage Loan.

     (xiii)       The Seller has acquired its ownership of each Mortgage Loan in good faith without notice of any adverse claim, and
                  as of the Closing Date, the Mortgage Note and the Mortgage are not assigned or pledged, and immediately prior to the
                  sale of the Mortgage Loan to the Purchaser, the Seller was the sole owner thereof and with full right to transfer
                  and sell the Mortgage Loan to the Purchaser free and clear of any encumbrance, equity, lien, pledge, charge, claim
                  or security interest and with full right and authority subject to no interest or participation of, or agreement
                  with, any other party, to sell and assign each Mortgage Loan pursuant to this Agreement.

     (xiv)        To the Seller's best knowledge, the Seller or, if the Mortgage Loan was not originated by the Seller, the related
                  originator is or was (or, during the period in which they held and disposed of such interest, were) (A) in
                  compliance with any and all applicable licensing requirements of the laws of the state wherein the Mortgaged
                  Property is located, and (B) either (i) organized under the laws of such state, or (ii) qualified to do business in
                  such state, or (iii) a federal savings and loan association or national bank or subsidiary having preemptive
                  authority under federal law or under applicable state law to engage in business in such state without qualification,
                  or (iv) not doing business in such state.

     (xv)         The Mortgage Loan is covered by an ALTA lender's title insurance policy or other form acceptable to Fannie Mae or
                  Freddie Mac, issued by a title insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the
                  jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained in (ix)(A)
                  through (C) above) the related originator or the Seller,  their respective successors and assigns as to the first
                  priority lien of the Mortgage in the original principal balance of the Mortgage Loan, including, in the case of any
                  Group 1 Mortgage Loan, the maximum amount of Negative Amortization in accordance with the terms of the Mortgage
                  Note.  The Seller is the sole insured of such lender's title insurance policy, and such lender's title insurance
                  policy is in full force and effect and will be in full force and effect upon the consummation of the transactions
                  contemplated by this Agreement.  No claims have been made under such lender's title insurance policy, and no prior
                  holder of the related Mortgage, including the Seller, has done, by act or omission, anything which would impair the
                  coverage of such lender's title insurance policy.

     (xvi)        There is no default, breach, 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, and the Seller has not waived any default, breach,
                  violation or event of acceleration.

     (xvii)       To the best of the Seller's knowledge, there are no mechanics' or similar liens or claims which have been filed for
                  work, labor or material (and no rights are outstanding that under law could give rise to such lien) affecting the
                  related Mortgaged Property which are or may be liens prior to, or equal or on parity with, the lien of the related
                  Mortgage.

     (xviii)      To the best of the Seller's knowledge, 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.

     (xix)        The Mortgage Loan was originated by the Seller or was purchased by the Seller from a third party and the related
                  originator of each Mortgage Loan, was, at the time of origination, (A) (1) a Fannie Mae-approved or Freddie
                  Mac-approved Seller/Servicer and (2) a U.S. Department of Housing and Urban Development approved mortgage banker, or
                  a savings and loan association, a savings bank, a commercial bank or similar banking institution which is supervised
                  and examined by a federal or state authority or (B) closed in the name of a loan broker under the circumstances
                  described in the following sentence.  If such Mortgage Loan was originated through a loan broker, the related
                  originator qualifies under clause (A) above, such Mortgage Loan met such originator's underwriting criteria at the
                  time of origination and was originated in accordance with such originator's polices and procedures and such
                  originator acquired such Mortgage Loan from the loan broker contemporaneously with the origination thereof.  Each
                  Mortgage Note has a Mortgage Rate that adjusts periodically (not always in correlation to the Index calculation
                  term), based on the 1-month LIBOR Index, 6-month LIBOR Index, 1-year LIBOR Index, 1-year MTA Index, 1-year CMT Index
                  or 3-year CMT Index, as each is defined in the Sale and Servicing Agreement, except that some Mortgage Loans first
                  adjust after an initial period of one or six months or one, three, five, seven, eight or ten years following
                  origination.

     (xx)         The origination practices used by the Seller or the related originator of the Mortgage Loan and the collection
                  practices used by the Master Servicer or the applicable Servicer with respect to each Mortgage Note and Mortgage
                  have been in all respects legal, proper, prudent and customary in the mortgage origination and servicing business.
                  With respect to escrow deposits and escrow payments, if any, all such payments are in the possession of, or under
                  the control of, the applicable Servicer and there exist no deficiencies in connection therewith for which customary
                  arrangements for repayment thereof have not been made.

     (xxi)        The Mortgaged Property is undamaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
                  casualty, so as to have a material adverse effect on the value of the related Mortgaged Property as security for the
                  related Mortgage Loan or the use for which the premises were intended and there is no proceeding pending for the
                  total or partial condemnation thereof.

     (xxii)       The Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder
                  thereof adequate for the realization against the Mortgaged Property of the benefits of the security provided
                  thereby, including, (A) in the case of a Mortgage designated as a deed of trust, by trustee's sale, and (B)
                  otherwise by judicial foreclosure.  There is no other exemption available to the Mortgagor which would interfere
                  with the right to sell the Mortgaged Property at a trustee's sale or the right to foreclose the Mortgage.

     (xxiii)      The Mortgage Loan was underwritten generally in accordance with either (A) the Seller's underwriting standards
                  described in the Preliminary Prospectus Supplement and the Final Prospectus Supplement, (B) in the case of a
                  Mortgage Loan originated by First Republic Bank, the underwriting standards of First Republic Bank, (C) in the case
                  of a Mortgage Loan originated by Countrywide Homes Loans Inc., the underwriting standards of Countrywide Homes Loans
                  Inc. as described in the Preliminary Prospectus Supplement and the Final Prospectus Supplement, or (D) in the case
                  of any other Mortgage Loans acquired from a bulk seller, the underwriting standards of the related bulk seller or a
                  third party originator's underwriting guidelines.

     (xxiv)       The Mortgage File in possession of the related Servicer contains an appraisal of the related Mortgaged Property by a
                  qualified appraiser, duly appointed by the related originator of the Mortgage Loan, who had no interest, direct or
                  indirect in the Mortgaged Property or in any loan made on the security thereof, and whose compensation is not
                  affected by the approval or disapproval of the Mortgage Loan or, in accordance with certain specified programs of
                  the related originator of the Mortgage Loan an approved AVM in lieu of the appraisal.

     (xxv)        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 Seller or any of its successors to the trustee under the deed of trust, except, in
                  connection with a trustee's sale after default by the Mortgagor.

     (xxvi)       No Mortgage Loan (A) contains provisions pursuant to which Monthly Payments are paid or partially paid with funds
                  deposited in any separate account established by the Seller, the Mortgagor, or anyone on behalf of the Mortgagor or
                  paid by any source other than the Mortgagor or (B) contains any provision permitting a temporary "buydown" of the
                  related Mortgage Rate.  No Mortgage Loan was a graduated payment mortgage loan as of the date of its origination.
                  No Mortgage Loan has a shared appreciation or other contingent interest feature.

     (xxvii)      No Mortgage Loan had a Loan-to-Value Ratio in excess of 100%.  Except for one Mortgage Loan in Group 2 with a
                  principal balance of approximately $421,063.12, the portion of the unpaid principal balance of each Mortgage Loan
                  which is in excess of 80% of the original Loan-to-Value Ratio either (a) has Additional Collateral or (b) is and
                  will be insured as to payment defaults under a Primary Mortgage Insurance Policy issued by primary mortgage insurer
                  licensed to do business in the state in which the Mortgaged Property is located and acceptable to Fannie Mae or
                  Freddie Mac as of the Closing Date, so as to reduce the Mortgagee's exposure in accordance with the standards of
                  Fannie Mae or Freddie Mac and applicable law.  All provisions of such Primary Mortgage Insurance Policy have been
                  and are being complied with; such policy is valid and in full force and effect and all premiums due thereunder have
                  been paid.

     (xxviii)     Except for any Additional Collateral Mortgage Loans, the Mortgage Note is not and has not been secured by any
                  collateral, pledged account, or other security except the lien of the Mortgage, and the security interest of any
                  applicable security agreement or chattel mortgage referred to above.

     (xxix)       To the best of the Seller's knowledge, the Mortgaged Property is lawfully occupied under applicable law.  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 related Mortgaged Property and, with respect to the use and occupancy of the
                  same, including but not limited to certificates of occupancy, had been made or obtained from the appropriate
                  authorities.

     (xxx)        Each Assignment is in recordable form, is acceptable for recording under the laws of the jurisdiction in which the
                  Mortgaged Property is located.

     (xxxi)       If the Mortgaged Property is a condominium unit or a planned unit development (other than a de minimis planned unit
                  development) such condominium or planned unit development project meets Fannie Mae or Freddie Mac or the
                  originator's eligibility requirements.

     (xxxii)      To the best of the Seller's knowledge, no fraud was committed by the related originator of the Mortgage Loan and the
                  Seller is not aware of any fact that would reasonably lead the Seller to believe that any Mortgagor had committed
                  fraud in connection with the origination of such Mortgage Loan.

     (xxxiii)     The Mortgagor has not notified the Seller, and the Seller has no knowledge of any relief requested by the Mortgagor
                  under the Servicemembers Civil Relief Act.

     (xxxiv)      As to any Additional Collateral Mortgage Loan, such Mortgage Loan is secured by a perfected first priority security
                  interest in the related Additional Collateral.

     (xxxv)       As to any Additional Collateral Mortgage Loan, the applicable pledge agreement is in place, is genuine and is the
                  legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms subject to
                  bankruptcy, insolvency and other laws of general application affecting the rights of creditors and general
                  principles of equity.

     (xxxvi)      With respect to each Cooperative Loan (i) there is no provision in the related proprietary lease which requires the
                  related Mortgagor to offer for sale the shares owned by such Mortgagor first to the Cooperative Corporation for a
                  price less than the outstanding amount of the Cooperative Loan, (ii) there is no prohibition in the related
                  proprietary lease against pledging such shares or assigning the proprietary lease that has been violated in
                  connection with the origination of the Cooperative Loan.

     (xxxvii)     With respect to each Cooperative Loan, such Cooperative Loan is secured by shares held by a "tenant-stockholder" of
                  a corporation that qualifies as a "cooperative housing corporation" as such terms are defined in Section 216(b)(1)
                  of the Code.

     (xxxviii)    With respect to each Cooperative Loan, the related Mortgage and related UCC financing statement creates a
                  first-priority security interest in the stock in the Cooperative Corporation and the related proprietary lease of
                  the related Cooperative Unit which were pledged to secure such Cooperative Loan, and the Cooperative Corporation
                  owns the Cooperative Corporation as an estate in fee simple in real property or pursuant to a leasehold acceptable
                  to Fannie Mae.

     (xxxix)      No Mortgage  Loan  originated  on or after  October 1, 2002  through  March 6, 2003 is  governed by the Georgia  Fair
                  Lending Act.STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.,

                                                   as Purchaser

                                                        and

                                         THORNBURG MORTGAGE FUNDING, INC.,

                                                     as Seller

                                     SAMI II MORTGAGE LOAN PURCHASE AGREEMENT

                                             Dated as of July 1, 2007

                                    (Adjustable Rate and Hybrid Mortgage Loans)

                                    Thornburg Mortgage Securities Trust 2007-3
                                       Mortgage-Backed Notes, Series 2007-3

                                                 Table of Contents
                                                                                                               Page

ARTICLE I. DEFINITIONS AND SCHEDULES..............................................................................2

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

ARTICLE II. SALE OF MORTGAGE LOANS AND THE CONTRACTUAL RIGHTS;  PAYMENT OF PURCHASE PRICE.........................2

         Section 2.01.     Sale of Mortgage Loans; Assignment of the Contractual Rights and the TMFI Contractual
                           Rights.................................................................................2
         Section 2.02.     Obligations of the Seller Upon Sale....................................................2
         Section 2.03.     Payment of Purchase Price for the Mortgage Loans.......................................4

ARTICLE III. REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH..................................................4

         Section 3.01      Seller Representations and Warranties Relating to the Mortgage Loans...................4
         Section 3.02.     Seller's Representations and Warranties................................................4
         Section 3.03      Remedies for Breach of Representations and Warranties..................................5

ARTICLE IV. SELLER'S COVENANTS....................................................................................6

         Section 4.01.     Covenants of the Seller................................................................6

ARTICLE V. INDEMNIFICATION........................................................................................6

         Section 5.01.     Indemnification........................................................................6

ARTICLE VI. TERMINATION...........................................................................................6

         Section 6.01.     Termination............................................................................6

ARTICLE VII. MISCELLANEOUS PROVISIONS.............................................................................7

         Section 7.01.     Amendment..............................................................................7
         Section 7.02.     Governing Law..........................................................................7
         Section 7.03.     Notices................................................................................7
         Section 7.04.     Severability of Provisions.............................................................8
         Section 7.05.     Counterparts...........................................................................8
         Section 7.06.     Further Agreements.....................................................................8
         Section 7.07.     Intention of the Parties...............................................................8
         Section 7.08.     Successors and Assigns: Assignment of Purchase Agreement...............................8

Schedule I:       Mortgage Loan Schedule........................................................................I-1
Schedule II:      List of Servicers and Servicing Agreements...................................................II-1
Schedule III:     Seller's Representations and Warranties Relating to Mortgage Loans..........................III-1

                  THIS SAMI II MORTGAGE LOAN PURCHASE  AGREEMENT,  dated as of July 1, 2007 (the  "Agreement"),  is
made and entered into  between  Thornburg  Mortgage  Funding,  Inc., a Delaware  corporation  (the  "Seller"),  and
Structured Asset Mortgage Investments II Inc., a Delaware corporation (the "Purchaser").

                                                W I T N E S S E T H

                  WHEREAS,  effective with the execution of the TMFI Mortgage Loan Purchase  Agreement  dated as of
July 1, 2007 (the "TMFI Purchase  Agreement")  between  Thornburg  Mortgage Home Loans, Inc. (the "Initial Seller")
as seller,  and the Seller,  as purchaser,  the Seller,  as of the Closing Date, is the owner of the notes or other
evidence of  indebtedness  (the  "Mortgage  Notes") so  indicated on Schedule I hereto  referred to below,  and the
other  documents or  instruments  constituting  the Mortgage File  (collectively,  the "Mortgage  Loans") and, as a
consequence  thereof,  the Seller owns the mortgages or deeds of trust (the "Mortgages") on the related  properties
(the  "Mortgaged  Properties")  securing  such Mortgage  Loans,  including  rights to (a) any property  acquired by
foreclosure or deed in lieu of foreclosure or otherwise,  (b) the proceeds of any insurance  policies  covering the
Mortgage  Loans or the  Mortgaged  Properties or the obligors on the Mortgage  Loans and (c) the Seller's  security
interest in any Additional Collateral; and

                  WHEREAS,  effective with the execution of the TMFI Mortgage Loan Purchase Agreement,  the Initial
Seller,  as of the  Closing  Date,  has  assigned  to the Seller all its rights and  interest  under the  servicing
agreements  identified  on  Schedule  II  hereto  (each  a  "Servicing  Agreement,"  and  together  the  "Servicing
Agreements"),  other than any servicing rights retained pursuant to the provisions of the Servicing Agreements, but
only to the extent such rights relate to the servicing of the Mortgage Loans (the  "Contractual Rights"); and

                  WHEREAS,  the parties  hereto desire that the Seller sell the Mortgage  Loans,  the Mortgages and
related  assets  referred  to above,  assign the  Contractual  Rights and  assign  its rights  with  respect to the
representations  and  warranties  of the Initial  Seller and  remedies  for breach  pursuant  to the TMFI  Purchase
Agreement  (such rights and remedies,  the "TMFI  Contractual  Rights") to the  Purchaser  pursuant to the terms of
this Agreement; and

                  WHEREAS,  the Seller  understands that the Purchaser,  simultaneously  with the execution of this
Agreement,  intends to transfer and assign all of its rights,  title and  interests  in and to the Mortgage  Loans,
the  Mortgages  and the  related  assets,  the  Contractual  Rights and the TMFI  Contractual  Rights to  Thornburg
Mortgage  Securities Trust 2007-3 (the "Trust") pursuant to the terms of that certain Sale and Servicing  Agreement
(the "Sale and Servicing  Agreement")  dated as of July 1, 2007 by and among the Trust,  as issuer (the  "Issuer"),
the Purchaser,  as depositor (in such capacity,  the  "Depositor"),  the Seller,  the Initial  Seller,  Wells Fargo
Bank, N.A., as master servicer and securities  administrator and LaSalle Bank, National  Association,  as indenture
trustee (the "Indenture  Trustee"),  and the Seller has agreed to perform certain  obligations under this Agreement
to accommodate such transfer and assignment; and

                  WHEREAS,  the Issuer intends to pledge the Mortgage Loans, the Mortgages and related assets,  the
Contractual  Rights and the TMFI Contractual  Rights to the Indenture  Trustee pursuant to an Indenture dated as of
July 1, 2007 (the  "Indenture")  between the Issuer and the Indenture  Trustee,  pursuant to which the Issuer shall
issue its  Mortgage-Backed  Notes,  Series  2007-3  (the  "Notes"),  the  payment of which is to be secured by such
pledged assets.

                  NOW,  THEREFORE,  in  consideration  of the mutual  covenants herein contained and other good and
valuable  consideration,  the receipt and adequacy of which are hereby  acknowledged,  the parties  hereto agree as
follows:

                                                    ARTICLE I.

                                             DEFINITIONS AND SCHEDULES

         Section 1.01.     Definitions.  Any  capitalized  term used but not defined  herein shall have the meaning
assigned thereto in the Sale and Servicing Agreement and the Indenture.

                                                    ARTICLE II.

                                SALE OF MORTGAGE LOANS AND THE CONTRACTUAL RIGHTS;
                                             PAYMENT OF PURCHASE PRICE

         Section 2.01.     Sale of Mortgage Loans;  Assignment of the Contractual  Rights and the TMFI Contractual
Rights.  The Seller,  concurrently  with the execution and delivery of this  Agreement,  does hereby sell,  assign,
set over, and otherwise  convey to the Purchaser,  without  recourse,  all of its right,  title and interest in, to
and under (i) each Mortgage Loan,  including the related  Cut-Off Date Principal  Balance,  and all  collections in
respect of interest and principal due after the Cut-Off Date (and all  principal  received  before the Cut-Off Date
to the extent such  principal  relates to a Monthly  Payment  due after the  Cut-Off  Date);  (ii)  property  which
secured such Mortgage Loan and which has been acquired by  foreclosure  or deed in lieu of  foreclosure;  (iii) its
interest in any insurance  policies in respect of the Mortgage Loans;  (iv) any Additional  Collateral with respect
to the Mortgage Loans; and (v) all proceeds of any of the foregoing.

                  Concurrently  with the execution  and delivery of this  Agreement,  the Seller hereby  assigns to
the  Purchaser  the  Contractual  Rights  and the TMFI  Contractual  Rights.  The  Purchaser  hereby  accepts  such
assignment,  and shall be entitled to exercise  such  Contractual  Rights under each  Servicing  Agreement and such
TMFI  Contractual  Rights  as if the  Purchaser  had been a party to each  such  Servicing  Agreement  and the TMFI
Purchase Agreement, respectively.

         Section 2.02.     Obligations  of the Seller Upon Sale and  Assignment.  In  connection  with the transfer
and assignment  pursuant to Section 2.01 hereof, the Seller further agrees, at its own expense,  on or prior to the
Closing  Date,  (a) to indicate in its books and records  that the Mortgage  Loans have been sold to the  Purchaser
pursuant  to this  Agreement  and (b) to  deliver to the  Purchaser  and the  Indenture  Trustee,  a computer  file
containing a true and complete list of all such Mortgage  Loans  specifying  for each such Mortgage Loan, as of the
Cut-Off  Date,  (i) its account  number and (ii) the Cut-Off Date  Principal  Balance and such file,  which forms a
part of Schedule A to the Sale and Servicing  Agreement,  shall also be marked as Schedule I to this  Agreement and
is hereby incorporated into and made a part of this Agreement.

                  In connection  with such  conveyance  by the Seller,  the Seller shall on behalf of the Purchaser
and the Issuer cause the Initial Seller to deliver to, and deposit with the Indenture  Trustee (or its  custodian),
on or before the  Closing  Date,  the  documents  described  in Section  2.01 of the Sale and  Servicing  Agreement
including,  but not limited  to, the  Mortgage  File,  the  Servicing  Agreements  and a copy of the TMFI  Purchase
Agreement.  In the case of the  Mortgage  Loans (if any) that have been  prepaid in full after the Cut-off Date and
prior to  execution of this  Agreement,  the Seller,  in lieu of causing the Initial  Seller to deliver the related
Mortgage  Files,  shall cause the Initial Seller to deliver to the Purchaser an Officer's  Certificate  which shall
include a statement to the effect that all amounts  received in connection with such  prepayments that are required
to be deposited in the Collection  Account  pursuant to Section 2.01 of the Sale and Servicing  Agreement have been
so deposited.

                  The Seller  hereby  confirms to the  Purchaser  that it has made the  appropriate  entries in its
general  accounting  records,  to  indicate  that the  Mortgage  Loans have been  transferred  as  directed  by the
Purchaser.

                  The Purchaser hereby  acknowledges  its acceptance of all rights,  title and interests in, to and
under the Mortgage Loans and other property,  the Contractual Rights and the TMFI Contractual  Rights, now existing
or hereafter created, conveyed to it pursuant to Section 2.01 hereof.

                  The parties hereto intend that the  transaction  set forth herein be a  non-recourse  sale by the
Seller to the Purchaser of all of the Seller's  rights,  title and  interests  in, to and under the Mortgage  Loans
and other  property  described  in Section  2.01.  Nonetheless,  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 all of the  Seller's
rights,  title and  interests  in, to and under the Mortgage  Loans and other  property  described in Section 2.01,
whether  now  existing  or  hereafter  created,  to secure  all of the  Seller's  obligations  hereunder;  and this
Agreement shall  constitute a security  agreement under  applicable law. The Seller and the Purchaser 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,  the Contractual  Rights and the TMFI Contractual
Rights,  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 Indenture.

         Section 2.03.     Payment of Purchase Price for the Mortgage  Loans. In  consideration  of the sale of the
Mortgage Loans, the related assets,  the Contractual  Rights and the TMFI Contractual Rights from the Seller to the
Purchaser  on the  Closing  Date,  the  Purchaser  agrees to pay to the Seller on the  Closing  Date by transfer of
immediately  available funds, an amount equal to  $1,496,172,509.18  (which amount includes accrued  interest) (the
"Purchase  Price").  The Seller shall pay, and be billed  directly  for, all  reasonable  expenses  incurred by the
Purchaser or the Issuer in  connection  with the issuance of the Notes,  including,  without  limitation,  printing
fees incurred in connection with the Preliminary  Prospectus  Supplement,  the Final Prospectus  Supplement and the
Memorandum relating to the Notes, fees and expenses of Purchaser's  counsel,  fees of the rating agencies requested
to rate  the  Notes,  accountant's  fees  and  expenses  and  the  fees  and  expenses  of the  Trustee  and  other
out-of-pocket costs, if any.

                                                   ARTICLE III.

                                REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

         Section 3.01.     Representations  and  Warranties  Relating  to the  Mortgage  Loans.  In addition to the
assignment of the TMFI Contractual  Rights,  the Seller hereby makes the  representations  and warranties set forth
in Schedule III hereto  applicable  to the Mortgage  Loans and by this  reference  incorporated  herein,  as of the
Closing Date.

         Section 3.02.     Seller's   Representations  and  Warranties.   The  Seller  represents,   warrants  and
covenants to the Purchaser as of the Closing Date or as of such other date specifically provided herein:

                  (i)      the Seller is duly  organized,  validly  existing and in good  standing as a corporation
under the laws of the State of Delaware and is and will remain in  compliance  with the laws of each state in which
any Mortgaged Property is located to the extent necessary to fulfill its obligations hereunder;

                  (ii)     the  Seller  has the  power  and  authority  to hold each  Mortgage  Loan,  to sell each
Mortgage Loan, to execute,  deliver and perform,  and to enter into and consummate,  all transactions  contemplated
by this Agreement.  The Seller has duly authorized the execution,  delivery and performance of this Agreement,  has
duly executed and delivered this Agreement and this Agreement,  assuming due authorization,  execution and delivery
by the  Purchaser,  constitutes  a legal,  valid and binding  obligation of the Seller,  enforceable  against it in
accordance  with its terms  except as the  enforceability  thereof  may be limited  by  bankruptcy,  insolvency  or
reorganization or other similar laws in relation to the rights of creditors generally;

                  (iii)    the execution and delivery of this  Agreement by the Seller and the  performance  of and
compliance with the terms of this Agreement will not violate the Seller's  certificate of  incorporation or by-laws
or constitute a material  default under or result in a material breach or acceleration  of, any material  contract,
agreement  or other  instrument  to which the  Seller is a party or which may be  applicable  to the  Seller or its
assets;

                  (iv)     the Seller is not in violation of, and the  execution and delivery of this  Agreement by
the Seller and its  performance  and  compliance  with the terms of this  Agreement will not constitute a violation
with respect to, any order or decree of any court or any order or  regulation of any federal,  state,  municipal or
governmental  agency having  jurisdiction  over the Seller or its assets,  which violation might have  consequences
that would  materially and adversely  affect the condition  (financial or otherwise) or the operation of the Seller
or its  assets or might have  consequences  that would  materially  and  adversely  affect the  performance  of its
obligations and duties hereunder;

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

                  (vi)     the Seller has good,  marketable and indefeasible  title to the Mortgage Loans, free and
clear of any and all liens, pledges, charges or security interests of any nature encumbering the Mortgage Loans;

                  (vii)    the Mortgage  Loans are not being  transferred  by the Seller with any intent to hinder,
delay or defraud any creditors of the Seller;

                  (viii)   there are no actions  or  proceedings  against,  or  investigations  known to it of, the
Seller  before any  court,  administrative  or other  tribunal  (A) that  might  prohibit  its  entering  into this
Agreement,  (B)  seeking  to  prevent  the sale of the  Mortgage  Loans  or the  consummation  of the  transactions
contemplated  by this Agreement or (C) that might prohibit or materially  and adversely  affect the  performance by
the Seller of its obligations under, or validity or enforceability of, this Agreement;

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

                  (x)      the  consummation  of  the  transactions  contemplated  by  this  Agreement  are  in the
ordinary  course of business of the Seller,  and the transfer,  assignment and conveyance of the Mortgage Notes and
the  Mortgages  by the Seller  pursuant  to this  Agreement  are not  subject to the bulk  transfer  or any similar
statutory provisions.

         Section 3.03.     Remedies for Breach of  Representations  and  Warranties.  It is  understood  and agreed
that (i) the  representations  and  warranties set forth in Sections 3.01 and 3.02 and the provisions of Article V,
shall  survive  the  purchase  of the  Mortgage  Loans,  the  Contractual  Rights and the TMFI  Contractual  Rights
hereunder  (and in the case of Section  3.01,  shall  survive  delivery  of the  respective  Mortgage  Files to the
Indenture  Trustee on behalf of the  Purchaser)  and shall inure to the benefit of the  Purchaser  and its assigns,
notwithstanding  any restrictive or qualified  endorsement on any Mortgage Note or Assignment or the examination or
lack of  examination  of any  Mortgage  File and (ii) the  remedies  for the  breach  of such  representations  and
warranties  and for the failure to deliver the  documents  referred to in Section 2.02 hereof shall be as set forth
in Section 2.04 of the Sale and Servicing Agreement.

                                                    ARTICLE IV.

                                                SELLER'S COVENANTS

         Section 4.01.     Covenants  of the Seller.  The Seller  hereby  covenants  that,  except for the transfer
hereunder,  it will not sell, pledge,  assign or transfer to any other Person, or grant,  create,  incur, assume or
suffer to exist any Lien on any Mortgage Loan, or any interest  therein;  it will notify the Issuer, as assignee of
the Purchaser  and the Indenture  Trustee as an assignee of the Issuer of the existence of any Lien on any Mortgage
Loan  immediately  upon discovery  thereof;  and it will defend the right,  title and interest of the Purchaser and
its assigns,  in, to and under the Mortgage Loans,  against all claims of third parties  claiming  through or under
the Seller;  provided,  however,  that  nothing in this  Section  4.01 shall  prevent or be deemed to prohibit  the
Seller from  suffering  to exist upon any of the  Mortgage  Loans any Liens for  municipal or other local taxes and
other  governmental  charges if such taxes or  governmental  charges shall not at the time be due and payable or if
the Seller shall  currently be contesting the validity  thereof in good faith by appropriate  proceedings and shall
have set aside on its books adequate reserves with respect thereto.

                                                    ARTICLE V.

                                                  INDEMNIFICATION

         Section 5.01.     Indemnification.  The  Seller  agrees to  indemnify  and to hold each of the  Purchaser,
the Trust and the  Indenture  Trustee,  each of the officers  and  directors of each such entity and each person or
entity who controls  each such entity or person  harmless  against any and all claims,  losses,  penalties,  fines,
forfeitures,  legal fees and related costs,  judgments,  and any other costs, fees and expenses that the Purchaser,
the Trust,  the  Indenture  Trustee,  or any such person or entity may sustain in any way related to the failure of
the Seller to perform its duties in  compliance  with the terms of this  Agreement.  The Seller  shall  immediately
notify the  Purchaser,  the Trust and the  Indenture  Trustee if a claim is made under this  provision.  The Seller
shall  assume the defense of any such claim and pay all  expenses in  connection  therewith,  including  reasonable
counsel  fees,  and promptly  pay,  discharge  and satisfy any judgment or decree which may be entered  against the
Purchaser, the Trust, the Indenture Trustee or any such person or entity in respect of such claim.

                                                    ARTICLE VI.

                                                    TERMINATION

         Section 6.01.     Termination.  The  respective  obligations  and  responsibilities  of the Seller and the
Purchaser  created hereby shall  terminate,  except for the respective  indemnity  obligations as provided  herein,
upon the termination of the Sale and Servicing Agreement as provided in Article X thereof.

                                                   ARTICLE VII.

                                             MISCELLANEOUS PROVISIONS

         Section 7.01.     Amendment.  This  Agreement  may be  amended  from  time to time by the  Seller  and the
Purchaser by written agreement signed by the parties hereto.

         Section 7.02.     Governing  Law. This  Agreement  shall be governed by and  construed in accordance  with
the laws of the State of New York,  without  reference to its conflict of law provisions (other than Section 5-1401
of the General  Obligations  Law),  and the  obligations,  rights and  remedies of the parties  hereunder  shall be
determined in accordance with such laws.

         Section 7.03.     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:

                  if to the Seller:

                  Thornburg Mortgage Funding, Inc.
                  150 Washington Avenue, Suite 302
                  Santa Fe, New Mexico  87501
                  Attention:  Deborah Burns

or such other  address as may  hereafter be furnished to the  Purchaser,  the Issuer and the  Indenture  Trustee in
writing by the Seller.

                  if to the Purchaser:

                  Structured Asset Mortgage Investments II Inc.
                  383 Madison Avenue
                  New York, New York  10179
                  Attention:  Baron Silverstein (Thornburg 2007-3)

or such other  address as may  hereafter  be  furnished  to the  Seller,  the Issuer and the  Indenture  Trustee in
writing by the Purchaser.

                  if to the Issuer:

                  Thornburg Mortgage Securities Trust 2007-3
                  c/o Wilmington Trust Company
                  1100 North Market Street
                  Wilmington, Delaware  19801
                  Attention:  Corporate Trust Administrator (Thornburg 2007-3)

or such other  address as may  hereafter be furnished to the  Purchaser,  the  Indenture  Trustee and the Seller in
writing by the Issuer.

                  If to the Indenture Trustee:

                  135 South LaSalle Street, Suite 1511
                  Chicago, Illinois  60603
                  Attention:  Global Securities and Trust Services (Thornburg 2007-3)

or such other address as may  hereafter be furnished to the Seller,  the Issuer and the Purchaser in writing by the
Indenture Trustee.

         Section 7.04.     Severability  of  Provisions.  If  any  one  or  more  of  the  covenants,   agreements,
provisions  or terms of this  Agreement  shall be held  invalid  for any reason  whatsoever,  then such  covenants,
agreements,  provisions or terms shall be deemed severable from the remaining covenants, agreements,  provisions or
terms of this Agreement and shall in no way affect the validity of  enforceability  of the other provisions of this
Agreement.

         Section 7.05.     Counterparts.  This  Agreement  may be executed in one or more  counterparts  and by the
different  parties hereto on separate  counterparts,  which may be transmitted by telecopier 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 7.06.     Further  Agreements.  Each party hereto  agrees to execute and deliver to the other such
additional  documents,  instruments or agreements as may be necessary or reasonable  and  appropriate to effectuate
the purposes of this Agreement or in connection with the issuance of the Notes under the Indenture.

                  Without  limiting the generality of the foregoing,  as a further  inducement for the Purchaser to
purchase the Mortgage Loans from the Seller,  the Seller will  cooperate with the Purchaser in connection  with the
sale of the Notes.  In that  connection,  the Seller will  provide to the  Purchaser  any and all  information  and
appropriate  verification of information,  whether through letters of its auditors and counsel or otherwise, as the
Purchaser  shall  reasonably  request  and will  provide  to the  Purchaser  such  additional  representations  and
warranties,  covenants,  opinions of counsel,  letters  from  auditors,  and  certificates  of public  officials or
officers of the Seller as are reasonably required in connection with the offering of the Notes.

         Section 7.07.     Intention of the  Parties.  It is the  intention  of the parties  that the  Purchaser is
purchasing,  and the Seller is selling,  the Mortgage  Loans rather than pledging  such Mortgage  Loans to secure a
loan by the Purchaser to the Seller.  Accordingly,  the parties  hereto each intend to treat the  transaction  as a
sale by the Seller,  and a purchase by the Purchaser,  of the Mortgage Loans.  The Purchaser will have the right to
review the Mortgage  Loans and the related  Mortgage Files 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 7.08.     Successors and Assigns:  Assignment of Purchase  Agreement.  This  Agreement  shall bind
and inure to the benefit of and be enforceable by the Seller and the Purchaser and their  respective  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;  provided,  however,  that the
Purchaser  acknowledges  and agrees that the Seller may assign its  obligations  hereunder to any Person into which
the Seller is merged or any  corporation  resulting  from any  merger,  conversion  or  consolidation  to which the
Seller is a party or any Person  succeeding  to the business of the Seller.  The parties  hereto  acknowledge  that
the Purchaser is acquiring the Mortgage  Loans,  the  Contractual  Rights and the TMFI  Contractual  Rights for the
purpose of selling  and  assigning  them to the Issuer  which will  pledge  them to the  Indenture  Trustee.  As an
inducement  to the  Purchaser  to  purchase  the  Mortgage  Loans,  the Seller  acknowledges  and  consents  to the
assignment by the Purchaser to the Issuer of the TMFI  Contractual  Rights which may be enforced or exercised  with
the same force and effect as if they had been enforced or exercised by the Purchaser directly.

         IN WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be signed to this SAMI II
Mortgage Loan Purchase Agreement by their respective officers thereunto duly authorized as of the day and year
first above written.

                                                 STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., AS PURCHASER

                                                 By:           /S/ Baron Silverstein                      
                                                       Name:  Baron Silverstein
                                                       Title:    Vice President

                                                 THORNBURG MORTGAGE FUNDING, INC.,
                                                          as Seller

                                                 By:          /S/ Nathan Fellers                          
                                                      Name:  Nathan Fellers
                                                      Title:    Senior Vice President

STATE OF NEW YORK                           )
                                            )ss.:
COUNTY OF  NEW YORK                         )

         ON THE _31_ DAY OF _JULY__,  2007 BEFORE ME, A NOTARY  PUBLIC IN AND FOR SAID STATE,  PERSONALLY  APPEARED
__BARON SILVERSTEIN____,  KNOWN TO ME TO BE A __VICE PRESIDENT___ OF STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.,
THE  CORPORATION  THAT  EXECUTED  THE WITHIN  INSTRUMENT,  AND ALSO KNOWN TO ME TO BE THE PERSON WHO EXECUTED IT ON
BEHALF OF SAID CORPORATION, AND ACKNOWLEDGED TO ME THAT SUCH CORPORATION EXECUTED THE WITHIN INSTRUMENT.

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

__/S/ Michelle Sterling___
Notary Public

My Commission Expires on __Nov. 19, 2009___

Michelle Sterling
Notary Public, State of New York
No. 02ST6066612
Qualified in Westchester County
Commission Expires: November 19, 2009

STATE OF NEW MEXICO                         )
                                            )ss.:
COUNTY OF  SANTA FE                         )

         On the _31_ day of _July___,  2007 before me, a notary public in and for said State,  personally  appeared
Nathan  Fellers,  known to me to be a Senior  Vice  President  of  THORNBURG  MORTGAGE  FUNDING,  INC.,  a Delaware
corporation  that executed the within  instrument,  and also known to me to be the person who executed it on behalf
of said corporation, and acknowledged to me that such corporation executed the within instrument.

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

__/S/ Jane C. Yates___
Notary Public

My Commission Expires on __Nov. 20, 2010___

Official Seal
Jane C. Yates
Notary Public
State of New Mexico
My Commission Expires: Nov. 20, 2010

                                                                                                         SCHEDULE I

                                              MORTGAGE LOAN SCHEDULE

                               [See Schedule I of the Sale and Servicing Agreement]

                                                                                                        SCHEDULE II

                                    LIST OF SERVICING AGREEMENTS (TMST 2007-3)

     1.  a)  Servicing  Agreement,  dated  as  of  March  1,  2002,  among  Thornburg  Mortgage  Home  Loans,  Inc.
         ("Thornburg"),  as seller and servicer and Wells Fargo Bank N.A. ("Wells Fargo"),  as master servicer,  as
         amended by the  Amendment  to  Servicing  Agreement,  dated as of December 1, 2002,  and as amended by the
         Second  Amendment  to  Servicing  Agreement,  dated  as of  January  1,  2006,  and (b)  the  Subservicing
         Acknowledgement  Agreement,  dated as of March 1, 2002, between Thornburg, as servicer, and Cenlar FSB, as
         sub-servicer ("Cenlar"), as amended by the Amendment to Subservicing  Acknowledgement  Agreement, dated as
         of December 1, 2002, and by the Second Amendment to Subservicing  Acknowledgement  Agreement,  dated as of
         January 1, 2006,  including the related Transfer Notice,  dated July 27, 2007, from Thornburg,  as seller,
         to Thornburg,  as initial seller,  and Thornburg Mortgage Funding,  Inc., as Seller ("TMFI"),  and Cenlar,
         as sub-servicer.

     2.  Amended  and  Restated  Correspondent  Loan  Purchase  Agreement,  dated as of  March  25,  2002,  between
         Thornburg Mortgage Home Loans, Inc.  ("Thornburg") and First Republic Bank ("First  Republic"),  including
         the related Transfer Notice, dated July 27, 2007, from Thornburg to First Republic.

     3.  Amended  and  Restated  Correspondent  Loan  Purchase  Agreement,  dated as of  March  27,  2002,  between
         Thornburg Mortgage Home Loans, Inc. ("Thornburg") and Colonial Savings, F.A.  ("Colonial"),  including the
         related Transfer Notice, dated July 27, 2007, from Thornburg to Colonial.

     4.  Correspondent  Loan Purchase  Agreement,  dated as of January 31, 2006,  between  Thornburg  Mortgage Home
         Loans,  Inc.  ("Thornburg")  and Mellon  Trust of New  England,  N.A.  ("Mellon"),  including  the related
         Transfer Notice, dated July 27, 2007, from Thornburg to Mellon.

     5.  Correspondent Loan Purchase  Agreement,  dated as of April 6, 2006, between Thornburg Mortgage Home Loans,
         Inc.  ("Thornburg") and First Horizon Home Loan Corp.  ("First  Horizon"),  including the related Transfer
         Notice, dated July 27, 2007, from Thornburg to First Horizon.

     6.  Reconstituted  Servicing Agreement,  dated as of July 1, 2007, by and among Thornburg,  TMFI,  Countrywide
         Home Loans Servicing LP ("Countrywide"),  as servicer, LaSalle Bank National Association,  as trustee, and
         acknowledged  by Wells Fargo Bank,  N.A., as master  servicer,  relating to the Mortgage Loan Purchase and
         Servicing  Agreement  dated as of  September  1, 2005 as amended by the  Amendment  Number Two dated as of
         June 19, 2006 by and between  Thornburg  and  Countrywide  and by the Amendment Reg AB dated as of July 1,
         2006 by and between Thornburg and Countrywide.

     7.  Reconstituted  Servicing Agreement,  dated as of July 1, 2007, by and among Thornburg,  TMFI, Countrywide,
         as servicer,  LaSalle Bank National  Association,  as trustee, and acknowledged by Wells Fargo Bank, N.A.,
         as master servicer,  relating to the Mortgage Loan Purchase and Servicing  Agreement between Thornburg and
         Countrywide  as seller,  dated as of April 25, 2002,  as amended by the  Amendment Reg AB dated as of July
         1, 2006, by and between Thornburg and Countrywide.

     8.  Reconstituted  Servicing Agreement dated as of July 1, 2007, by and among Thornburg,  TMFI, Morgan Stanley
         Credit  Corporation  ("Morgan  Stanley"),  as servicer,  Thornburg  Mortgage  Securities Trust 2007-3, and
         acknowledged by Wells Fargo Bank,  N.A., as master servicer,  relating to the Master  Servicing  Agreement
         between  Thornburg and Morgan  Stanley,  as servicer,  dated as of May 1, 2001, as amended by that certain
         Amendment to Master Servicing  Agreement dated as of January 1, 2003, by and between  Thornburg and Morgan
         Stanley, and by the Amendment Reg AB dated as of November 1, 2006 between Thornburg and Morgan Stanley.

     9.  Reconstituted  Servicing  Agreement dated as of July 1, 2007, by and among  Thornburg,  TMFI,  Wells Fargo
         Bank,  N.A., as servicer,  and Thornburg  Mortgage  Securities Trust 2007-3 (the "Trust") and acknowledged
         by Wells Fargo Bank,  N.A., as master servicer,  relating to the Master Seller's  Warranties and Servicing
         Agreement  between  Lehman  Brothers  Bank,  FSB  ("Lehman")  and Wells Fargo dated as of May 1, 2006,  as
         amended by Amendment No. 1 to the Master  Seller's  Warranties and Servicing  Agreement dated as of August
         1, 2006, as modified by that certain Assignment,  Assumption and Recognition  Agreement dated as of August
         25, 2006.

                                                   SCHEDULE III

                                           SELLER'S REPRESENTATIONS AND
                                              WARRANTIES RELATING TO
                                                  MORTGAGE LOANS

         The Seller  hereby  represents  and  warrants to, and  covenants  with,  the  Purchaser  that,  as to each
Mortgage Loan, as of the Closing Date:

(i)               The Mortgage  Loan is not a loan (A) 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,  or any  comparable  state law (B) a
                  "High Cost Loan" or  "Covered  Loan" as  applicable,  as such  terms are  defined in the  current
                  Standard  &  Poor's  LEVELS® GLOSSARY  classified  and/or  defined  as a  "high  cost"  loan  or
                  "predatory,"  "high cost,"  "threshold"  or "covered"  lending under any other state,  federal or
                  local  law.  The  Mortgage  Loan at the  time it was  made  otherwise  complied  in all  material
                  respects with any and all  requirements  of any federal,  state or local law  including,  but not
                  limited  to, all  predatory  lending  laws,  usury,  truth in  lending,  real  estate  settlement
                  procedures  (including the Real Estate Settlement  Procedures Act of 1974, as amended),  consumer
                  credit protection, equal credit opportunity or disclosure laws applicable to such Mortgage Loan.

(ii)              (a) The information  set forth in the final Mortgage Loan Schedule is complete,  true and correct
                  in all material  respects and (b) the Mortgage  Note or an affidavit of lost note with respect to
                  each Mortgage Loan has been delivered to the Indenture Trustee or its designee.

(iii)             The Seller has acquired its ownership of each  Mortgage Loan in good faith without  notice of any
                  adverse  claim,  and as of the Closing Date,  the Mortgage Note and the Mortgage are not assigned
                  or pledged,  and immediately prior to the sale of the Mortgage Loan to the Purchaser,  the Seller
                  was the sole owner  thereof and with full right to  transfer  and sell the  Mortgage  Loan to the
                  Purchaser free and clear of any encumbrance,  equity,  lien,  pledge,  charge,  claim or security
                  interest  and with full  right and  authority  subject to no  interest  or  participation  of, or
                  agreement  with,  any other  party,  to sell and  assign  each  Mortgage  Loan  pursuant  to this
                  Agreement.

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