Document:

EXHIBIT 10.1

                             C O N F I D E N T I A L

                              TRANSACTION DOCUMENT
                (All Cash Reverse Triangular Merger Transaction)

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                                MERGER AGREEMENT

                                      AMONG

                           BOK FINANCIAL CORPORATION,

                      BOKF MERGER CORPORATION NUMBER EIGHT,

                          VALLEY COMMERCE BANCORP LTD.

                                       AND

                              VALLEY COMMERCE BANK

                                     * * * *

                       Agreement Date of December 20, 2004

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                            INDEX TO MERGER AGREEMENT
                 Section                                                 Page
                 -------                                                 ----
1.    Purpose of this Merger Agreement.....................................1
2.    The Merger...........................................................2
3.    Effect of the Merger.................................................4
4.    Representations and Warranties of VCB ...............................5
5.    Representations and Warranties of BOKF and Merger Corp..............18
6.    Covenants...........................................................21
7.    Conditions Precedent to Closing by BOKF and Merger Corp.............35
8.    Conditions Precedent to Closing by VCB and Bank ....................38
9.    Closing.............................................................39
10.   Exchange Procedures; Surrender of Certificates; Paying Agent........43
11.   Escrow..............................................................46
12.   Shareholder Representative..........................................48
13.   ESI Escrow..........................................................51
14.   Termination.........................................................55
15.   Miscellaneous Provisions............................................58

           Exhibit Caption                                      Exhibit Number
           ---------------                                      --------------
Options and Rights                                                     4.3
Agreements                                                             4.4
Agreements                                                             4.6
Conduct of Business Exceptions                                         4.7
Material Contracts and Commitments                                     4.9
Exception to Performance Representation                                4.9.2
Litigation                                                             4.10
Employee Contracts and Benefit Plans                                   4.15
Regulatory Commitment                                                  4.20
Employee Payments, Agreements and Benefits                             6.3.7
Form of Agreement to Vote Shares                                       6.4
VCB Opinion of Counsel                                                 7.6
BOKF Opinion of Counsel                                                8.3
Employment Agreements and Claims                                       9.1.8
Form of Representation Escrow Agreement                                11
Form of ESI Escrow Agreement                                           13

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                                MERGER AGREEMENT

     This merger  agreement  ("Merger  Agreement" or  "Agreement") is made as of
December  20, 2004 (the  "Agreement  Date")  among the  following  parties  (the
"Parties"): (i) BOK Financial Corporation, an Oklahoma corporation, ("BOKF");

     (ii) BOKF Merger  Corporation  Number Eight, an Oklahoma  corporation and a
     wholly-owned subsidiary of BOKF ("Merger Corp");

     (iii) Valley Commerce Bank ("Bank"); and

     (iv) Valley Commerce Bancorp, Inc., a Delaware corporation ("VCB").

        In consideration of the mutual covenants contained herein, the adequacy
of which is hereby expressly acknowledged, and intending to be legally bound
hereby, the Parties hereby agree as follows:

1. Purpose of this Merger Agreement.  The purpose of this Merger Agreement is as
follows:

     1.1. VCB is a bank  holding  company  organized  under the laws of Delaware
     with  offices  in  Phoenix  and  Scottsdale,  Arizona.  VCB is  subject  to
     regulation by the Board of Governors of the Federal Reserve System ("FRB").
     VCB  owns  all  of  the  issued  and  outstanding  capital  stock  of  Bank
     (headquartered  in Phoenix,  Arizona).  The issued and outstanding  capital
     stock of VCB  consists  solely  of a single  class of  2,000,000  shares of
     common  stock of a par value of $0.01 per share of which  1,519,805  shares
     are issued and  outstanding at the Agreement  Date. The common stock of VCB
     issued  and  outstanding  as of the  Closing is  hereafter  called the "VCB
     Common Stock".

     1.2. Valley  Commerce  Capital Trust I (the "Trust") is a subsidiary of VCB
     which was formed for the sole purpose of issuing trust preferred securities
     (the "Trust Preferred Securities").  The Trust Preferred Securities consist
     solely of $5,000,000  floating rate (3 month LIBOR + 2.8%) Cumulative Trust
     Preferred Securities.
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     1.3. Bank is a bank  organized in accordance  with the laws of the State of
     Arizona and subject to regulation by the Arizona State Banking  Department.
     The issued  and  outstanding  capital  stock of Bank  consists  solely of a
     single class of twenty  million  (20,000,000)  of no par value common stock
     ("Bank Common Stock").

     1.4. BOKF is a bank holding  company  organized under the laws of the State
     of Oklahoma. BOKF is subject to regulation by the FRB. BOKF owns all of the
     capital  stock  of  Merger  Corp.  Merger  Corp is a bank  holding  company
     organized  under the laws of the State of Oklahoma.  Merger Corp is subject
     to  regulation  by the FRB.  The issued and  outstanding  capital  stock of
     Merger Corp consists  solely of 1,000 shares of common stock,  par value of
     $1.00 per share, of which 1,000 shares are issued and outstanding.

     1.5.  The  purpose of this Merger  Agreement  is to set forth the terms and
     conditions on which VCB and Merger Corp shall merge.  This Merger Agreement
     shall  constitute  a plan of merger  for  corporate  law  purposes  and for
     federal  income tax purposes  under  Section  368(a)(2)(E)  of the Internal
     Revenue Code.

2. The Merger. On the terms and conditions  hereafter stated,  Merger Corp shall
be merged into VCB (the "Merger").

     2.1. VCB shall be the surviving corporation ("Surviving Corporation").

     2.2. The Articles of  Incorporation of Merger Corp shall be the Articles of
     Incorporation  of the  Surviving  Corporation  until changed as provided by
     law.

     2.3.  The  Bylaws  of Merger  Corp  shall be the  Bylaws  of the  Surviving
     Corporation until changed as provided by law.

     2.4.  The  officers of Merger Corp shall be the  officers of the  Surviving
     Corporation, until changed as provided by law.

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     2.5. The  directors of Merger Corp shall be the  directors of the Surviving
     Corporation until changed as provided by law.

     2.6. The Merger shall be effective at the Closing (as hereafter provided in
     Section 9).

     2.7. Each share of issued and outstanding  VCB Common Stock shall,  subject
     to  appraisal  rights  pursuant  to  Section  262 of the  Delaware  General
     Corporation  Law,  automatically  and without any action on the part of the
     holder thereof, be cancelled and converted solely into the right to receive
     the following (the "Merger Consideration"):

          2.7.1. At Closing, Twenty and 07/100ths dollars ($20.07) (the "Closing
          Payment"); and,

          2.7.2.  At the first  anniversary of the Closing,  Thirty-three  cents
          ($0.33),  which BOKF shall  deposit or cause to be  deposited  into an
          interest  bearing  account  with Bank of  America,  Phoenix,  Arizona,
          Private   Banking  Dept.   (the  "Escrow  Agent")  at  Closing  to  be
          distributed  in  accordance  with the  provisions  of  Section 11 (the
          "Representation Escrow Funds").

          2.7.3.  On the third  anniversary  of the Closing,  Thirty-four  cents
          ($0.34),  which BOKF shall  deposit or cause to be  deposited  into an
          interest-bearing  account  with  the  Escrow  Agent at  Closing  to be
          distributed in accordance  with the provisions of Section 13 (the "ESI
          Escrow Funds").

     2.8. At the Closing,  each  outstanding  option to acquire VCB Common Stock
     (each a "Stock  Option"  and  collectively  the "Stock  Options")  shall be
     automatically  converted  into the right to receive,  in lieu of a share of
     VCB  Common  Stock,  the  Merger  Consideration,  less the  purchase  price
     specified in Stock Option as provided in Section 10.6.

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     2.9.  Notwithstanding  the  provisions  of Section  2.7, all holders of VCB
     Common Stock  perfecting  their appraisal rights pursuant to Section 262 of
     the Delaware General Corporation Law shall have only those rights set forth
     therein.

     2.10.  Each share of common stock of Merger Corp shall,  automatically  and
     without any action on the part of the holder thereof, be converted into one
     share of fully paid and non-assessable share of VCB Common Stock.

3. Effect of the Merger. The Merger shall have the following effects:

     3.1. The corporate  franchise,  existence,  rights and  liabilities  of VCB
     shall continue unaffected and unimpaired.

     3.2. The corporate franchise,  existence,  rights and liabilities of Merger
     Corp shall be merged  into VCB and the  separate  existence  of Merger Corp
     shall cease.

     3.3. VCB shall have and be vested with all of the rights,  powers,  assets,
     property, liabilities and obligations of Merger Corp.

4.  Representations and Warranties of VCB. VCB hereby represents and warrants to
BOKF that:

     4.1.   Incorporation  and  Corporate  Power.  VCB  is  a  corporation  duly
     organized,  validly  existing  and in good  standing  under the laws of the
     State of Delaware.  Bank is a bank duly organized,  validly existing and in
     good standing under the laws of the State of Arizona.  Each of VCB and Bank
     has all the corporate power and authority necessary and required to own its
     properties  and to  conduct  its  business  as such  business  is now being
     conducted.  Each of VCB and Bank  (A) is in  material  compliance  with all
     applicable provisions of all applicable federal,  state and local statutes,
     laws,  regulations,  ordinances and other  requirements of any governmental
     authorities (including,  but not limited to, whether similar or dissimilar,
     the Bank Holding Company Act of 1956, the Delaware General Corporation Act,
     the Arizona  Revised  Statutes  Section 6-101 et seq (the "Arizona  Banking
     Code") and the filing of all administrative  reports and the payment of all
     fees) in effect as of the date of this Merger  Agreement,  and (B) shall be
     in material compliance  therewith at the time of Closing. The Trust is duly
     organized and validly existing in accordance with all requirements of law.

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     4.2. Capital.

          4.2.1.  The  VCB  Common  Stock  will,  at  Closing,  consist  only of
          1,519,805  shares  plus only such  shares as shall be duly issued upon
          the exercise of the Stock Options.

          4.2.2.  VCB owns all of the issued and outstanding  Bank Common Stock.
          The Bank Common  Stock is and at the Closing will be all of the issued
          and outstanding capital stock of Bank.

     4.3.  Capitalization  of VCB and Bank. The VCB Common Stock and Bank Common
     Stock are validly issued and outstanding, fully paid and non-assessable.

          4.3.1.  Except as set forth in Exhibit 4.3,  there are no  outstanding
          subscriptions,  conversion  privileges,  calls,  warrants,  options or
          agreements obligating VCB and/or Bank to issue, sell or dispose of, or
          to purchase,  redeem or otherwise  acquire any shares of their capital
          stock (collectively, "options and rights"). At the Closing, there will
          be no outstanding options and rights except the Stock Options.

          4.3.2.  The Stock Options consist of the right to acquire no more than
          53, 810.7 shares of VCB Common Stock.

          4.3.3.  None of the VCB Common  Stock and Bank  Common  Stock has been
          issued or disposed  of, or will as of the Closing  have been issued or
          disposed of, in violation of any preemptive  rights of any shareholder
          nor in  violation  of any  agreement  to which VCB or Bank was or is a
          party.  VCB and Bank have no subsidiaries and do not own, nor have the
          right  or  obligation  to  acquire,   any  equity  securities  of  any
          corporation,  limited  liability  company,  partnership or other legal
          entity except (i) Bank is a subsidiary of VCB and (ii) the Trust.

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     4.4.  Non-Violation of Other Agreements.  Except with respect to any notice
     or consent  requirements  in the  agreements  set forth in Exhibit 4.4, the
     execution and delivery of this Merger  Agreement,  and the compliance  with
     its terms and  provisions  by VCB and Bank  (including  the  execution  and
     delivery of any  document  required to be executed by VCB or Bank) will not
     breach any material  agreement,  lease,  or obligation,  whether similar or
     dissimilar, by which VCB, Bank, or the Trust is bound.

     4.5.  Financial  Statements.  VCB has  delivered  to  BOKF,  or  will  have
     delivered  to  BOKF  prior  to the  Closing  as soon  as  future  financial
     statements are available, copies of the following ("Financial Statements"):

          4.5.1.   Consolidated  Financial  Statements  (Audited)  for  VCB  and
          Subsidiaries,  December  31,  2001,  2002 and 2003;

          4.5.2.  Financial Statements  (Unaudited) for Bank, December 31, 2001,
          2002, and 2003;

          4.5.3. Financial Statements (Unaudited) for VCB and Subsidiaries, June
          30, 2004 and the most recent monthly financial statements available as
          of the Closing; and,

          4.5.4.  Financial  Statements  (Unaudited) for Bank, June 30, 2004 and
          the most recent  monthly  financial  statements as are available as of
          the Closing.  The Financial Statements described in Sections 4.5.1 and
          4.5.2, (a) have been prepared or will have been prepared in accordance
          with generally accepted accounting  principles,  consistently  applied
          and  (b)  fairly  reflect  the  financial  condition  and  results  of
          operations  for  the  indicated  periods.   The  Financial  Statements
          described in Sections 4.5.3 and 4.5.4,  (a) have been prepared or will
          have been prepared in accordance  with generally  accepted  accounting
          principles,  consistently applied and (b) fairly reflect the financial
          condition and results of operations for the indicated periods, subject
          to normal year-end adjustments and omission of footnotes.

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     4.6. Material Liabilities.  Except as set forth in Exhibit 4.6, neither VCB
     nor  Bank has any  liabilities  (including,  but not  limited  to,  whether
     similar or dissimilar, liabilities or obligations for taxes, whether due or
     to become due) that may reasonably involve annual expenditures in excess of
     $25,000 except:

          4.6.1.  Those  fully  reflected  or  reserved  against,  or  otherwise
          disclosed, in the Financial Statements;

          4.6.2.  Those incurred  since June 30, 2004 in the ordinary  course of
          business consistent with past practices;

          4.6.3. Those under the BOKF Employment Agreements; and,

          4.6.4.  Those  specifically  disclosed  in the Exhibits to this Merger
          Agreement.

     4.7.  Conduct of Business Prior to Closing.  Except as set forth in Exhibit
     4.7,  since  December 31, 2003, (A) each of VCB and Bank has carried on its
     business only in the ordinary course  consistent  with past practices,  and
     (B) has not:

          4.7.1. Incurred any material liabilities,  commitments or obligations,
          contingent  or otherwise,  or dispose of any of its assets,  except in
          the ordinary course of its business consistent with past practices and
          for the purpose of carrying on the  business as a going  concern  (for
          the  purpose  of  this  Section  4.7.1,  material  means  that  it may
          reasonably involve annual expenditures of $25,000 or more);

          4.7.2.  Incurred any bank or other  institutional  debt, or enter into
          any agreement for the borrowing of money,  except borrowing of federal
          funds or borrowing from the Federal Home Loan Bank by Bank  consistent
          with past practices;

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          4.7.3.   Suffered  any  material   adverse  change  in  the  financial
          conditions, assets, liabilities,  business or property of VCB taken as
          a whole or of Bank taken as a whole; and/or

          4.7.4.  Made any  material  change in the manner in which  business is
          conducted  (including,  without limitation,  branch relations,  branch
          closings, and any material change in products offered to customers).

          4.7.5. From the date of this Agreement to the date of Closing, VCB and
          Bank will not  voluntarily  take any of the actions  described  in the
          foregoing provisions of Section 4.7.

     4.8. Tax Returns/Reports.

          4.8.1. Each of VCB and Bank has duly filed all tax reports and returns
          required  to be filed by it and has duly  paid  all  taxes  and  other
          charges  claimed to be due from it by federal,  state and local taxing
          authorities.

          4.8.2.  No waivers of the statute of limitation  have been issued with
          respect to unaudited years.

          4.8.3.  VCB and  Bank  have no  knowledge  of any  facts  which  could
          reasonably be expected to result in a material deficiency with respect
          to  unaudited  tax returns  which would  result in a material  adverse
          effect on VCB taken as a whole or Bank taken as a whole.

     4.9. Contracts and Commitments.

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          4.9.1. A list of all contracts and commitments,  other than credit and
          lending,  deposit  or  borrowing  transactions  entered  into  in  the
          ordinary  course of business by VCB or Bank which are  material to the
          business,  operations or financial condition of VCB or Bank as of this
          date,  is set forth on Exhibit  4.9.  For the purpose of Exhibit  4.9,
          materiality  shall mean those contracts and  commitments  (including a
          series of related contracts or commitments) for which payment or other
          consideration to be furnished by any party is more than $25,000 a year
          or $100,000 over the remaining life of the contract.

          4.9.2.  Except as set forth on Exhibit 4.9.2, each of VCB and Bank has
          in all material  respects  performed and is performing all contractual
          and other obligations required to be performed by them.

     4.10. Litigation. Except as set forth in Exhibit 4.10, there is no pending,
     or, to the  knowledge of VCB and Bank  threatened,  any claim,  litigation,
     proceeding,  order of any court or  governmental  agency,  or  governmental
     investigation  or inquiry to which VCB or Bank is a party or which involves
     their business operations,  any of their property or any property leased by
     them which, individually or in the aggregate:

          4.10.1.  May reasonably  result in any material  adverse change in the
          financial  condition,   business,  prospects,  assets,  properties  or
          operations of VCB taken as a whole or Bank taken as a whole; or,

          4.10.2. May reasonably involve the expenditure of more than a total of
          $37,500 in legal fees or costs;

     4.11.  Brokerage Fees.  Except with regard to Sandler O'Neill and Partners,
     neither VCB nor Bank has  incurred or will incur,  directly or  indirectly,
     any liability for brokerage,  finder's, financial advisor's or agent's fees
     or  commissions  by  virtue  of any  commitment  made  by any  of  them  in
     connection  with this  Merger  Agreement  or any  transaction  contemplated
     hereby.

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     4.12.  Required Corporate Action. The execution,  delivery and consummation
     of this Merger Agreement has been duly and validly  authorized by the board
     of  directors  of VCB and will at the time of  Closing  have  been duly and
     validly  authorized  by the  board of  directors  of Bank and,  subject  to
     consummation of the Closing, the shareholders of VCB and Bank in accordance
     with the  requirements  of the  Arizona  Bank Code,  the  Delaware  General
     Corporation Law, and all other applicable law.

     4.13.  Authorized  Execution.  This Merger Agreement has been duly executed
     and  delivered  by duly  authorized  officers of VCB and Bank.  This Merger
     Agreement constitutes the legal, valid and binding agreement and obligation
     of VCB and Bank,  enforceable  against each of them in accordance  with its
     terms,  except as may be  limited  by  applicable  bankruptcy,  insolvency,
     moratorium,  receivership,  and other similar laws  affecting the rights of
     creditors generally.

     4.14. Title to Assets; Encumbrances. VCB and Bank have good and valid title
     (with respect to real estate, good and valid title shall mean such title as
     may be  insured  on  standard  title  insurance  forms  with no  exceptions
     materially and adversely affecting the value or use of the fee real estate)
     to their  assets,  and in each case subject to no mortgage,  pledge,  lien,
     security interest,  conditional sale agreement, or other encumbrance of any
     nature whether similar or dissimilar, except:

          4.14.1.  Such encumbrances which are purchase money security interests
          entered into in the ordinary  course of business  consistent with past
          practice reflected on their books and records;

          4.14.2.  Lessors'  interests  in  leased  tangible  real and  personal
          property reflected on their books and records;

          4.14.3.  Such  encumbrances  for taxes and assessments not yet due and
          payable;

          4.14.4.  Encumbrances  as do not materially  detract from the value or
          interfere with the use or operation of the asset subject thereto as it
          is currently used; and,

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          4.14.5.  Repossessed and foreclosed assets acquired in satisfaction of
          debt previously contracted.

     4.15. Employees. Except as set forth on Exhibit 4.15, none of the employees
     of VCB and Bank is employed under any employment contract (oral or written)
     or is the  beneficiary  of any  compensation  plan (oral or  written) or is
     entitled  to any  payment  from  VCB and  Bank  by  reason  of this  Merger
     Agreement or the Merger and there are no employment  contracts,  management
     contracts,   consulting  agreements,  union  contracts,  labor  agreements,
     pension plans,  profit sharing plans or employee benefit plans to which VCB
     or Bank are a party or by which either of them is bound.

     4.16. Environmental Laws. The existence, use and operation of the assets of
     VCB and Bank are in material compliance with all applicable statutes, rules
     and  regulations   including,   without  limiting  the  generality  of  the
     foregoing,  all  environmental  and  zoning  laws  and the  Americans  With
     Disabilities   Act.   Notwithstanding   the  foregoing,   with  respect  to
     repossessed  and foreclosed  assets  acquired in  satisfaction of debt, the
     representation  and warranty in this Section 4.16 is made to the  knowledge
     of VCB and Bank.

     4.17.  Loan  Portfolio.  Except  as to any  breach  that  would  not have a
     material  adverse effect on the financial  condition of Bank, (i) all loans
     and discounts  shown on the Financial  Statements  were and will be made in
     all material respects for good, valuable and adequate  consideration in the
     ordinary course of Bank's business,  in accordance in all material respects
     with sound  banking  practices,  and are not subject to any material  known
     defenses,  setoffs or counterclaims,  including without limitation any such
     as are  afforded  by  usury  or truth in  lending  laws,  except  as may be
     provided by bankruptcy, insolvency or similar laws or by general principles
     of equity;  (ii) the notes or other  evidences of  indebtedness  evidencing
     such  loans  and all  forms of  pledges,  mortgages  and  other  collateral
     documents  and  security  agreements  are  and  will  be,  in all  material
     respects, enforceable, valid, true and genuine and what they purport to be;
     and (iii) Bank has  complied and will prior to the Closing Date comply with
     all laws and regulations relating to such loans, or to the extent there has
     not been  such  compliance,  such  failure  to comply  will not  materially
     interfere with the collection of any such loan.

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     4.18.  Zoning and Related Laws. All real property owned or leased by VCB or
     Bank and the use thereof  complies with all  applicable  laws,  ordinances,
     regulations,   orders  or  requirements,   including  without   limitation,
     building,  zoning and other laws,  except as to any violations  which would
     not have a material adverse affect on the financial condition of VCB and/or
     Bank.

     4.19.  Compliance  with Law.  Bank and VCB have all  licenses,  franchises,
     permits and other governmental  authorizations that are legally required to
     enable them to conduct their  business in all material  respects and are in
     compliance with all applicable  laws and  regulations  except to the extent
     that the failure to so comply could not have a material  adverse  effect on
     Bank or VCB. Without limiting the generality of the foregoing, VCB and Bank
     have at all times  maintained  their  employee  benefit  plans in  material
     compliance  with the  Internal  Revenue  Code and the  Employee  Retirement
     Income Security Act and all applicable  rules and  regulations  promulgated
     pursuant thereto. All data and reports respecting the VCB and Bank employee
     benefit plans provided to BOKF are complete and materially correct.

     4.20.  Agreements with Regulatory Agencies.  Except as described on Exhibit
     4.20,  neither  Bank nor VCB is  subject to any  cease-and-desist  or other
     order  issued by, or a party to any  written  agreement  or  memorandum  of
     understanding  with or is a  party  to any  commitment  letter  or  similar
     undertaking to, or is subject to any order or directive,  or is a recipient
     of any  extraordinary  supervisory  letter  from,  or has adopted any board
     resolutions  at  the  request  of  (each  a  "Regulatory   Agreement")  any
     regulatory agency that materially  restricts the conduct of its business or
     that in any manner relates to its capital  adequacy,  its credit  policies,
     its  management  or its  business,  nor has Bank or VCB been advised by any
     regulatory  agency  that  it  is  considering  issuing  or  requesting  any
     Regulatory Agreement.

<PAGE>

     4.21. Intentionally Omitted.

     4.22. Actions From and After December 31, 2003. VCB and Bank have not taken
     any of the  following  actions  from and after  December 31, 2003 until the
     date of this  Agreement  that are prohibited to be taken from and after the
     date of this  Agreement by the  provisions  of Section 6.3 (except  Section
     6.3.1):

          4.22.1.  VCB  has  paid  no  dividends  except:  o Cash  dividends  of
          $3,045,561.75 declared in December,  2003 and paid in January, 2004; o
          Cash  dividends of $40,607.49  declared in December,  2003 and paid in
          February, 2004; o Cash dividends of $40,714.32 declared in April, 2004
          and paid in May, 2004; o 5% stock dividend declared in April, 2004 and
          paid in May,  2004  including  cash of  $1,524  in lieu of  fractional
          shares; o Cash dividends of $42,796.29 declared in July, 2004 and paid
          in August 2004.

          4.22.2. From and after June 30, 2004, except as otherwise disclosed in
          the  Exhibits  to this  Agreement,  VCB has  made  no  changes  in the
          compensation of any employees other than  non-material  cost of living
          and merit adjustments consistent with past practices.

     4.23.  Survival and  Independence of  Representations  and Warranties.  The
     representations  and  warranties  of VCB  and  Bank  made  in  this  Merger
     Agreement  shall  survive the Closing,  except with respect to a claim of a
     breach of any such  representations  and  warranties  where the  events and
     circumstances of such breach were clear from materials actually provided to
     or obtained by BOKF or Merger  Corp prior to Closing;  provided  BOKF shall
     give notice to the Shareholders  Representative  (as hereafter  defined) of
     any  claim of a breach of any such  representations  and  warranties  on or
     before  the  first  anniversary  of the  Closing  Date (the  "Claim  Notice
     Deadline").  Absent actual fraud,  claims not asserted by BOKF prior to the
     Claim Notice Deadline shall be deemed barred.  Each of the  representations
     and  warranties  of VCB and Bank set forth in this  Merger  Agreement  is a
     separate and independent  representation and warranty,  shall be cumulative
     of and in addition to all other warranties and  representations,  and shall
     not limit or be interpreted to be in derogation of any other representation
     or warranty made herein. Any disclosure made on any Exhibit hereto shall be
     applicable  to the  entire  Agreement  and not just one  representation  or
     warranty.

<PAGE>

     4.24. Knowledge. As used herein, the knowledge of VCB and/or the Bank shall
     mean the knowledge  which any one or more of the Chief  Executive  Officer,
     Chief Financial  Officer,  Chief Operating  Officer,  Chief Credit Officer,
     Chief  Lending  Officer or Chief  Human  Relations  Officer  has or, in the
     reasonable exercise of their respective duties and responsibilities, should
     have knowledge.

5.  Representations and Warranties of BOKF and Merger Corp. BOKF and Merger Corp
represent and warrant, jointly and severally, to VCB that:

     5.1.   Incorporation   and  Corporate  Power.  BOKF  and  Merger  Corp  are
     corporations  duly organized,  validly  existing and in good standing under
     the laws of their respective  states of organization.  BOKF and Merger Corp
     have all the  corporate  power and  authority  necessary  and  required  to
     consummate the transactions contemplated by this Merger Agreement.

     5.2. Non-Violation of Other Agreements.  The execution and delivery of this
     Merger Agreement,  and compliance with its terms and provisions by BOKF and
     Merger Corp and the  execution of any  document  required to be executed by
     BOKF or Merger Corp, will not:

          5.2.1.  Violate,  conflict  with or  result  in the  breach  of  their
          respective  certificates  of  incorporation  or  bylaws  or any of the
          terms,  conditions  or  provisions  of any  agreement or instrument to
          which BOKF or Merger Corp is a party,  or by which BOKF or Merger Corp
          is bound;

          5.2.2.  Result in the  creation  or  imposition  of any lien,  charge,
          encumbrance  or  restriction  of any nature  whatever  upon any of the
          property, contracts or business of BOKF and Merger Corp; or,

          5.2.3.  Require the  consent of any party to a contract  with BOKF and
          Merger Corp in order to keep the contract enforceable.

<PAGE>

     5.3. Required Corporate Action. The execution, delivery and consummation of
     this  Merger  Agreement  by BOKF and Merger  Corp has been duly and validly
     authorized  by the boards of  directors  of BOKF and Merger Corp and, as of
     the Closing, will have been approved by the shareholder of Merger Corp. The
     approval of the shareholders of BOKF is not required. This Merger Agreement
     has been duly  executed and delivered by duly  authorized  officers of BOKF
     and Merger  Corp.  This Merger  Agreement  constitutes  a legal,  valid and
     binding  agreement  and  obligation  of BOKF and  Merger  Corp  enforceable
     against BOKF and Merger Corp in accordance with its terms, except as may be
     limited by applicable bankruptcy, insolvency, moratorium, receivership, and
     other similar laws affecting the rights of creditors generally.

     5.4.  Brokerage  Fees.  Neither  BOKF nor Merger Corp has  incurred or will
     incur,  directly or  indirectly,  any  liability for  brokerage,  finder's,
     financial  advisor's  or  agent's  fees or  commissions  by  virtue  of any
     commitment  made by BOKF or Merger  Corp in  connection  with  this  Merger
     Agreement or any transaction  contemplated hereby.  Neither BOKF nor Merger
     Corp has any knowledge that any party has asserted any claim of such nature
     against BOKF or Merger Corp.

     5.5.  Regulatory  Approvals.  Neither  BOKF nor Merger Corp is aware of any
     reasons  relating  to BOKF,  Merger Corp or their  respective  subsidiaries
     (including  CRA  compliance)  why all  regulatory  approvals  necessary  to
     consummate the Merger Agreement will not be timely procured.

     5.6. Legal Proceedings.  There are no actions, suits, claims,  governmental
     investigations  or proceedings  instituted,  pending or to the knowledge of
     BOKF and  Merger  Corp  threatened  against  BOKF or  Merger  Corp that are
     reasonably  likely to have a material  adverse  effect upon BOKF and Merger
     Corp's ability to consummate this Merger Agreement.

     5.7. Financing.  BOKF has and as of the Closing will have,  sufficient cash
     to make the  payment of Merger  Consideration  for each share of VCB Common
     Stock.

<PAGE>

     5.8.  Survival and  Independence of  Representations  and  Warranties.  The
     representations  and warranties of BOKF and Merger Corp made in this Merger
     Agreement shall survive until the first  anniversary of the Closing hereof;
     provided,  however,  the indemnification  obligations of Section 5.9 hereof
     shall survive the Closing  indefinitely.  Each of the  representations  and
     warranties of BOKF and Merger Corp set forth in this Merger  Agreement is a
     separate and independent  representation and warranty,  shall be cumulative
     of and in addition to all other warranties and  representations;  and shall
     not be  interpreted  to be in  derogation  of any other  representation  or
     warranty or limit any other representation or warranty made herein.

     5.9. BOKF and Merger Corp Indemnification; Insurance.

          5.9.1.  BOKF and Merger  Corp shall  indemnify  the present and future
          directors,  officers and  employees of VCB and Bank (the  "Indemnified
          Parties") to the fullest extent to which such Indemnified Parties were
          entitled under the Articles of Incorporation  and Bylaws of VCB and/or
          the Articles of Association  and Bylaws of Bank as in effect as of the
          date hereof.

          5.9.2.  Prior to Closing,  BOKF shall  obtain on a prepaid  basis tail
          insurance coverage for a period of not less than three years after the
          Closing for the acts and  omissions of the  officers and  directors of
          VCB and Bank  occurring  prior to the  Closing  under  VCB and  Bank's
          existing  directors' and officers'  liability insurance policy or tail
          insurance comparable thereto.

6. Covenants.

     6.1.  Full Access.  In order that BOKF shall have the full  opportunity  to
     make such  investigations  as it shall reasonably desire concerning VCB and
     Bank and their business affairs, VCB and Bank shall:

          6.1.1.  Give  BOKF,  its  employees,  counsel,  accountants  and other
          authorized representatives, as necessary to conduct the investigation,
          full access,  upon  reasonable  notice to VCB and at reasonable  times
          without  unduly  interfering  with the  conduct of business by VCB and
          Bank  throughout  the  period  up  to  the  Closing,  to  all  of  the
          facilities, properties, books, contracts and records of VCB and Bank.

<PAGE>

          6.1.2.  Authorize  its  accountants  to give BOKF  full  access to the
          accountants' records, including work papers; and,

          6.1.3.  Furnish to BOKF  throughout  the period up to the  Closing all
          additional financial,  operating and other information  concerning VCB
          and Bank and their business affairs,  as BOKF may reasonably  request.
          All information provided pursuant to this Section 6.1 shall be subject
          to the provisions of Section 6.6.  Notwithstanding the foregoing,  VCB
          and Bank  shall  not be  required  to  provide  access  which,  in the
          reasonable  opinion  of VCB  or  Bank,  constitutes  a  waiver  of the
          attorney-client privilege.

     6.2.  Conduct of Business  Prior to the Closing Date.  From this date until
     the  Closing  Date,  each of VCB and  Bank  shall,  except  as may be first
     approved in writing by BOKF (such approval not to be unreasonably withheld,
     delayed or denied) or as is  otherwise  permitted or  contemplated  in this
     Merger Agreement:

          6.2.1. Maintain their corporate existence in good standing;

          6.2.2.  Maintain the general  character of their  business and conduct
          their business in their ordinary and usual manner consistent with past
          practices;

          6.2.3.  Maintain proper business and accounting  records  generally in
          accordance with past practices;

          6.2.4.  Maintain their properties  (except  repossessed and foreclosed
          assets  acquired in satisfaction  of debts  previously  contracted) in
          normal  repair and  condition,  normal wear and tear and damage due to
          fire or other unavoidable casualty excepted;

          6.2.5.  Preserve  their  business   organizations  intact,  use  their
          reasonable  efforts  to  maintain   satisfactory   relationships  with
          suppliers,  customers and others having  business  relations with them
          whose  relationships  they believe are desirable to maintain,  and use
          their  reasonable  efforts to procure  the  willingness  of all of the
          personnel  employed by them immediately prior to the execution of this
          Merger  Agreement who are material to the success of their business to
          continue  in  their  employ  on  substantially   the  same  terms  and
          conditions as those on which such personnel were employed  immediately
          prior to the execution of this Merger Agreement;

<PAGE>

          6.2.6.  Maintain  in full force and  effect  insurance  comparable  in
          amount and in scope of coverage to that now  maintained by them on the
          date hereof;

          6.2.7. Except as otherwise disclosed in this Merger Agreement, perform
          all of their  obligations  under all  material  contracts,  leases and
          agreements  relating to or  affecting  their  assets,  properties  and
          businesses; and,

          6.2.8.   Comply  in  all  material   respects  with  and  perform  all
          obligations  and duties imposed upon them by federal,  state and local
          laws, and all rules,  regulations and orders imposed by federal, state
          or local governmental authorities,  except as may be contested by them
          in good faith by appropriate proceedings.

     6.3. VCB and Bank  Prohibited  Actions Prior to the Closing Date. From this
     date until the Closing  Date,  VCB and Bank shall not,  except as otherwise
     permitted by this Merger  Agreement  or approved by BOKF in writing  (which
     approval shall not be unreasonably withheld, delayed or denied):

          6.3.1.  Incur  any  indebtedness  for  borrowed  money  or  incur  any
          noncurrent indebtedness for the purchase price of any fixed or capital
          asset, or make any extension of credit or any loans to,  guarantee the
          obligations  of,  or make any  additional  investments  in,  any other
          person,  corporation or joint venture (whether an existing customer or
          a new customer) except:

               6.3.1.1.  Extensions of credit, loans and guarantees made by Bank
               in  the  usual  and  ordinary  course  of its  banking  business,
               consistent with prior practices and policies,  provided, however,
               that the Bank  shall  not make any new  extensions  of  credit or
               loans  in  excess  of Six  Hundred  Thousand  Dollars  ($600,000)
               without first offering BOKF twenty-four (24) hours advance notice
               to review and consult with the Bank  concerning its  underwriting
               of the loan.

<PAGE>

               6.3.1.2.  Legal  investments  by Bank in the usual  and  ordinary
               course of its banking  business  consistent  with prior practices
               and policies; and

               6.3.1.3.  Borrowings from the Federal Home Loan Bank, the Federal
               Reserve Bank, deposit liabilities, and federal funds transactions
               by Bank in the ordinary  course of business  consistent with past
               practices.

          6.3.2. Make any (a) material change,  except in the ordinary and usual
          course of business,  in their assets  (including,  but not limited to,
          any change in the composition of such assets so as to materially alter
          the proportion of cash) or  liabilities,  (b) material  commitment for
          any capital  expenditures,  excluding  expenditures for repairs in the
          ordinary  and  usual  course  of  business,   or  (c)  sale  or  other
          disposition of any material capital asset other than for fair value in
          the ordinary course of business;

          6.3.3. Make any change in their Certificate of Incorporation, Articles
          of Incorporation or Bylaws;

          6.3.4. Authorize any shares of their capital stock for issuance, issue
          any shares of any previously  authorized but unissued capital stock or
          grant,  issue or make  any  option  or  commitment  relating  to their
          capital stock;

          6.3.5.  Enter  into any letter of intent or  agreement  to sell any of
          their  material  assets,  except in the normal and ordinary  course of
          their business,  or acquire, be acquired by, or merge,  consolidate or
          reorganize with any person, firm or corporation;

<PAGE>

          6.3.6.  Declare or pay any dividend,  make any other  distribution  or
          payment or set aside any amount for payment with respect to any shares
          of their capital stock or directly or indirectly,  redeem, purchase or
          otherwise  acquire  any  shares  of  their  capital  stock or make any
          commitment relating thereto;

          6.3.7.  Except as set forth in Exhibit 6.3.7, make any (a) increase in
          the  compensation  payable  or to  become  payable  to  any  of  their
          directors,  officers or employees (including,  without limitation, any
          bonus or  incentive  payment or  agreement)  other than normal  annual
          increases  consistent with prior practice,  (b) make or enter into any
          written  employment  contract  or  any  bonus,  stock  option,  profit
          sharing, pension,  retirement or other similar payment or arrangement,
          or (c) make  any  payment  to any  person,  except  in the  usual  and
          ordinary  course of  business  or except as  required  by an  existing
          agreement set forth in the Exhibits hereto; provided, however:

               6.3.7.1.  VCB may (i)  match  for  calendar  year  2004  employee
               contributions  to the VCB 401k plan and 401k profit  sharing plan
               and (ii) pay bonuses for 2004 consistent with prior practices, in
               an amount not exceeding in the aggregate $250,000.

          6.3.8.  Make any  material  change in their  banking,  safe deposit or
          power of  attorney  arrangements  except to the  extent  necessary  to
          comply with applicable laws, regulations, rules or orders;

          6.3.9. Enter into any trust, escrow,  agency and similar trust company
          agreements,  purchase  orders and  contracts  for goods and  services,
          except  in the  ordinary  course  of  business  consistent  with  past
          practices;

          6.3.10.  Enter into any agreement  resulting in the  imposition of any
          mortgage or pledge of their assets or the creation of any lien, charge
          or encumbrance on any of their assets;

<PAGE>

          6.3.11.  Incur any  material  obligation  or  liability,  absolute  or
          contingent,  except in the ordinary  course of business or pursuant to
          existing contracts described in this Merger Agreement;

          6.3.12. Take any action which would prevent compliance with any of the
          conditions of this Merger Agreement; or,

          6.3.13. Pre-pay long term indebtedness.

     6.4.  Shareholder  Meeting. VCB shall take all action necessary to consider
     and vote upon the transactions  contemplated by this Merger Agreement.  The
     Board of  Directors of VCB shall  recommend  that the  shareholders  of VCB
     approve this Merger  Agreement and the  transactions  contemplated  hereby,
     provided,  however,  that nothing in this Agreement shall prevent the Board
     of Directors of VCB from  withholding,  withdrawing,  amending or modifying
     its recommendation if the Board of Directors reasonably concludes, upon the
     written opinion of its legal counsel, that such action is required in order
     for the Board of  Directors  to  comply  with its  fiduciary  duties to the
     shareholders  of VCB. As soon as  practicable  after the  execution of this
     Agreement,  Seller shall use its  reasonable  best efforts to cause each of
     its directors to execute an agreement substantially in the form attached as
     Exhibit 6.4 by which each of such  directors  shall  covenant  and agree to
     vote  the  shares  of VCB  Common  Stock  owned  by them in  favor  of this
     Agreement at the shareholder meeting.

     6.5.  Regulatory  Approval.  BOKF shall (A) file within twenty (20) days of
     the date hereof all regulatory applications required in order to consummate
     the Merger,  including  but not limited to the necessary  applications  for
     prior approval of the Board of Governors of the Federal  Reserve System and
     certification  from the  Arizona  State  Banking  Department  as to Arizona
     Revised  Statutes  6-101 et seq.  and to  convert  the  Bank to a  national
     association  in accordance  with the National  Bank Act and (B)  thereafter
     diligently pursue and promptly file any required  supplements or amendments
     thereto.   All   applications,   supplements,   and  amendments   shall  be
     substantially  complete when filed.  BOKF shall promptly deliver to VCB and
     its counsel a copy of all such filings, as filed. Although all such filings
     shall be the  responsibility  of BOKF, BOKF shall  nevertheless  advise and
     consult  with VCB on an ongoing  basis with  respect to the filings and all
     matters and events related thereto. BOKF shall inform and make available to
     VCB  from  time  to  time  all  matters  relating  to the  filings  and the
     regulatory  approvals.   BOKF  shall  diligently  proceed  with  reasonable
     deliberate   speed  to  obtain  all  such  approvals.   If  any  regulatory
     application  required  to be filed by BOKF  should  be  finally  denied  or
     disapproved  by  the  respective  regulatory  authority,  then  BOKF  shall
     immediately  give notice to VCB and this Merger  Agreement  shall thereupon
     terminate.  However,  it  is  understood  that  a  request  for  additional
     information or  undertaking by the applicant,  as a condition for approval,
     shall not be deemed to be a denial or  disapproval so long as the applicant
     can  reasonably  be  expected  to  provide  the  requested  information  or
     undertaking.  In the event an  application  is denied  pending  an  appeal,
     petition for review, or similar such act on the part of the applicant, then
     the  application  will be deemed denied  unless the applicant  promptly and
     diligently  prepares  and files such  appeal and  continues  the  appellate
     process for the purposes of getting the necessary approval.

<PAGE>

     6.6. Confidentiality. Prior to the Closing, BOKF shall keep all information
     disclosed to BOKF and Merger Corp (their employees,  counsel,  accountants,
     and   other   authorized   representatives)   by  VCB  or  Bank  (or  their
     representatives) respecting the business and financial condition of VCB and
     Bank  confidential  and  shall  make no use of such  information  except to
     conduct the  investigation  contemplated  by Section 6.1,  the  application
     contemplated by Section 6.5 and to consummate the transactions contemplated
     hereby, and BOKF and Merger Corp shall not use such information to obtain a
     competitive advantage in connection with any customer of Bank. In the event
     this Merger  Agreement  is  terminated  for any reason BOKF and Merger Corp
     (their agents, officers, directors, employees and counsel) shall (i) return
     all copies of all  information  and documents  obtained from VCB, Bank, and
     their  representatives,  (ii) thereafter  forever keep all such information
     confidential  and  not  make  use of  any  such  information  to  obtain  a
     competitive  advantage in connection  with any customer of Bank,  and (iii)
     shall not solicit for employment,  whether  directly or indirectly,  any of
     the  employees,  officers or  directors  of VCB or Bank for a period of two
     years following such termination.

     6.7.  Disclosure.  Neither BOKF nor VCB, nor any other party to this Merger
     Agreement  or  their  representative,  shall  make  any  public  disclosure
     concerning this Merger Agreement or the Merger  contemplated herein without
     the mutual  consent of each of the other  parties  hereto to the timing and
     content of the disclosure;  provided,  however, the parties hereto may make
     any disclosure (i) necessary to maintain compliance with applicable federal
     or state laws or  regulations,  (ii) required in connection with the making
     of any application necessary to effect the Merger, or (iii) as required for
     VCB to seek shareholder approval.

     6.8.  BOKF  Prohibited  Action  Prior to Closing.  From this date until the
     Closing Date, BOKF shall not take any action which would prevent compliance
     with any of the  conditions of this Merger  Agreement.  BOKF shall not, and
     shall cause its subsidiaries not to, make or agree to make any acquisition,
     or take any other action,  that adversely affects its ability to consummate
     the  transactions  contemplated by this Merger Agreement and will otherwise
     continue to conduct its business  operations and shall cause the operations
     of its  subsidiaries  to be  conducted  in a manner  consistent  with  past
     operating practices.

<PAGE>

     6.9.  Employment  Agreements.  VCB and the Bank shall in good faith  assist
     BOKF in entering into employment agreements which such officers of the Bank
     as BOKF shall request.

     6.10.  Employment Benefits and Contracts.  Following the Closing Date, BOKF
     shall provide  generally to officers and employees of Bank, who at or after
     the  Closing  Date  become  or  remain  employees  of  BOKF  or  one of its
     subsidiaries  ("Continuing  Employees"),  employee  benefits under employee
     benefit  plans  (other  than  stock  option or other  plans  involving  the
     potential  issuance  of BOKF  Common  Stock  except  as set  forth  in this
     section),  on  terms  and  conditions  which  when  taken  as a  whole  are
     substantially  similar to those provided by BOKF to its similarly  situated
     officers and employees. Following the Closing:

          6.10.1.  For purposes of  participation,  vesting and determination of
          rates of  contribution  (but  not  accrual  of  benefits)  under  such
          employee  benefit plans,  (i)  qualifying  service under any qualified
          pension  plan of Bank  shall be  treated as  qualified  service  under
          BOKF's qualified defined benefit plans, (ii) qualifying  service under
          any qualified defined  contribution  plans of Bank shall be treated as
          qualified service under BOKF's qualified defined  contribution  plans,
          and (iii) qualifying service under any other employee benefit plans of
          Bank shall be treated as qualified  service under any similar employee
          benefit plans maintained by BOKF.

          6.10.2. BOKF shall cause the BOKF welfare benefit plans that cover the
          Continuing  Employees  after the Closing Date to (i) waive any waiting
          period and restrictions and limitations for preexisting  conditions or
          insurability,  and (ii)  cause  any  deductible  payments  made by the
          Continuing  Employees under Bank's medical benefit plan to be credited
          to such  Continuing  Employees  under  the  BOKF  self-funded  medical
          benefit plans, so as to reduce the amount of any deductible payable by
          the Continuing  Employees under the BOKF  self-insured  medical plans.
          The continued coverage of the Continuing  Employees under the employee
          benefit  plans   maintained   by  Bank  and/or  any  Bank   subsidiary
          immediately prior to the Closing Date during a transition period shall
          be deemed to provide the  Continuing  Employees with benefits that are
          no less  favorable  than those offered to other  employees of BOKF and
          its subsidiaries.  Unless otherwise  modified in writing and except as
          otherwise  provided  herein,  BOKF  also  shall  cause  Bank  and  its
          subsidiaries to honor all employment,  severance, consulting and other
          compensation  contracts  disclosed in Exhibit 4.15 hereto between Bank
          and any current or former director,  officer or employee thereof,  and
          all provisions  for vested  benefits or other vested amounts earned or
          accrued through the Closing Date under the Bank benefit plans.

<PAGE>

          6.10.3. VCB shall, by appropriate action of its board of directors and
          otherwise,  take all action  necessary (i) to vest all Bank  employees
          fully  in  the  Valley  Commerce  401(k)  Plan,  contingent  upon  and
          effective as of the Closing and (ii) to terminate the Plan.

     6.11. No Solicitation.

          6.11.1.  Prior to the Closing  Date,  unless this Merger  Agreement is
          sooner  terminated,  neither Bank nor VCB shall directly or indirectly
          (i) solicit or encourage  inquiries  or proposals  with respect to the
          merger of Bank or VCB or the sale of any of the  shares of Bank or VCB
          or other  material  asset(s)  of VCB or Bank from any party other than
          BOKF or (ii)  merge with any party or sell any of the shares of VCB or
          Bank or material  asset(s)  of VCB or Bank to any party  except as set
          forth in this Merger Agreement.

          6.11.2.  Notwithstanding  the provisions of Section 6.11.1 above,  VCB
          may, in response to an unsolicited  written proposal with respect to a
          merger,  or purchase of  substantially  all the  outstanding  stock or
          assets  of  VCB  ("Acquisition  Proposal"),  furnish  (subject  to the
          execution  of  a  confidentiality   agreement  containing   provisions
          substantially similar to the confidentiality provisions of Section 6.6
          hereof)   confidential  or  non-public   information   concerning  its
          business,  properties or assets to a financially capable  corporation,
          partnership,  person or other entity or group (a "Potential Acquiror")
          and  negotiate  with  such  Potential  Acquiror  if (i) the  Board  of
          Directors of VCB after  consulting  with one or more of its  financial
          advisers,  concludes that such  Acquisition  Proposal (if  consummated
          pursuant to its terms) would result in a transaction more favorable to
          VCB's  shareholders  than the Merger and (ii) based upon advice of its
          legal  counsel,  its Board of Directors  determines in good faith that
          the failure to provide such confidential and non-public information to
          such  Potential  Acquiror  would  constitute a breach of its fiduciary
          duty to its shareholders  (any such  Acquisition  Proposal meeting the
          conditions  of clauses  (i) and (ii) being  referred to as a "Superior
          Proposal").

<PAGE>

          6.11.3.  VCB  shall  immediately  notify  BOKF  after  receipt  of any
          Acquisition Proposal or any request for nonpublic information relating
          to VCB or the Bank in connection  with an Acquisition  Proposal or for
          access to the  properties,  books or records of VCB or the Bank by any
          person or entity that  informs the VCB board of  directors  that it is
          considering making, or has made, an Acquisition Proposal.  Such notice
          to BOKF shall be made  orally and in writing  and shall  indicate  the
          identity  of the  offeror  and in  reasonable  detail  the  terms  and
          conditions of such proposal, inquiry or contact.

7.  Conditions  Precedent to Closing by BOKF and Merger Corp.  The obligation of
BOKF and Merger Corp to consummate  and close this  transaction  is  conditioned
upon each and all of the following:

     7.1. The representations, warranties and covenants of VCB and Bank shall be
     materially true at the Closing as though such  representations,  warranties
     and covenants were also made at the Closing.

     7.2. The Federal Reserve Board shall have approved the Merger,  or issued a
     waiver of approval, in accordance with 12 U.S.C. Section 1842 and 12 C.F.R.
     Section 225.

     7.3.  The  Arizona  State  Banking  Department  shall  have  certified  the
     compliance  of the  Merger  in  accordance  with the  laws of the  State of
     Arizona.

     7.4. The Office of the  Comptroller of the Currency shall have approved the
     conversion of the Bank to a national  association  in  accordance  with the
     National Bank Act.

     7.5. VCB and Bank shall have  performed and complied  with, in all material
     respects, all of their obligations under this Merger Agreement which are to
     be performed or complied with by them prior to or on the Closing Date.

<PAGE>

     7.6. VCB shall have  delivered  to BOKF an opinion of its  counsel,  Bodman
     LLP, or other  counsel  reasonably  acceptable  to BOKF,  dated the Closing
     Date, in substantially the form and content attached hereto as Exhibit 7.6.

     7.7. The  shareholders of VCB shall have approved this Merger  Agreement in
     accordance with the Delaware General Corporation Act.

     7.8.  Neither VCB taken as a whole nor the Bank taken as a whole shall have
     suffered  any Material  Adverse  Change (as  hereinafter  defined) in their
     financial conditions,  assets,  liabilities,  businesses or properties. For
     purposes of this  Section 7.8,  "Material  Adverse  Change"  shall mean any
     event  resulting  in a one-time  charge to Bank's loan loss  reserve,  or a
     reduction  of  Bank's  Tier  1  capital  (exclusive  of  market  losses  in
     investment  securities   portfolio),   of  Five  Hundred  Thousand  Dollars
     ($500,000)  or more;  provided,  however,  that in  determining  whether  a
     Material Adverse Change has occurred there shall be excluded the effect of:
     (i) any  change in  banking  and  similar  laws or  regulations  of general
     applicability  or   interpretations   thereof  by  courts  or  governmental
     authorities,  (ii)  change in GAAP or  regulatory  accounting  requirements
     applicable to banks or their holding companies generally, (iii) any general
     social,  political,  economic,  change,  effect,  event or  occurrence  the
     effects  of which are not  specific  or  unique  to VCB or Bank,  including
     changes in prevailing  interest rates,  currency  exchange rates or general
     economic or market  conditions,  (iv) any action or omission by VCB or Bank
     pursuant to the terms of this Agreement  including the public  announcement
     of the  transactions  contemplated by this Agreement,  and (v) any expenses
     incurred in connection with this Agreement or the transactions contemplated
     hereby.

     7.9.  Holders of no more than ten  percent  (10%) of the VCB  Common  Stock
     shall have perfected their appraisal  rights pursuant to Section 262 of the
     Delaware  General  Corporation  Law.  In the event any one or more of these
     conditions  shall not have been fulfilled prior to or at the Closing,  BOKF
     and Merger Corp may terminate  this Merger  Agreement by written  notice to
     VCB, in which event  neither  party  shall have any further  obligation  or
     liability to the other  except (i) as otherwise  provided in Section 14 and
     (ii) the  obligations  of BOKF set  forth in  Sections  5.4 and 6.6 and the
     obligations  of VCB and  Bank set  forth in  Section  4.11.  BOKF  shall be
     entitled  to  waive  compliance  with  any one or  more of the  conditions,
     representations, warranties or covenants in whole or in part.

<PAGE>

8.  Conditions  Precedent to Closing by VCB and Bank.  The obligation of VCB and
Bank to consummate and close this  transaction are conditioned upon each and all
of the following:

     8.1. The representations,  warranties and covenants of BOKF and Merger Corp
     made in this Merger  Agreement  shall be true at the Closing as though such
     representations, warranties and covenants were also made at the Closing.

     8.2.  BOKF and Merger  Corp  shall  have  performed  and  complied,  in all
     material  respects,  with  all  of  their  obligations  under  this  Merger
     Agreement which are to be performed or complied with by them prior to or at
     the Closing.

     8.3. BOKF shall have  delivered to VCB an opinion of its counsel,  Frederic
     Dorwart,  Tulsa,  Oklahoma,  or other counsel reasonably acceptable to VCB,
     dated the Closing  Date,  in  substantially  the form and content  attached
     hereto as Exhibit 8.3

     8.4. The Federal Reserve Board shall have approved the Merger,  or issued a
     waiver of approval, in accordance with 12 U.S.C. Section 1842 and 12 C.F.R.
     Section 225.

     8.5. The  shareholders of VCB shall have approved this Merger Agreement and
     the  transactions  contemplated  hereby as required by the Delaware General
     Corporation Act.

     8.6. VCB shall have  received from Sandler  O'Neill and  Partners,  or such
     other  investment  banking firm retained by VCB, an opinion letter dated as
     of the date of the proxy  statement to be delivered to the  shareholders of
     VCB in connection  with the  solicitation  of their approval of this Merger
     Agreement and the transactions  contemplated hereby, to the effect that the
     Merger  Consideration  is fair,  from a  financial  point  of view,  to the
     holders of the VCB Common Stock.  VCB shall be entitled to waive compliance
     with  any one or more of the  conditions,  representations,  warranties  or
     covenants  in  whole  or in  part.  In the  event  any one or more of these
     conditions  shall not have been fulfilled  prior to or at the Closing,  VCB
     may  terminate  this Merger  Agreement by notice to BOKF, in which event no
     party shall have any further  obligation or liability to the other,  except
     (i) as otherwise  provided in Section 14 and (ii) the  obligations  of BOKF
     set forth in Section  6.6 and Section  5.4 and the  obligations  of VCB set
     forth in Section 4.11.

<PAGE>

9.  Closing.  The  closing  ("Closing"  or "Closing  Date") of the  transactions
contemplated  by this Merger  Agreement shall take place not later than five (5)
business  days  following  the first day on which (i) BOKF and  Merger  Corp can
lawfully consummate the Merger under 12 U.S.C.  Section 1842, 12 C.F.R.  Section
225 and other  applicable  laws,  rules and  regulations and (ii) all conditions
precedent to the obligations of the parties set forth in Section 7 and Section 8
have been satisfied or waived;  provided,  however, in the event such day is ten
(10) or fewer calendar days preceding the first day of the next calendar  month,
the  Closing  shall take  place or  otherwise  be  effective  at the  opening of
business on the first day of the next  calendar  month.  The  Parties  shall use
their best efforts to cause the Closing to occur on or before March 15, 2005. In
any event,  if the Closing Date does not occur on or before April 15, 2005, then
VCB may by notice terminate this Merger Agreement.  The Closing shall be held at
10:00 a.m. on the Closing  Date at the offices of Bank or at such other time and
place as BOKF and VCB may agree.  At the Closing,  BOKF,  Merger Corp,  VCB, and
Bank shall  execute and deliver all of the  documents and take all other actions
which are contemplated by the terms hereof.

     9.1. Without limiting the generality of Section 9 of this Merger Agreement,
     the  following  actions  shall be taken at the  Closing  concurrently.  VCB
     shall:

          9.1.1.  Engage the  Paying  Agent to perform  the  obligations  of the
          Paying  Agent  herein set forth;

          9.1.2. Deliver the opinion of VCB's counsel pursuant to Section 7.4;

          9.1.3.  Deliver a certificate,  signed by the Chief Executive  Officer
          and the Chief Financial  Officer of VCB and of the Bank, acting solely
          in his  capacity as an officer of VCB and/ or the Bank,  stating  that
          (A) each of the representations and warranties of VCB and the Bank set
          forth herein is true and correct in all material  respects at the time
          of  the   Closing   with  the  same   force  and  effect  as  if  such
          representations and warranties had been made at Closing and (B) all of
          the conditions  precedent to the obligation of BOKF and Merger Corp to
          close  set  forth in this  Agreement  have,  unless  waived  as herein
          provided, been satisfied;

<PAGE>

          9.1.4.  Deliver a certified  copy of the  resolutions  of the Board of
          Directors and  shareholders  of VCB, as required for valid approval of
          the execution of this Agreement and the consummation of the Merger and
          the other transactions contemplated hereby;

          9.1.5.  Deliver good  standing  and  existence  certificates,  dated a
          recent date,  duly  certifying  the existence and good standing of VCB
          and the Bank;

          9.1.6. Intentionally omitted.

          9.1.7. Deliver a resolution of the Board of Directors of VCB approving
          the  termination  of the VCB 401k plan into the  defined  contribution
          plan of BOKF;

          9.1.8. Cause the employment  agreements,  plans and payments described
          in Exhibit 4.15 to be terminated and discharged at no material cost to
          VCB and Bank, excluding,  however, the agreements and claims listed on
          Exhibit 9.1.8, all of which shall survive the Closing.

          9.1.9.  Pay or cause the Bank to pay to Douglas  Alldredge  and Robert
          Lukosus  the  amounts  specified  in  Section  17 of their  respective
          Employment Agreements.

          9.1.10.  Pay or  cause  the  Bank  to pay  the  director  compensation
          payments described on Exhibit 6.3.7.

     9.2. Without limiting the generality of Section 9 of this Merger Agreement,
     the  following  actions  shall be taken at the Closing  concurrently.  BOKF
     shall:

<PAGE>

          9.2.1. Invest sufficient capital in VCB to enable it to pay, and cause
          VCB to pay, by funds  immediately  available in New York City,  (i) to
          the Paying  Agent the funds  required to be paid at the Closing to VCB
          Shareholders  as provided in Section 10.2,  (ii) to Douglas  Alldredge
          and  Robert  Lukosus,  the  amounts  specified  in Section 17 of their
          respective Employment Agreements,  and (iii) the director compensation
          payments described on Exhibit 6.3.7 of this Agreement;

          9.2.2. Deliver the opinion of BOKF's counsel pursuant to Section 8.3;

          9.2.3.  Cause  appropriate  evidences  of the  Merger  to be  filed in
          accordance with applicable law; and

          9.2.4. Deliver a certificate signed by the Chief Executive Officer and
          the Chief Financial  Officer of BOKF and Merger Corp,  acting in their
          sole  capacity as officers of BOKF and Merger  Corp,  stating that (A)
          each  representations and warranties of BOKF and Merger Corp set forth
          herein is true and correct in all material respects at the time of the
          Closing with the same force and effect as if such  representations and
          warranties  had been  made at  Closing  and (B) all of the  conditions
          precedent to the  obligation of VCB and the Bank to close set forth in
          this Agreement have, unless waived as herein provided, been satisfied.

10. Exchange Procedures; Surrender of Certificates; Paying Agent.

     10.1.  American Stock Transfer & Trust  Company,  or other entity  mutually
     satisfactory to VCB and BOKF,  shall act as paying agent in the Merger (the
     "Paying Agent").

     10.2. At the Closing BOKF shall cause VCB, as the surviving corporation, to
     furnish the Paying Agent cash  sufficient  in the  aggregate for the Paying
     Agent to make full payment of the Closing  Payment to all VCB  Shareholders
     excluding,  however,  those shareholders who have perfected their appraisal
     rights pursuant to Section 262 of the Delaware General Corporation Law.

<PAGE>

     10.3.  Forthwith upon the Closing, the Paying Agent shall mail, without any
     further  action  on the  part  of BOKF or VCB,  to each  record  holder  of
     certificates representing VCB Common Stock (the "Certificates"),  addressed
     to the most current address of such shareholder according to the records of
     VCB, a letter of transmittal  (and  instructions)  for use in effecting the
     surrender of the  Certificates  in exchange  for the Merger  Consideration.
     Each such letter (the  "Merger  Transmittal  Letters")  shall  specify that
     delivery shall be effected,  and risk of loss and title to the Certificates
     shall pass,  only upon  proper  receipt of the  Certificates  by the Paying
     Agent and shall be in such form and have such other  provisions as BOKF may
     reasonably specify.

     10.4. No interest on the Merger  Consideration  issuable upon the surrender
     of the Certificates  shall be paid or accrued for the benefit of holders of
     Certificates .

     10.5.  If the  Closing  Payment  is to be issued to a person  other  than a
     person in whose name a surrendered Certificate is registered, it shall be a
     condition of issuance that the  surrendered  Certificate  shall be properly
     endorsed or  otherwise  executed in proper form for  transfer  and that the
     person  requesting such issuance shall pay to the Paying Agent any required
     transfer  or other taxes or  establish  to the  satisfaction  of the Paying
     Agent that such tax has been paid or is not applicable.

     10.6. With respect to any shares of VCB Common Stock that are acquired as a
     result of the exercise of the Stock  Options,  the purchase  price for such
     shares under the Stock Options shall be subtracted  from or "netted-out" of
     the Closing Payment to be paid such  shareholders in order to provide for a
     cashless  exercise of the Stock Options.  That is, upon the exercise of the
     Stock  Options  such  option  holder  shall not be  required to pay VCB the
     purchase  price  specified in the Stock  Options,  but such amount shall be
     deducted from the amount of Merger  Consideration that would otherwise have
     been paid to such option holder.

<PAGE>

          10.6.1.  After the Closing,  there shall be no further registration or
          transfers on the records of VCB of outstanding  certificates  formerly
          representing shares of VCB Common Stock and, if a certificate formerly
          representing  such  shares is  presented  to VCB or BOKF,  it shall be
          forwarded  to the Paying Agent for  cancellation  and exchange for the
          Merger Consideration.

          10.6.2. All Merger Consideration paid upon the surrender of VCB Common
          Stock in  accordance  with the  above  terms and  conditions  shall be
          deemed to have been paid in full satisfaction of all rights pertaining
          to such shares of VCB Common Stock.

          10.6.3.  In the event any  certificate for VCB Common Stock shall have
          been lost,  stolen,  or  destroyed,  the Paying  Agent  shall issue in
          exchange for such lost, stolen, or destroyed certificate,  such Merger
          Consideration as may be required pursuant to this Agreement; provided,
          however, that BOKF may, in its discretion and as a condition precedent
          to the issuance  thereof,  require the owner of such lost,  stolen, or
          destroyed  certificate to deliver an affidavit of lost certificate and
          indemnification agreement in form reasonably acceptable to BOKF.

          10.6.4. At any time following  thirteen (13) months after the Closing,
          provided  no General  Claims  have been made which  remain  unresolved
          under  Article 11 of this  Agreement,  BOKF shall be entitled to cause
          VCB to terminate the Paying Agent  relationship and thereafter holders
          of  Certificates  shall be  entitled  to look only to VCB  (subject to
          abandoned  property,  escheat,  or other similar laws) with respect to
          the Merger Consideration  payable upon surrender of their Certificates
          or in lieu of any Stock Options.

          10.6.5.  BOKF  shall pay the fees and costs of the  Paying  Agent with
          respect  to the  Exchange  Procedure  and  the  Closing  Payment.

<PAGE>

11. Representation Escrow.

     11.1. At Closing,  BOKF shall  establish an escrow  account with the Escrow
     Agent and deposit the  Representation  Escrow  Funds in the escrow  account
     pursuant to an escrow agreement (the "Representation  Escrow Agreement") in
     the form  attached  hereto as Exhibit 11. The escrow  agent's fees shall be
     borne by BOKF.

          11.1.1.  The  Representation  Escrow  Funds  shall  be  invested  in a
          certificate of deposit maturing one year from date, at the rate and on
          the  terms  and  conditions  generally  offered  by  Escrow  Agent for
          certificates  of deposit of  comparable  size and  duration,  and upon
          maturity as necessary, in three-month  certificates of deposit at Bank
          at the rates and on terms and conditions generally offered by the Bank
          for certificates of comparable size and duration at each renewal date.

          11.1.2. In the event BOKF claims a breach of the  representations  and
          warranties of VCB and Bank arising under this Merger  Agreement,  BOKF
          shall  give  written  notice of the claim (a  "General  Claim") to the
          Shareholders Representative (as hereafter appointed).

          11.1.3. The notice shall identify the  representations  and warranties
          which BOKF claims have been breached and describe in reasonable detail
          the basis of the General  Claim and set forth a good faith  reasonable
          estimate  ("Good  Faith  Estimate")  of the maximum  amount of damages
          claimed ("General Losses").

          11.1.4.  BOKF  shall  make no  General  Claim  unless  and  until  the
          aggregate amount of all uninsured  General Losses shall exceed $50,000
          in which event BOKF may make General Claims against the General Escrow
          for all uninsured General Losses.

          11.1.5.  Absent  actual fraud by VCB,  BOKF hereby  waives all General
          Claims in the aggregate in excess of the Representation Escrow Funds.

<PAGE>

          11.1.6.  In the event BOKF makes no General Claim for any Losses on or
          before Claim Notice  Deadlines,  the  Representation  Escrow Agreement
          shall  terminate and the Escrow Agent shall,  within five (5) business
          days  thereafter,  distribute the  Representation  Escrow Funds to the
          Paying Agent for  distribution in accordance with Section 11.3 of this
          Agreement.

     11.2.  In the event BOKF makes one or more  General  Claim(s)  prior to the
     Claim  Notice  Deadline,  the Escrow  Agent shall (i) on or before five (5)
     business  days after the Claim Notice  Deadline,  distribute  to the Paying
     Agent the Representation Escrow Funds less the amount of all Losses claimed
     by BOKF for  distribution in accordance with Section 11.3 hereof,  and (ii)
     continue to hold and invest the remaining Representation Escrow Funds until
     such claim is  resolved  by (1) the  mutual  agreement  of the  Shareholder
     Representative  (as defined  below) and BOKF,  or (2) a final  adjudication
     determining the merits of the BOKF claim, at which time the  Representation
     Escrow Agreement shall  terminate,  the Escrow Agent shall pay the claim of
     BOKF as mutually  agreed or finally  adjudicated and the Escrow Agent shall
     distribute any remaining  Escrow Funds to the Paying Agent for distribution
     in accordance with Section 11.3 hereof.

     11.3.  Upon receipt of any  Representation  Escrow Funds,  the Paying Agent
     shall  pay all such  funds to the  holders  of VCB  Common  Stock and Stock
     Options,  in each instance as of the Record Date, in accordance  with their
     respective interests (the "VCB Shareholders").

     11.4.  The  rights  of  the  VCB   Shareholders  to  receive   payments  of
     Representation  Escrow Funds shall not be assignable or transferable except
     by  operation  of law or by intestacy or with the approval of BOKF and will
     not be evidenced by any certificate or other evidence of ownership.

     11.5. BOKF shall pay the fees and costs of the Paying Agent with respect to
     payment to the VCB Shareholders of the Representation Escrow Funds.

<PAGE>

12. Shareholder Representative.

     12.1.  Effective as of, and automatically by virtue of, the Closing,  there
     shall be (and hereby is) appointed a representative of the VCB Shareholders
     (the "Shareholder  Representative").  The Shareholder  Representative and a
     successor  thereto in the event of the death,  disability or resignation of
     the initial Shareholder Representative, shall be designated and retained by
     VCB prior to  Closing.  The  Shareholder  Representative  need not be a VCB
     Shareholder,  but shall be a licensed  attorney  or  certified  arbitrator,
     mediator or dispute resolution facilitator.

     12.2.  With  one  and  only  one  exception,  following  the  Closing,  the
     Shareholder  Representative  shall have  complete  power and  authority  on
     behalf and as agent of all VCB Shareholders to make such decisions and take
     such actions as the Shareholder  Representative may deem prudent, necessary
     or  advisable  from time to time with respect to matters  arising  under or
     related to the Representation  Escrow Funds and the  Representation  Escrow
     Agreement.  By way of example only, the  Shareholder  Representative  shall
     have the right on behalf of all VCB  shareholders to compromise any General
     Claim.  The one exception to the foregoing is that,  absent a shareholder's
     specific  written consent to the contrary,  the Shareholder  Representative
     shall  have no power or  authority  to commit  any VCB  Shareholder  to any
     contract,   payment,   contribution,   expense  or  liability  beyond  such
     shareholder's then-current interest in the Representation Escrow Funds.

     12.3.  In connection  with his or her role  pursuant to Section  12.2,  the
     Shareholder Representative (and any successor thereto) shall have liability
     to the VCB Shareholders only for his or her gross negligence or intentional
     misconduct.  For the  avoidance  of doubt,  each  Representative  is hereby
     exonerated  and released  from and against any  liability  for his ordinary
     negligence.  The  Shareholder  Representative  (and any successor  thereto)
     shall be reimbursed and indemnified from the  Representation  Escrow Funds,
     subordinate  to  BOKF's  interests  therein  with  respect  to all  claims,
     liabilities  and  including,  without  limitation,  legal fees and expenses
     incurred in connection  with his or her role as Shareholder  Representative
     for actions and omissions not in violation of the foregoing  standard.  The
     Shareholder  Representative  shall  receive  an  hourly  fee for his or her
     services at a rate not to exceed $300 per hour. To the extent the aggregate
     amount of General Losses approved by the Shareholder  Representative in the
     compromise  of  any  General  Claim  exceeds  $500,000,  the  fees  of  the
     Shareholder  Representative  shall be paid from the  Representation  Escrow
     Fund prior to any payment on any General Claim approved by the  Shareholder
     Representative.  In the event the  aggregate  amount of the General  Losses
     approved by the Shareholder Representative in the compromise of any General
     Claim does not exceed $500,000, the fees of the Shareholder  Representative
     shall be paid by BOKF.  By  virtue  of the  Closing,  each VCB  Shareholder
     hereby   appoints   the   Shareholder    Representative    as   his/her/its
     attorney-in-fact,  to execute and deliver on the shareholder's  behalf such
     documents as the Shareholder  Representative  may deem expedient to fulfill
     his or her duties under this Section.  Such  appointment is coupled with an
     interest and therefore shall be irrevocable.

<PAGE>

     12.4 VCB shall  apprise BOKF of the  identity of the initial and  successor
     Shareholder Representative prior to Closing. BOKF shall be entitled to rely
     without   further   inquiry  on  any  writing  signed  by  the  Shareholder
     Representative with respect to any of the foregoing matters.

13. ESI Escrow.

     13.1. At Closing,  BOKF shall  establish an escrow  account with the Escrow
     Agent and deposit the ESI Escrow Funds in the escrow account pursuant to an
     escrow  agreement (the "ESI Escrow  Agreement") in the form attached hereto
     as Exhibit 13. The escrow agent's fees shall be borne by BOKF.

          13.1.1.  The ESI Escrow  Funds shall be invested in a  certificate  of
          deposit  maturing  three years from date, at the rate and on the terms
          and conditions  generally  offered by Escrow Agent for certificates of
          deposit  of  comparable  size  and  duration,  and  upon  maturity  as
          necessary, in three-month  certificates of deposit at the Escrow Agent
          at the rates  and on terms and  conditions  generally  offered  by the
          Escrow Agent for  certificates of comparable size and duration at each
          renewal date.

          13.1.2.  In the event Robert A. Homco does not commence  litigation or
          arbitration (collectively, "Litigation") against VCB, the Bank or BOKF
          on or before the third anniversary of the closing (the "ESI Bar Date")
          seeking to enforce or collect the  payments  described in Sections 1.C
          and 2 of the Revised Executive  Supplemental  Income Agreement between
          the Bank and  Robert  A.  Homco  dated  September  10,  2001 (the "ESI
          Benefit Agreement"),  the ESI Escrow Agreement shall terminate and the
          Escrow  Agent  shall,   within  five  (5)  business  days  thereafter,
          distribute  the ESI Escrow Funds to the Paying Agent for  distribution
          in accordance with Section 11.3 of this Agreement.

<PAGE>

          13.1.3. In the event Robert A. Homco does commence  Litigation against
          VCB, the Bank or BOKF on or before the ESI Bar Date seeking to enforce
          or collect  the  payments  described  in Section  1.C and 2 of the ESI
          Benefit Agreement (the "ESI Payments"),  then the ESI Escrow Agreement
          shall continue until such Litigation (or all claims therein pertaining
          to  the  ESI  Payments)  has  been  finally  adjudicated.  Upon  final
          adjudication,  the ESI Escrow  Agreement  shall  terminate and the ESI
          Escrow  Funds shall be  distributed  as provided in Section  13.1.4 or
          13.1.5 as the case may be.

          13.1.4.  In  the  event  the  final  adjudication  of  the  Litigation
          described in Section 13.1.3 of this  Agreement  results in a dismissal
          of the claims of Robert A. Homco or  otherwise  affirms that Robert A.
          Homco has no right or  entitlement  to the ESI Payments,  then the ESI
          Escrow  shall  terminate  and  the  Escrow  Agent  shall,  as  soon as
          practicable  after  notice of such final  adjudication,  remit the ESI
          Escrow Funds less the reasonable  attorney fees, expert fees and other
          costs of the Litigation  (collectively,  the "Homco Litigation Costs")
          incurred by VCB,  the Bank or BOKF in  defending  such  Litigation  as
          determined  under  Section  13.1.6  hereof,  to the  Paying  Agent for
          distribution in accordance  with Section 11.3 of this  Agreement.  The
          amount of the  reasonable  Homco  Litigation  Costs  determined  under
          Section 13.1.6 shall be remitted to BOKF.

          13.1.5.  In  the  event  the  final  adjudication  of  the  Litigation
          described in Section 13.1.3 of this Agreement results in a judgment or
          order  finding  that Robert A. Homco is entitled to the ESI  Payments,
          then the ESI Escrow shall  terminate  and the Escrow  Agent shall,  as
          soon as practicable after notice of such final adjudication, remit the
          ESI Escrow Funds to BOKF or its designee;  provided,  however, that in
          the event the amount  awarded to Robert A. Homco for ESI  Payments  in
          said  final  adjudication  is less than the  amount of the ESI  Escrow
          Funds,  then the  excess  amount  of the ESI  Escrow  Funds,  less the
          reasonable Homco Litigation Costs incurred by VCB, the Bank or BOKF in
          defending the  Litigation as determined  under Section  13.1.6 hereof,
          shall be remitted to the Paying Agent for  distribution  in accordance
          with  Section  11.3 of this  Agreement.  If any part of a judgment  or
          order  described in this Section 13.1.5 is covered by insurance,  then
          the ESI  Payments  found to be due to Robert A. Homco shall be reduced
          by the  applicable  insurance  proceeds to  determine  whether the ESI
          Escrow  Funds  exceed  the net ESI  Payments  due.  The  amount of the
          reasonable  Homco  Litigation  Costs  determined  under Section 13.1.6
          shall be remitted to BOKF.

<PAGE>

          13.1.6.  The reasonable  Homco  Litigation Costs incurred in defending
          the  Litigation  of any claim to ESI  Payments for purposes of Section
          12.1.4 and 12.1.5 of this Agreement,  shall be the amount set forth in
          an  Affidavit  of either the Chief  Financial  Officer or Chief  Legal
          Officer of BOKF  attesting to the amount of  attorneys  fees and costs
          reasonably and necessarily incurred in defending to final adjudication
          the Litigation of any claim of Robert A. Homco to the ESI Payments. If
          any part of the Homco Litigation Costs are covered by insurance,  then
          the  reasonable  Homco  Litigation  Costs  remitted  to BOKF  shall be
          reduced by the amount of  insurance  payments  received  for the Homco
          Litigation Costs.

          13.1.7.  BOKF covenants that it will diligently  defend any Litigation
          described in Section 13.1.3 of this Agreement in good faith and in the
          same  manner  that it would in the event the ESI Escrow did not exist.
          BOKF shall not  settle  any claim by Robert A. Homco for ESI  Payments
          without  the consent of Jay A.  Fishman,  which  consent  shall not be
          unreasonably  withheld.  Jay A.  Fishman is hereby  designated  as the
          representative  of the VCB  Shareholders  for the purpose of giving or
          withholding such consent and is hereby released and held harmless from
          any liability to the VCB Shareholders in connection therewith.

     13.2. Upon receipt of any ESI Escrow Funds,  the Paying Agent shall pay all
     such funds to the holders of VCB Common  Stock and Stock  Options,  in each
     instance  as of the  Record  Date,  in  accordance  with  their  respective
     interests (the "VCB Shareholders").

     13.3. The rights of the VCB  Shareholders to receive payments of ESI Escrow
     Funds shall not be assignable or transferable except by operation of law or
     by  intestacy or with the approval of BOKF and will not be evidenced by any
     certificate or other evidence of ownership.

     13.4. BOKF shall pay the fees and costs of the Paying Agent with respect to
     payment to the VCB Shareholders of the ESI Escrow Funds.

<PAGE>

     13.5.  If at any time prior to the Closing,  VCB or Bank obtains a release,
     in a form  reasonably  satisfactory  to BOKF,  from  Robert A. Homco of any
     rights he may have to the ESI Payments, then the ESI Escrow Funds, less any
     amounts paid to Robert A. Homco in consideration of such release,  shall be
     added to the Closing  Payment under Section  2.7.1.  of this  Agreement and
     Section  2.7.3.   and  this  Section  13  of  the  Agreement  shall  become
     inoperative.

14. Termination.

     14.1. This Agreement may be terminated at any time prior to the Closing by:
     (a) The mutual  consent of the  respective  Boards of Directors of BOKF and
     Merger Corp and VCB; (b) BOKF and Merger Corp if the  conditions  set forth
     in Section 7 hereof shall not have been met; (c) VCB if the  conditions set
     forth in  Section 8 hereof  shall  not have  been  met;  (d) VCB if (i) VCB
     receives an offer from a third party  which the board of  directors  of VCB
     determines,  in good  faith  and  after  consultation  with an  independent
     financial advisor,  that such proposal  constitutes a Superior Proposal and
     resolves to accept such a Superior Proposal,  and (ii) VCB shall have given
     BOKF two (2) Phoenix  business  days' prior written notice of its intention
     to terminate  pursuant to this  provision;  (e) BOKF and Merger Corp if the
     board of  directors  of VCB  shall  have  resolved  to  accept  a  Superior
     Proposal;  (f) VCB in the event the Closing  has not  occurred by April 15,
     2005,  or such other date as the parties  hereto  agree in writing;  or Any
     party desiring to terminate this Agreement pursuant to any of the foregoing
     provisions  shall give  notice of such  termination  to the other  party in
     accordance with Section 15.1 hereof.

     14.2. The exercise of a right of termination by a Party pursuant to Section
     14.1  shall  not limit any  relief  to which the  terminating  Party may be
     entitled for a breach of this  Agreement  by the other Party.  In the event
     termination occurs as a result of a willful misrepresentation by a Party or
     as a result of the willful failure of a party to fulfill a condition to the
     performance  of the  obligation of the other party to this  Agreement,  the
     breaching  Party shall pay to the other  United  States  funds  immediately
     available in the city at which the recipients' home office is located on or
     before the fifth  business day  following  such  termination,  Five Hundred
     Thousand  Dollars  ($500,000).  BOKF and VCB  agree  that  (i) the  damages
     incurred by the non-breaching party would be substantial, but (ii) could be
     difficult to quantify;  and  accordingly,  (iii) such amount  constitutes a
     reasonable estimate of such damages.

<PAGE>

     14.3.  In the event BOKF is not in default of any  material  obligation  of
     BOKF under this  Agreement and VCB terminates  this  Agreement  pursuant to
     clause (d) of Section 14.1,  BOKF  terminates  this  Agreement  pursuant to
     clause  (b) of  Section  14.1  by  reason  of a  failure  of the  condition
     described in Section 7.7, and/or VCB terminates this Agreement  pursuant to
     clause (c) of Section 14.1 by reason of a failure described in Section 8.5,
     VCB shall pay BOKF in United States funds  immediately  available in Tulsa,
     Oklahoma,  on or before the fifth Tulsa  business day following the date on
     which VCB  terminates  this  Agreement,  One Million Five Hundred  Thousand
     Dollars ($1,500,000).

     14.4.  VCB agrees that (i) the  damages  incurred by BOKF in the event of a
     termination  described in Section 14.3 would be substantial,  but (ii) such
     damages could be difficult to quantify; and accordingly,  (iii) such amount
     constitutes a reasonable estimate of such damages.

     14.5.  In the event the Closing has not  occurred by April 15, 2005 and VCB
     terminates  this  Agreement any time  thereafter  pursuant to clause (f) of
     Section  14.1,  BOKF  shall  pay VCB in  United  States  funds  immediately
     available in Phoenix,  Arizona, on or before the fifth Phoenix business day
     following the date on which VCB terminates this Agreement, One Million Five
     Hundred  Thousand  Dollars  ($1,500,000)  provided  that  (i) VCB is not in
     default of any material  obligation of VCB under this Agreement or (ii) the
     action,  omission or  condition  of VCB or Bank is not the cause in fact of
     the failure of the Closing to timely occur.

15. Miscellaneous Provisions. The following miscellaneous provisions shall apply
to this Agreement:

     15.1.  All  notices  or advices  required  or  permitted  to be given by or
     pursuant to this Agreement, shall be given in writing. All such notices and
     advices  shall be (i)  delivered  personally,  (ii)  delivered by facsimile
     (iii)  delivered by email  (iv)delivered  by U.S.  Registered  or Certified
     Mail,  Return  Receipt  Requested  mail,  or (v)  delivered  for  overnight
     delivery by a nationally recognized overnight courier service. Such notices
     and advices  shall be deemed to have been given (i) the first  business day
     following the date of delivery if delivered personally,  by facsimile or by
     email,  (ii) on the third  business  day  following  the date of mailing if
     mailed by U.S.  Registered or Certified Mail, Return Receipt Requested,  or
     (iii) on the date of receipt  if  delivered  for  overnight  delivery  by a
     nationally  recognized  overnight  courier  service.  All such  notices and
     advices and all other  communications  related to this  Agreement  shall be
     given as follows:

<PAGE>

                           BOKF and Merger Corp:
                           Stacey Kymes, Senior Vice President
                           BOK FINANCIAL CORPORATION
                           P.O. Box 2300
                           Tulsa, OK 74192
                           (918) 588-6853 - Facsimile
                           DRoten@mail.bok.com

                                and

                           Frederic Dorwart, Secretary and General Counsel to
                           BOK Financial Corporation
                           Old City Hall
                           124 East Fourth Street
                           Tulsa, OK 74103
                           (918) 583-8251 - Facsimile
                           fdorwart@fdlaw.com

                           VCB and Bank:
                           Jay A. Fishman, Chairman of the Board
                           Valley Commerce Bancorp, Ltd.
                           5050 North 44th Street
                           Phoenix, AZ 85018
                           (248) 740-9401 - Facsimile
                           jaf@jaf-ltd.com

                           Gregory S. Anderson
                           Valley Commerce Bancorp, Ltd.
                           5050 North 44th Street
                           Phoenix, AZ 85018
                           (602) 852-9418 - Facsimile
                           ganderson@valleycommercebank.com

                                 and

                           David W. Barton, Esq.
                           Bodman LLP
                           229 Court Street, P.O. Box 405
                           Cheboygan, Michigan 49721
                           (231) 627-3477 - Facsimile
                           dbarton@bodmanllp.com

<PAGE>

     or to such  other  address  as the  party may have  furnished  to the other
     parties in accordance  herewith,  except that notice of change of addresses
     shall be effective only upon receipt.

     15.2.  This  Agreement  shall be  subject  to,  and  interpreted  by and in
     accordance  with, the laws  (excluding  conflict of law  provisions) of the
     State of Oklahoma.

     15.3. This Agreement is the entire agreement of the parties  respecting the
     subject matter hereof.  There are no other agreements,  representations  or
     warranties, whether oral or written, respecting the subject matter hereof.

     15.4. No course of prior  dealings  involving any of the parties hereto and
     no usage of trade shall be relevant or advisable to interpret,  supplement,
     explain  or vary any of the terms of this  Agreement,  except as  expressly
     provided herein.

     15.5.  This Agreement,  and all the provisions of this Agreement,  shall be
     deemed drafted by all of the parties hereto.

     15.6. This Agreement  shall not be interpreted  strictly for or against any
     party,  but solely in  accordance  with the fair meaning of the  provisions
     hereof to effectuate the purposes and interest of this Agreement.

     15.7.  Each party hereto has entered into this Agreement  based solely upon
     the agreements,  representations and warranties  expressly set forth herein
     and upon his own knowledge and investigation. Neither party has relied upon
     any  representation  or warranty of any other party hereto  except any such
     representations or warranties as are expressly set forth herein.

     15.8.  Each of the  persons  signing  below  on  behalf  of a party  hereto
     represents  and  warrants  that  he or she has  full  requisite  power  and
     authority  to execute and deliver  this  Agreement on behalf of the parties
     for whom he or she is  signing  and to bind  such  party to the  terms  and
     conditions of this Agreement.

<PAGE>

     15.9. This Agreement may be executed in  counterparts,  each of which shall
     be deemed an original.  This Agreement shall become effective only when all
     of the parties  hereto  shall have  executed  the  original or  counterpart
     hereof.  This  agreement  may be  executed  and  delivered  by a  facsimile
     transmission of a counterpart signature page hereof.

     15.10.  In any action brought by a party hereto to enforce the  obligations
     of any other  party  hereto,  the  prevailing  party  shall be  entitled to
     collect  from the  opposing  party to such action such  party's  reasonable
     litigation  costs and attorneys fees and expenses  (including  court costs,
     reasonable fees of accountants and experts,  and other expenses  incidental
     to the litigation).

     15.11.  This Agreement shall be binding upon and shall inure to the benefit
     of the parties and their respective successors and assigns.

     15.12. This is not a third party  beneficiary  contract except as otherwise
     expressly  stated  herein.  No person or entity other than a party  signing
     this  Agreement  shall  have any  rights  under  this  Agreement  except as
     otherwise expressly stated herein.

     15.13.  This  Agreement  may be amended or modified only in a writing which
     specifically  references this Agreement.

     15.14. This Agreement may not be assigned by any party hereto.

     15.15.  A party to this  Agreement  may decide or fail to  require  full or
     timely  performance of any  obligation  arising under this  Agreement.  The
     decision or failure of a party hereto to require full or timely performance
     of any  obligation  arising  under  this  Agreement  (whether  on a  single
     occasion or on multiple occasions) shall not be deemed a waiver of any such
     obligation.  No such  decisions or failures shall give rise to any claim of
     estoppel,  laches, course of dealing, amendment of this Agreement by course
     of  dealing,  or other  defense  of any  nature to any  obligation  arising
     hereunder.

<PAGE>

     15.16.  The  repudiation,  breach,  or failure to  perform  any  obligation
     arising under this  Agreement by a party after  reasonable  notice  thereof
     shall be deemed a repudiation,  breach,  and failure to perform all of such
     party's obligations arising under this Agreement.

     15.17. Time is of the essence with respect to each obligation arising under
     this  Agreement.  The  failure  to timely  perform  an  obligation  arising
     hereunder shall be deemed a failure to perform the obligation.

     15.18.  All actions taken and  documents  delivered at the Closing shall be
     deemed to have been taken and executed  simultaneously  and no action shall
     be deemed  taken nor any document  delivered  until all have been taken and
     delivered.

     15.19.Any information delivered by way of exhibit or schedule in connection
     with this agreement shall be deemed  delivered for the purpose of any other
     exhibit or schedule which calls for such information.

     15.20.  In the event of a breach of an  obligation to pay under this Merger
     Agreement,  the  breaching  party  agrees  to pay the  non-breaching  party
     interest  on the unpaid  amount  beginning  on the date of default at a per
     annum  rate of U.S.  National  Prime  plus  two  percent  (2%),  compounded
     annually.

     15.21. Except as otherwise provided in this Agreement,  each of the parties
     shall bear their own expenses associated with the transactions contemplated
     by  this   Agreement   including,   without   limitation,   all   costs  of
     investigations,  regulatory  applications and professional services.  Dated
     and effective the date first set forth above.

<PAGE>

VALLEY COMMERCE BANCORP, LTD.               VALLEY COMMERCE BANK

By: ____________________________            By: _____________________________
         Jay A. Fishman, Chairman                Gregory S. Anderson,
                                                 President and CEO

BOK FINANCIAL CORPORATION                   BOK MERGER CORPORATION NUMBER EIGHT

By_____________________________             By: _____________________________
         Steven E. Nell                          Steven E. Nell
         Executive Vice President & CFO          Executive Vice President & CFOAMERIQUEST MORTGAGE SECURITIES INC.

                                    Depositor

                           AMERIQUEST MORTGAGE COMPANY

                                 Master Servicer

                     FEDERAL NATIONAL MORTGAGE ASSOCIATION,

             Guarantor (with respect to the Class A-1 Certificates)

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT
                          Dated as of December 1, 2004

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

                     Asset-Backed Pass-Through Certificates

                                 Series 2004-R12

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

   SECTION                                                                  PAGE
   -------                                                                  ----

ARTICLE I DEFINITIONS                                                          4

   SECTION 1.01    Defined Terms...............................................4
   SECTION 1.02    Allocation of Certain Interest Shortfalls..................60
   SECTION 1.03    Rights of the Guarantor and the NIMS Insurer...............62

   ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
CERTIFICATES                                                                  64

   SECTION 2.01    Conveyance of Mortgage Loans...............................64
   SECTION 2.02    Acceptance of REMIC I by the Trustee.......................66
   SECTION 2.03    Repurchase or Substitution of Mortgage Loans by
                   the Seller or the Depositor; Payment of Prepayment
                   Charge Payment Amounts.....................................68
   SECTION 2.04    [Reserved].................................................72
   SECTION 2.05    Representations, Warranties and Covenants of the
                   Master Servicer............................................72
   SECTION 2.06    Issuance of the REMIC I Regular Interests and the
                   Class R-I Interest.........................................75
   SECTION 2.07    Conveyance of the REMIC I Regular Interests; Acceptance
                   of REMIC I, REMIC II and REMIC III by the Trustee..........75
   SECTION 2.08    [Reserved].................................................76
   SECTION 2.09    Conveyance of the Subsequent Mortgage Loans................76

ARTICLE III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS                80

   SECTION 3.01    Master Servicer to Act as Master Servicer..................80
   SECTION 3.02    Collection of Certain Mortgage Loan Payments...............82
   SECTION 3.03    [Reserved].................................................84
   SECTION 3.04    Collection Account, Escrow Account and Distribution
                   Account....................................................84
   SECTION 3.05    Permitted Withdrawals From the Collection Account,
                   Escrow Account and Distribution Account....................88
   SECTION 3.06    Investment of Funds in the Collection Account, the
                   Escrow Account, the REO Account and the Distribution
                   Account....................................................91
   SECTION 3.07    Payment of Taxes, Insurance and Other Charges..............93
   SECTION 3.08    Maintenance of Hazard Insurance............................93
   SECTION 3.09    Maintenance of Mortgage Blanket Insurance..................94
   SECTION 3.10    Fidelity Bond; Errors and Omissions Insurance..............94
   SECTION 3.11    Enforcement of Due-On-Sale Clauses; Assumption
                   Agreements.................................................95
   SECTION 3.12    Realization Upon Defaulted Mortgage Loans..................96
   SECTION 3.13    Title, Management and Disposition of REO Property..........98
   SECTION 3.14    Agreement to Appoint a Special Servicer...................101

                                        i

<PAGE>

   SECTION 3.15    Reports of Foreclosure and Abandonment of Mortgaged
                   Properties................................................103
   SECTION 3.16    Optional Purchase of Defaulted Mortgage Loans.............104
   SECTION 3.17    Trustee to Cooperate; Release of Mortgage Files...........104
   SECTION 3.18    Servicing Compensation....................................106
   SECTION 3.19    Statement as to Compliance................................106
   SECTION 3.20    Independent Public Accountants' Servicing Report..........107
   SECTION 3.21    Access to Certain Documentation...........................107
   SECTION 3.22    PMI Policies; Claims Under the PMI Policies...............108
   SECTION 3.23    Advance Facility..........................................108

ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS                                    111

   SECTION 4.01    Distributions.............................................111
   SECTION 4.02    Statements to Certificateholders..........................122
   SECTION 4.03    Remittance Reports and Other Reports to the Trustee;
                   Advances; Payments in Respect of Prepayment Interest
                   Shortfalls................................................127
   SECTION 4.04    Allocation of Realized Losses.............................129
   SECTION 4.05    Compliance with Withholding Requirements..................132
   SECTION 4.06    Commission Reporting......................................132
   SECTION 4.07    Pre-Funding Accounts......................................134
   SECTION 4.08    Interest Coverage Accounts................................135
   SECTION 4.09    The Guaranty..............................................136
   SECTION 4.10    [Reserved]................................................137
   SECTION 4.11    Net WAC Rate Carryover Reserve Account....................137

ARTICLE V THE CERTIFICATES                                                   139

   SECTION 5.01    The Certificates..........................................139
   SECTION 5.02    Registration of Transfer and Exchange of Certificates.....141
   SECTION 5.03    Mutilated, Destroyed, Lost or Stolen Certificates.........146
   SECTION 5.04    Persons Deemed Owners.....................................147
   SECTION 5.05    Certain Available Information.............................147

ARTICLE VI THE DEPOSITOR AND THE MASTER SERVICER                             149

   SECTION 6.01    Liability of the Depositor and the Master Servicer........149
   SECTION 6.02    Merger or Consolidation of the Depositor or the
                   Master Servicer...........................................149
   SECTION 6.03    Limitation on Liability of the Depositor, the Master
                   Servicer and Others.......................................149
   SECTION 6.04    Limitation on Resignation of the Master Servicer..........151
   SECTION 6.05    Rights of the Depositor in Respect of the Master
                   Servicer..................................................151
   SECTION 6.06    Sub-Servicing Agreements Between the Master Servicer
                   and Sub-Servicers.........................................152
   SECTION 6.07    Successor Sub-Servicers...................................153
   SECTION 6.08    Liability of the Master Servicer..........................154

                                       ii

<PAGE>

   SECTION 6.09    No Contractual Relationship Between Sub-Servicers and
                   the NIMS Insurer, the Guarantor, the Trustee or
                   Certificateholders........................................154
   SECTION 6.10    Assumption or Termination of Sub-Servicing Agreements
                   by Trustee................................................154
   SECTION 6.11    Sub-Servicing Accounts....................................155

ARTICLE VII DEFAULT                                                          156

   SECTION 7.01    Master Servicer Events of Default.........................156
   SECTION 7.02    Trustee to Act; Appointment of Successor..................158
   SECTION 7.03    Notification to Certificateholders........................160
   SECTION 7.04    Waiver of Master Servicer Events of Default...............161

ARTICLE VIII CONCERNING THE TRUSTEE                                          162

   SECTION 8.01    Duties of Trustee.........................................162
   SECTION 8.02    Certain Matters Affecting the Trustee.....................163
   SECTION 8.03    The Trustee Not Liable for Certificates or Mortgage
                   Loans.....................................................164
   SECTION 8.04    Trustee May Own Certificates..............................165
   SECTION 8.05    Trustee's Fees and Expenses...............................165
   SECTION 8.06    Eligibility Requirements for Trustee......................166
   SECTION 8.07    Resignation and Removal of the Trustee....................166
   SECTION 8.08    Successor Trustee.........................................167
   SECTION 8.09    Merger or Consolidation of Trustee........................168
   SECTION 8.10    Appointment of Co-Trustee or Separate Trustee.............168
   SECTION 8.11    Appointment of Custodians.................................169
   SECTION 8.12    Appointment of Office or Agency...........................169
   SECTION 8.13    Representations and Warranties of the Trustee.............170

ARTICLE IX TERMINATION                                                       171

   SECTION 9.01    Termination Upon Repurchase or Liquidation of All
                   Mortgage Loans............................................171
   SECTION 9.02    Additional Termination Requirements.......................173

ARTICLE X REMIC PROVISIONS                                                   174

   SECTION 10.01   REMIC Administration......................................174
   SECTION 10.02   Prohibited Transactions and Activities....................177
   SECTION 10.03   Master Servicer and Trustee Indemnification...............177

ARTICLE XI MISCELLANEOUS PROVISIONS                                          178

   SECTION 11.01   Amendment.................................................178
   SECTION 11.02   Recordation of Agreement; Counterparts....................179
   SECTION 11.03   Limitation on Rights of Certificateholders................179
   SECTION 11.04   Governing Law.............................................180
   SECTION 11.05   Notices...................................................180
   SECTION 11.06   Severability of Provisions................................181

                                      iii

<PAGE>

   SECTION 11.07   Notice to Rating Agencies, the Guarantor and the
                   NIMS Insurer..............................................181
   SECTION 11.08   Article and Section References............................182
   SECTION 11.09   Grant of Security Interest................................182
   SECTION 11.10   Third Party Rights........................................183

                                       iv

<PAGE>

Exhibits
--------

Exhibit A-1     Form of Class A-1 Certificate
Exhibit A-2     Form of Class A-2 Certificate
Exhibit A-3     Form of Class A-3 Certificate
Exhibit A-4     Form of Class A-4 Certificate
Exhibit A-5     Form of Class M-1 Certificate
Exhibit A-6     Form of Class M-2 Certificate
Exhibit A-7     Form of Class M-3 Certificate
Exhibit A-8     Form of Class M-4 Certificate
Exhibit A-9     Form of Class M-5 Certificate
Exhibit A-10    Form of Class M-6 Certificate
Exhibit A-11    Form of Class M-7 Certificate
Exhibit A-12    Form of Class M-8 Certificate
Exhibit A-13    Form of Class M-9 Certificate
Exhibit A-14    Form of Class M-10 Certificate
Exhibit A-15    Form of Class CE Certificate
Exhibit A-16    Form of Class P Certificate
Exhibit A-17    Form of Class R Certificate
Exhibit B       Form of Lost Note Affidavit
Exhibit C-1     Form of Trustee's Initial Certification
Exhibit C-2     Form of Trustee's Final Certification
Exhibit C-3     Form of Trustee's Receipt of Mortgage Note
Exhibit D       Form of Mortgage Loan Purchase Agreement
Exhibit E       Request for Release
Exhibit F-1     Form of Transferor Representation Letter and Form of
                Transferee Representation Letter in Connection with Transfer
                of Class CE and Class P Certificates Pursuant to Rule 144A
                Under the 1933 Act
Exhibit F-2     Form of Transfer Affidavit and Agreement and Form of
                Transferor Affidavit in Connection with Transfer of Residual
                Certificates
Exhibit G       Form of Certification with respect to ERISA and the Code
Exhibit H       Form of Cap Contracts Exhibit I Loss Mitigation Action Plan
Exhibit J-1     Form of Certification to Be Provided by the Depositor with
                Form 10-K
Exhibit J-2     Form of Certification to Be Provided to Depositor by the Trustee
Exhibit K       Form of Addition Notice
Exhibit L       Form of Subsequent Transfer Instrument
Exhibit M       Annual Statement of Compliance pursuant to Section 3 19

Schedule 1      Mortgage Loan Schedule
Schedule 2      Prepayment Charge Schedule

                                       v

<PAGE>

                  This Pooling and Servicing Agreement, is dated and effective
as of December 1, 2004, among AMERIQUEST MORTGAGE SECURITIES INC., as Depositor,
AMERIQUEST MORTGAGE COMPANY, as Master Servicer, FEDERAL NATIONAL MORTGAGE
ASSOCIATION, as Guarantor of the Class A-1 Certificates and DEUTSCHE BANK
NATIONAL TRUST COMPANY, as Trustee.

                             PRELIMINARY STATEMENT:

                  The Depositor intends to sell pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate shall evidence the entire beneficial ownership interest
in each REMIC (as defined herein) created hereunder. The Trust Fund shall
consist of a segregated pool of assets consisting of the Mortgage Loans and
certain other related assets subject to this Agreement.

                  As provided herein, the Trustee shall elect to treat the
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets (other than any Master Servicer Prepayment Charge Payment
Amounts, the Pre-Funding Accounts, the Interest Coverage Accounts, any
Subsequent Mortgage Loan Interest, the Net WAC Rate Carryover Reserve Account
and the Cap Contracts) subject to this Agreement as a REMIC for federal income
tax purposes, and such segregated pool of assets shall be designated as "REMIC
I." The Class R-I Interest shall be the sole class of "residual interests" in
REMIC I for purposes of the REMIC Provisions (as defined herein). The following
table irrevocably sets forth the designation, the REMIC I Remittance Rate, the
initial Uncertificated Balance and, solely for purposes of satisfying Treasury
regulation section 1.860G-1(a)(4)(iii), the "latest possible maturity date" for
each of the REMIC I Regular Interests (as defined herein). None of the REMIC I
Regular Interests shall be certificated.

                     REMIC I          Initial Uncertificated     Latest Possible
Designation      Remittance Rate             Balance            Maturity Date(1)
------------     ---------------      ----------------------    ----------------
   I-LT1           Variable(2)           $905,778,612.29         March 25, 2035
  I-LT1PF          Variable(2)           $226,445,095.10         March 25, 2035
   I-LT2           Variable(2)           $294,221,048.36         March 25, 2035
  I-LT2PF          Variable(2)           $ 73,555,144.25         March 25, 2035
   I-LTP           Variable(2)           $        100.00         March 25, 2035
----------------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC I Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC I Remittance Rate"
     herein.

<PAGE>

                                    REMIC II

                  As provided herein, the Trustee shall elect to treat the
segregated pool of assets consisting of the REMIC I Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets shall be
designated as "REMIC II." The Class R-II Interest shall evidence the sole class
of "residual interests" in REMIC II for purposes of the REMIC Provisions under
federal income tax law. The following table irrevocably sets forth the
designation, the REMIC II Remittance Rate, the initial Uncertificated Balance
and, solely for purposes of satisfying Treasury regulation section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC
II Regular Interests (as defined herein). None of the REMIC II Regular Interests
shall be certificated.

                     REMIC II         Initial Uncertificated     Latest Possible
Designation      Remittance Rate             Balance            Maturity Date(1)
------------     ---------------      ----------------------    ----------------
   II-LTAA          Variable(2)          $734,999,951.00         March 25, 2035
   II-LTA1          Variable(2)          $  4,916,680.00         March 25, 2035
   II-LTA2          Variable(2)          $    580,400.00         March 25, 2035
   II-LTA3          Variable(2)          $    829,500.00         March 25, 2035
   II-LTA4          Variable(2)          $    187,170.00         March 25, 2035
   II-LTM1          Variable(2)          $    318,750.00         March 25, 2035
   II-LTM2          Variable(2)          $    161,250.00         March 25, 2035
   II-LTM3          Variable(2)          $     82,500.00         March 25, 2035
   II-LTM4          Variable(2)          $     75,000.00         March 25, 2035
   II-LTM5          Variable(2)          $     63,750.00         March 25, 2035
   II-LTM6          Variable(2)          $     60,000.00         March 25, 2035
   II-LTM7          Variable(2)          $     37,500.00         March 25, 2035
   II-LTM8          Variable(2)          $     26,250.00         March 25, 2035
   II-LTM9          Variable(2)          $     45,000.00         March 25, 2035
  II-LTM10          Variable(2)          $     63,750.00         March 25, 2035
   II-LTZZ          Variable(2)          $  7,552,499.00         March 25, 2035
   II-LTP           Variable(2)          $        100.00         March 25, 2035
   II-1SUB          Variable(2)          $     14,888.77         March 25, 2035
   II-1GRP          Variable(2)          $    113,222.38         March 25, 2035
   II-2SUB          Variable(2)          $      4,836.22         March 25, 2035
   II-2GRP          Variable(2)          $     36,777.62         March 25, 2035
    II-XX           Variable(2)          $749,830,225.01         March 25, 2035
----------------
1)   Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC II Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC II Remittance Rate"
     herein.

                                       2
<PAGE>

                                    REMIC III

                  As provided herein, the Trustee shall elect to treat the
segregated pool of assets consisting of the REMIC II Regular Interests as a
REMIC for federal income tax purposes, and such segregated pool of assets shall
be designated as "REMIC III." The Class R-III Interest shall evidence the sole
class of "residual interests" in REMIC III for purposes of the REMIC Provisions
under federal income tax law. The following table irrevocably sets forth the
designation, the Pass-Through Rate, the initial aggregate Certificate Principal
Balance and, solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for the indicated
Classes of Certificates.

                                       Initial Aggregate
                                     Certificate Principal      Latest Possible
 Designation     Pass-Through Rate          Balance             Maturity Date(1)
------------     -----------------   ---------------------      ----------------
  Class A-1         Variable(2)         $983,336,000.00          March 25, 2035
  Class A-2         Variable(2)         $116,080,000.00          March 25, 2035
  Class A-3         Variable(2)         $165,900,000.00          March 25, 2035
  Class A-4         Variable(2)         $ 37,434,000.00          March 25, 2035
  Class M-1         Variable(2)         $ 63,750,000.00          March 25, 2035
  Class M-2         Variable(2)         $ 32,250,000.00          March 25, 2035
  Class M-3         Variable(2)         $ 16,500,000.00          March 25, 2035
  Class M-4         Variable(2)         $ 15,000,000.00          March 25, 2035
  Class M-5         Variable(2)         $ 12,750,000.00          March 25, 2035
  Class M-6         Variable(2)         $ 12,000,000.00          March 25, 2035
  Class M-7         Variable(2)          $ 7,500,000.00          March 25, 2035
  Class M-8         Variable(2)          $ 5,250,000.00          March 25, 2035
  Class M-9         Variable(2)          $ 9,000,000.00          March 25, 2035
  Class M-10        Variable(2)         $ 12,750,000.00          March 25, 2035
   Class CE         Variable(2)(3)      $ 10,499,900.00          March 25, 2035
   Class P          Variable(2)(4)          $ 100.00             March 25, 2035
----------------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each Class of Certificates.
(2)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(3)  The Class CE Certificates shall accrue interest at their variable
     Pass-Through Rate on the Notional Amount of the Class CE Certificates
     outstanding from time to time which shall equal the Uncertificated Balance
     of the REMIC II Regular Interests, other than REMIC II Regular Interest
     II-LTP. The Class CE Certificates shall not accrue interest on their
     Certificate Principal Balance.
(4)  The Class P Certificates shall not accrue interest.

                  As of the Cut-off Date, the Initial Group I Mortgage Loans had
an aggregate Scheduled Principal Balance equal to $905,778,712.29 and the
Initial Group II Mortgage Loans had an aggregate Scheduled Principal Balance
equal to $294,221,048.36.

                  In consideration of the mutual agreements herein contained,
the Depositor, the Master Servicer, the Guarantor and the Trustee agree as
follows:

                                       3
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01 Defined Terms.

                  Whenever used in this Agreement, including, without
limitation, in the Preliminary Statement hereto, the following words and
phrases, unless the context otherwise requires, shall have the meanings
specified in this Article. Unless otherwise specified, all calculations
described herein shall be made on the basis of a 360-day year consisting of
twelve 30-day months and all calculations on each Regular Interest shall be made
on the basis of a 360-day year and the actual number of days in the month.

                  "Accrued Certificate Interest": With respect to any Class of
Certificates (other than the Class P Certificates and the Residual Certificates)
and each Distribution Date, interest accrued during the related Interest Accrual
Period at the Pass-Through Rate for such Certificate for such Distribution Date
on the Certificate Principal Balance, in the case of the Adjustable-Rate
Certificates and the Fixed-Rate Certificates, or on the Notional Amount, in the
case of the Class CE Certificates, of such Certificate immediately prior to such
Distribution Date. The Class P Certificates are not entitled to distributions in
respect of interest and, accordingly, shall not accrue interest. All
distributions of interest on the Adjustable-Rate Certificates shall be
calculated on the basis of a 360-day year and the actual number of days in the
applicable Interest Accrual Period. All distributions of interest on the
Fixed-Rate Certificates and the Class CE Certificates shall be based on a
360-day year consisting of twelve 30-day months. Accrued Certificate Interest
with respect to each Distribution Date, as to any Class A Certificate or
Mezzanine Certificate, shall be reduced by an amount equal to the portion
allocable to such Certificate pursuant to Section 1.02 hereof of the sum of (a)
the aggregate Prepayment Interest Shortfall, if any, for such Distribution Date
to the extent not covered by payments pursuant to Section 4.03(e) or allocated
to the Class CE Certificates pursuant to Section 1.02 and (b) the aggregate
amount of any Relief Act Interest Shortfall, if any, for such Distribution Date
not allocated to the Class CE Certificates pursuant to Section 1.02. Accrued
Certificate Interest with respect to each Distribution Date and any Class CE
Certificate shall be reduced by (a) Prepayment Interest Shortfalls, if any,
allocated to such Class of Certificates pursuant to Section 1.02 hereof, (b)
Relief Act Interest Shortfalls, if any, allocated to such Class of Certificates
pursuant to Section 1.02 hereof and (c) an amount equal to the portion of
Realized Losses, if any, allocable to interest on the Class CE Certificates
pursuant to Section 4.04 hereof.

                  "Addition Notice": With respect to the transfer of Subsequent
Mortgage Loans to the Trust Fund pursuant to Section 2.09, a notice of the
Depositor's designation of the Subsequent Mortgage Loans to be sold to the Trust
Fund and the aggregate Principal Balance of such Subsequent Mortgage Loans as of
the related Subsequent Cut-off Date. The Addition Notice shall be given not
later than three Business Days prior to the related Subsequent Transfer Date and
shall be substantially in the form of Exhibit K.

                                       4
<PAGE>

                  "Adjustable-Rate Certificates": The Class A Certificates and
the Mezzanine Certificates.

                  "Adjustable-Rate Mortgage Loan": Each of the Mortgage Loans
identified on the Mortgage Loan Schedule as having a Mortgage Rate that is
subject to adjustment.

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

                  "Advance": As to any Mortgage Loan or REO Property, any
advance made by the Master Servicer or a successor Master Servicer in respect of
any Distribution Date representing the aggregate of all payments of principal
and interest, net of the Servicing Fee, that were due during the related Due
Period on the Mortgage Loans and that were delinquent on the related
Determination Date, plus certain amounts representing assumed payments not
covered by any current net income on the Mortgaged Properties acquired by
foreclosure or deed in lieu of foreclosure as determined pursuant to Section
4.03.

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

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

                  "Allocated Realized Loss Amount": With respect to any
Distribution Date and any Class of Mezzanine Certificates, the sum of (i) the
Realized Losses allocated to such Class of Certificates on such Distribution
Date and (ii) the amount of any Allocated Realized Loss Amount for such Class of
Certificates remaining undistributed from the previous Distribution Date,
reduced by the amount of the increase in the Certificate Principal Balance of
such Class of Certificates due to the receipt of Subsequent Recoveries as
provided in Section 4.01.

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

                  "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form (excepting therefrom if applicable,
the mortgage recordation information which has not been returned by the
applicable recorder's office and/or the assignee's name), which is sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is
located to reflect of record the sale of the Mortgage.

                  "Available Funds": With respect to any Distribution Date, an
amount equal to (1) the sum of (a) the aggregate of the amounts on deposit in
the Collection Account and

                                       5
<PAGE>

Distribution Account as of the close of business on the related Determination
Date, including any Subsequent Recoveries, (b) the aggregate of any amounts
received in respect of an REO Property withdrawn from any REO Account and
deposited in the Distribution Account for such Distribution Date pursuant to
Section 3.13, (c) Compensating Interest, if any, deposited in the Distribution
Account by the Master Servicer in respect of Prepayment Interest Shortfalls for
such Distribution Date pursuant to Section 4.03(e), (d) the aggregate of any
Advances made by the Master Servicer for such Distribution Date pursuant to
Section 4.03, (e) the aggregate of any Advances made by the successor Master
Servicer or the Trustee for such Distribution Date pursuant to Section 7.02(b),
(f) with respect to the Distribution Date immediately following the end of the
Funding Period, any amounts previously held in the Pre-Funding Accounts after
giving effect to any purchase of Subsequent Mortgage Loans and (g) with respect
to each Distribution Date during the Funding Period and on the Distribution Date
immediately following the end of the Funding Period, any amounts withdrawn by
the Trustee from the Interest Coverage Accounts for distribution on the
Certificates on such Distribution Date reduced (to not less than zero) by (2)
the sum of (x) the portion of the amount described in clause (1)(a) above that
represents (i) Monthly Payments on the Mortgage Loans received from a Mortgagor
on or prior to the Determination Date but due during any Due Period subsequent
to the related Due Period, (ii) Principal Prepayments on the Mortgage Loans
received after the related Prepayment Period (together with any interest
payments received with such Principal Prepayments to the extent they represent
the payment of interest accrued on the Mortgage Loans during a period subsequent
to the related Prepayment Period), (iii) Liquidation Proceeds, Insurance
Proceeds and Subsequent Recoveries received in respect of the Mortgage Loans
after the related Prepayment Period, (iv) amounts reimbursable or payable to the
Depositor, the Master Servicer, the Trustee, the Seller or any Sub-Servicer
pursuant to Section 3.05 or Section 3.06 or otherwise payable in respect of
Extraordinary Trust Fund Expenses, (v) Stayed Funds, (vi) the Trustee Fee
payable from the Distribution Account pursuant to Section 8.05 and the PMI
Insurer Fee payable from the Distribution Account pursuant to Section 3.05,
(vii) amounts deposited in the Collection Account or the Distribution Account in
error and (viii) the amount of any Prepayment Charges collected by the Master
Servicer and the amount of any Master Servicer Prepayment Charge Payment Amounts
and (y) amounts reimbursable to the Trustee for an advance made pursuant to
Section 7.02(b) which advance the Trustee has determined to be nonrecoverable
from the Stayed Funds in respect of which it was made.

                  "Bankruptcy Code": The Bankruptcy Reform Act of 1978 (Title 11
of the United States Code), as amended.

                  "Bankruptcy Loss": With respect to any Mortgage Loan, a
Realized Loss resulting from a Deficient Valuation or Debt Service Reduction.

                  "Book-Entry Certificate": Any Certificate registered in the
name of the Depository or its nominee. Initially, the Book-Entry Certificates
shall be the Class A Certificates and the Mezzanine Certificates.

                  "Book-Entry Custodian": The custodian appointed pursuant to
Section 5.01.

                                       6
<PAGE>

                  "Business Day": Any day other than a Saturday, a Sunday, a day
on which the Guarantor is closed or a day on which banking or savings and loan
institutions in the State of California, the State of New York, or in the city
in which the Corporate Trust Office of the Trustee is located, are authorized or
obligated by law or executive order to be closed.

                  "Cap Amount": For each Class of Adjustable-Rate Certificates,
an amount equal to (i) the aggregate amount received by the Trust Fund from the
related Cap Contract, multiplied by (ii) a fraction equal to (a) the Certificate
Principal Balance of such Class immediately prior to the applicable Distribution
Date (minus an amount equal to the Certificate Principal Balance of such Class
beneficially owned by the Seller or its Affiliates) divided by (b) the aggregate
Certificate Principal Balance immediately prior to the applicable Distribution
Date of all Classes of Adjustable-Rate Certificates directly benefiting from
such Cap Contract.

                  "Cap Contract Excess": With respect to any Cap Contract and
Distribution Date, the excess, if any, of the then applicable maximum rate set
forth in such Cap Contract over the then applicable strike rate set forth in
such Cap Contract.

                  "Cap Contracts": The interest rate corridors between Deutsche
Bank National Trust Company, as Trustee, and the counterparty thereunder, for
the benefit of the Holders of (i) the Group I Certificates, (ii) the Group II
Certificates and (iii) the Mezzanine Certificates, collectively, forms of which
are attached hereto as Exhibit H.

                  "Certificate": Any one of the Depositor's Asset-Backed
Pass-Through Certificates, Series 2004-R12, Class A-1, Class A-2, Class A-3,
Class A-4, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7, Class M-8, Class M-9, Class M-10, Class CE, Class P and Class R,
issued under this Agreement.

                  "Certificate Factor": With respect to any Class of Regular
Certificates as of any Distribution Date, a fraction, expressed as a decimal
carried to six places, the numerator of which is the aggregate Certificate
Principal Balance (or the Notional Amount, in the case of the Class CE
Certificates) of such Class of Certificates on such Distribution Date (after
giving effect to any distributions of principal and allocations of Realized
Losses in reduction of the Certificate Principal Balance (or the Notional
Amount, in the case of the Class CE Certificates) of such Class of Certificates
to be made on such Distribution Date), and the denominator of which is the
initial aggregate Certificate Principal Balance (or the Notional Amount, in the
case of the Class CE Certificates) of such Class of Certificates as of the
Closing Date.

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or a Non-United States Person shall not be a Holder of
a Residual Certificate for any purposes hereof and, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or the Master Servicer or any Affiliate thereof shall be
deemed not to be outstanding and the Voting Rights to which it is entitled shall
not be taken into account in determining whether the requisite percentage of
Voting Rights necessary to effect any such consent has been obtained, except as
otherwise provided in Section 11.01. The Trustee, the Guarantor and the NIMS
Insurer may conclusively rely upon a certificate of the Depositor or the

                                       7
<PAGE>

Master Servicer in determining whether a Certificate is held by an Affiliate
thereof. All references herein to "Holders" or "Certificateholders" shall
reflect the rights of Certificate Owners as they may indirectly exercise such
rights through the Depository and participating members thereof, except as
otherwise specified herein; provided, however, that the Trustee, the Guarantor
and the NIMS Insurer shall be required to recognize as a "Holder" or
"Certificateholder" only the Person in whose name a Certificate is registered in
the Certificate Register.

                  "Certificate Margin": With respect to each Class of
Adjustable-Rate Certificates and, for purposes of the Marker Rate and the
Maximum II LTZZ Uncertificated Interest Deferral Amount, the specified REMIC II
Regular Interest, as follows:

                                                     Certificate Margin
                      REMIC II Regular            --------------------------
  Class                   Interest                  (1) (%)      (2) (%)
---------   -----------------------------------   ------------ -------------
   A-1       REMIC II Regular Interest II-LTA1       0.140        0.280
   A-2       REMIC II Regular Interest II-LTA2       0.140        0.280
   A-3       REMIC II Regular Interest II-LTA3       0.280        0.560
   A-4       REMIC II Regular Interest II-LTA4       0.470        0.940
   M-1       REMIC II Regular Interest II-LTM1       0.570        0.855
   M-2       REMIC II Regular Interest II-LTM2       0.610        0.915
   M-3       REMIC II Regular Interest II-LTM3       0.680        1.020
   M-4       REMIC II Regular Interest II-LTM4       1.040        1.560
   M-5       REMIC II Regular Interest II-LTM5       1.120        1.680
   M-6       REMIC II Regular Interest II-LTM6       1.260        1.890
   M-7       REMIC II Regular Interest II-LTM7       1.700        2.550
   M-8       REMIC II Regular Interest II-LTM8       1.870        2.805
   M-9       REMIC II Regular Interest II-LTM9       3.200        4.800
  M-10       REMIC II Regular Interest II-LTM10      2.500        3.750

----------------
(1)      For the Interest Accrual Period for each Distribution Date on or prior
         to the Optional Termination Date.
(2)      For the Interest Accrual Period for each Distribution Date after the
         Optional Termination Date.

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

                  "Certificate Principal Balance": With respect to each Class A
Certificate, Mezzanine Certificate or Class P Certificate as of any date of
determination, the Certificate Principal Balance of such Certificate on the
Distribution Date immediately prior to such date of determination plus, with
respect to each Mezzanine Certificate, any increase in the Certificate Principal
Balance of such Certificate pursuant to Section 4.01 due to the receipt of
Subsequent Recoveries, minus all distributions allocable to principal made
thereon on such Distribution Date and, in the case of a Mezzanine Certificate,
Realized Losses allocated thereto on such immediately prior Distribution Date
(or, in the case of any date of determination up to and including the first
Distribution Date, the initial Certificate Principal Balance of such
Certificate, as stated on the face thereof). With respect to each Class CE
Certificate as of any date of determination, an amount equal to the Percentage
Interest evidenced by such Certificate times the excess, if any, of (A) the then
aggregate Uncertificated Balance of the REMIC II Regular

                                       8
<PAGE>

Interests over (B) the then aggregate Certificate Principal Balance of the Class
A Certificates, the Mezzanine Certificates and the Class P Certificates then
outstanding.

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

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

                  "Class A Certificate": Any one of the Class A-1 Certificates,
the Class A-2 Certificates, the Class A-3 Certificates or the Class A-4
Certificates.

                  "Class A Principal Distribution Amount": With respect to any
Distribution Date, an amount equal to the sum of (i) the Senior Group I
Principal Distribution Amount and (ii) the Senior Group II Principal
Distribution Amount.

                  "Class A-1 Certificate": Any one of the Class A-1 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-1 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class A-2 Certificate": Any one of the Class A-2 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-2 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class A-3 Certificate": Any one of the Class A-3 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-3 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class A-4 Certificate": Any one of the Class A-4 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-4 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class CE Certificate": Any one of the Class CE Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-15 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-1 Certificate": Any one of the Class M-1 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-5 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-1 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of

                                       9
<PAGE>

the Class M-1 Certificates immediately prior to such Distribution Date and (II)
the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of the Class A
Principal Distribution Amount on such Distribution Date) and (ii) the
Certificate Principal Balance of the Class M-1 Certificates immediately prior to
such Distribution Date over (y) the lesser of (A) the product of (i) 82.20% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus $7,500,000.

                  "Class M-2 Certificate": Any one of the Class M-2 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-6 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-2 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-2 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date) and (iii) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 86.50% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus $7,500,000.

                  "Class M-3 Certificate": Any one of the Class M-3 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-7 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-3 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-3 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into

                                       10
<PAGE>

account the payment of the Class M-1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of the Class M-2
Certificates (after taking into account the payment of the Class M-2 Principal
Distribution Amount on such Distribution Date) and (iv) the Certificate
Principal Balance of the Class M-3 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 88.70% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus $7,500,000.

                  "Class M-4 Certificate": Any one of the Class M-4 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-8 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-4 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-4 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account the payment of the Class M-3 Principal Distribution Amount on such
Distribution Date) and (v) the Certificate Principal Balance of the Class M-4
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 90.70% and (ii) the aggregate Stated Principal Balance of
the Mortgage Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to
the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period) and (B) the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus
$7,500,000.

                  "Class M-5 Certificate": Any one of the Class M-5 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-9 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-5 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of

                                       11
<PAGE>

the Class M-5 Certificates immediately prior to such Distribution Date and (II)
the excess of (x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of the Class A
Principal Distribution Amount on such Distribution Date), (ii) the Certificate
Principal Balance of the Class M-1 Certificates (after taking into account the
payment of the Class M-1 Principal Distribution Amount on such Distribution
Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the payment of the Class M-2 Principal Distribution
Amount on such Distribution Date), (iv) the Certificate Principal Balance of the
Class M-3 Certificates (after taking into account the payment of the Class M-3
Principal Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class M-4 Certificates (after taking into account the
payment of the Class M-4 Principal Distribution Amount on such Distribution
Date) and (vi) the Certificate Principal Balance of the Class M-5 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 92.40% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) minus $7,500,000.

                  "Class M-6 Certificate": Any one of the Class M-6 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-10 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-6 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-6 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account the payment of the Class M-3 Principal Distribution Amount on such
Distribution Date), (v) the Certificate Principal Balance of the Class M-4
Certificates (after taking into account the payment of the Class M-4 Principal
Distribution Amount on such Distribution Date), (vi) the Certificate Principal
Balance of the Class M-5 Certificates (after taking into account the payment of
the Class M-5 Principal Distribution Amount on such Distribution Date) and (vii)
the Certificate Principal Balance of the Class M-6 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
94.00% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (B) the

                                       12
<PAGE>

aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) minus $7,500,000.

                  "Class M-7 Certificate": Any one of the Class M-7 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-11 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-7 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-7 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account the payment of the Class M-3 Principal Distribution Amount on such
Distribution Date), (v) the Certificate Principal Balance of the Class M-4
Certificates (after taking into account the payment of the Class M-4 Principal
Distribution Amount on such Distribution Date), (vi) the Certificate Principal
Balance of the Class M-5 Certificates (after taking into account the payment of
the Class M-5 Principal Distribution Amount on such Distribution Date), (vii)
the Certificate Principal Balance of the Class M-6 Certificates (after taking
into account the payment of the Class M-6 Principal Distribution Amount on such
Distribution Date) and (viii) the Certificate Principal Balance of the Class M-7
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 95.00% and (ii) the aggregate Stated Principal Balance of
the Mortgage Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to
the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period) and (B) the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) minus
$7,500,000.

                  "Class M-8 Certificate": Any one of the Class M-8 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-12 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-8 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-8 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking

                                       13
<PAGE>

into account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account the payment of the Class M-3 Principal Distribution Amount on such
Distribution Date), (v) the Certificate Principal Balance of the Class M-4
Certificates (after taking into account the payment of the Class M-4 Principal
Distribution Amount on such Distribution Date), (vi) the Certificate Principal
Balance of the Class M-5 Certificates (after taking into account the payment of
the Class M-5 Principal Distribution Amount on such Distribution Date), (vii)
the Certificate Principal Balance of the Class M-6 Certificates (after taking
into account the payment of the Class M-6 Principal Distribution Amount on such
Distribution Date), (viii) the Certificate Principal Balance of the Class M-7
Certificates (after taking into account the payment of the Class M-7 Principal
Distribution Amount on such Distribution Date) and (ix) the Certificate
Principal Balance of the Class M-8 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 95.70% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) minus $7,500,000.

                  "Class M-9 Certificate": Any one of the Class M-9 Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-13 and
evidencing a Regular Interest in REMIC III for purposes of the REMIC Provisions.

                  "Class M-9 Principal Distribution Amount": With respect to any
Distribution Date, an amount, not less than zero, equal to the lesser of (I) the
Certificate Principal Balance of the Class M-9 Certificates immediately prior to
such Distribution Date and (II) the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the payment of the Class A Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account the payment of the Class M-3 Principal Distribution Amount on such
Distribution Date), (v) the Certificate Principal Balance of the Class M-4
Certificates (after taking into account the payment of the Class M-4 Principal
Distribution Amount on such Distribution Date), (vi) the Certificate Principal
Balance of the Class M-5 Certificates (after taking into account the payment of
the Class M-5 Principal Distribution Amount on such Distribution Date), (vii)
the Certificate Principal Balance of the Class M-6 Certificates (after taking
into account the payment of the

                                       14
<PAGE>

Class M-6 Principal Distribution Amount on such Distribution Date), (viii) the
Certificate Principal Balance of the Class M-7 Certificates (after taking into
account the payment of the Class M-7 Principal Distribution Amount on such
Distribution Date), (ix) and the Certificate Principal Balance of the Class M-8
Certificates (after taking into account the payment of the Class M-8 Principal
Distribution Amount on such Distribution Date) and (x) the Certificate Principal
Balance of the Class M-9 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 96.90% and (ii) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (B)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) minus $7,500,000.

                  "Class M-10 Certificate": Any one of the Class M-10
Certificates executed by the Trustee, and authenticated and delivered by the
Certificate Registrar, substantially in the form annexed hereto as Exhibit A-14
and evidencing a Regular Interest in REMIC III for purposes of the REMIC
Provisions.

                  "Class M-10 Principal Distribution Amount": With respect to
any Distribution Date, an amount, not less than zero, equal to the lesser of (I)
the Certificate Principal Balance of the Class M-10 Certificates immediately
prior to such Distribution Date and (II) the excess of (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class A Certificates (after
taking into account the payment of the Class A Principal Distribution Amount on
such Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M-3 Certificates (after taking into
account the payment of the Class M-3 Principal Distribution Amount on such
Distribution Date), (v) the Certificate Principal Balance of the Class M-4
Certificates (after taking into account the payment of the Class M-4 Principal
Distribution Amount on such Distribution Date), (vi) the Certificate Principal
Balance of the Class M-5 Certificates (after taking into account the payment of
the Class M-5 Principal Distribution Amount on such Distribution Date), (vii)
the Certificate Principal Balance of the Class M-6 Certificates (after taking
into account the payment of the Class M-6 Principal Distribution Amount on such
Distribution Date), (viii) the Certificate Principal Balance of the Class M-7
Certificates (after taking into account the payment of the Class M-7 Principal
Distribution Amount on such Distribution Date), (ix) and the Certificate
Principal Balance of the Class M-8 Certificates (after taking into account the
payment of the Class M-8 Principal Distribution Amount on such Distribution
Date), (x) the Certificate Principal Balance of the Class M-9 Certificates
immediately prior to such Distribution Date (after taking into account the
payment of the Class M-9 Principal Distribution Amount on such Distribution
Date) and (xi) the Certificate Principal Balance of the Class M-10 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 98.60% and (ii) the aggregate Stated Principal Balance of the

                                       15
<PAGE>

Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) minus $7,500,000.

                  "Class P Certificate": Any one of the Class P Certificates
executed by the Trustee, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit A-16,
representing the right to distributions as set forth herein and therein and
evidencing a regular interest in REMIC III for purposes of the REMIC Provisions.

                  "Class R Certificate": Any one of the Class R Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-17 and evidencing the ownership of the Class R-I
Interest, the Class R-II Interest and the Class R-III Interest.

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

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

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

                  "Closing Date": December 8, 2004.

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

                  "Collection Account": The account or accounts created and
maintained by the Master Servicer pursuant to Section 3.04(a), which shall be
entitled "Ameriquest Mortgage Company, as Master Servicer for Deutsche Bank
National Trust Company, as Trustee, in trust for the registered holders of
Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through Certificates,
Series 2004-R12." The Collection Account must be an Eligible Account.

                  "Commission": The Securities and Exchange Commission.

                  "Compensating Interest": As defined in Section 4.03(e) hereof.

                  "Corporate Trust Office": The principal corporate trust office
of the Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at 1761 East St. Andrew Place,
Santa Ana, California 92705-4934, or at such other address as the Trustee may
designate from time to time by notice to the Certificateholders, the Depositor,
the Guarantor and the Master Servicer.

                  "Corresponding Certificate": With respect to each REMIC II
Regular Interest, as follows:

                                       16
<PAGE>

                      REMIC II Regular Interest              Class
                  ---------------------------------          -----
                  REMIC II Regular Interest II-LTA1           A-1
                  REMIC II Regular Interest II-LTA2           A-2
                  REMIC II Regular Interest II-LTA3           A-3
                  REMIC II Regular Interest II-LTA4           A-4
                  REMIC II Regular Interest II-LTM1           M-1
                  REMIC II Regular Interest II-LTM2           M-2
                  REMIC II Regular Interest II-LTM3           M-3
                  REMIC II Regular Interest II-LTM4           M-4
                  REMIC II Regular Interest II-LTM5           M-5
                  REMIC II Regular Interest II-LTM6           M-6
                  REMIC II Regular Interest II-LTM7           M-7
                  REMIC II Regular Interest II-LTM8           M-8
                  REMIC II Regular Interest II-LTM9           M-9
                  REMIC II Regular Interest II-LTM10         M-10
                  REMIC II Regular Interest II-LTP             P

                  "Credit Enhancement Percentage": For any Distribution Date and
the Class A Certificates and any Class of Mezzanine Certificates, the percentage
equivalent of a fraction, calculated after taking into account distribution of
the Group I Principal Distribution Amount and the Group II Principal
Distribution Amount to the Certificates then entitled to distributions of
principal on such Distribution Date, the numerator of which is the sum of the
aggregate Certificate Principal Balance of the Classes of Certificates with a
lower distribution priority than such Class, and the denominator of which is the
sum of (i) the aggregate Stated Principal Balance of the Mortgage Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (ii) the amount on deposit in the Pre-Funding
Accounts, exclusive of investment earnings therein.

                  "Cumulative Loss Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate amount of Realized Losses incurred from the Cut-off Date to the last
day of the preceding calendar month (reduced by the aggregate amount of
Subsequent Recoveries received from the Cut-off Date through the last day of the
related Due Period) and the denominator of which is the sum of (i) the aggregate
Stated Principal Balance of the Initial Mortgage Loans as of the Cut-off Date
and (ii) the Original Pre-Funded Amounts.

                  "Custodian": A custodian, which shall initially be Deutsche
Bank National Trust Company.

                  "Cut-off Date": With respect to any Initial Mortgage Loan, the
close of business on December 1, 2004. With respect to any Subsequent Mortgage
Loan, the first day of the month in which the related Subsequent Transfer Date
occurs. With respect to all Qualified Substitute Mortgage Loans, their
respective dates of substitution. References herein to the "Cut-off Date," when
used with respect to more than one Mortgage Loan, shall be to the respective
Cut-off Dates for such Mortgage Loans.

                                       17
<PAGE>

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

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

                  "Definitive Certificates":  As defined in Section 5.01(b).

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

                  "Delinquency Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate Stated Principal Balance of all Mortgage Loans as of the last day of
the previous calendar month that, as of such last day of the previous calendar
month, are 60 or more days delinquent (measured under the OTS delinquency
calculation methodology and with respect to modifications, measured as set forth
below), are in foreclosure, have been converted to REO Properties or have been
discharged by reason of bankruptcy, and the denominator of which is the sum of
(i) the aggregate Stated Principal Balance of the Mortgage Loans and REO
Properties as of the last day of the previous calendar month and (ii) any
amounts remaining on deposit in the Pre-Funding Accounts as of such last
calendar day; provided, however, that any Mortgage Loan purchased by the Master
Servicer, the Guarantor or the NIMS Insurer pursuant to Section 3.16 shall not
be included in either the numerator or the denominator for purposes of
calculating the Delinquency Percentage.

                  "Depositor": Ameriquest Mortgage Securities Inc., a Delaware
corporation, or its successor in interest.

                  "Depository": The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository, for purposes
of registering those Certificates that are to be Book-Entry Certificates, is
Cede & Co. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York and a "clearing agency" registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended.

                  "Depository Institution": Any depository institution or trust
company, including the Trustee, that (a) is incorporated under the laws of the
United States of America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that
are rated "P-1" by Moody's, "F-1" by Fitch and "A-1" by S&P (or comparable
ratings if Moody's, Fitch and S&P are not the Rating Agencies).

                                       18
<PAGE>

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

                  "Determination Date": With respect to each Distribution Date,
the 10th day of the calendar month in which such Distribution Date occurs or, if
such 10th day is not a Business Day, the Business Day immediately preceding such
10th day.

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

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

                  "Distribution Account": The trust account or accounts created
and maintained by the Trustee pursuant to Section 3.04(e), which shall be
entitled "Deutsche Bank National Trust Company, as Trustee, in trust for the
registered Holders of Ameriquest Mortgage Securities Inc., Asset-Backed
Pass-Through Certificates, Series 2004-R12." The Distribution Account must be an
Eligible Account.

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

                                       19
<PAGE>

                  "Due Date": With respect to each Distribution Date, the first
day of the calendar month in which such Distribution Date occurs, which is the
day of the month on which the Monthly Payment is due on a Mortgage Loan,
exclusive of any days of grace.

                  "Due Period": With respect to any Distribution Date, the
period commencing on the second day of the month immediately preceding the month
in which such Distribution Date occurs and ending on the related Due Date.

                  "Eligible Account": Any of (i) an account or accounts
maintained with a Depository Institution or trust company the short-term
unsecured debt obligations of which are rated "F-1" by Fitch, "P-1" by Moody's
and "A-1+" by S&P (or comparable ratings if Fitch, Moody's and S&P are not the
Rating Agencies) at the time any amounts are held on deposit therein, (ii) an
account or accounts the deposits in which are fully insured by the FDIC or (iii)
a trust account or accounts maintained with the corporate trust department of a
federal or state chartered depository institution or trust company acting in its
fiduciary capacity. Eligible Accounts may bear interest.

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

                  "Escrow Account": The account or accounts created and
maintained pursuant to Section 3.04(c).

                  "Escrow Payments": The amounts constituting taxes and/or fire
and hazard insurance premiums escrowed by the Mortgagor with the mortgagee
pursuant to a voluntary escrow agreement related to any Mortgage Loan.

                  "Estate in Real Property": A fee simple estate or leasehold
estate in a parcel of land.

                  "Excess Overcollateralized Amount": With respect to the Class
A Certificates and the Mezzanine Certificates and any Distribution Date, the
excess, if any, of (i) the Overcollateralized Amount for such Distribution Date
(calculated for this purpose only after assuming that 100% of the Principal
Remittance Amount on such Distribution Date has been distributed) over (ii) the
Overcollateralization Target Amount for such Distribution Date.

                  "Expense Adjusted Net Maximum Mortgage Rate": With respect to
any Mortgage Loan (or the related REO Property), as of any date of
determination, a per annum rate of interest equal to the applicable Maximum
Mortgage Rate (or the Mortgage Rate for such Mortgage Loan in the case of any
Fixed-Rate Mortgage Loan) as of the first day of the month preceding the month
in which the Distribution Date occurs minus the sum of (i) the Trustee Fee Rate,
(ii) the Servicing Fee Rate and (iii) the PMI Insurer Fee Rate, if applicable.

                                       20
<PAGE>

                  "Expense Adjusted Net Mortgage Rate": With respect to any
Mortgage Loan (or the related REO Property), as of any date of determination, a
per annum rate of interest equal to the applicable Mortgage Rate thereon as of
the first day of the month preceding the month in which the Distribution Date
occurs minus the sum of (i) the Trustee Fee Rate and (ii) the Servicing Fee Rate
and (iii) the PMI Insurer Fee Rate, if applicable.

                  "Extraordinary Trust Fund Expense": Any amounts reimbursable
to the Trustee, or any director, officer, employee or agent of the Trustee, from
the Trust Fund pursuant to Section 8.05, any amounts payable from the
Distribution Account in respect of taxes pursuant to Section 10.01(g)(iii) and
any amounts payable by the Trustee for the recording of the Assignments pursuant
to Section 2.01.

                  "Fannie Mae": Fannie Mae, formally known as the Federal
National Mortgage Association, or any successor thereto.

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

                  "Final Recovery Determination": With respect to any defaulted
Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property
purchased by the Seller, the Depositor, the Master Servicer, the Guarantor or
the NIMS Insurer pursuant to or as contemplated by Section 2.03, Section 3.16(a)
or Section 9.01), a determination made by the Master Servicer that all Insurance
Proceeds, Liquidation Proceeds and other payments or recoveries which the Master
Servicer, in its reasonable good faith judgment, expects to be finally
recoverable in respect thereof have been so recovered. The Master Servicer shall
maintain records, prepared by a Servicing Officer, of each Final Recovery
Determination made thereby.

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

                  "Fixed-Rate Certificates": None.

                  "Fixed-Rate Mortgage Loan": Each of the Mortgage Loans
identified on the Mortgage Loan Schedule as having a fixed Mortgage Rate.

                  "Formula Rate": For any Distribution Date and each Class of
Adjustable-Rate Certificates, the lesser of (i) One-Month LIBOR plus the related
Certificate Margin and (ii) the related Maximum Cap Rate.

                  "Freddie Mac": Freddie Mac, formally known as the Federal Home
Loan Mortgage Corporation, or any successor thereto.

                  "Funding Period": The period beginning on the Closing Date and
ending on the earlier of the date on which (a) the amount on deposit in the
Pre-Funding Accounts is reduced to zero or (b) 2:00 p.m. New York City time on
the 90th day following the Closing Date.

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

                  "Group I Allocation Percentage": With respect to the Group I
Certificates and any Distribution Date, the percentage equivalent of a fraction,
the numerator of which is (x) the

                                       21
<PAGE>

Group I Principal Remittance Amount for such Distribution Date and the
denominator of which is (y) the Principal Remittance Amount for such
Distribution Date.

                  "Group I Certificates": The Class A-1 Certificates.

                  "Group I Interest Coverage Account": The account established
and maintained pursuant to Section 4.08, which account contains an amount, to be
paid by the Depositor to the Trustee on the Closing Date, that equals $0.00.
                  "Group I Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date that represents interest received or advanced on the Group I Mortgage Loans
or amounts withdrawn from the Group I Interest Coverage Account.

                  "Group I Mortgage Loan": A Mortgage Loan assigned to Loan
Group I. All Group I Mortgage Loans have a principal balance at origination that
conforms to Fannie Mae and Freddie Mac loan limits.

                  "Group I Pre-Funding Account": The account established and
maintained pursuant to Section 4.07.

                  "Group I Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the principal portion of each Monthly Payment
on the Group I Mortgage Loans due during the related Due Period, to the extent
received on or prior to the related Determination Date or advanced prior to such
Distribution Date; (ii) the Stated Principal Balance of any Group I Mortgage
Loan that was purchased during the related Prepayment Period pursuant to or as
contemplated by Section 2.03, Section 3.16(a) or Section 9.01 and the amount of
any shortfall deposited in the Collection Account in connection with the
substitution of a Deleted Mortgage Loan in Loan Group I pursuant to Section 2.03
during the related Prepayment Period; (iii) the principal portion of all other
unscheduled collections (including, without limitation, Principal Prepayments,
Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries and REO
Principal Amortization) received during the related Prepayment Period on the
Group I Mortgage Loans, net of any portion thereof that represents a recovery of
principal for which an advance was made by the Master Servicer pursuant to
Section 4.03 in respect of a preceding Distribution Date; (iv) with respect to
the Distribution Date immediately following the end of the Funding Period, any
amounts remaining in the Group I Pre-Funding Account after giving effect to the
purchase of any Subsequent Group I Mortgage Loans (before such accounts are
deposited into the Distribution Account) and (v) the Group I Allocation
Percentage of the amount of any Overcollateralization Increase Amount for such
Distribution Date; MINUS (vi) the Group I Allocation Percentage of the amount of
any Overcollateralization Reduction Amount for such Distribution Date. In no
event shall the Group I Principal Distribution Amount with respect to any
Distribution Date be (x) less than zero or (y) greater than the then outstanding
aggregate Certificate Principal Balance of the Class A and Mezzanine
Certificates.

                                       22
<PAGE>

                  "Group I Principal Remittance Amount": With respect to any
Distribution Date, the sum of the amounts described in clauses (i) through (iv)
of the definition of Group I Principal Distribution Amount.

                  "Group II Allocation Percentage": With respect to the Group II
Certificates and any Distribution Date, the percentage equivalent of a fraction,
the numerator of which is (x) the Group II Principal Remittance Amount for such
Distribution Date and the denominator of which is (y) the Principal Remittance
Amount for such Distribution Date.

                  "Group II Certificates": The Class A-2 Certificates, Class A-3
Certificates and Class A-4 Certificates.

                  "Group II Interest Coverage Account": The account established
and maintained pursuant to Section 4.08 which account contains an amount to be
paid by the Depositor to the Trustee on the Closing Date that equals $0.00.

                  "Group II Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date that represents interest received or advanced on the Group II Mortgage
Loans or amounts withdrawn from the Group II Interest Coverage Account.

                  "Group II Mortgage Loan": A Mortgage Loan assigned to Loan
Group II. All with a principal balance at origination that may or may not
conform to Fannie Mae or Freddie Mac loan limits.

                  "Group II Pre-Funding Account": The account established and
maintained pursuant to Section 4.07.

                  "Group II Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the principal portion of each Monthly Payment
on the Group II Mortgage Loans due during the related Due Period, to the extent
received on or prior to the related Determination Date or advanced prior to such
Distribution Date; (ii) the Stated Principal Balance of any Group II Mortgage
Loan that was purchased during the related Prepayment Period pursuant to or as
contemplated by Section 2.03, Section 3.16(a) or Section 9.01 and the amount of
any shortfall deposited in the Collection Account in connection with the
substitution of a Deleted Mortgage Loan in Loan Group II pursuant to Section
2.03 during the related Prepayment Period; (iii) the principal portion of all
other unscheduled collections (including, without limitation, Principal
Prepayments, Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries and
REO Principal Amortization) received during the related Prepayment Period on the
Group II Mortgage Loans, net of any portion thereof that represents a recovery
of principal for which an advance was made by the Master Servicer pursuant to
Section 4.03 in respect of a preceding Distribution Date; (iv) with respect to
the Distribution Date immediately following the end of the Funding Period, any
amounts remaining in the Group II Pre-Funding Account after giving effect to the
purchase of any Subsequent Group II Mortgage Loans (before such accounts are
deposited into the Distribution Account) and (v) the Group II

                                       23
<PAGE>

Allocation Percentage of the amount of any Overcollateralization Increase Amount
for such Distribution Date; MINUS (vi) the Group II Allocation Percentage of the
amount of any Overcollateralization Reduction Amount for such Distribution Date.
In no event shall the Group II Principal Distribution Amount with respect to any
Distribution Date be (x) less than zero or (y) greater than the then outstanding
aggregate Certificate Principal Balance of the Class A and Mezzanine
Certificates.

                  "Group II Principal Remittance Amount": With respect to any
Distribution Date, the sum of the amounts described in clauses (i) through (iv)
of the definition of Group II Principal Distribution Amount.

                  "Guaranteed  Certificates":  The Class A-1 Certificates.

                  "Guaranteed Interest Distribution Amount": With respect to any
Distribution Date and the Guaranteed Certificates, the amount, if any, after
giving effect to the distributions of the Group I Interest Remittance Amount and
the Group II Interest Remittance Amount on such Distribution Date, by which the
(i) the Senior Interest Distribution Amount payable on the Guaranteed
Certificates for such Distribution Date exceeds (ii) the amount of interest
actually distributed (without giving effect to any Guarantor Payment) to the
Holders of the related Classes of Guaranteed Certificates on such Distribution
Date.

                  "Guaranteed Principal Distribution Amount": With respect to
(a) any Distribution Date other than the Distribution Date in April 2035, the
amount, if any, by which (i) the Certificate Principal Balance of the Guaranteed
Certificates (after giving effect to all amounts distributable and allocable to
principal on the Guaranteed Certificates but prior to giving effect to any
Guarantor Payment on such Distribution Date) exceeds (ii) the aggregate Stated
Principal Balance of the Group I Mortgage Loans (after giving effect to the
principal portion of Monthly Payments due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (b) the Distribution Date in April
2035, the amount equal to the Certificate Principal Balance of the Guaranteed
Certificates (after giving effect to all amounts distributable and allocable to
principal on the Guaranteed Certificates, but prior to giving effect to any
Guarantor Payment on such Distribution Date).

                  "Guarantor": Fannie Mae, or its successor in interest.

                  "Guarantor Deficiency Amount": With respect to any
Distribution Date, the sum of (i) the Guaranteed Interest Distribution Amount
and (ii) the Guaranteed Principal Distribution Amount.

                  "Guarantor Interest Reimbursement Amount": With respect to any
Distribution Date, (i) the sum of any accrued but unpaid Guaranty Fees,
including the Guaranty Fee due on such Distribution Date, and (ii) the sum of
all amounts paid by the Guarantor in respect of the Guaranteed Interest
Distribution Amounts on all prior Distribution Dates to the extent not
previously reimbursed.

                  "Guarantor Payment": Any payment made by the Guarantor in
respect of a Guaranteed Interest Distribution Amount or a Guaranteed Principal
Distribution Amount.

                                       24
<PAGE>

                  "Guarantor Principal Reimbursement Amount": With respect to
any Distribution Date, the sum of all amounts paid by the Guarantor in respect
of Guaranteed Principal Distribution Amounts on all prior Distribution Dates to
the extent not previously reimbursed.

                  "Guarantor Reimbursement Amount": With respect to any
Distribution Date, the sum of the Guarantor Interest Reimbursement Amount and
the Guarantor Principal Reimbursement Amount.

                  "Guaranty": The obligations of the Guarantor pursuant to
Section 4.09.

                  "Guaranty Fee": With respect to any Distribution Date and with
respect to the Guaranteed Certificates, the fee payable to the Guarantor in
respect of its services as Guarantor that accrues at the applicable Guaranty Fee
Rate for such Guaranteed Certificates on a balance equal to the Certificate
Principal Balance of the Guaranteed Certificates immediately prior to such
Distribution Date computed on the basis of a 360-day year consisting of twelve
30-day months.

                  "Guaranty Fee Rate": The per annum rate set forth in a side
letter of the Guarantor, addressed to the Trustee and the Seller.

                  "Highest Priority": As of any date of determination, the Class
of Mezzanine Certificates then outstanding with a Certificate Principal Balance
greater than zero, with the highest priority for payments pursuant to Section
4.01, in the following order of decreasing priority: the Class M-1 Certificates,
the Class M-2 Certificates, the Class M-3 Certificates, the Class M-4
Certificates, the Class M-5 Certificates, the Class M-6 Certificates, the Class
M-7 Certificates, the Class M-8 Certificates, the Class M-9 Certificates and the
Class M-10 Certificates.

                  "HOEPA": The Home Ownership and Equity Protection Act of 1994.

                  "Indenture": An indenture relating to the issuance of notes
secured by all or a portion of the Class CE Certificates, the Class P
Certificates and/or the Class R Certificates, which may or may not be guaranteed
by the NIMS Insurer.

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

                                       25
<PAGE>

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

                  "Index": With respect to each Adjustable-Rate Mortgage Loan
and each related Adjustment Date, the average of the interbank offered rates for
six-month United States dollar deposits in the London market as published in THE
WALL STREET JOURNAL and as most recently available as of the first business day
45 days or more prior to such Adjustment Date, as specified in the related
Mortgage Note.

                  "Information Circular": The Information Circular of the
Depositor dated December 1, 2004, relating to the Guaranteed Certificates.

                  "Initial Group I Mortgage Loan": Any of the Group I Mortgage
Loans included in the Trust Fund as of the Closing Date.

                  "Initial Group II Mortgage Loan": Any of the Group II Mortgage
Loans included in the Trust Fund as of the Closing Date.

                  "Initial Mortgage Loan": Any of the Initial Group I Mortgage
Loans or Initial Group II Mortgage Loans included in the Trust Fund as of the
Closing Date.

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

                  "Insured Notes":  As defined in Section 1.03.

                  "Interest Accrual Period": With respect to any Distribution
Date and the Adjustable-Rate Certificates, the period commencing on the
Distribution Date in the month immediately preceding the month in which such
Distribution Date occurs (or, in the case of the

                                       26
<PAGE>

first Distribution Date, commencing on the Closing Date) and ending on the day
preceding such Distribution Date. With respect to any Distribution Date and the
Class CE Certificates, the REMIC I Regular Interests and the REMIC II Regular
Interests, the one-month period ending on the last day of the calendar month
preceding the month in which such Distribution Date occurs.

                  "Interest Carry Forward Amount": With respect to any
Distribution Date and any Class of Class A Certificates or Mezzanine
Certificates, the sum of (i) the amount, if any, by which (a) the Interest
Distribution Amount for such Class of Certificates as of the immediately
preceding Distribution Date exceeded (b) the actual amount distributed on such
Class of Certificates in respect of interest on such immediately preceding
Distribution Date and (ii) the amount of any Interest Carry Forward Amount for
such Class of Certificates remaining undistributed from the previous
Distribution Date, plus accrued interest thereon calculated at the related
Pass-Through Rate for the most recently ended Interest Accrual Period.

                  "Interest Coverage Accounts": The Group I Interest Coverage
Account and the Group II Interest Coverage Account.

                  "Interest Determination Date": With respect to the
Adjustable-Rate Certificates, and solely for purposes of calculating the Marker
Rate, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2,
REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II
Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular
Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest
II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7,
REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9 and REMIC
II Regular Interest II-LTM10 and any Interest Accrual Period therefore (other
than the first Interest Accrual Period), the second LIBOR Business Day preceding
the commencement of such Interest Accrual Period.

                  "Interest Distribution Amount": With respect to any
Distribution Date and any Class of Class A Certificates or Mezzanine
Certificates and the Class CE Certificates, the aggregate Accrued Certificate
Interest on the Certificates of such Class for such Distribution Date.

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

                  "LIBOR Business Day": Any day on which banks in the City of
London and the City of New York are open and conducting transactions in United
States dollars.

                  "Liquidation Event": With respect to any Mortgage Loan, any of
the following events: (i) such Mortgage Loan is paid in full; (ii) a Final
Recovery Determination is made as to such Mortgage Loan; or (iii) such Mortgage
Loan is removed from REMIC I by reason of its

                                       27
<PAGE>

being purchased, sold or replaced pursuant to or as contemplated by Section
2.03, Section 3.16(a) or Section 9.01. With respect to any REO Property, either
of the following events: (i) a Final Recovery Determination is made as to such
REO Property; or (ii) such REO Property is removed from REMIC I by reason of its
being purchased pursuant to Section 9.01.

                  "Liquidation Proceeds": The amount (other than Insurance
Proceeds or amounts received in respect of the rental of any REO Property prior
to REO Disposition) received by the Master Servicer in connection with (i) the
taking of all or a part of a Mortgaged Property by exercise of the power of
eminent domain or condemnation, (ii) the liquidation of a defaulted Mortgage
Loan through a trustee's sale, foreclosure sale or otherwise or (iii) the
repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant
to or as contemplated by Section 2.03, Section 3.13, Section 3.16(a) or Section
9.01.

                  "Loan Group": Loan Group I or Loan Group II, as the context
requires.

                  "Loan Group I": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having been assigned to Loan Group I.

                  "Loan Group II": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having been assigned to Loan Group II.

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

                  "Loss Mitigation Action Plan": The policies and procedures set
forth in Exhibit I hereto relating to the realization on delinquent Mortgage
Loans, which are incorporated by reference into this Agreement and shall be
deemed a part hereof.

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

                  "Marker Rate": With respect to the Class CE Certificates and
any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the REMIC II Remittance Rate for REMIC II Regular Interest II-LTA1,
REMIC II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II
Regular Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular
Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6,
REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II
Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC II
Regular Interest II-LTZZ, with the rate on each such REMIC II Regular Interest
(other than REMIC II Regular Interest II-LTZZ) subject to the lesser of (i)
LIBOR plus the related Certificate Margin and (ii)

                                       28
<PAGE>

the related Net WAC Pass-Through Rate for the purpose of this calculation for
such Distribution Date and with the rate on REMIC II Regular Interest II-LTZZ
subject to a cap of zero for the purpose of this calculation; provided, however,
that solely for this purpose, calculations of the REMIC II Remittance Rate and
the related caps with respect to REMIC II Regular Interest II-LTA1, REMIC II
Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular
Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9 and REMIC II Regular Interest II-LTM10 shall be multiplied by a
fraction, the numerator of which is the actual number of days in the Interest
Accrual Period and the denominator of which is 30.

                  "Master Servicer": Ameriquest Mortgage Company or any
successor master servicer appointed as herein provided, in its capacity as
Master Servicer hereunder.

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

                  "Master Servicer Prepayment Charge Payment Amount": The
amounts payable by the Master Servicer pursuant to Section 2.03(b) in respect of
any waived (or, with respect to subsequent changes of law, any unenforceable)
Prepayment Charges.

                  "Master Servicer Remittance Date": With respect to any
Distribution Date, 3:00 p.m. New York time on the last Business Day preceding
such Distribution Date.

                  "Master Servicer Reporting Date": With respect to any
Distribution Date, 3:00 p.m. New York time on the 18th day of the calendar month
in which such Distribution Date occurs or, if such 18th day is not a Business
Day, the Business Day immediately succeeding such 18th day.

                  "Master Servicer Termination Test": With respect to any
Distribution Date, the Master Servicer Termination Test shall be failed if the
Cumulative Loss Percentage exceeds 4.00%.

                  "Maximum Cap Rate": For any Distribution Date with respect to
the Group I Certificates, a per annum rate equal to the sum of (i) the product
of (x) (a) the weighted average of the Expense Adjusted Net Maximum Mortgage
Rates of the Group I Mortgage Loans, weighted on the basis of the outstanding
Stated Principal Balances of the Group I Mortgage Loans as of the first day of
the month preceding the month of such Distribution Date (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) minus the Guaranty Fee Rate and (y) a fraction,
the numerator of which is 30 and the denominator of which is the actual number
of days elapsed in the related Interest Accrual Period and (ii) the related Cap
Contract Excess. If the Certificate Principal Balance of the applicable
Certificates exceeds the applicable notional balance for such Distribution Date,
the Cap Contract Excess is to be adjusted by multiplying the applicable Cap
Contract Excess by a

                                       29
<PAGE>

fraction, the numerator of which is the applicable notional balance for such
Distribution Date and the denominator of which is the Certificate Principal
Balance of the Class A-1 Certificates immediately prior to such Distribution
Date.

                  For any Distribution Date with respect to the Group II
Certificates, a per annum rate equal to the sum of (i) the product of (x) the
weighted average of the Expense Adjusted Net Maximum Mortgage Rates of the Group
II Mortgage Loans, weighted on the basis of the outstanding Stated Principal
Balances of the Group II Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (y) a fraction, the numerator of which is 30 and
the denominator of which is the actual number of days elapsed in the related
Interest Accrual Period and (ii) the related Cap Contract Excess. If the
Certificate Principal Balance of the applicable Certificates exceeds the
applicable notional balance for such Distribution Date, the Cap Contract Excess
is to be adjusted by multiplying the applicable Cap Contract Excess by a
fraction, the numerator of which is the applicable notional balance for such
Distribution Date and the denominator of which is the Certificate Principal
Balance of the Group II Certificates immediately prior to such Distribution
Date.

                  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate equal to the sum of (i) the product of (x) the
weighted average (weighted on the basis of the results of subtracting from the
aggregate Stated Principal Balance of the applicable Loan Group and the amount
on deposit in the related Pre-Funding Account (exclusive of investment income),
the current Certificate Principal Balance of the related Class A Certificates)
of the weighted average of the Expense Adjusted Net Maximum Mortgage Rates of
the Group I Mortgage Loans and the Group II Mortgage Loans, in each case,
weighted on the basis of the outstanding Stated Principal Balances of the
related Mortgage Loans as of the first day of the month preceding the month of
such Distribution Date (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and (y) a fraction, the numerator of which is 30 and the denominator of
which is the actual number of days elapsed in the related Interest Accrual
Period and (ii) the related Cap Contract Excess. If the Certificate Principal
Balance of the applicable Certificates exceeds the applicable notional balance
for such Distribution Date, the Cap Contract Excess is to be adjusted by
multiplying the applicable Cap Contract Excess by a fraction, the numerator of
which is the applicable notional balance for such Distribution Date and the
denominator of which is the aggregate Certificate Principal Balance of the
Mezzanine Certificates immediately prior to such Distribution Date.

                  "Maximum II-LTZZ Uncertificated Interest Deferral Amount":
With respect to any Distribution Date, the excess of (i) accrued interest at the
REMIC II Remittance Rate applicable to REMIC II Regular Interest II-LTZZ for
such Distribution Date on a balance equal to the Uncertificated Balance of REMIC
II Regular Interest II-LTZZ minus the REMIC II Overcollateralization Amount, in
each case for such Distribution Date, over (ii) Uncertificated Interest on REMIC
II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2, REMIC II Regular
Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II Regular Interest
II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3,
REMIC II

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<PAGE>

Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular
Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest
II-LTM8, REMIC II Regular Interest II-LTM9 and REMIC II Regular Interest
II-LTM10 for such Distribution Date, with the rate on each such REMIC II Regular
Interest subject to a cap equal to the lesser of (i) LIBOR plus the related
Certificate Margin and (ii) the related Net WAC Pass-Through Rate; provided,
however, that solely for this purpose, calculations of the REMIC II Remittance
Rate and the related caps with respect to REMIC II Regular Interest II-LTA1,
REMIC II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II
Regular Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular
Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6,
REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II
Regular Interest II-LTM9 and REMIC II Regular Interest II-LTM10 shall be
multiplied by a fraction, the numerator of which is the actual number of days in
the Interest Accrual Period and the denominator of which is 30.

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

                  "Mezzanine Certificate": Any one of the Class M-1
Certificates, Class M-2 Certificates, Class M-3 Certificates, Class M-4
Certificates, Class M-5 Certificates, Class M-6 Certificates, Class M-7
Certificates, Class M-8 Certificates, Class M-9 Certificates and Class M-10
Certificates.

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

                  "Monthly Payment": With respect to any Mortgage Loan, the
scheduled monthly payment of principal and interest on such Mortgage Loan which
is payable by the related Mortgagor from time to time under the related Mortgage
Note, determined: (a) after giving effect to (i) any Deficient Valuation and/or
Debt Service Reduction with respect to such Mortgage Loan and (ii) any reduction
in the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Master Servicer pursuant to Section 3.02; and (c) on the assumption that all
other amounts, if any, due under such Mortgage Loan are paid when due.

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

                  "Mortgage": The mortgage, deed of trust or other instrument
creating a first lien on, or first priority security interest in, a Mortgaged
Property securing a Mortgage Note.

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

                                       31
<PAGE>

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

                  "Mortgage Loan Purchase Agreement": The agreement between the
Seller and the Depositor, regarding the transfer of the Mortgage Loans by the
Seller to or at the direction of the Depositor, substantially in the form of
Exhibit D annexed hereto.

                  "Mortgage Loan Schedule": As of any date, the list of Mortgage
Loans included in REMIC I on such date, separately identifying the Group I
Mortgage Loans and the Group II Mortgage Loans, attached hereto as Schedule 1
and as supplemented by each schedule of Subsequent Mortgage Loans attached to
the Subsequent Transfer Instrument. The Mortgage Loan Schedule shall set forth
the following information with respect to each Mortgage Loan:

                  (1) the Seller's Mortgage Loan identifying number;

                  (2) [Reserved];

                  (3) the state and zip code of the Mortgaged Property;

                  (4) a code indicating whether the Mortgaged Property is
         owner-occupied;

                  (5) the type of Residential Dwelling constituting the
         Mortgaged Property;

                  (6) the original months to maturity;

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

                  (8) the Mortgage Rate in effect immediately following the
         Cut-off Date (or the related Subsequent Cut-off Date with respect to a
         Subsequent Mortgage Loan);

                  (9) the date on which the first Monthly Payment was due on the
         Mortgage Loan;

                  (10) the stated maturity date;

                  (11) the amount of the Monthly Payment due on the first Due
         Date after the Cut-off Date (or the related Subsequent Cut-off Date
         with respect to a Subsequent Mortgage Loan);

                  (12) the last Due Date on which a Monthly Payment was actually
         applied to the unpaid Stated Principal Balance;

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

                                       32
<PAGE>

                  (14) the Scheduled Principal Balance of the Mortgage Loan as
         of the close of business on the Cut-off Date (or the related Subsequent
         Cut-off Date with respect to a Subsequent Mortgage Loan);

                  (15) with respect to the Adjustable-Rate Mortgage Loans, the
         Gross Margin;

                  (16) a code indicating the purpose of the Mortgage Loan (I.E.,
         purchase, refinance debt consolidation cashout, or refinance debt
         consolidation no cashout);

                  (17) with respect to the Adjustable-Rate Mortgage Loans, the
         Maximum Mortgage Rate;

                  (18) with respect to the Adjustable-Rate Mortgage Loans, the
         Minimum Mortgage Rate;

                  (19) the Mortgage Rate at origination;

                  (20) with respect to the Adjustable-Rate Mortgage Loans, the
         Periodic Rate Cap and the maximum first Adjustment Date Mortgage Rate
         adjustment;

                  (21) a code indicating the documentation program (I.E., Full
         Documentation, Limited Documentation or Stated Income);

                  (22) with respect to the Adjustable-Rate Mortgage Loans, the
         first Adjustment Date immediately following the Cut-off Date (or the
         related Subsequent Cut-off Date with respect to a Subsequent Mortgage
         Loan);

                  (23) the risk grade;

                  (24) the Value of the Mortgaged Property;

                  (25) the sale price of the Mortgaged Property, if applicable;

                  (26) the FICO score of the primary Mortgagor; and

                  (27) whether the Mortgage Loan is covered by Primary Mortgage
         Insurance

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

                                       33
<PAGE>

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

                  "Mortgage Pool": The pool of Mortgage Loans, identified on
Schedule 1 from time to time, and any REO Properties acquired in respect
thereof.

                  "Mortgage Rate": With respect to each Mortgage Loan, the
annual rate at which interest accrues on such Mortgage Loan from time to time in
accordance with the provisions of the related Mortgage Note, which rate (i) with
respect to each Fixed-Rate Mortgage Loan shall remain constant at the rate set
forth in the Mortgage Loan Schedule as the Mortgage Rate in effect immediately
following the Cut-off Date (or the related Subsequent Cut-off Date with respect
to a Subsequent Mortgage Loan) and (ii) with respect to each Adjustable-Rate
Mortgage Loan, (A) as of any date of determination until the first Adjustment
Date following the Cut-off Date (or the related Subsequent Cut-off Date with
respect to a Subsequent Mortgage Loan) shall be the rate set forth in the
Mortgage Loan Schedule as the Mortgage Rate in effect immediately following the
Cut-off Date (or the related Subsequent Cut-off Date with respect to a
Subsequent Mortgage Loan) and (B) as of any date of determination thereafter
shall be the rate as adjusted on the most recent Adjustment Date equal to the
sum, rounded to the nearest 0.125% as provided in the Mortgage Note, of the
Index, as most recently available as of a date prior to the Adjustment Date as
set forth in the related Mortgage Note, plus the related Gross Margin; provided
that the Mortgage Rate on such Adjustable-Rate Mortgage Loan on any Adjustment
Date shall never be more than the lesser of (i) the sum of the Mortgage Rate in
effect immediately prior to the Adjustment Date plus the related Periodic Rate
Cap, if any, and (ii) the related Maximum Mortgage Rate, and shall never be less
than the greater of (i) the Mortgage Rate in effect immediately prior to the
Adjustment Date less the Periodic Rate Cap, if any, and (ii) the related Minimum
Mortgage Rate. With respect to each Mortgage Loan that becomes an REO Property,
as of any date of determination, the annual rate determined in accordance with
the immediately preceding sentence as of the date such Mortgage Loan became an
REO Property.

                  "Mortgaged Property": The underlying property identified in
the related Mortgage as securing a Mortgage Loan, including any REO Property,
consisting of an Estate in Real Property improved by a Residential Dwelling
(excluding for purposes of construing the representations or warranties made in
the Mortgage Loan Purchase Agreement, any improvements thereupon not considered
by the appraiser in determining the Value of such Mortgaged Property).

                  "Mortgagor":  The obligor on a Mortgage Note.

                  "Net Monthly Excess Cashflow": With respect to any
Distribution Date, the sum of (i) any Overcollateralization Reduction Amount for
such Distribution Date and (ii) the excess of (x) the Available Funds for such
Distribution Date over (y) the sum for such Distribution Date of (A) the Senior
Interest Distribution Amount, (B) the Interest Distribution Amounts payable to
the Mezzanine Certificates, (C) the Principal Remittance Amount and (D) any
amount paid to the Guarantor pursuant to Sections 4.01(a)(2) and 4.01(a)(3).

                                       34
<PAGE>

                  "Net Mortgage Rate": With respect to any Mortgage Loan (or the
related REO Property) as of any date of determination, a per annum rate of
interest equal to the then applicable Mortgage Rate for such Mortgage Loan minus
the Servicing Fee Rate.

                  "Net WAC Pass-Through Rate": For any Distribution Date with
respect to the Group I Certificates, a per annum rate equal to the product of
(x) (a) the weighted average of the Expense Adjusted Net Mortgage Rates of the
Group I Mortgage Loans, weighted on the basis of the outstanding Stated
Principal Balances of the Group I Mortgage Loans as of the first day of the
month preceding the month of such Distribution Date (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) minus (b) the Guaranty Fee Rate and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Interest Accrual Period. For
federal income tax purposes, the economic equivalent of such rate shall be
expressed as the weighted average of the REMIC II Remittance Rate on REMIC II
Regular Interest II-LT1GRP, weighted on the basis of the Uncertificated Balance
of such REMIC II Regular Interest, minus the Guaranty Fee Rate.

                  For any Distribution Date with respect to the Group II
Certificates, a per annum rate equal to the product of (x) the weighted average
of the Expense Adjusted Net Mortgage Rates of the Group II Mortgage Loans,
weighted on the basis of the outstanding Stated Principal Balances of the Group
II Mortgage Loans as of the first day of the month preceding the month of such
Distribution Date (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and (y) a fraction, the numerator of which is 30 and the denominator of
which is the actual number of days elapsed in the related Interest Accrual
Period. For federal income tax purposes, the economic equivalent of such rate
shall be expressed as the weighted average of the REMIC II Remittance Rate on
REMIC II Regular Interest II-LT2GRP, weighted on the basis of the Uncertificated
Balance of such REMIC II Regular Interest.

                  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate equal to the product of (x) the weighted average
(weighted on the basis of the results of subtracting from the aggregate Stated
Principal Balance of the applicable Loan Group and the amount on deposit in the
related Pre-Funding Account, the Certificate Principal Balance of the related
Class A Certificates) of (i) the weighted average of the Expense Adjusted Net
Mortgage Rates of the Group I Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (ii) the weighted average of the Expense Adjusted
Net Mortgage Rates of the Group II Mortgage Loans as of the first day of the
month preceding the month of such Distribution Date (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period and (y) a fraction, the numerator of which is 30
and the denominator of which is the actual number of days elapsed in the related
Interest Accrual Period. For federal income tax purposes, the economic
equivalent of

                                       35
<PAGE>

such rate shall be expressed as the weighted average of the REMIC II Remittance
Rates on (a) REMIC II Regular Interest II-LT1SUB, subject to a cap and a floor
equal to the Expense Adjusted Net Mortgage Rates of the Group I Mortgage Loans
and (b) REMIC II Regular Interest II-LT2SUB, subject to a cap and a floor equal
to the Expense Adjusted Net Mortgage Rates of the Group II Mortgage Loans
weighted on the basis of the Uncertificated Balance of each such REMIC II
Regular Interest.

                  "Net WAC Rate Carryover Amount": With respect to any Class of
Class A Certificates and the Mezzanine Certificates and any Distribution Date,
the sum of (A) the excess, if any, of (i) the amount of interest such
Certificates would have accrued for such Distribution Date had the applicable
Pass-Through Rate been calculated at the related Formula Rate, over (ii) the
amount of interest accrued on such Certificates at the related Net WAC
Pass-Through Rate for such Distribution Date and (B) the related Net WAC Rate
Carryover Amount for the previous Distribution Date not previously paid,
together with interest thereon at a rate equal to the related Formula Rate
applicable for such Class in each case for the Interest Accrual Period for the
current Distribution Date.

                  "Net WAC Rate Carryover Reserve Account": The Net WAC Rate
Carryover Reserve Account established and maintained pursuant to Section 4.10.

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

                  "NIMS Insurer": Any insurer that is guaranteeing certain
payments under notes secured by collateral which includes, among other things,
all or a portion of the Class CE Certificates, the Class P Certificates and/or
the Residual Certificates.

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

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

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

                  "Notice of Claim": On the third Business Day preceding each
Distribution Date, the Trustee shall deliver to the Guarantor (by electronic
medium as specified in the next sentence) a statement identifying the Guarantor
Deficiency Amount with respect to a Distribution Date, separately identifying
the amounts attributable to principal and interest. The

                                       36
<PAGE>

Trustee shall deliver such statement on or before 12:00 noon (New York time) on
such day via the internet using the following domain name:
bond_admin@fanniemae.com.

                  "Notional Amount": With respect to the Class CE Certificates
and any Distribution Date, the aggregate Uncertificated Balance of the REMIC II
Regular Interests (other than REMIC II Regular Interest II-LTP), immediately
prior to such Distribution Date.

                  "Offered Certificate": Any one of the Class A Certificates
(other than the Class A-1 Certificates) and the Mezzanine Certificates (other
than the Class M-10 Certificates) issued under this Agreement.

                  "Officers' Certificate": With respect to the Depositor, a
certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
the President or a vice president (however denominated), and by the Treasurer,
the Secretary, or one of the assistant treasurers or assistant secretaries. With
respect to the Master Servicer, any officer who is authorized to act for the
Master Servicer in matters relating to this Agreement, and whose action is
binding upon the Master Servicer, initially including those individuals whose
names appear on the list of authorized officers delivered at the closing.

                  "One-Month LIBOR": With respect to the Adjustable-Rate
Certificates, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4,
REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II
Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular
Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest
II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9
and REMIC II Regular Interest II-LTM10 and any Interest Accrual Period therefor,
the rate determined by the Trustee on the related Interest Determination Date on
the basis of the offered rate for one-month U.S. dollar deposits, as such rate
appears on Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest
Determination Date; provided that if such rate does not appear on Telerate Page
3750, the rate for such date shall be determined on the basis of the offered
rates of the Reference Banks for one-month U.S. dollar deposits, as of 11:00
a.m. (London time) on such Interest Determination Date. In such event, the
Trustee shall request the principal London office of each of the Reference Banks
to provide a quotation of its rate. If on such Interest Determination Date, two
or more Reference Banks provide such offered quotations, One-Month LIBOR for the
related Interest Accrual Period shall be the arithmetic mean of such offered
quotations (rounded upwards, if necessary, to the nearest whole multiple of
1/16%). If on such Interest Determination Date, fewer than two Reference Banks
provide such offered quotations, One-Month LIBOR for the related Interest
Accrual Period shall be the higher of (i) LIBOR as determined on the previous
Interest Determination Date and (ii) the Reserve Interest Rate. Notwithstanding
the foregoing, if, under the priorities described above, LIBOR for an Interest
Determination Date would be based on LIBOR for the previous Interest
Determination Date for the third consecutive Interest Determination Date, the
Trustee shall select, after consultation with the Depositor, the NIMS Insurer
and the Guarantor, an alternative comparable index (over which the Trustee has
no control), used for determining one-month Eurodollar lending rates that is
calculated and published (or otherwise made available) by an independent party.

                                       37
<PAGE>

                  "Opinion of Counsel": A written opinion of counsel, who may,
without limitation, be salaried counsel for the Depositor or the Master Servicer
acceptable to the Trustee, if such opinion is delivered to the Trustee,
acceptable to the NIMS Insurer, if such opinion is delivered to the NIMS
Insurer, and acceptable to the Guarantor, if such opinion is delivered to the
Guarantor, except that any opinion of counsel relating to (a) the qualification
of any Trust REMIC as a REMIC or (b) compliance with the REMIC Provisions must
be an opinion of Independent counsel.

                  "Optional Termination Date": The first Distribution Date on
which the aggregate Stated Principal Balance of the Mortgage Loans (and
properties acquired in respect thereof) remaining in the Trust Fund is reduced
to an amount less than 10% of the sum of (i) the aggregate Stated Principal
Balance of the Initial Mortgage Loans as of the Cut-off Date and (ii) the
Original Pre-Funded Amounts.

                  "Original Group I Pre-Funded Amount": The amount deposited by
the Depositor in the Group I Pre-Funding Account on the Closing Date, which
amount is $226,445,095.10.

                  "Original Group II Pre-Funded Amount": The amount deposited by
the Depositor in the Group II Pre-Funding Account on the Closing Date, which
amount is $73,555,144.25.

                  "Original Pre-Funded Amounts": The sum of the Original Group I
Pre-Funded Amount and the Original Group II Pre-Funded Amount.

                  "Originators": Collectively, Ameriquest Mortgage Company and
Town & Country Credit Corporation.

                  "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the excess, if any, of (a) the Overcollateralization Target
Amount applicable to such Distribution Date over (b) the Overcollateralized
Amount applicable to such Distribution Date (calculated for this purpose only,
after assuming that 100% of the Principal Remittance Amount on such Distribution
Date has been distributed).

                  "Overcollateralization Increase Amount": With respect to any
Distribution Date, the lesser of (a) the Overcollateralization Deficiency Amount
as of such Distribution Date and (b) the Net Monthly Excess Cashflow for such
Distribution Date.

                  "Overcollateralization Reduction Amount": With respect to any
Distribution Date, an amount equal to the lesser of (a) the Excess
Overcollateralized Amount and (b) the Principal Remittance Amount.

                  "Overcollateralization Target Amount": With respect to any
Distribution Date (i) prior to the Stepdown Date, 0.70% of the sum of (x) the
aggregate Stated Principal Balance of the Initial Mortgage Loans as of the
Cut-off Date and (y) the Original Pre-Funded Amounts, (ii) on or after the
Stepdown Date provided a Trigger Event is not in effect, the greater of (x)
1.40% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced
and unscheduled collections of principal received

                                       38
<PAGE>

during the related Prepayment Period) and (y) $7,500,000, or (iii) on or after
the Stepdown Date and if a Trigger Event is in effect, the Overcollateralization
Target Amount for the immediately preceding Distribution Date. Notwithstanding
the foregoing, on and after any Distribution Date following the reduction of the
aggregate Certificate Principal Balance of the Class A Certificates and the
Mezzanine Certificates to zero, the Overcollateralization Target Amount shall be
zero.

                  "Overcollateralized Amount": With respect to any Distribution
Date, the excess, if any, of (a) the sum of (i) the aggregate Stated Principal
Balances of the Mortgage Loans and REO Properties immediately following such
Distribution Date (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and (ii) the amount on deposit in the Pre-Funding Accounts as of the
last day of the related Due Period, over (b) the sum of the aggregate
Certificate Principal Balances of the Class A Certificates, the Mezzanine
Certificates and the Class P Certificates as of such Distribution Date (after
giving effect to distributions to be made on such Distribution Date).

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

                  "Pass-Through Rate": With respect to any Class of
Adjustable-Rate Certificates and any Distribution Date, the lesser of (x) the
related Formula Rate for such Distribution Date and (y) the related Net WAC
Pass-Through Rate for such Distribution Date. For federal income tax purposes,
the Pass-Through Rate for the Adjustable-Rate Certificates shall be calculated
without respect to any Cap Contract Excess, which such amounts, if any, shall
have been paid in respect of Net WAC Rate Carryover Amounts and paid outside of
any REMIC created herein.

                  With respect to the Class CE Certificates and any Distribution
Date, a rate per annum equal to the percentage equivalent of a fraction, the
numerator of which is (x) the sum of (i) 100% of the interest on REMIC II
Regular Interest II-LTP and (ii) interest on the Uncertificated Balance of each
REMIC II Regular Interest listed in clause (y) at a rate equal to the related
REMIC II Remittance Rate minus the Marker Rate and the denominator of which is
(y) the aggregate Uncertificated Balance of REMIC II Regular Interests II-LTAA,
II-LTA1, II-LTA2, II-LTA3, II-LTA4, II-LTM1, II-LTM2, II-LTM3, II-LTM4, II-LTM5,
II-LTM6, II-LTM7, II-LTM8, II-LTM9, II-LTM10 and II-LTZZ.

                  "Percentage Interest": With respect to any Class of
Certificates (other than the Residual Certificates), the undivided percentage
ownership in such Class evidenced by such Certificate, expressed as a
percentage, the numerator of which is the initial Certificate Principal Balance
or Notional Amount represented by such Certificate and the denominator of which
is the aggregate initial Certificate Principal Balance or Notional Amount of all
of the Certificates of such Class. The Class A Certificates (other than the
Class A-1 Certificates) and the Mezzanine Certificates (other than the Class
M-10 Certificates) are issuable only in minimum Percentage Interests
corresponding to minimum initial Certificate Principal Balances of $25,000 and
integral multiples of $1.00 in excess thereof. The Class A-1 Certificates are
issuable only in minimum Percentage Interests corresponding to minimum initial
Certificate Principal Balances of $1,000

                                       39
<PAGE>

and integral multiples of $1.00 in excess thereof. The Class M-10 Certificates
are issuable only in minimum Percentage Interests corresponding to minimum
initial Certificate Principal Balances of $50,000 and integral multiples of
$1.00 in excess thereof. The Class P Certificates are issuable only in minimum
Percentage Interests corresponding to minimum initial Certificate Principal
Balances of $20 and integral multiples thereof. The Class CE Certificates are
issuable only in minimum Percentage Interests corresponding to minimum initial
Notional Amount of $10,000 and integral multiples of $1.00 in excess thereof;
provided, however, that a single Certificate of such Class of Certificates may
be issued having a Percentage Interest corresponding to the remainder of the
aggregate initial Certificate Principal Balance or Notional Amount of such Class
or to an otherwise authorized denomination for such Class plus such remainder.
With respect to any Residual Certificate, the undivided percentage ownership in
such Class evidenced by such Certificate, as set forth on the face of such
Certificate. The Residual Certificates are issuable in Percentage Interests of
20% and multiples thereof.

                  "Periodic Rate Cap": With respect to each Adjustable-Rate
Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth
in the related Mortgage Note, which is the maximum amount by which the Mortgage
Rate for such Mortgage Loan may increase or decrease (without regard to the
Maximum Mortgage Rate or the Minimum Mortgage Rate) on such Adjustment Date from
the Mortgage Rate in effect immediately prior to such Adjustment Date.

                  "Permitted Investments": Any one or more of the following
obligations or securities acquired at a purchase price of not greater than par,
regardless of whether issued by the Depositor, the Master Servicer, the NIMS
Insurer, the Trustee or any of their respective Affiliates:

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

                  (ii) demand and time deposits in, certificates of deposit of,
         or bankers' acceptances (which shall each have an original maturity of
         not more than 90 days and, in the case of bankers' acceptances, shall
         in no event have an original maturity of more than 365 days or a
         remaining maturity of more than 30 days) denominated in United States
         dollars and issued by, any Depository Institution;

                  (iii) repurchase obligations with respect to any security
         described in clause (i) above entered into with a Depository
         Institution (acting as principal);

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

                                       40
<PAGE>

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

                  (vi) units of money market funds, including money market funds
         advised by the Trustee or an Affiliate thereof, that have been rated
         "Aaa" by Moody's, "AAA" by Fitch and "AAAm" by S&P; and

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

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

                  "Permitted Transferee": Any Transferee of a Residual
Certificate other than a Disqualified Organization or Non-United States Person.

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

                  "Plan": Any employee benefit plan or certain other retirement
plans and arrangements, including individual retirement accounts and annuities,
Keogh plans and bank collective investment funds and insurance company general
or separate accounts in which such plans, accounts or arrangements are invested,
that are subject to ERISA and Section 4975 of the Code.

                  "PMI Insurers": Mortgage Guaranty Insurance Corporation, a
Wisconsin stock insurance corporation, and Radian Guaranty Inc., a Pennsylvania
corporation, or either of their successors in interest.

                  "PMI Insurer Fee": The amount payable to each PMI Insurer on
each Distribution Date pursuant to Section 3.22, which amount shall equal one
twelfth of the product of (i) the related PMI Insurer Fee Rate, multiplied by
(ii) the aggregate Stated Principal Balance of the related PMI Mortgage Loans
and any related REO Properties as of the first day of the related Due Period
(after giving effect to scheduled payments of principal due during the Due
Period relating to the previous Distribution Date, to the extent received or
advanced) plus any

                                       41
<PAGE>

applicable premium taxes on related PMI Mortgage Loans located in West Virginia
and Kentucky.

                  "PMI Insurer Fee Rate": With respect to each PMI Mortgage Loan
covered by the PMI Policy issued by Mortgage Guaranty Insurance Corporation,
1.06% per annum and with respect to each PMI Mortgage Loan that is covered by
the PMI Policy issued by Radian Guaranty Inc., 0.97% per annum.

                  "PMI Mortgage Loans": The list of Mortgage Loans insured by
each of the PMI Insurers attached hereto as Schedule 3.

                  "PMI Policy": With respect to the PMI Policy issued by
Mortgage Guaranty Insurance Corporation, the primary mortgage insurance policy
no. 04-690-5-0146 (policy reference number: #71-70035 (10/96)) with respect to
the related PMI Mortgage Loans, including all endorsements thereto dated the
Closing Date, issued by Mortgage Guaranty Insurance Corporation and the
Commitment Letter, dated December 6, 2004, among Mortgage Guaranty Insurance
Corporation, the Master Servicer and the Trustee.

                  With respect to the PMI Policy issued by Radian Guaranty Inc.,
the primary mortgage insurance policy no. 11616 (policy reference number:
#04-998074) with respect to the related PMI Mortgage Loans, including all
endorsements thereto dated the Closing Date, issued by Radian Guaranty Inc. and
the Commitment Letter, dated December 8, 2004, among Radian Guaranty Inc., the
Master Servicer and the Trustee.

                  "Pre-Funding Accounts": The Group I Pre-Funding Account and
the Group II Pre-Funding Account.

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

                  "Prepayment Charge": With respect to any Prepayment Period,
any prepayment premium, fee or charge payable by a Mortgagor in connection with
any Principal Prepayment pursuant to the terms of the related Mortgage Note as
from time to time held as a part of the Trust Fund, the Prepayment Charges so
held being identified in the Prepayment Charge Schedule (other than any Master
Servicer Prepayment Charge Payment Amount).

                  "Prepayment Charge Schedule": As of any date, the list of
Prepayment Charges included in the Trust Fund on such date, attached hereto as
Schedule 2 (including the prepayment charge summary attached thereto) and as
supplemented by each schedule of Subsequent Mortgage Loans attached to the
Subsequent Transfer Instrument. The Prepayment Charge Schedule shall set forth
the following information with respect to each Prepayment Charge:

                  (i) the Master Servicer's Mortgage Loan identifying number;

                  (ii) a code indicating the type of Prepayment Charge;

                  (iii) the date on which the first Monthly Payment was due on
         the related Mortgage Loan;

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<PAGE>

                  (iv) the term of the related Prepayment Charge;

                  (v) the original Stated Principal Balance of the related
         Mortgage Loan; and

                  (vi) the Stated Principal Balance of the related Mortgage Loan
         as of the Cut-off Date (or the related Subsequent Cut-off Date with
         respect to a Subsequent Mortgage Loan).

                  The Prepayment Charge Schedule shall be amended from time to
time by the Master Servicer in accordance with the provisions of this Agreement
and a copy of such amended Prepayment Charge Schedule shall be furnished by the
Master Servicer to the Guarantor and the NIMS Insurer, if any.

                  "Prepayment Interest Excess": With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a Principal Prepayment in
full during the portion of the related Prepayment Period occurring between the
first day of the calendar month in which such Distribution Date occurs and the
Determination Date of the calendar month in which such Distribution Date occurs,
an amount equal to interest (to the extent received) at the applicable Net
Mortgage Rate on the amount of such Principal Prepayment for the number of days
commencing on the first day of the calendar month in which such Distribution
Date occurs and ending on the last date through which interest is collected from
the related Mortgagor. The Master Servicer may withdraw such Prepayment Interest
Excess from the Collection Account in accordance with Section 3.05(a)(iv).

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was the subject of a Principal
Prepayment in full during the portion of the related Prepayment Period occurring
between the first day of the related Prepayment Period and the last day of the
calendar month preceding the month in which such Distribution Date occurs, an
amount equal to interest at the applicable Net Mortgage Rate on the amount of
such Principal Prepayment for the number of days commencing on the day after the
last date on which interest is collected from the related Mortgagor and ending
on the last day of the calendar month preceding such Distribution Date. The
obligations of the Master Servicer in respect of any Prepayment Interest
Shortfall are set forth in Section 4.03(e). The Guaranty shall not cover any
such Prepayment Interest Shortfalls.

                  "Prepayment Period": With respect to any Distribution Date,
the period commencing on the day after the Determination Date in the calendar
month preceding the calendar month in which such Distribution Date occurs (or,
in the case of the first Distribution Date, commencing on December 1, 2004) and
ending on the Determination Date of the calendar month in which such
Distribution Date occurs.

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

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<PAGE>

                  "Principal Remittance Amount": With respect to any
Distribution Date, the sum of the (i) the Group I Principal Remittance Amount
and (ii) the Group II Principal Remittance Amount.

                  "Prospectus Supplement": The Prospectus Supplement, dated
December 1, 2004, relating to the public offering of the Offered Certificates.

                  "PTCE":  A Prohibited Transaction Class Exemption.

                  "Purchase Price": With respect to any Mortgage Loan or REO
Property to be purchased pursuant to or as contemplated by Section 2.03, Section
3.16(a) or Section 9.01, and as confirmed by an Officers' Certificate from the
Master Servicer to the Trustee, an amount equal to the sum of (i) 100% of the
Stated Principal Balance thereof as of the date of purchase (or such other price
as provided in Section 9.01), (ii) in the case of (x) a Mortgage Loan, accrued
interest on such Stated Principal Balance at the applicable Net Mortgage Rate in
effect from time to time from the Due Date as to which interest was last covered
by a payment by the Mortgagor or an advance by the Master Servicer, which
payment or advance had as of the date of purchase been distributed pursuant to
Section 4.01, through the end of the calendar month in which the purchase is to
be effected and (y) an REO Property, the sum of (1) accrued interest on such
Stated Principal Balance at the applicable Net Mortgage Rate in effect from time
to time from the Due Date as to which interest was last covered by a payment by
the Mortgagor or an advance by the Master Servicer through the end of the
calendar month immediately preceding the calendar month in which such REO
Property was acquired plus (2) REO Imputed Interest for such REO Property for
each calendar month commencing with the calendar month in which such REO
Property was acquired and ending with the calendar month in which such purchase
is to be effected, net of the total of all net rental income, Insurance
Proceeds, Liquidation Proceeds and Advances that as of the date of purchase had
been distributed as or to cover REO Imputed Interest pursuant to Section 4.01,
(iii) any unreimbursed Servicing Advances and Advances and any unpaid Servicing
Fees allocable to such Mortgage Loan or REO Property, (iv) any amounts
previously withdrawn from the Collection Account in respect of such Mortgage
Loan or REO Property pursuant to Sections 3.05(a)(v) and 3.16(a) and (v) in the
case of a Mortgage Loan required to be purchased pursuant to Section 2.03,
expenses reasonably incurred or to be incurred by the Master Servicer, the NIMS
Insurer, the Guarantor or the Trustee in respect of the breach or defect giving
rise to the purchase obligation, as well as any costs and damages incurred by
the Trust Fund in connection with any violation by such loan of any predatory or
abusive lending law.

                  "Qualified Substitute Mortgage Loan": A mortgage loan
substituted for a Deleted Mortgage Loan pursuant to the terms of this Agreement
which must, on the date of such substitution, (i) have an outstanding Stated
Principal Balance, after application of all scheduled payments of principal and
interest due during or prior to the month of substitution, not in excess of the
Scheduled Principal Balance of the Deleted Mortgage Loan as of the Due Date in
the calendar month during which the substitution occurs, (ii) have a Mortgage
Rate not less than (and not more than one percentage point in excess of) the
Mortgage Rate of the Deleted Mortgage Loan, (iii) with respect to any
Adjustable-Rate Mortgage Loan, have a Maximum Mortgage Rate not less than the
Maximum Mortgage Rate on the Deleted Mortgage Loan, (iv)

                                       44
<PAGE>

with respect to any Adjustable-Rate Mortgage Loan, have a Minimum Mortgage Rate
not less than the Minimum Mortgage Rate of the Deleted Mortgage Loan, (v) with
respect to Adjustable-Rate Mortgage Loan, have a Gross Margin equal to the Gross
Margin of the Deleted Mortgage Loan, (vi) with respect to any Adjustable-Rate
Mortgage Loan, have a next Adjustment Date not more than two months later than
the next Adjustment Date on the Deleted Mortgage Loan, (vii) have a remaining
term to maturity not greater than (and not more than one year less than) that of
the Deleted Mortgage Loan, (viii) have the same Due Date as the Due Date on the
Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio as of the date of
substitution equal to or lower than the Loan-to-Value Ratio of the Deleted
Mortgage Loan as of such date, (x) have a risk grading determined by the Seller
at least equal to the risk grading assigned on the Deleted Mortgage Loan, (xi)
have been underwritten or reunderwritten by the Seller or an Affiliate of the
Seller in accordance with the same underwriting criteria and guidelines as the
Deleted Mortgage Loan, (xii) have a Prepayment Charge provision at least equal
to the Prepayment Charge provision of the Deleted Mortgage Loan, (xiii) not be
more than 59 or more days delinquent or any additional days delinquent than the
Deleted Mortgage Loan, (xiv) conform to each representation and warranty set
forth in Section 6 of the Mortgage Loan Purchase Agreement applicable to the
Deleted Mortgage Loan, (xv) with respect to Qualified Substituted Mortgage Loans
substituted for Deleted Mortgage Loans that are Group I Mortgage Loans, have an
original principal balance that conforms to Fannie Mae loan limits as of the
date of its origination and be otherwise acceptable to the Guarantor and (xvi)
be covered by a PMI Policy if the Deleted Mortgage Loan was covered by a PMI
Policy. In the event that one or more mortgage loans are substituted for one or
more Deleted Mortgage Loans, the amounts described in clause (i) hereof shall be
determined on the basis of aggregate Stated Principal Balances, the Mortgage
Rates described in clause (ii) hereof shall be determined on the basis of
weighted average Mortgage Rates, the terms described in clause (vii) hereof
shall be determined on the basis of weighted average remaining terms to
maturity, the Loan-to-Value Ratios described in clause (ix) hereof shall be
satisfied as to each such mortgage loan, the risk gradings described in clause
(x) hereof shall be satisfied as to each such mortgage loan and, except to the
extent otherwise provided in this sentence, the representations and warranties
described in clause (xiv) hereof must be satisfied as to each Qualified
Substitute Mortgage Loan or in the aggregate, as the case may be.

                  "Rating Agency" or "Rating Agencies": Moody's, Fitch and S&P
or their successors. If such agencies or their successors are no longer in
existence, "Rating Agencies" shall be such nationally recognized statistical
rating agencies, or other comparable Persons, designated by the Depositor (and
if rating the Guaranteed Certificates, consented to in writing by the
Guarantor), notice of which designation shall be given to the Trustee and the
Master Servicer.

                  "Realized Loss": With respect to each Mortgage Loan as to
which a Final Recovery Determination has been made, an amount (not less than
zero) equal to (i) the unpaid Stated Principal Balance of such Mortgage Loan as
of the commencement of the calendar month in which the Final Recovery
Determination was made, plus (ii) accrued interest from the Due Date as to which
interest was last paid by the Mortgagor through the end of the calendar month in
which such Final Recovery Determination was made, calculated in the case of each
calendar month during such period (A) at an annual rate equal to the annual rate
at which interest was then

                                       45
<PAGE>

accruing on such Mortgage Loan and (B) on a principal amount equal to the Stated
Principal Balance of such Mortgage Loan as of the close of business on the
Distribution Date during such calendar month, plus (iii) any amounts previously
withdrawn from the Collection Account in respect of such Mortgage Loan pursuant
to Section 3.05(a)(v) and Section 3.12(c), minus (iv) the proceeds, if any,
received in respect of such Mortgage Loan during the calendar month in which
such Final Recovery Determination was made, net of amounts that are payable
therefrom to the Master Servicer with respect to such Mortgage Loan pursuant to
Section 3.05(a)(ii). If the Master Servicer receives Subsequent Recoveries with
respect to any Mortgage Loan, the amount of Realized Losses with respect to that
Mortgage Loan shall be reduced to the extent such recoveries are applied to
principal distributions on any Distribution Date.

                  With respect to any REO Property as to which a Final Recovery
Determination has been made, an amount (not less than zero) equal to (i) the
unpaid Stated Principal Balance of the related Mortgage Loan as of the date of
acquisition of such REO Property on behalf of REMIC I, plus (ii) accrued
interest from the Due Date as to which interest was last paid by the Mortgagor
in respect of the related Mortgage Loan through the end of the calendar month
immediately preceding the calendar month in which such REO Property was
acquired, calculated in the case of each calendar month during such period (A)
at an annual rate equal to the annual rate at which interest was then accruing
on the related Mortgage Loan and (B) on a principal amount equal to the Stated
Principal Balance of the related Mortgage Loan as of the close of business on
the Distribution Date during such calendar month, plus (iii) REO Imputed
Interest for such REO Property for each calendar month commencing with the
calendar month in which such REO Property was acquired and ending with the
calendar month in which such Final Recovery Determination was made, plus (iv)
any amounts previously withdrawn from the Collection Account in respect of the
related Mortgage Loan pursuant to Section 3.05(a)(v) and Section 3.12(c), minus
(v) the aggregate of all Advances made by the Master Servicer in respect of such
REO Property or the related Mortgage Loan for which the Master Servicer has been
or, in connection with such Final Recovery Determination, shall be reimbursed
pursuant to Section 3.13 out of rental income, Insurance Proceeds and
Liquidation Proceeds received in respect of such REO Property, minus (vi) the
total of all net rental income, Insurance Proceeds and Liquidation Proceeds
received in respect of such REO Property that has been, or in connection with
such Final Recovery Determination, shall be transferred to the Distribution
Account pursuant to Section 3.13.

                  With respect to each Mortgage Loan which has become the
subject of a Deficient Valuation, the difference between the Stated Principal
Balance of the Mortgage Loan outstanding immediately prior to such Deficient
Valuation and the Stated Principal Balance of the Mortgage Loan as reduced by
the Deficient Valuation.

                  With respect to each Mortgage Loan which has become the
subject of a Debt Service Reduction, the portion, if any, of the reduction in
each affected Monthly Payment attributable to a reduction in the Mortgage Rate
imposed by a court of competent jurisdiction. Each such Realized Loss shall be
deemed to have been incurred on the Due Date for each affected Monthly Payment.

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<PAGE>

                  If the Master Servicer receives Subsequent Recoveries with
respect to any Mortgage Loan, the amount of the Realized Loss with respect to
that Mortgage Loan shall be reduced to the extent such recoveries are applied to
principal distributions on any Distribution Date.

                  "Record Date": With respect to each Distribution Date and any
Adjustable-Rate Certificate that is a Book-Entry Certificate, the Business Day
immediately preceding such Distribution Date. With respect to each Distribution
Date and any other Class of Certificates, including any Definitive Certificates,
the last Business Day of the month immediately preceding the month in which such
Distribution Date occurs.

                  "Reference Banks": Deutsche Bank, Barclays Bank PLC, The Tokyo
Mitsubishi Bank and National Westminster Bank PLC and their successors in
interest; provided, however, that if any of the foregoing banks are not suitable
to serve as a Reference Bank, then any leading banks selected by the Trustee
(after consultation with the Depositor, the Guarantor and the NIMS Insurer, if
any) which are engaged in transactions in Eurodollar deposits in the
international Eurocurrency market (i) with an established place of business in
London, (ii) not controlling, under the control of or under common control with
the Depositor or any Affiliate thereof and (iii) which have been designated as
such by the Trustee.

                  "Refinanced Mortgage Loan": A Mortgage Loan the proceeds of
which were not used to purchase the related Mortgaged Property.

                  "Regular Certificate": Any Class A Certificate, Mezzanine
Certificate, Class P Certificate or Class CE Certificate.

                  "Regular Interest": A "regular interest" in a REMIC within the
meaning of Section 860G(a)(1) of the Code.

                  "Relief Act": The Servicemembers Civil Relief Act or any
applicable state law providing similar relief.

                  "Relief Act Interest Shortfall": With respect to any
Distribution Date and any Mortgage Loan, any reduction in the amount of interest
collectible on such Mortgage Loan for the most recently ended calendar month as
a result of the application of the Relief Act. The Guaranty shall not cover any
such Relief Act Interest Shortfalls.

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

                  "REMIC I": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to which a REMIC election is to be made, consisting of: (i) such
Mortgage Loans and Prepayment Charges as from time to time are subject to this
Agreement, together with the Mortgage Files relating thereto, and together with
all collections thereon and proceeds thereof, (ii) any REO Property, together
with all collections thereon and proceeds thereof, (iii) the Trustee's rights
with respect to the Mortgage Loans under all insurance policies (including each
PMI Policy) required to be

                                       47
<PAGE>

maintained pursuant to this Agreement and any proceeds thereof, (iv) the
Depositor's rights under the Mortgage Loan Purchase Agreement (including any
security interest created thereby) to the extent conveyed pursuant to Section
2.01 and (v) the Collection Account (other than any amounts representing any
Master Servicer Prepayment Charge Payment Amounts), the Distribution Account
(other than any amounts representing any Master Servicer Prepayment Charge
Payment Amounts) and any REO Account and such assets that are deposited therein
from time to time and any investments thereof, together with any and all income,
proceeds and payments with respect thereto. Notwithstanding the foregoing,
however, REMIC I specifically excludes any Master Servicer Prepayment Charge
Payment Amounts, the Pre-Funding Accounts, the Interest Coverage Accounts, any
Subsequent Mortgage Loan Interest, the Net WAC Rate Carryover Reserve Account,
the Cap Contracts, all payments and other collections of principal and interest
due on the Mortgage Loans on or before the Cut-off Date and all Prepayment
Charges payable in connection with Principal Prepayments made before the Cut-off
Date.

                  "REMIC I Regular Interest": Any of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a "regular interest" in REMIC I. Each REMIC I Regular Interest
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto. The
following is a list of each of the REMIC I Regular Interests: REMIC I Regular
Interest I-LT1, REMIC I Regular Interest I-LT1PF, REMIC I Regular Interest
I-LT2, REMIC I Regular Interest I-LT2PF and REMIC I Regular Interest I-LTP.

                   "REMIC I Remittance Rate": With respect to REMIC I Regular
Interest I-LT1 and REMIC I Regular Interest I-LTP, and (i) for the first three
Distribution Dates, the weighted average of the Expense Adjusted Net Mortgage
Rates of the Initial Group I Mortgage Loans and (ii) thereafter, the weighted
average of the Expense Adjusted Net Mortgage Rates of the Group I Mortgage
Loans. With respect to REMIC I Regular Interest I-LT2, and (i) for the first
three Distribution Dates, the weighted average of the Expense Adjusted Net
Mortgage Rates of the Initial Group II Mortgage Loans and (ii) thereafter, the
weighted average of the Expense Adjusted Net Mortgage Rates of the Group II
Mortgage Loans. With respect to REMIC I Regular Interest I-LT1PF and (i) the
first three Distribution Dates, 0.00% and (ii) thereafter, the weighted average
of the Expense Adjusted Net Mortgage Rates of the Group I Mortgage Loans. With
respect to REMIC I Regular Interest I-LT2PF and (i) the first three Distribution
Dates, 0.00% and (ii) thereafter, the weighted average of the Expense Adjusted
Net Mortgage Rates of the Group II Mortgage Loans.

                  "REMIC II Interest Loss Allocation Amount": With respect to
any Distribution Date, an amount (subject to adjustment based on the actual
number of days elapsed in the respective Interest Accrual Periods for the
indicated Regular Interests for such Distribution Date) equal to (a) the product
of (i) 50% of the aggregate Stated Principal Balance of the Mortgage Loans and
any amounts remaining in the Pre-Funding Accounts and REO Properties then
outstanding and (ii) the REMIC II Remittance Rate for REMIC II Regular Interest
II-LTAA minus the Marker Rate, divided by (b) 12.

                                       48
<PAGE>

                  "REMIC II Marker Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTA1, REMIC
II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular
Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest
II-LTZZ and REMIC II Regular Interest II-LTP.

                  "REMIC II Overcollateralization Target Amount": 0.50% of the
Overcollateralization Target Amount.

                  "REMIC II Overcollateralized Amount": With respect to any date
of determination, (i) 0.50% of the aggregate Uncertificated Balances of the
REMIC II Regular Interests minus (ii) the aggregate of the Uncertificated
Balance of REMIC II Regular Interest II-LTA1, REMIC II Regular Interest II-LTA2,
REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4, REMIC II
Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular
Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest
II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7,
REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II
Regular Interest II-LTM10 and REMIC II Regular Interest II-LTP, in each case as
of such date of determination.

                  "REMIC II Principal Loss Allocation Amount": With respect to
any Distribution Date, an amount equal to the product of (i) 50% of the
aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) one minus a fraction, the numerator of which is two times
the aggregate Uncertificated Balance of REMIC II Regular Interest II-LTA1, REMIC
II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular
Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9 and REMIC II Regular Interest II-LTM10 and the denominator of
which is the aggregate Uncertificated Balance of REMIC II Regular Interest
II-LTA1, REMIC II Regular Interest II-LTA2, REMIC II Regular Interest II-LTA3,
REMIC II Regular Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II
Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular
Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest
II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8,
REMIC II Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC
II Regular Interest II-LTZZ.

                  "REMIC II Regular Interest": Any of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a "regular interest" in REMIC II. Each REMIC II Regular Interest
shall accrue interest at the related REMIC II Remittance Rate in effect from
time to time, and shall be entitled to distributions of principal,

                                       49
<PAGE>

subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.
The following is a list of the REMIC II Regular Interests: REMIC II Regular
Interest II-LTAA, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4,
REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II
Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular
Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest
II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9,
REMIC II Regular Interest II-LTM10, REMIC II Regular Interest II-LTXX, REMIC II
Regular Interest II-LTZZ, REMIC II Regular Interest II-LTP, REMIC II Regular
Interest II-LT1GRP, REMIC II Regular Interest II-LT1SUB, REMIC II Regular
Interest II-LT2GRP and REMIC II Regular Interest II-LT2SUB.

                  "REMIC II Remittance Rate": With respect to REMIC II Regular
Interest II-LTAA, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest II-LTA4,
REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II
Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular
Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest
II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9,
REMIC II Regular Interest II-LTM10, REMIC II Regular Interest II-LTZZ, REMIC II
Regular Interest II-LTP, REMIC II Regular Interest II-LT1SUB, REMIC II Regular
Interest II-LT2SUB and REMIC II Regular Interest II-LTXX, the weighted average
of the REMIC I Remittance Rate on the REMIC I Regular Interests, weighted on the
basis of the Uncertificated Balance of each such REMIC I Regular Interest. With
respect to REMIC II Regular Interest II-1GRP, the weighted average of the REMIC
I Remittance Rate on REMIC I Regular Interest I-LT1, REMIC I Regular Interest
I-LT1PF and REMIC I Regular Interest I-LTP, weighted on the basis of the
Uncertificated Balance of each such REMIC I Regular Interest. With respect REMIC
II Regular Interest II-2GRP, the weighted average of the REMIC I Remittance Rate
on REMIC I Regular Interest I-LT2 and REMIC I Regular Interest I-LT2PF, weighted
on the basis of the Uncertificated Balance of each such REMIC I Regular
Interest.

                  "REMIC II Sub WAC Allocation Percentage": 50% of any amount
payable from or loss attributable to the Mortgage Loans, which shall be
allocated to REMIC II Regular Interest II-LT1SUB, REMIC II Regular Interest
II-LT1GRP, REMIC II Regular Interest II-LT2SUB, REMIC II Regular Interest
II-LT2GRP and REMIC II Regular Interest II-LTXX.

                  "REMIC II Subordinated Balance Ratio": The ratio between the
Uncertificated Balances of each REMIC II Regular Interest ending with the
designation "SUB,", equal to the ratio between, with respect to each such REMIC
II Regular Interest, the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group and any amounts remaining in the
related Pre-Funding Accounts over (y) the current Certificate Principal Balance
of Class A Certificates in the related Loan Group.

                  "REMIC III": The segregated pool of assets consisting of all
of the REMIC II Regular Interests conveyed in trust to the Trustee, for the
benefit of the Holders of the Regular Certificates and the Class R Certificate
(in respect of the Class R-III Interest), pursuant to Article

                                       50
<PAGE>

II hereunder, and all amounts deposited therein, with respect to which a
separate REMIC election is to be made.

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

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

                  "REMIC Regular Interest": Any REMIC I Regular Interest or
REMIC II Regular Interest.

                  "REMIC Remittance Rate": The REMIC I Remittance Rate or the
REMIC II Remittance Rate.

                  "Remittance Report": A report in form and substance that is
acceptable to the Trustee, the Guarantor and the NIMS Insurer on a magnetic disk
or tape prepared by the Master Servicer pursuant to Section 4.03 with such
additions, deletions and modifications as agreed to by the Trustee, the
Guarantor and the Master Servicer.

                  "Rents from Real Property": With respect to any REO Property,
gross income of the character described in Section 856(d) of the Code as being
included in the term "rents from real property."

                  "REO Account": Each of the accounts maintained by the Master
Servicer in respect of an REO Property pursuant to Section 3.13, which account
may be the Collection Account subject to Section 3.13.

                  "REO Disposition": The sale or other disposition of an REO
Property on behalf of REMIC I.

                  "REO Imputed Interest": As to any REO Property, for any
calendar month during which such REO Property was at any time part of REMIC I,
one month's interest at the applicable Net Mortgage Rate on the Stated Principal
Balance of such REO Property (or, in the case of the first such calendar month,
of the related Mortgage Loan, if appropriate) as of the close of business on the
Distribution Date in such calendar month.

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

                                       51
<PAGE>

3.13(d) for unpaid Servicing Fees in respect of the related Mortgage Loan and
unreimbursed Servicing Advances and Advances in respect of such REO Property or
the related Mortgage Loan, over (b) the REO Imputed Interest in respect of such
REO Property for such calendar month.

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

                  "Representative":  Deutsche Bank Securities Inc.

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

                  "Reserve Interest Rate": With respect to any Interest
Determination Date, the rate per annum that the Trustee determines to be either
(i) the arithmetic mean (rounded upwards if necessary to the nearest whole
multiple of 1/16%) of the one-month U.S. dollar lending rates which New York
City banks selected by the Trustee, with the consent of the Guarantor, are
quoting on the relevant Interest Determination Date to the principal London
offices of leading banks in the London interbank market or (ii) in the event
that the Trustee can determine no such arithmetic mean, the lowest one-month
U.S. dollar lending rate which New York City banks selected by the Trustee, with
the consent of the Guarantor, are quoting on such Interest Determination Date to
leading European banks.

                  "Residential Dwelling": Any one of the following: (i) an
attached or detached one-family dwelling, (ii) a detached two- to four-family
dwelling, (iii) a one-family dwelling unit in a condominium project or (iv) a
detached or attached one-family dwelling in a planned unit development, none of
which is a co-operative, mobile or manufactured home (unless such mobile or
manufactured home is defined as real property under applicable state law).

                  "Residual Certificate": Any one of the Class R Certificates
and Class R-X Certificates.

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

                  "Responsible Officer": When used with respect to the Trustee,
any director, any vice president, any assistant vice president, any associate,
any trust officer or any other officer of the Trustee, customarily performing
functions similar to those performed by any of the above designated officers
and, with respect to a particular matter, to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject.

                  "Scheduled Principal Balance": With respect to any Mortgage
Loan: (a) as of the Cut-off Date (or the related Subsequent Cut-off Date with
respect to a Subsequent Mortgage Loan), the outstanding Stated Principal Balance
of such Mortgage Loan as of such date, net of the principal portion of all
unpaid Monthly Payments, if any, due on or before such date; (b) as of any Due
Date subsequent to the Cut-off Date up to and including the Due Date in the
calendar

                                       52
<PAGE>

month in which a Liquidation Event occurs with respect to such Mortgage Loan,
the Scheduled Principal Balance of such Mortgage Loan as of the Cut-off Date,
minus the sum of (i) the principal portion of each Monthly Payment due on or
before such Due Date but subsequent to the Cut-off Date, whether or not
received, (ii) all Principal Prepayments received before such Due Date but after
the Cut-off Date, (iii) the principal portion of all Liquidation Proceeds and
Insurance Proceeds received before such Due Date but after the Cut-off Date, net
of any portion thereof that represents principal due (without regard to any
acceleration of payments under the related Mortgage and Mortgage Note) on a Due
Date occurring on or before the date on which such proceeds were received and
(iv) any Realized Loss incurred with respect thereto as a result of a Deficient
Valuation occurring before such Due Date, but only to the extent such Realized
Loss represents a reduction in the portion of principal of such Mortgage Loan
not yet due (without regard to any acceleration of payments under the related
Mortgage and Mortgage Note) as of the date of such Deficient Valuation; and (c)
as of any Due Date subsequent to the occurrence of a Liquidation Event with
respect to such Mortgage Loan, zero. With respect to any REO Property: (a) as of
any Due Date subsequent to the date of its acquisition on behalf of the Trust
Fund up to and including the Due Date in the calendar month in which a
Liquidation Event occurs with respect to such REO Property, an amount (not less
than zero) equal to the Scheduled Principal Balance of the related Mortgage Loan
as of the Due Date in the calendar month in which such REO Property was
acquired, minus the aggregate amount of REO Principal Amortization, if any, in
respect of such REO Property for all previously ended calendar months; and (b)
as of any Due Date subsequent to the occurrence of a Liquidation Event with
respect to such REO Property, zero.

                  "Seller": Ameriquest Mortgage Company, or its successor in
interest, in its capacity as seller under the Mortgage Loan Purchase Agreement.

                  "Senior Group I Principal Distribution Amount" With respect to
any Distribution Date, an amount, not less than zero, equal to the excess of (x)
the Certificate Principal Balance of the Class A-1 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
73.70% and (ii) the aggregate Stated Principal Balance of the Group I Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) and (B) the aggregate Stated Principal Balance of
the Group I Mortgage Loans as of the last day of the related Due Period (after
giving effect to scheduled payments of principal due during the related Due
Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) minus $5,661,119.04.

                  "Senior Group II Principal Distribution Amount" With respect
to any Distribution Date, an amount, not less than zero, equal to the excess of
(x) the aggregate Certificate Principal Balance of the Group II Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 73.70% and (ii) the aggregate Stated Principal Balance of the
Group II Mortgage Loans as of the last day of the related Due Period (after
giving effect to scheduled payments of principal due during the related Due
Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) and (B) the aggregate
Stated Principal Balance of the Group II Mortgage Loans as of the

                                       53
<PAGE>

last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) minus $1,838,880.96.

                  "Senior Interest Distribution Amount": With respect to any
Distribution Date and any Class A Certificate, an amount equal to the sum of (i)
the Interest Distribution Amount for such Distribution Date for such Class A
Certificate and (ii) the Interest Carry Forward Amount, if any, for such Class A
Certificate.

                  "Servicing Advances": The reasonable "out-of-pocket" costs and
expenses incurred by the Master Servicer in connection with a default,
delinquency or other unanticipated event by the Master Servicer in the
performance of its servicing obligations, including, but not limited to, the
cost of (i) the preservation, restoration and protection of a Mortgaged
Property, (ii) any enforcement or judicial proceedings, including foreclosures,
in respect of a particular Mortgage Loan, (iii) the management (including
reasonable fees in connection therewith) and liquidation of any REO Property and
(iv) the performance of its obligations under Section 3.01, Section 3.04(d),
Section 3.08, Section 3.12 and Section 3.13. The Master Servicer shall not be
required to make any Servicing Advance in respect of a Mortgage Loan or REO
Property that, in the good faith business judgment of the Master Servicer, would
not be ultimately recoverable from related Insurance Proceeds or Liquidation
Proceeds on such Mortgage Loan or REO Property as provided herein.

                  "Servicing Fee": With respect to each Mortgage Loan and for
any calendar month, an amount equal to one month's interest (or in the event of
any payment of interest which accompanies a Principal Prepayment in full made by
the Mortgagor during such calendar month, interest for the number of days
covered by such payment of interest) at the applicable Servicing Fee Rate on the
same principal amount on which interest on such Mortgage Loan accrues for such
calendar month. A portion of such Servicing Fee may be retained by any
Sub-Servicer as its servicing compensation.

                  "Servicing Fee Rate": 0.50% per annum.

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

                  "Servicing Standard": The standards set forth in the first
paragraph of Section 3.01.

                  "Single Certificate": With respect to any Class of
Certificates (other than the Class P Certificates and the Residual
Certificates), a hypothetical Certificate of such Class evidencing a Percentage
Interest for such Class corresponding to an initial Certificate Principal
Balance or Notional Amount of $1,000. With respect to the Class P Certificates
and the Residual

                                       54
<PAGE>

Certificates, a hypothetical Certificate of such Class evidencing a 20%
Percentage Interest in such Class.

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

                  "Special Servicer": As defined in Section 3.14(a).

                  "Specially Serviced Mortgage Loan": As defined in Section
3.14(a).

                  "Startup Day": With respect to each Trust REMIC, the day
designated as such pursuant to Section 10.01(b) hereof.

                  "Stated Principal Balance": With respect to any Mortgage Loan:
(a) as of any date of determination up to but not including the Distribution
Date on which the proceeds, if any, of a Liquidation Event with respect to such
Mortgage Loan would be distributed, the outstanding principal balance of such
Mortgage Loan as of the Cut-off Date (or the related Subsequent Cut-off Date
with respect to a Subsequent Mortgage Loan), as shown in the Mortgage Loan
Schedule, minus the sum of (i) the principal portion of each Monthly Payment due
on a Due Date subsequent to the Cut-off Date, to the extent received from the
Mortgagor or advanced by the Master Servicer and distributed pursuant to Section
4.01 on or before such date of determination, (ii) all Principal Prepayments
received after the Cut-off Date, to the extent distributed pursuant to Section
4.01 on or before such date of determination, (iii) all Liquidation Proceeds and
Insurance Proceeds applied by the Master Servicer as recoveries of principal in
accordance with the provisions of Section 3.12, to the extent distributed
pursuant to Section 4.01 on or before such date of determination and (iv) any
Realized Loss incurred with respect thereto as a result of a Deficient Valuation
made during or prior to the Prepayment Period for the most recent Distribution
Date coinciding with or preceding such date of determination; and (b) as of any
date of determination coinciding with or subsequent to the Distribution Date on
which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
Loan would be distributed, zero. With respect to any REO Property: (a) as of any
date of determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property would
be distributed, an amount (not less than zero) equal to the Stated Principal
Balance of the related Mortgage Loan as of the date on which such REO Property
was acquired on behalf of REMIC I, minus the sum of (i) if such REO Property was
acquired before the Distribution Date in any calendar month, the principal
portion of the Monthly Payment due on the Due Date in the calendar month of
acquisition, to the extent advanced by the Master Servicer and distributed
pursuant to Section 4.01 on or before such date of determination, and (ii) the
aggregate amount of REO Principal Amortization in respect of such REO Property
for all previously ended calendar months, to the extent distributed pursuant to
Section 4.01 on or before such date of determination; and (b) as of any date of
determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such REO Property
would be distributed, zero.

                  "Stayed Funds": If the Master Servicer is the subject of a
proceeding under the Bankruptcy Code and the making of a Remittance (as defined
in Section 7.02(b)) is prohibited by

                                       55
<PAGE>

Section 362 of the Bankruptcy Code, funds that are in the custody of the Master
Servicer, a trustee in bankruptcy or a federal bankruptcy court and should have
been the subject of such Remittance absent such prohibition.

                  "Stepdown Date": The earlier to occur of (i) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Class A Certificates has been reduced to zero and (ii) the later to occur of (a)
the Distribution Date occurring in January 2008 and (b) the first Distribution
Date on which the Credit Enhancement Percentage for the Class A Certificates
(calculated for this purpose only after taking into account distributions of
principal on the Mortgage Loans but prior to any distribution of the Group I
Principal Distribution Amount and the Group II Principal Distribution Amount to
the Certificates then entitled to distributions of principal on such
Distribution Date) is equal to or greater than 26.30%.

                  "Sub-Servicer": Any Person with which the Master Servicer has
entered into a Sub-Servicing Agreement and which meets the qualifications of a
Sub-Servicer pursuant to Section 6.06.

                  "Sub-Servicing Account": An account established by a
Sub-Servicer which meets the requirements set forth in Section 6.11 and is
otherwise acceptable to the Master Servicer.

                  "Sub-Servicing Agreement": The written contract between the
Master Servicer and a Sub-Servicer relating to servicing and administration of
certain Mortgage Loans as provided in Section 6.06.

                  "Subsequent Cut-off Date": With respect to those Subsequent
Mortgage Loans sold to the Trust Fund pursuant to a Subsequent Transfer
Instrument, the later of (x) the first day of the month in which the related
Subsequent Transfer Date occurs and (y) the date of origination of such
Subsequent Mortgage Loan.

                  "Subsequent Group I Mortgage Loan": A Subsequent Mortgage Loan
to be included in Loan Group I.

                  "Subsequent Group II Mortgage Loan": A Subsequent Mortgage
Loan to be included in Loan Group II.

                  "Subsequent Mortgage Loan": A Mortgage Loan sold by the
Depositor to the Trust Fund pursuant to Section 2.09, such Mortgage Loan being
identified on the Mortgage Loan Schedule attached to a Subsequent Transfer
Instrument.

                  "Subsequent Mortgage Loan Interest": Any amount constituting
(i) a monthly payment of interest received or advanced at the Net Mortgage Rate
with respect to a Subsequent Group I Mortgage Loan during the Due Periods
relating to the first three Distribution Dates in excess of 0.00% per annum and
(ii) a monthly payment of interest received or advanced at the Net Mortgage Rate
with respect to a Subsequent Group II Mortgage Loan during the Due Periods
relating to the first three Distribution Dates in excess of 0.00% per annum. The
Subsequent Mortgage Loan Interest shall be distributable to the Class CE
Certificates. The Subsequent Mortgage Loan Interest shall not be an asset of any
Trust REMIC.

                                       56
<PAGE>

                  "Subsequent Mortgage Loan Purchase Agreement": The agreement
between the Depositor and the Seller regarding the transfer of the Subsequent
Mortgage Loans by the Seller to the Depositor.

                  "Subsequent Recoveries": As of any Distribution Date,
unexpected amounts received by the Master Servicer (net of any related expenses
permitted to be reimbursed pursuant to Section 3.04) specifically related to a
Mortgage Loan that was the subject of a liquidation or an REO Disposition prior
to the related Prepayment Period that resulted in a Realized Loss.

                  "Subsequent Transfer Date": With respect to each Subsequent
Transfer Instrument, the date on which the related Subsequent Mortgage Loans are
sold to the Trust Fund.

                  "Subsequent Transfer Instrument": Each subsequent transfer
instrument, dated as of a Subsequent Transfer Date, executed by the Trustee and
the Depositor substantially in the form of Exhibit L, by which Subsequent
Mortgage Loans are sold to the Trust Fund.

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

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

                  "Telerate Page 3750": The display designated as page "3750" on
the Moneyline Telerate (or such other page as may replace page 3750 on that
report for the purpose of displaying London interbank offered rates of major
banks).

                  "Termination Price":  As defined in Section 9.01.

                  "Terminator":  As defined in Section 9.01.

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

                  "Transferee": Any Person who is acquiring by Transfer any
Ownership Interest in a Certificate.

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

                  "Trigger Event": A Trigger Event is in effect with respect to
a Distribution Date on and after the Stepdown Date if:

                                       57
<PAGE>

                  (a)      the Delinquency Percentage for the Mortgage Loans
exceeds the applicable percentages of the Credit Enhancement Percentage for the
prior Distribution Date as set forth below for the most senior Class of
Certificates then outstanding:

                         CLASS           PERCENTAGE
                         -----           ----------
                           A               61.00%
                          M-1              90.00%
                          M-2              118.00%
                          M-3              142.00%
                          M-4              172.00%
                          M-5              211.00%
                          M-6              267.00%
                          M-7              320.00%
                          M-8              372.00%
                          M-9              516.00%
                          M-10            1,143.00%

or
                  (b)      the Cumulative Loss Percentage exceeds the applicable
percentages set forth below with respect to such Distribution Date:

           DISTRIBUTION DATE OCCURRING IN             PERCENTAGE
           ------------------------------             ----------
         January 2008 through December 2008             1.50%
         January 2009 through December 2009             2.00%
         January 2010 through December 2010             2.40%
            January 2011 and thereafter                 2.50%

                  "Trust Fund": Collectively, all of the assets of each Trust
REMIC, the Pre-Funding Accounts, the Interest Coverage Accounts, any Subsequent
Mortgage Loan Interest, any Master Servicer Prepayment Charge Payment Amounts
and the Net WAC Rate Carryover Reserve Account (including any payments made
under the Cap Contracts deposited therein).

                  "Trust REMIC": Each of REMIC I, REMIC II and REMIC III.

                  "Trustee": Deutsche Bank National Trust Company, a national
banking association, or its successor in interest, or any successor Trustee
appointed as herein provided.

                  "Trustee Fee": The amount payable to the Trustee on each
Distribution Date pursuant to Section 8.05 as compensation for all services
rendered by it and in the exercise and performance of any of the powers and
duties of the Trustee hereunder, which amount shall equal the Trustee Fee Rate
accrued for one month multiplied by the sum of (i) the aggregate Scheduled
Principal Balance of the Mortgage Loans and any REO Properties as of the Due
Date in the prior month (or, in the case of the initial Distribution Date, as of
the Cut-off Date), calculated on the basis of a 360-day year consisting of
twelve 30-day months and (ii) the aggregate of the amounts on deposit in the
Pre-Funding Accounts as of the Due Date in the prior month (or, in the case of
the first Distribution Date, as of the Closing Date).

                  "Trustee Fee Rate": 0.0014% per annum.

                                       58
<PAGE>

                  "Uncertificated Balance": The amount of any REMIC Regular
Interest outstanding as of any date of determination. As of the Closing Date,
the Uncertificated Balance of each REMIC Regular Interest shall equal the amount
set forth in the Preliminary Statement hereto as its initial uncertificated
balance. On each Distribution Date, the Uncertificated Balance of each REMIC
Regular Interest shall be reduced by all distributions of principal made on such
REMIC Regular Interest on such Distribution Date pursuant to Section 4.01 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.04. The
Uncertificated Balance of REMIC II Regular Interest II-LTZZ shall be increased
by interest deferrals as provided in Section 4.01(a)(1). The Uncertificated
Balance of each REMIC Regular Interest shall never be less than zero.

                  "Uncertificated Interest": With respect to any REMIC Regular
Interest for any Distribution Date, one month's interest at the REMIC Remittance
Rate applicable to such REMIC Regular Interest for such Distribution Date,
accrued on the Uncertificated Balance thereof immediately prior to such
Distribution Date. Uncertificated Interest in respect of any REMIC Regular
Interest shall accrue on the basis of a 360-day year consisting of twelve 30-day
months. Uncertificated Interest with respect to each Distribution Date, as to
any REMIC Regular Interest, shall be reduced by an amount equal to the sum of
(a) the aggregate Prepayment Interest Shortfall, if any, for such Distribution
Date to the extent not covered by payments pursuant to Section 4.03(e) and (b)
the aggregate amount of any Relief Act Interest Shortfall, if any allocated, in
each case, to such REMIC Regular Interest pursuant to Section 1.02. In addition,
Uncertificated Interest with respect to each Distribution Date, as to any REMIC
Regular Interest shall be reduced by Realized Losses, if any, allocated to such
REMIC Regular Interest pursuant to Section 1.02 and Section 4.04.

                  "Underwriters": Each of the Representative, Banc of America
Securities LLC, Barclays Capital Inc. and UBS Securities LLC.

                  "Underwriters' Exemption": As defined in the Prospectus
Supplement.

                  "Uninsured Cause": Any cause of damage to a Mortgaged Property
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies required to be maintained pursuant to Section
3.08.

                  "United States Person": A citizen or resident of the United
States, a corporation, partnership or other entity created or organized in, or
under the laws of, the United States, any state thereof or the District of
Columbia (except, in the case of a partnership, to the extent provided in
regulations); provided that, solely for purposes of the restrictions on the
transfer of Residual Certificates, no partnership or other entity treated as a
partnership for United States federal income tax purposes shall be treated as a
United States Person unless all persons that own an interest in such partnership
either directly or through any entity that is not a corporation for United
States federal income tax purposes are required by the applicable operative
agreement to be United States Persons, or an estate whose income is subject to
United States federal income tax regardless of its source, or a trust if a court
within the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust. To the extent
prescribed in

                                       59
<PAGE>

regulations by the Secretary of the Treasury, which have not yet been issued, a
trust which was in existence on August 20, 1996 (other than a trust treated as
owned by the grantor under subpart E of part I of subchapter J of chapter 1 of
the Code), and which was treated as a United States person on August 20, 1996
may elect to continue to be treated as a United States person notwithstanding
the previous sentence. The term "United States" shall have the meaning set forth
in Section 7701 of the Code.

                  "Value": With respect to any Mortgaged Property, the lesser of
(i) the value thereof as determined by an appraisal made for the originator of
the Mortgage Loan at the time of origination of the Mortgage Loan by an
appraiser who met the minimum requirements of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, and (ii) the purchase price paid for the
related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage
Loan, provided, however, in the case of a Refinanced Mortgage Loan, such value
of the Mortgaged Property is based solely upon the value determined by an
appraisal made for the originator of such Refinanced Mortgage Loan at the time
of origination of such Refinanced Mortgage Loan by an appraiser who met the
minimum requirements of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 or, subject to the applicable Originator's underwriting
guidelines, an insured automated valuation model.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. With respect to any date
of determination, 98% of all Voting Rights shall be allocated among the Holders
of the Class A Certificates, the Mezzanine Certificates and the Class CE
Certificates in proportion to the then outstanding Certificate Principal
Balances of their respective Certificates, 1% of all Voting Rights shall be
allocated to the Holders of the Class P Certificates and 1% of all Voting Rights
shall be allocated among the Holders of the Residual Certificates. The Voting
Rights allocated to each Class of Certificate shall be allocated among Holders
of each such Class in accordance with their respective Percentage Interests as
of the most recent Record Date. Notwithstanding any of the foregoing, unless the
Guarantor defaults on its obligation under the Guaranty, on any date on which
any Guaranteed Certificate is outstanding or any amounts are owed to the
Guarantor under this Agreement, the Guarantor will have all Voting Rights of the
Guaranteed Certificates. So long as the Guarantor has the Voting Rights pursuant
to the preceding sentence, the reference to "holders of Certificates
representing Voting Rights" shall be deemed to refer to the Guarantor.

SECTION 1.02      Allocation of Certain Interest Shortfalls.

                  For purposes of calculating the amount of Accrued Certificate
Interest and the amount of the Interest Distribution Amount for the Class A
Certificates, the Mezzanine Certificates and the Class CE Certificates for any
Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls
(to the extent not covered by payments by the Master Servicer pursuant to
Section 4.03(e)) and any Relief Act Interest Shortfalls incurred in respect of
the Mortgage Loans for any Distribution Date shall be allocated first, to reduce
the interest accrued on the Class CE Certificates to the extent of one month's
interest at the applicable Pass-Through Rate on the Notional Amount of such
Certificate and thereafter, among the Class A Certificates and the Mezzanine
Certificates on a PRO RATA basis based on, and to the extent of, one month's

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interest at the then applicable respective Pass-Through Rate on the respective
Certificate Principal Balance of each such Certificate.

                  For purposes of calculating the amount of Uncertificated
Interest for the REMIC I Regular Interests for any Distribution Date, the
aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 4.03(e)) and
Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated first, (a) with respect to the Group I
Mortgage Loans, to REMIC I Regular Interest I-LT1 and REMIC I Regular Interest
I-LT1PF, in each case to the extent of one month's interest at the then
applicable respective REMIC I Remittance Rate on the respective Uncertificated
Balance of each such REMIC I Regular Interest; provided, however, with respect
to the first three Distribution Dates, such amounts relating to the Initial
Group I Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT1 and
such amounts relating to the Subsequent Group I Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT1PF, and (b) with respect to the Group
II Mortgage Loans, to REMIC I Regular Interest I-LT2 and REMIC I Regular
Interest I-LT2PF, in each case to the extent of one month's interest at the then
applicable respective REMIC I Remittance Rate on the respective Uncertificated
Balance of each such REMIC I Regular Interest; provided, however, with respect
to the first three Distribution Dates, such amounts relating to the Initial
Group I Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2 and
such amounts relating to the Subsequent Group II Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT2PF.

                  For purposes of calculating the amount of Uncertificated
Interest for the REMIC II Regular Interests for any Distribution Date:

                  (A) The REMIC II Marker Allocation Percentage of the aggregate
         amount of any Prepayment Interest Shortfalls (to the extent not covered
         by payments by the Master Servicer pursuant to Section 4.03(e)) and the
         REMIC II Marker Allocation Percentage of any Relief Act Interest
         Shortfalls incurred in respect of the Mortgage Loans for any
         Distribution Date shall be allocated among REMIC II Regular Interest
         II-LTAA, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
         II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest
         II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
         II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
         II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest
         II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest
         II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular Interest
         II-LTM10 and REMIC II Regular Interest II-LTZZ, on a PRO RATA basis
         based on, and to the extent of, one month's interest at the then
         applicable respective REMIC II Remittance Rate on the respective
         Uncertificated Balance of each such REMIC II Regular Interest; and

                  (B) The REMIC II Sub WAC Allocation Percentage of the
         aggregate amount of any Prepayment Interest Shortfalls (to the extent
         not covered by payments by the Master Servicer pursuant to Section
         4.03(e)) and the REMIC II Sub WAC Allocation Percentage of any Relief
         Act Interest Shortfalls incurred in respect of the Mortgage Loans for
         any Distribution Date shall be allocated to Uncertificated Interest
         payable to REMIC II

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         Regular Interest II-LT1SUB, REMIC II Regular Interest II-LT1GRP, REMIC
         II Regular Interest II-LT2SUB, REMIC II Regular Interest II-LT2GRP and
         REMIC II Regular Interest II-LTXX, on a PRO RATA basis based on, and to
         the extent of, one month's interest at the then applicable respective
         REMIC II Remittance Rate on the respective Uncertificated Balance of
         each such REMIC II Regular Interest.

                  SECTION 1.03 Rights of the Guarantor and the NIMS Insurer.

                  (a) Each of the rights of the NIMS Insurer set forth in this
Agreement shall exist so long as (i) the NIMS Insurer has undertaken to
guarantee certain payments of notes issued pursuant to an Indenture (the
"Insured Notes") and (ii) any series of Insured Notes issued pursuant to one or
more Indentures remain outstanding or the NIMS Insurer is owed amounts in
respect of its guarantee of payment on such Insured Notes; provided, however,
the NIMS Insurer shall not have any rights hereunder (except pursuant to Section
11.01 in the case of clause (ii) below) during the period of time, if any, that
(i) the NIMS Insurer has not undertaken to guarantee certain payments of Insured
Notes issued pursuant to the Indenture or (ii) any default has occurred and is
continuing under the insurance policy issued by the NIMS Insurer with respect to
such Insured Notes. If and when (i) no Insured Notes remain outstanding, (ii)
any Guaranteed Certificates remain outstanding and (iii) no default under the
Guaranty shall have occurred and be continuing, the Guarantor shall be entitled
to exercise the rights of the NIMS Insurer set forth in this Agreement.

                  (b) In addition to the specific rights of the NIMS Insurer and
the Guarantor identified in this Agreement but subject to the provisions of
Section 8.01(iii) and Section 8.02(a)(v), the NIMS Insurer or the Guarantor (as
provided in Section 1.03(c)) shall have the right to direct the Trustee relating
to the exercise of any remedy available to the Trustee or the exercise of any
power conferred on the Trustee pursuant to this Agreement. Notwithstanding
anything to the contrary anywhere in this Agreement, all rights of the Guarantor
hereunder, except any rights to indemnification, shall permanently terminate
upon the later to occur of (A) such time as the Guaranteed Certificates shall no
longer be outstanding and (B) the payment in full to the Guarantor of any
amounts owed to the Guarantor in respect of its guarantee of payment on the
Guaranteed Certificates; provided that the Guarantor shall not have any rights
hereunder, except indemnification rights, so long as any default has occurred
and is continuing under the Guaranty.

                  (c) The rights of the NIMS Insurer or the Guarantor referenced
in Sections 1.03(b), 3.02, 6.04, 6.06(a), 6.07, 7.01, 7.02(a), 7.04, 8.07 and
8.10 of this Agreement shall be applied as follows:

                  (i) In the event that the Class M-8 Certificates are rated at
         least "BBB" (in the case of Fitch and/or S&P) or "Baa2" (in the case of
         Moody's) by at least two of the three Rating Agencies, the NIMS Insurer
         shall have the right to act, after consultation with the Guarantor;

                  (ii) In the event that (x) the rating of the Class M-8
         Certificates is reduced by two of the three Rating Agencies to less
         than "BBB" or "Baa2" and (y) the Certificate

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<PAGE>

         Principal Balance of the Class M-9 Certificates is greater than zero or
         the Overcollateralized Amount is greater than zero, the NIMS Insurer
         and the Guarantor each shall have the right to act, upon the receipt of
         the reasonable consent of the other;

                  (iii) In the event that (x) the rating of the Class M-8
         Certificates is reduced by two of the three Rating Agencies to less
         than "BBB" or "Baa2" and (y) each of the Certificate Principal Balance
         of the Class M-9 Certificates and the Overcollateralized Amount is
         equal to zero, the Guarantor shall have the sole right to act; and

                  (iv) In the event that (x) no Guaranteed Certificates remain
         outstanding, (y) all amounts owed to the Guarantor have been paid in
         full and (z) any Insured Notes remain outstanding, then notwithstanding
         clauses (i) through (iii) hereof, the NIMS Insurer will have the sole
         right to act.

                  (d) The Guarantor and the NIMS Insurer shall promptly consult
each other with regard to the rights referred to in this Section. If this
consultation would create a delay that would have a material adverse effect on
this transaction, each party may act individually with respect to their rights
and consult with the other party after such action has been taken. Any consents
required between the NIMS Insurer and the Guarantor shall not be unreasonably
withheld or delayed.

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                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  SECTION 2.01 Conveyance of Mortgage Loans.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, including any security interest
therein for the benefit of the Depositor, in and to the Mortgage Loans
identified on the Mortgage Loan Schedule, the rights of the Depositor under the
Mortgage Loan Purchase Agreement, all other assets included or to be included in
REMIC I (including any payments made under the Cap Contracts). Such assignment
includes all interest and principal received by the Depositor or the Master
Servicer on or with respect to the Mortgage Loans (other than payments of
principal and interest due on such Mortgage Loans on or before the Cut-off
Date). The Depositor herewith delivers to the Trustee an executed copy of the
Mortgage Loan Purchase Agreement, the Original Pre-Funded Amounts, the PMI
Policies and the required deposit, if any, to the Interest Coverage Accounts,
and the Trustee, on behalf of the Certificateholders, acknowledges receipt of
the same.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with, the Trustee the following documents or
instruments with respect to each Initial Mortgage Loan so transferred and
assigned, and the Depositor shall, in accordance with Section 2.09, deliver or
cause to be delivered to the Trustee, with respect to each Subsequent Mortgage
Loan, the following documents or instruments (a "Mortgage File"):

                  (i) the original Mortgage Note, endorsed in blank, without
         recourse, or in the following form: "Pay to the order of Deutsche Bank
         National Trust Company, as Trustee under the applicable agreement,
         without recourse," with all prior and intervening endorsements showing
         a complete chain of endorsement from the originator to the Person so
         endorsing to the Trustee, or with respect to any lost Mortgage Note, an
         original Lost Note Affidavit; provided however, that such substitutions
         of Lost Note Affidavits for original Mortgage Notes may occur only with
         respect to Mortgage Loans, the aggregate Cut-off Date Principal Balance
         of which is less than or equal to 2.00% of the Pool Balance as of the
         Cut-off Date;

                  (ii) the original Mortgage, with evidence of recording
         thereon, and a copy, certified by the appropriate recording office, of
         the recorded power of attorney, if the Mortgage was executed pursuant
         to a power of attorney, with evidence of recording thereon;

                  (iii) an original Assignment assigned in blank, without
         recourse;

                  (iv) the original recorded intervening Assignment or
         Assignments showing a complete chain of assignment from the originator
         to the Person assigning the Mortgage to

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<PAGE>

         the Trustee as contemplated by the immediately preceding clause (iii)
         or the original unrecorded intervening Assignments;

                  (v) the original or copies of each assumption, modification,
         written assurance or substitution agreement, if any; and

                  (vi) the original lender's title insurance policy or an
         attorney's opinion of title or similar guarantee of title acceptable to
         mortgage lenders generally in the jurisdiction where the Mortgaged
         Property is located, together with all endorsements or riders which
         were issued with or subsequent to the issuance of such policy, or in
         the event such original title policy is unavailable, a written
         commitment or uniform binder or preliminary report of title issued by
         the title insurance or escrow company.

                  If any of the documents referred to in Sections 2.01(ii),
(iii) or (iv) above has as of the Closing Date (or the related Subsequent
Transfer Date, with respect to the Subsequent Mortgage Loans) been submitted for
recording but either (x) has not been returned from the applicable public
recording office or (y) has been lost or such public recording office has
retained the original of such document, the obligations of the Depositor to
deliver such documents shall be deemed to be satisfied upon (1) delivery to the
Trustee, or to the appropriate Custodian on behalf of the Trustee, of a copy of
each such document certified by the applicable Originator in the case of (x)
above or the applicable public recording office in the case of (y) above to be a
true and complete copy of the original that was submitted for recording and (2)
if such copy is certified by the applicable Originator, delivery to the Trustee,
or to the appropriate Custodian on behalf of the Trustee, promptly upon receipt
thereof of either the original or a copy of such document certified by the
applicable public recording office to be a true and complete copy of the
original. If the original lender's title insurance policy was not delivered
pursuant to Section 2.01(vi) above, the Depositor shall deliver or cause to be
delivered to the Trustee, or to the appropriate Custodian on behalf of the
Trustee, promptly after receipt thereof, the original lender's title insurance
policy. The Depositor shall deliver or cause to be delivered to the Trustee, or
to the appropriate Custodian on behalf of the Trustee, promptly upon receipt
thereof any other original documents constituting a part of a Mortgage File
received with respect to any Mortgage Loan, including, but not limited to, any
original documents evidencing an assumption or modification of any Mortgage
Loan.

                  The Master Servicer (in its capacity as Seller) shall promptly
(and in no event later than thirty (30) Business Days, subject to extension upon
a mutual agreement between the Master Servicer and the Trustee, following the
later of (i) the Closing Date (or the related Subsequent Transfer Date, with
respect to the Subsequent Mortgage Loans), (ii) the date on which the Seller
receives the Assignment from the Custodian and (iii) the date of receipt by the
Master Servicer of the recording information for a Mortgage) submit or cause to
be submitted for recording, at no expense to the Trust Fund or the Trustee, in
the appropriate public office for real property records, each Assignment
referred to in Sections 2.01(iii) and (iv) above and shall execute each original
Assignment referred to in section 2.01(iii) above in the following form:
"Deutsche Bank National Trust Company, as Trustee under the applicable
agreement." In the event that any such Assignment is lost or returned unrecorded
because of a defect therein, the Master Servicer (in its capacity as Seller)
shall promptly prepare or cause to be prepared a

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<PAGE>

substitute Assignment or cure or cause to be cured such defect, as the case may
be, and thereafter cause each such Assignment to be duly recorded.

                  Notwithstanding the foregoing, however, for administrative
convenience and facilitation of servicing and to reduce closing costs, so long
as recordation of an Assignment is not necessary to protect the Trustee's and
the Certificateholders' interests in the related Mortgage Loan under the laws of
the jurisdiction in which the related Mortgaged Property is located, as
evidenced by an Opinion of Counsel reasonably satisfactory to the Guarantor
delivered by the Master Servicer to the Trustee and the Guarantor, the
Assignments shall not be required to be submitted for recording (except with
respect to any Mortgage Loan located in Maryland) unless such failure to record
would result in a withdrawal or a downgrading by any Rating Agency of the rating
on any Class of Certificates; provided further, however, each Assignment shall
be submitted for recording by the Seller in the manner described above, at no
expense to the Trust Fund or the Trustee, upon the earliest to occur of: (i)
reasonable direction by Holders of Certificates entitled to at least 25% of the
Voting Rights, the Guarantor or the NIMS Insurer, (ii) failure of the Master
Servicer Termination Test, (iii) the occurrence of a bankruptcy or insolvency
relating to the Seller, (iv) the occurrence of a servicing transfer as described
in Section 7.02 hereof and (v) if the Seller is not the Master Servicer and with
respect to any one Assignment or Mortgage, the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Mortgagor under the related Mortgage.
Notwithstanding the foregoing, if the Master Servicer is unable to pay the cost
of recording the Assignments, such expense shall be paid by the Trustee and
shall be reimbursable to the Trustee as an Extraordinary Trust Fund Expense.

                  All original documents relating to the Mortgage Loans that are
not delivered to the Trustee, or to the appropriate Custodian on behalf of the
Trustee, are and shall be held by or on behalf of the Seller, the Depositor or
the Master Servicer, as the case may be, in trust for the benefit of the Trustee
on behalf of the Certificateholders. In the event that any such original
document is required pursuant to the terms of this Section to be a part of a
Mortgage File, such document shall be delivered promptly to the Trustee, or to
the appropriate Custodian on behalf of the Trustee. Any such original document
delivered to or held by the Depositor that is not required pursuant to the terms
of this Section to be a part of a Mortgage File, shall be delivered promptly to
the Master Servicer.

                  The parties hereto understand and agree that it is not
intended that any mortgage loan be included in the Trust that is a "High-Cost
Home Loan" as defined by HOEPA or any other applicable predatory or abusive
lending laws.

                  SECTION 2.02 Acceptance of REMIC I by the Trustee.

                  Subject to the provisions of Section 2.01 and subject to any
exceptions noted on the exception report described in the next paragraph below,
the Trustee acknowledges receipt (or, with respect to Mortgage Loans subject to
a Custodial Agreement, receipt by the respective Custodian as the duly appointed
agent of the Trustee) of the documents referred to in Section 2.01 (other than
such documents described in Section 2.01(v)) above and all interests and all
other assets included in the definition of "REMIC I" under clauses (i), (iii),
(iv) and (v) (to the extent of amounts deposited into the Distribution Account)
and declares that it, or such

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<PAGE>

Custodian as its agent, holds and shall hold such documents and the other
documents delivered to it constituting a Mortgage File, and that it holds or
shall hold all such assets and such other assets included in the definition of
"REMIC I" in trust for the exclusive use and benefit of all present and future
Certificateholders.

                  On or prior to the Closing Date, the Trustee agrees, for the
benefit of the Certificateholders, to execute and deliver (or cause the
Custodian to execute and deliver) to the Depositor, the Guarantor and the NIMS
Insurer an acknowledgment of receipt of the Mortgage Note (with any exceptions
noted), substantially in the form attached as Exhibit C-3 hereto.

                  The Trustee agrees, for the benefit of the Certificateholders,
to review (or cause a Custodian on its behalf to review) each Mortgage Note
within 45 days of the Closing Date (or the related Subsequent Transfer Date,
with respect to the Subsequent Mortgage Loans) and to certify in substantially
the form attached hereto as Exhibit C-1 (or cause the Custodian to certify in
the form of the Initial Certification attached to the Custodial Agreement) to
the Depositor, the Master Servicer, the Guarantor and the NIMS Insurer, if any,
that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than
any Mortgage Loan paid in full or any Mortgage Loan specifically identified in
the exception report annexed thereto as not being covered by such
certification), (i) all documents constituting part of such Mortgage File (other
than such documents described in Section 2.01(v)) required to be delivered to it
pursuant to this Agreement are in its possession, (ii) such documents have been
reviewed by it or such Custodian and are not mutilated, torn or defaced unless
initialed by the related borrower and relate to such Mortgage Loan, (iii) based
on its or the Custodian's examination and only as to the foregoing, the
information set forth in the Mortgage Loan Schedule that corresponds to items
(1) through (3), (6), (9), (10), (13), (15) and (19) of the definition of
"Mortgage Loan Schedule" accurately reflects information set forth in the
Mortgage File. It is herein acknowledged that, in conducting such review, the
Trustee or such Custodian was under no duty or obligation (i) to inspect, review
or examine any such documents, instruments, certificates or other papers to
determine whether they are genuine, enforceable, or appropriate for the
represented purpose or whether they have actually been recorded or that they are
other than what they purport to be on their face or (ii) to determine whether
any Mortgage File should include any of the documents specified in clause (v) of
Section 2.01.

                  Prior to the first anniversary date of this Agreement the
Trustee shall deliver to the Depositor, the Master Servicer, the Guarantor and
the NIMS Insurer a final certification in the form annexed hereto as Exhibit C-2
(or shall cause the Custodian to deliver to the Trustee, the Depositor, the
Master Servicer, the Guarantor and the NIMS Insurer a final certification in the
form attached to the Custodial Agreement) evidencing the completeness of the
Mortgage Files, with any applicable exceptions noted thereon, with respect to
all of the Initial Mortgage Loans and Subsequent Mortgage Loans. Upon the
request of the Master Servicer or the Guarantor, any exception report related to
the final certification shall be provided in an electronic computer readable
format as mutually agreed upon by the Master Servicer and the Trustee.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Trustee or any Custodian finds any document or documents constituting a part of
a Mortgage File to be missing, mutilated, torn or

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<PAGE>

defaced or does not conform to the requirements identified above, at the
conclusion of its review the Trustee (or a Custodian on behalf of the Trustee)
shall so notify the Depositor, the NIMS Insurer, the Guarantor and the Master
Servicer. In addition, upon the discovery by the Depositor, the NIMS Insurer,
the Master Servicer, the Guarantor or the Trustee of a breach of any of the
representations and warranties made by the Seller in the Mortgage Loan Purchase
Agreement in respect of any Mortgage Loan which materially adversely affects
such Mortgage Loan or the interests of the related Certificateholders in such
Mortgage Loan, the party discovering such breach shall give prompt written
notice to the other parties.

                  The Trustee (or a Custodian on behalf of the Trustee) shall,
at the written request and expense of any Certificateholder, Certificate Owner
or the Guarantor, provide a written report to such Certificateholder,
Certificate Owner or the Guarantor, of all Mortgage Files released to the Master
Servicer for servicing purposes.

                 SECTION 2.03 Repurchase or Substitution of Mortgage Loans by
                              the Seller or the Depositor; Payment of Prepayment
                              Charge Payment Amounts.

                 (a) Upon discovery or receipt of notice (including notice
under Section 2.02) of any materially defective document in, or that a document
is missing from, the Mortgage File or of the breach by the Seller of any
representation, warranty or covenant under the Mortgage Loan Purchase Agreement
in respect of any Mortgage Loan which materially adversely affects the value of
such Mortgage Loan or the interest therein of the Certificateholders, the
Trustee shall promptly notify the Seller, the NIMS Insurer, the Guarantor and
the Master Servicer of such defect, missing document or breach and request that
the Seller deliver such missing document or cure such defect or breach within 90
days from the date the Seller had knowledge or was notified of such missing
document, defect or breach, and if the Seller does not deliver such missing
document or cure such defect or breach in all material respects during such
period, the Master Servicer (or, in accordance with Section 6.06(b), the
Trustee) shall enforce the obligations of the Seller under the Mortgage Loan
Purchase Agreement to repurchase such Mortgage Loan from REMIC I at the Purchase
Price within 90 days after the date on which the Seller was notified (subject to
Section 2.03(d)) of such missing document, defect or breach, if and to the
extent that the Seller is obligated to do so under the Mortgage Loan Purchase
Agreement. The Purchase Price for the repurchased Mortgage Loan shall be
deposited in the Collection Account, and the Trustee, upon receipt of written
certification from the Master Servicer of such deposit, shall release to the
Seller the related Mortgage File and shall execute and deliver such instruments
of transfer or assignment, in each case without recourse, as the Seller shall
furnish to it and as shall be necessary to vest in the Seller any Mortgage Loan
released pursuant hereto, and the Trustee shall not have any further
responsibility with regard to such Mortgage File. In lieu of repurchasing any
such Mortgage Loan as provided above, if so provided in the Mortgage Loan
Purchase Agreement, the Seller may cause such Mortgage Loan to be removed from
REMIC I (in which case it shall become a Deleted Mortgage Loan) and substitute
one or more Qualified Substitute Mortgage Loans in the manner and subject to the
limitations set forth in Section 2.03(c). It is understood and agreed that the
obligation of the Seller to cure or to repurchase (or to substitute for) any
Mortgage Loan as to which a document is missing, a material defect in a document
exists or as to which such a breach has occurred and

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<PAGE>

is continuing shall constitute the sole remedy respecting such omission, defect
or breach available to the Trustee on behalf of the Certificateholders.
Notwithstanding the foregoing, either the Seller or the Depositor liable for a
breach under this Section 2.03 shall promptly reimburse the Guarantor for all
expenses incurred by the Guarantor in respect of enforcing the remedies for such
breach.

                  (b) (i) Promptly upon the earlier of discovery by the Master
Servicer or receipt of notice by the Master Servicer of the breach of any
representation, warranty or covenant of the Master Servicer set forth in Section
2.05, which materially and adversely affects the interests of the
Certificateholders in any Mortgage Loan, the Master Servicer shall cure such
breach in all material respects.

                  (ii) Notwithstanding the provisions of Section 2.03(b)(i)
         above,

                  (A) on the later of (x) the Master Servicer Remittance Date
         next following the earlier of discovery by the Master Servicer or
         receipt of notice by the Master Servicer of the breach of the
         representation made by the Master Servicer in Section 2.05(vii), which
         breach materially and adversely affects the interests of the Holders of
         the Class P Certificates to any Prepayment Charge and (y) the Master
         Servicer Remittance Date next following the Prepayment Period relating
         to such a breach, the Master Servicer shall deposit into the Collection
         Account the amount of the scheduled Prepayment Charge, less any amount
         collected and deposited by the Master Servicer into the Collection
         Account in respect of such Prepayment Charge; and

                  (B) on the later of (x) the Master Servicer Remittance Date
         next following the earlier of discovery by the Master Servicer or
         receipt of notice by the Master Servicer of the breach of the covenant
         made by the Master Servicer in Section 2.05(viii), which breach
         materially and adversely affects the interests of the Holders of the
         Class P Certificates to any Prepayment Charge and (y) the Master
         Servicer Remittance Date next following the Prepayment Period relating
         to such a breach, the Master Servicer shall deposit into the Collection
         Account, as a Master Servicer Prepayment Charge Payment Amount, the
         amount of the waived Prepayment Charge, but only to the extent required
         under Section 2.03(b)(iii) below.

                  (iii) If with respect to any Prepayment Period,

                  (A) the dollar amount of Prepayment Charges that are the
         subject of breaches by the Master Servicer of the covenant made by the
         Master Servicer in Section 2.05(viii), which breaches materially and
         adversely affect the interests of the Holders of the Class P
         Certificates to such Prepayment Charges, exceeds

                  (B) 5% of the total dollar amount of Prepayment Charges
         payable by Mortgagors in connection with Principal Prepayments on the
         related Mortgage Loans that occurred during such Prepayment Period,

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<PAGE>

then the amount required to be paid by the Master Servicer pursuant to Section
2.03(b)(ii)(B) above shall be limited to an amount, that when added to the
amount of Prepayment Charges actually collected by the Master Servicer in
respect of Prepayment Charges relating to Principal Prepayments on the related
Mortgage Loans that occurred during such Prepayment Period, shall yield a sum
equal to 95% of the total dollar amount of Prepayment Charges (exclusive of (A)
Prepayment Charges not enforced or collected upon because (i) the enforceability
thereof shall have been limited by bankruptcy, insolvency, moratorium,
receivership and other similar laws relating to creditors' rights generally or
(ii) the collectability thereof shall have been limited due to acceleration in
connection with a foreclosure or other involuntary payment and (B) Prepayment
Charges waived by the Master Servicer when such waiver does not breach the
covenant set forth in Section 2.05(viii)) payable by Mortgagors in connection
with Principal Prepayments on the related Mortgage Loans that occurred during
such Prepayment Period.

                  (c) Any substitution of Qualified Substitute Mortgage Loans
for Deleted Mortgage Loans made pursuant to Section 2.03(a), in the case of the
Seller, or Section 2.03(b), in the case of the Depositor, must be effected prior
to the date which is two years after the Startup Day for REMIC I.

                  As to any Deleted Mortgage Loan for which the Seller or the
Depositor substitutes a Qualified Substitute Mortgage Loan or Loans, such
substitution shall be effected by the Seller or the Depositor, as the case may
be, delivering to the Trustee (or a Custodian on behalf of the Trustee), for
such Qualified Substitute Mortgage Loan or Loans, the Mortgage Note, the
Mortgage, the Assignment to the Trustee, and such other documents and
agreements, with all necessary endorsements thereon, as are required by Section
2.01, together with an Officers' Certificate providing that each such Qualified
Substitute Mortgage Loan satisfies the definition thereof and specifying the
Substitution Shortfall Amount (as described below), if any, in connection with
such substitution. The Trustee (or a Custodian on behalf of the Trustee) shall
acknowledge receipt for such Qualified Substitute Mortgage Loan or Loans and,
within ten Business Days thereafter, review such documents as specified in
Section 2.02 and deliver to the Depositor, the NIMS Insurer, the Guarantor, the
Trustee and the Master Servicer, with respect to such Qualified Substitute
Mortgage Loan or Loans, a certification substantially in the form attached
hereto as Exhibit C-1, with any applicable exceptions noted thereon. Within one
year of the date of substitution, the Trustee shall deliver to the Depositor,
the NIMS Insurer, the Guarantor and the Master Servicer a certification
substantially in the form of Exhibit C-2 hereto with respect to such Qualified
Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the
month of substitution are not part of REMIC I and shall be retained by the
Depositor or the Seller, as the case may be. For the month of substitution,
distributions to Certificateholders shall reflect the Monthly Payment due on
such Deleted Mortgage Loan on or before the Due Date in the month of
substitution, and the Depositor or the Seller, as the case may be, shall
thereafter be entitled to retain all amounts subsequently received in respect of
such Deleted Mortgage Loan. The Depositor shall give or cause to be given
written notice to the Certificateholders, the NIMS Insurer and the Guarantor
that such substitution has taken place, shall amend the Mortgage Loan Schedule
and, if applicable, the Prepayment Charge Schedule, to reflect the removal of
such Deleted Mortgage Loan from the terms of this Agreement and the substitution
of the Qualified Substitute Mortgage Loan or Loans and shall deliver a copy of
such

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amended Mortgage Loan Schedule to the Trustee, the Guarantor and the NIMS
Insurer. Upon such substitution, such Qualified Substitute Mortgage Loan or
Loans shall constitute part of the Mortgage Pool and shall be subject in all
respects to the terms of this Agreement and, in the case of a substitution
effected by the Seller, the Mortgage Loan Purchase Agreement, including all
applicable representations and warranties thereof.

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

                  In addition, the Depositor or the Seller, as the case may be,
shall obtain at its own expense and deliver to the Trustee, the NIMS Insurer and
the Guarantor an Opinion of Counsel to the effect that such substitution shall
not cause (a) any federal tax to be imposed on any Trust REMIC, including
without limitation, any federal tax imposed on "prohibited transactions" under
Section 860F(a)(1) of the Code or on "contributions after the startup date"
under Section 860G(d)(1) of the Code, or (b) any Trust REMIC to fail to qualify
as a REMIC at any time that any Certificate is outstanding.

                  (d) Upon discovery by the Depositor, the NIMS Insurer, the
Guarantor, the Seller, the Master Servicer or the Trustee that any Mortgage Loan
does not constitute a "qualified mortgage" within the meaning of Section
860G(a)(3) of the Code, the party discovering such fact shall within two
Business Days give written notice thereof to the other parties. In connection
therewith, the Seller or the Depositor shall repurchase or, subject to the
limitations set forth in Section 2.03(c), substitute one or more Qualified
Substitute Mortgage Loans for the affected Mortgage Loan within 90 days of the
earlier of discovery or receipt of such notice with respect to such affected
Mortgage Loan. Such repurchase or substitution shall be made by the Seller. Any
such repurchase or substitution shall be made in the same manner as set forth in
Section 2.03(a). The Trustee shall reconvey to the Depositor or the Seller, as
the case may be, the Mortgage Loan to be released pursuant hereto in the same
manner, and on the same terms and conditions, as it would a Mortgage Loan
repurchased for breach of a representation or warranty.

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                  SECTION 2.04 [Reserved].

                  SECTION 2.05 Representations, Warranties and Covenants of the
                               Master Servicer.

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

                  (i) The Master Servicer is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware and is duly authorized and qualified to transact any and all
         business contemplated by this Agreement to be conducted by the Master
         Servicer in any state in which a Mortgaged Property is located or is
         otherwise not required under applicable law to effect such
         qualification and, in any event, is in compliance with the doing
         business laws of any such State, to the extent necessary to ensure its
         ability to enforce each Mortgage Loan and to service the Mortgage Loans
         in accordance with the terms of this Agreement;

                  (ii) The Master Servicer has the full corporate power and
         authority to service each Mortgage Loan, and to execute, deliver and
         perform, and to enter into and consummate the transactions contemplated
         by this Agreement and has duly authorized by all necessary corporate
         action on the part of the Master Servicer the execution, delivery and
         performance of this Agreement; and this Agreement, assuming the due
         authorization, execution and delivery thereof by the Depositor and the
         Trustee, constitutes a legal, valid and binding obligation of the
         Master Servicer, enforceable against the Master Servicer in accordance
         with its terms, except to the extent that (a) the enforceability
         thereof may be limited by bankruptcy, insolvency, moratorium,
         receivership and other similar laws relating to creditors' rights
         generally and (b) the remedy of specific performance and injunctive and
         other forms of equitable relief may be subject to the equitable
         defenses and to the discretion of the court before which any proceeding
         therefor may be brought;

                  (iii) The execution and delivery of this Agreement by the
         Master Servicer, the servicing of the Mortgage Loans by the Master
         Servicer hereunder, the consummation of any other of the transactions
         herein contemplated, and the fulfillment of or compliance with the
         terms hereof are in the ordinary course of business of the Master
         Servicer and will not (A) result in a breach of any term or provision
         of the charter or by-laws of the Master Servicer or (B) conflict with,
         result in a breach, violation or acceleration of, or result in a
         default under, the terms of any other material agreement or instrument
         to which the Master Servicer is a party or by which it may be bound, or
         any statute, order or regulation applicable to the Master Servicer of
         any court, regulatory body, administrative agency or governmental body
         having jurisdiction over the Master Servicer; and the Master Servicer
         is not a party to, bound by, or in breach or violation of any indenture
         or other agreement or instrument, or subject to or in violation of any
         statute, order or regulation of any court, regulatory body,
         administrative agency or governmental body having jurisdiction over it,
         which materially and adversely affects or, to the Master Servicer's
         knowledge, would in the future materially and adversely affect, (x) the
         ability

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<PAGE>

         of the Master Servicer to perform its obligations under this Agreement
         or (y) the business, operations, financial condition, properties or
         assets of the Master Servicer taken as a whole;

                  (iv) The Master Servicer is an approved seller/servicer for
         Fannie Mae or Freddie Mac in good standing and is a HUD approved
         mortgagee pursuant to Section 203 and Section 211 of the National
         Housing Act;

                  (v) Except as disclosed in the Prospectus Supplement, no
         litigation is pending against the Master Servicer that would materially
         and adversely affect the execution, delivery or enforceability of this
         Agreement or the ability of the Master Servicer to service the Mortgage
         Loans or to perform any of its other obligations hereunder in
         accordance with the terms hereof;

                  (vi) No consent, approval, authorization or order of any court
         or governmental agency or body is required for the execution, delivery
         and performance by the Master Servicer of, or compliance by the Master
         Servicer 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 prior to the
         Closing Date;

                  (vii) The information set forth in the Prepayment Charge
         Schedule attached hereto as Schedule 2 (including the prepayment charge
         summary attached thereto) is complete, true and correct in all material
         respects at the date or dates respecting which such information is
         furnished and each Prepayment Charge is permissible and enforceable in
         accordance with its terms (except to the extent that (i) the
         enforceability thereof may be limited by bankruptcy, insolvency,
         moratorium, receivership and other similar laws relating to creditors'
         rights generally and (ii) the collectability thereof may be limited due
         to acceleration in connection with a foreclosure or other involuntary
         payment;

                  (viii) The Master Servicer shall not waive any Prepayment
         Charge or part of a Prepayment Charge unless, (i) the enforceability
         thereof shall have been limited by bankruptcy, insolvency, moratorium,
         receivership and other similar laws relating to creditors' rights
         generally or (ii) the collectability thereof shall have been limited
         due to acceleration in connection with a foreclosure or other
         involuntary payment or (iii) in the Master Servicer's reasonable
         judgment as described in Section 3.01 hereof, (x) such waiver relates
         to a default or a reasonably foreseeable default, (y) such waiver would
         maximize recovery of total proceeds taking into account the value of
         such Prepayment Charge and related Mortgage Loan and (z) doing so is
         standard and customary in servicing similar Mortgage Loans (including
         any waiver of a Prepayment Charge in connection with a refinancing of a
         Mortgage Loan that is related to a default or a reasonably foreseeable
         default). In no event shall the Master Servicer waive a Prepayment
         Charge in connection with a refinancing of a Mortgage Loan that is not
         related to a default or a reasonably foreseeable default;

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<PAGE>

                  (ix) The information set forth in the "monthly tape" provided
         to the Trustee or any of its affiliates is true and correct in all
         material respects;

                  (x) With respect to each Mortgage Loan, the Assignment is in
         recordable form; (except that the name of the assignee and the
         recording information with respect to such Mortgage Loan is blank) and
         each Mortgage Loan was originated in the name of the Master Servicer or
         an affiliate thereof;

                  (xi) The Master Servicer has fully furnished and shall
         continue to fully furnish, in accordance with the Fair Credit Reporting
         Act and its implementing regulations, accurate and complete information
         (e.g., favorable and unfavorable) on its borrower credit files to
         Equifax, Experian and Trans Union Credit Information Company or their
         successors on a monthly basis; and

                  (xii) The Master Servicer shall transmit full-file credit
         reporting data for each Mortgage Loan pursuant to Fannie Mae Guide
         Announcement 95-19 and for each Mortgage Loan, the Master Servicer
         shall report one of the following statuses each month as follows: new
         origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed,
         or charged-off.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Trustee or to a Custodian, as the case may be, and
shall inure to the benefit of the Trustee, the Depositor and the
Certificateholders. Upon discovery by any of the Depositor, the NIMS Insurer,
the Guarantor, the Master Servicer or the Trustee of a breach of any of the
foregoing representations, warranties and covenants which materially and
adversely affects the value of any Mortgage Loan, Prepayment Charge or the
interests therein of the Certificateholders, the party discovering such breach
shall give prompt written notice (but in no event later than two Business Days
following such discovery) to the Guarantor, the NIMS Insurer and the Trustee.
Subject to Section 7.01, the obligation of the Master Servicer set forth in
Section 2.03(b) to cure breaches (or in the case of the representations,
warranties and covenants set forth in Section 2.05(vii) and Section 2.05(viii)
above, to otherwise remedy such breaches pursuant to Section 2.03(b)) shall
constitute the sole remedies against the Master Servicer available to the
Certificateholders, the Depositor, the Guarantor or the Trustee on behalf of the
Certificateholders respecting a breach of the representations, warranties and
covenants contained in this Section 2.05. The preceding sentence shall not,
however, limit any remedies available to the Certificateholders, the Depositor,
the Guarantor or the Trustee on behalf of the Certificateholders (other than in
the case of the representations, warranties and covenants set forth in Section
2.05(vii) and Section 2.05(viii) above) pursuant to the Mortgage Loan Purchase
Agreement signed by the Master Servicer in its capacity as Seller, respecting a
breach of the representations, warranties and covenants of the Master Servicer
in its capacity as Seller contained in the Mortgage Loan Purchase Agreement.

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                  SECTION 2.06 Issuance of the REMIC I Regular Interests and the
                               Class R-I Interest.

                  The Trustee acknowledges the assignment to it of the Mortgage
Loans and the delivery to it of the Mortgage Files, subject to the provisions of
Section 2.01 and Section 2.02, together with the assignment to it of all other
assets included in REMIC I, the receipt of which is hereby acknowledged.
Concurrently with such assignment and delivery and in exchange therefor, the
Trustee, pursuant to the written request of the Depositor executed by an officer
of the Depositor, has executed, authenticated and delivered to or upon the order
of the Depositor, the Class R-I Interest in authorized denominations. The
interests evidenced by the Class R-I Interest, together with the REMIC I Regular
Interests, constitute the entire beneficial ownership interest in REMIC I. The
rights of the Class R Certificateholders and REMIC II (as holder of the REMIC I
Regular Interests) to receive distributions from the proceeds of REMIC I in
respect of the Class R-I Interest and the REMIC I Regular Interests,
respectively, and all ownership interests evidenced or constituted by the Class
R-I Interest and the REMIC I Regular Interests, shall be as set forth in this
Agreement.

                  SECTION 2.07 Conveyance of the REMIC I Regular Interests;
                               Acceptance of REMIC I, REMIC II and REMIC III by
                               the Trustee.

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

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

                  (c) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the REMIC II Regular Interests (which are uncertificated)
for the benefit of the Holders of the REMIC III Regular Interests and the Class
R Certificates (in respect of the Class R-III Interest). The Trustee
acknowledges receipt of the

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REMIC II Regular Interests and declares that it holds and shall hold the same in
trust for the exclusive use and benefit of the Holders of the REMIC III Regular
Interests and the Class R Certificates (in respect of the Class R-III Interest).
The interests evidenced by the Class R-III Interest, together with the Regular
Certificates, constitute the entire beneficial ownership interest in REMIC III.

                  SECTION 2.08 [Reserved].

                  SECTION 2.09 Conveyance of the Subsequent Mortgage Loans.

                  (a) Subject to the conditions set forth in paragraph (b)
below, in consideration of the Trustee's delivery on the Subsequent Transfer
Dates to or upon the order of the Depositor of all or a portion of the balance
of funds in the Pre-Funding Accounts, the Depositor shall on any Subsequent
Transfer Date sell, transfer, assign, set over and convey without recourse to
the Trustee for the benefit of the Trust Fund but subject to the other terms and
provisions of this Agreement all of the right, title and interest of the
Depositor in and to (i) the Subsequent Mortgage Loans identified on the Mortgage
Loan Schedule attached to the related Subsequent Transfer Instrument delivered
by the Depositor on such Subsequent Transfer Date, (ii) principal due and
interest accruing on the Subsequent Mortgage Loans after the related Subsequent
Cut-off Date and (iii) all items with respect to such Subsequent Mortgage Loans
to be delivered pursuant to Section 2.01 and the other items in the related
Mortgage Files; provided, however, that the Depositor reserves and retains all
right, title and interest in and to principal due and interest accruing on the
Subsequent Mortgage Loans on or prior to the related Subsequent Cut-off Date.
The transfer and delivery to the Trustee for deposit in the Mortgage Pool by the
Depositor of the Subsequent Mortgage Loans identified on the Mortgage Loan
Schedule attached to the related Subsequent Transfer Agreement shall be absolute
and is intended by the Depositor, the Master Servicer, the Trustee, the
Guarantor and the Certificateholders to constitute and to be treated as a sale
of the Subsequent Mortgage Loans by the Depositor to the Trust Fund. The related
Mortgage File for each Subsequent Mortgage Loan shall be delivered to the
Trustee or the Custodian at least three Business Days prior to the related
Subsequent Transfer Date.

                  The purchase price paid by the Trustee from amounts released
from the Group I Pre-Funding Account or the Group II Pre-Funding Account, as
applicable, shall be one-hundred percent (100%) of the aggregate Stated
Principal Balance of the Subsequent Mortgage Loans so transferred (as identified
on the Mortgage Loan Schedule provided by the Depositor). This Agreement shall
constitute a fixed-price purchase contract in accordance with Section
860G(a)(3)(A)(ii) of the Code.

                  (b) The Depositor shall transfer and deliver to the Trustee
for deposit in the Trust Fund the Subsequent Mortgage Loans and the other
property and rights related thereto as described in paragraph (a) above, and the
Trustee shall release funds from the Group I Pre-Funding Account or the Group II
Pre-Funding Account, as applicable, only upon the satisfaction of each of the
following conditions on or prior to the related Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Trustee, the
         Guarantor and the NIMS Insurer with a timely Addition Notice;

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<PAGE>

                  (ii) the Depositor shall have delivered to the Trustee, the
         Guarantor and the NIMS Insurer a duly executed Subsequent Transfer
         Instrument, which shall include a Mortgage Loan Schedule listing the
         Subsequent Mortgage Loans, and the Seller shall have been directed by
         the Master Servicer to deliver a computer file containing such Mortgage
         Loan Schedule to the Trustee and each Rating Agency at least three
         Business Days prior to the related Subsequent Transfer Date;

                  (iii) as of each Subsequent Transfer Date, as evidenced by
         delivery of the Subsequent Transfer Instrument, substantially in the
         form of Exhibit L, neither the Depositor nor the Seller shall be
         insolvent nor shall it have been rendered insolvent by such transfer
         nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Fund or the Certificateholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) the Depositor shall not have selected the Subsequent
         Mortgage Loans in a manner that it believed to be adverse to the
         interests of the Certificateholders;

                  (vii) the Depositor shall have delivered to the Trustee, the
         Guarantor and the NIMS Insurer a Subsequent Transfer Instrument
         confirming the satisfaction of the conditions precedent specified in
         this Section 2.09 and, pursuant to the Subsequent Transfer Instrument,
         assigned to the Trustee without recourse for the benefit of the
         Certificateholders all the right, title and interest of the Depositor,
         in, to and under the Subsequent Mortgage Loan Purchase Agreement, to
         the extent of the Subsequent Mortgage Loans;

                  (viii) the Depositor shall have delivered to the Trustee, the
         Underwriters, the Guarantor and the NIMS Insurer an Opinion of Counsel
         addressed to the Trustee, the Underwriters, the Guarantor and the
         Rating Agencies with respect to the transfer of the Subsequent Mortgage
         Loans substantially in the form of the Opinion of Counsel delivered to
         the Trustee on the Closing Date regarding the true sale of the Mortgage
         Loans; and

                  (ix) the Depositor shall have delivered to the Trustee the
         consent of the NIMS Insurer and the Guarantor to the transfer of such
         Subsequent Mortgage Loans.

                  (c) The obligation of the Trust Fund to purchase a Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in paragraph (d) below and the accuracy of the
following representations and warranties with respect to such Subsequent
Mortgage Loan determined as of the related Subsequent Cut-off Date: (i) the
Subsequent Mortgage Loan may not be 30 or more days delinquent as of the related
Subsequent Cut-off Date; (ii) the remaining term to stated maturity of the
Subsequent Mortgage Loan shall not be less than 114 months and shall not exceed
360 months from its first payment date; (iii) the Subsequent Mortgage Loan may
not provide for negative amortization; (iv) the

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Subsequent Mortgage Loan shall not have a Loan-to-Value Ratio greater than
95.00%; (v) the Subsequent Mortgage Loans shall have, as of the Subsequent
Cut-off Date, a weighted average term since origination not in excess of 5
months; (vi) no Subsequent Mortgage Loan shall have a Mortgage Rate less than
5.500% or greater than 12.990%; (vii) the Subsequent Mortgage Loan shall have
been serviced by the Master Servicer since origination or purchase by the
Originator in accordance with its standard servicing practices; (viii) the
Subsequent Mortgage Loan must have a first payment date occurring on or before
April 1, 2005; (ix) the Subsequent Mortgage Loan shall have a Stated Principal
Balance no greater than $872,228 and (x) the Subsequent Mortgage Loan shall have
been underwritten in accordance with the criteria set forth under the section
"The Mortgage Pool--Underwriting Standards; Representations" in the Prospectus
Supplement.

                  (d) Following the purchase of the Subsequent Group I Mortgage
Loans, the Group I Mortgage Loans (including the related Subsequent Group I
Mortgage Loans) shall, as of the related Subsequent Cut-off Date: (i) have a
weighted average original term to stated maturity of not more than 351 months
from the first payment date thereon; (ii) have a weighted average Mortgage Rate
of not less than 7.427% and not more than 7.527%; (iii) have a weighted average
Loan-to-Value Ratio of not more than 77.00%, (iv) have no Mortgage Loan with a
Stated Principal Balance in excess of Fannie Mae and Freddie Mac loan limits,
(v) consist of Mortgage Loans with Prepayment Charges representing no less than
approximately 66.91% of the Group I Mortgage Loans, (vi) with respect to the
Adjustable-Rate Mortgage Loans in Loan Group I, have a weighted average Gross
Margin of not less than 6.005%, (vii) have a weighted average FICO score of not
less than 620; (viii) will have no more than 16.45% of the Group I Mortgage
Loans with a FICO score of less than 540 and (ix) will have no less than 75.62%
of the Group I Mortgage Loans covered by a PMI Policy, in each case, measured by
aggregate Stated Principal Balance of the Group I Mortgage Loans as of the
Cut-off Date or Subsequent Cut-off Date, as applicable.

                  Following the purchase of the Subsequent Group II Mortgage
Loans, the Group II Mortgage Loans (including the related Subsequent Group II
Mortgage Loans) shall, as of the related Subsequent Cut-off Date: (i) have a
weighted average original term to stated maturity of not more than 356 months
from the first payment date thereon; (ii) have a weighted average Mortgage Rate
of not less than 7.047% and not more than 7.147%; (iii) have a weighted average
Loan-to-Value Ratio of not more than 79.00%; (iv) have no Mortgage Loan with a
Stated Principal Balance in excess of $879,228; (v) consist of Mortgage Loans
with Prepayment Charges representing no less than approximately 69.83% of the
Group II Mortgage Loans; (vi) with respect to the Adjustable-Rate Mortgage Loans
in Loan Group II, have a weighted average Gross Margin of not less than 5.806%,
(vii) have a weighted average FICO score of not less than 632, (viii) will have
no more than 6.61% of the Group II Mortgage Loans with a FICO score of less than
540 and (ix) will have no less than 81.56% of the Group II Mortgage Loans
covered by a PMI Policy, in each case, measured by aggregate Stated Principal
Balance of the Group II Mortgage Loans as of the related Cut-off Date or
Subsequent Cut-off Date, as applicable.

                  (e)      Notwithstanding the foregoing, any Subsequent
Mortgage Loan may be rejected by the NIMS Insurer, the Guarantor or any Rating
Agency if the inclusion of any such Subsequent Mortgage Loan would adversely
affect the ratings of any class of Certificates. At

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least one Business Day prior to the related Subsequent Transfer Date, the
Depositor shall obtain confirmation from each Rating Agency which Subsequent
Mortgage Loans, if any, shall not be included in the transfer on the related
Subsequent Transfer Date and deliver such confirmation to the Trustee and the
Master Servicer; provided, however, that the Master Servicer shall have
delivered to each Rating Agency at least three Business Days prior to such
Subsequent Transfer Date a computer file reasonably acceptable to each Rating
Agency describing the characteristics specified in paragraphs (c) and (d) above.

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                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

                  SECTION 3.01 Master Servicer to Act as Master Servicer.

                  The Master Servicer shall service and administer the Mortgage
Loans on behalf of the Trustee and in the best interests of and for the benefit
of the Certificateholders (as determined by the Master Servicer in its
reasonable judgment) in accordance with (i) the terms of the respective Mortgage
Loans and any insurance policies related thereto, (ii) all Applicable
Regulations, (iii) the terms of this Agreement, (iv) the Loss Mitigation Action
Plan, if applicable, and (v) to the extent consistent with the preceding
requirements, in the same manner in which it services and administers similar
mortgage loans for its own portfolio, giving due consideration to customary and
usual standards of practice of prudent mortgage lenders and loan servicers
administering similar mortgage loans but without regard to:

                  (i) any relationship that the Master Servicer, any
         Sub-Servicer or any Affiliate of the Master Servicer or any
         Sub-Servicer may have with the related Mortgagor;

                  (ii) the ownership of any Certificate by the Master Servicer
         or any Affiliate of the Master Servicer;

                  (iii) the Master Servicer's obligation to make Advances or
         Servicing Advances; or

                  (iv) the Master Servicer's or any Sub-Servicer's right to
         receive compensation for its services hereunder or with respect to any
         particular transaction (the "Servicing Standard").

                  Subject only to the above-described servicing standards and
the terms of this Agreement and of the respective Mortgage Loans, the Master
Servicer shall have full power and authority, acting alone or through
Sub-Servicers as provided in Section 6.06, to do or cause to be done any and all
things in connection with such servicing and administration which it may deem
necessary or desirable. Without limiting the generality of the foregoing, the
Master Servicer in its own name or in the name of a Sub-Servicer is hereby
authorized and empowered by the Trustee, in accordance with the servicing
standards set forth above, (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, or of forbearance, or
of modification and all other comparable instruments, with respect to the
Mortgage Loans and the Mortgaged Properties, (ii) to institute foreclosure
proceedings or obtain a deed-in-lieu of foreclosure to convert the ownership of
such properties, and to hold or cause to be held title to such properties, in
the name of the Trust Fund, on behalf of the Trustee and the Certificateholders,
(iii) to market, sell and transfer title of REO Properties held in the name of
the Trust Fund to third party purchasers upon terms and conditions the Master
Servicer deems reasonable under the Servicing

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Standard, (iv) to bring or respond to civil actions or complaints (in its own
name or that of the Trust Fund or the Trustee on behalf of the Trust Fund)
related to any Mortgage Loan, Mortgaged Property or REO Property held by the
Trust Fund and (v) to execute any other document necessary or appropriate to
enable the Master Servicer to carry out its servicing and administrative duties
hereunder consistent with the Servicing Standard.

                  At the written request of the Master Servicer, the Trustee
shall execute and furnish to the Master Servicer such documents as are necessary
or appropriate to enable the Master Servicer to carry out its servicing and
administrative duties hereunder. By execution of this Agreement, the Trustee, on
behalf of the Trust Fund, hereby grants to the Master Servicer a power of
attorney to execute any and all documents necessary to carry out any and all
servicing duties described in this Agreement (including the taking of and
transferring title of REO Properties to third parties held in the name of the
Trustee for the benefit of the Trust) and expressly confirms that this paragraph
along with the face page and a copy of the signature page (duly executed) to
this Agreement shall constitute the power of attorney for evidentiary and/or
recording purposes. The Trustee shall not be liable for the actions of the
Master Servicer or any Sub-Servicers under such powers of attorney.

                  Subject to Section 3.04(d) hereof, in accordance with the
Servicing Standard, the Master Servicer shall advance or cause to be advanced
funds as necessary for the purpose of effecting the timely payment of taxes and
assessments on the Mortgaged Properties, which advances shall be Servicing
Advances reimbursable in the first instance from related collections from the
Mortgagors pursuant to Section 3.04(d), and further as provided in Section
3.05(a). Any cost incurred by the Master Servicer or by Sub-Servicers in
effecting the timely payment of taxes and assessments on a Mortgaged Property
shall not, for the purpose of calculating distributions to Certificateholders,
be added to the unpaid Stated Principal Balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so permit.

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

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

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

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

                  To the extent consistent with the terms of this Agreement,
including Section 2.03 and Section 2.05, the Master Servicer may waive (or
permit a Sub-Servicer to waive) a Prepayment Charge only under the following
circumstances: (i) such waiver is standard and customary in servicing similar
Mortgage Loans and (ii) such waiver relates to a default or a reasonably
foreseeable default and would, in the reasonable judgment of the Master
Servicer, maximize recovery of total proceeds taking into account the value of
such Prepayment Charge and the related Mortgage Loan.

                  The Master Servicer may delegate its responsibilities under
this Agreement; provided, however, that no such delegation shall release the
Master Servicer from the responsibilities or liabilities arising under this
Agreement. All references to Master Servicer in this Agreement shall be deemed
to include any Sub-Servicer duly appointed by the Master Servicer pursuant to
this Agreement.

                  SECTION 3.02 Collection of Certain Mortgage Loan Payments.

                  The Master Servicer shall make reasonable efforts to collect
all payments called for under the terms and provisions of the Mortgage Loans,
and shall, to the extent such procedures shall be consistent with this Agreement
and the terms and provisions of any applicable insurance policies, follow such
collection procedures as it would follow with respect to mortgage loans
comparable to the Mortgage Loans and held for its own account. Consistent with
the foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge or, if applicable, penalty interest, (ii) waive any provision of
any Mortgage Loan requiring the related Mortgagor to submit to mandatory
arbitration with respect to disputes arising thereunder or (iii) extend the due
dates for the Monthly Payments due on a Mortgage Note for a period of not
greater than 180 days; provided that any extension pursuant to clause (iii)
above shall not affect the amortization schedule of any Mortgage Loan for
purposes of any computation hereunder. The Guarantor's or the NIMS Insurer's
prior written consent (as provided in Section 1.03) shall be required for any
modification, waiver or amendment if the aggregate number of outstanding
Mortgage Loans which have been modified, waived or amended exceeds 5% of the
number of Mortgage Loans as of the Cut-off Date. In the event of any such
arrangement pursuant to clause (iii) above, the Master Servicer shall make
timely advances on such Mortgage Loan during such extension pursuant to Section
4.03 and in accordance with the amortization schedule of such Mortgage Loan
without modification thereof by reason of such arrangements.

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                  Notwithstanding the foregoing, in the event that any Mortgage
Loan is in default or, in the judgment of the Master Servicer, such default is
reasonably foreseeable, the Master Servicer, consistent with the Servicing
Standard, may also waive, modify or vary any term of such Mortgage Loan
(including modifications that would change the Mortgage Rate, forgive the
payment of principal or interest or extend the final maturity date of such
Mortgage Loan), accept payment from the related Mortgagor of an amount less than
the Stated Principal Balance in final satisfaction of such Mortgage Loan, or
consent to the postponement of strict compliance with any such term or otherwise
grant indulgence to any Mortgagor (any and all such waivers, modifications,
variances, forgiveness of principal or interest, postponements, or indulgences
collectively referred to herein as "forbearance"), provided, however, that in
determining which course of action permitted by this sentence it shall pursue,
the Master Servicer shall adhere to the Loss Mitigation Action Plan. The Master
Servicer's analysis supporting any forbearance and the conclusion that any
forbearance meets the standards of Section 3.01 and the Loss Mitigation Action
Plan shall be reflected in writing in the Mortgage File.

                  If the Class CE Certificates are no longer outstanding, the
Master Servicer shall not take any action pursuant to the preceding two
paragraphs with respect to a Group I Mortgage Loan without obtaining the prior
written consent of the Guarantor to such modification. The Master Servicer shall
submit to the Guarantor with its request for consent, such information related
to the proposed modification as can be expected to be needed by the Guarantor to
evaluate the Master Servicer's request, including the terms of the proposed
modification and the reasons for the Master Servicer's decision that such Group
I Mortgage Loan should be modified. The Guarantor shall be deemed to have
consented to the Master Servicer's request in the event that the Guarantor does
not provide the Master Servicer with either its written consent to such
requested modification or written notice of its objection to such modification
within five Business Days of its receipt of the Master Servicer's request.
Requests for modification shall be sent to the Guarantor at: Fannie Mae, Special
Products Group, Mail Stop 5H-5W-03, 13150 Worldgate Drive, Herndon, Virginia
20170, Attention: Director. With respect to each Group I Mortgage Loan which is
modified with the consent of the Guarantor, the Master Servicer shall give
written notice to the NIMS Insurer at the address set forth in Section 11.05 and
to the Guarantor to the following address: Fannie Mae, Special Products Group,
Mail Stop 5H-5W-03, 13150 Worldgate Drive, Herndon, Virginia 20170, Attention:
Director. Such notice shall be delivered within thirty Business Days following
such modification and shall include information with respect to the
modification, including, without limitation, the interest rate, the principal
balance and the maturity date of such Group I Mortgage Loan before and after
such modification.

                  In the event that a shortfall in any collection on or
liability with respect to any Mortgage Loan results from or is attributable to
adjustments to Mortgage Rates, Monthly Payments or Stated Principal Balances
that were made by the Master Servicer in a manner not consistent with the terms
of the related Mortgage Note and this Agreement, the Master Servicer, upon
discovery or receipt of notice thereof, immediately shall deliver to the Trustee
for deposit in the Distribution Account from its own funds the amount of any
such shortfall and shall indemnify and hold harmless the Trust Fund, the
Trustee, the Depositor, the Guarantor and any successor master servicer in
respect of any such liability. Such indemnities shall survive the termination or
discharge of this Agreement.

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                  SECTION 3.03 [Reserved].

                  SECTION 3.04 Collection Account, Escrow Account and
Distribution Account.

                  (a) COLLECTION ACCOUNT. On behalf of the Trust Fund, the
Master Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan separate and apart from any of its own funds and
general assets and shall establish and maintain in the name of the Trustee one
or more accounts (such account or accounts, the "Collection Account") in
accordance with this Section 3.04, held in trust for the benefit of the Trustee
and the Certificateholders.

                  (b) DEPOSITS TO THE COLLECTION ACCOUNT. On behalf of the Trust
Fund, the Master Servicer shall deposit or cause to be deposited in the clearing
account (which account must be an Eligible Account) in which it customarily
deposits payments and collections on mortgage loans in connection with its
mortgage loan servicing activities on a daily basis, and in no event more than
one Business Day after the Master Servicer's receipt thereof, and shall
thereafter deposit in the Collection Account, in no event more than two Business
Days after the deposit of such funds into the clearing account, as and when
received or as otherwise required hereunder, and retain therein, the following
payments and collections received or made by it subsequent to the Cut-off Date
with respect to the Initial Mortgage Loans, or the related Subsequent Cut-off
Date with respect to the Subsequent Mortgage Loans, or payments (other than
Principal Prepayments) received by it on or prior to the Cut-off Date but
allocable to a Due Period subsequent thereto:

                  (i) all payments on account of principal, including Principal
         Prepayments, on the Mortgage Loans and REO Properties;

                  (ii) all payments on account of interest on the Mortgage Loans
         and REO Properties adjusted to the Net Mortgage Rate;

                  (iii) all Insurance Proceeds and Liquidation Proceeds (other
         than proceeds to be held in the Escrow Account and applied to the
         restoration or repair of the Mortgaged Property or released to the
         Mortgagor in accordance with the Servicing Standard), Subsequent
         Recoveries and any amounts received in respect of the rental of any REO
         Property prior to REO Disposition;

                  (iv) all proceeds related to the purchase, substitution or
         repurchase of any Mortgage Loan or REO Property in accordance with
         Section 2.03;

                  (v) any amounts required to be deposited by the Master
         Servicer pursuant to Section 3.09 in connection with the deductible
         clause in any blanket hazard insurance policy, such deposit being made
         from the Master Servicer's own funds, without reimbursement therefor;

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                  (vi) any amounts required to be deposited by the Master
         Servicer pursuant to Section 3.06 in connection with any losses
         realized on Permitted Investments with respect to funds held in the
         Collection Account;

                  (vii) all amounts required to be deposited in connection with
         shortfalls in principal amount of Qualified Substitute Mortgage Loans
         pursuant to Section 2.03 (for purposes of this clause (vii), the
         Cut-off Date with respect to any Qualified Substitute Mortgage Loan
         shall be deemed to be the date of substitution);

                  (viii) any amounts required to be deposited by the Master
         Servicer pursuant to Section 4.03(b);

                  (ix) all Prepayment Charges collected by the Master Servicer,
         all Prepayment Charges payable by the Master Servicer pursuant to
         Section 2.03(b)(ii)(A) and all Master Servicer Prepayment Charge
         Payment Amounts payable by the Master Servicer pursuant to Section
         2.03(b)(ii)(B) as limited by Section 2.03(b)(iii); and

                  (x) without duplication, all payments of claims under each PMI
         Policy.

                  The foregoing requirements for deposit to the Collection
Account shall be exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments in the nature of late payment
charges, assumption fees, insufficient funds charges, modification fees and
other ancillary fees (but not Prepayment Charges) need not be deposited by the
Master Servicer in the Collection Account and shall upon collection, belong to
the Master Servicer as additional compensation for its servicing activities. In
the event the Master Servicer shall deposit in the Collection Account any amount
not required to be deposited therein, it may at any time withdraw such amount
from the Collection Account, any provision herein to the contrary
notwithstanding.

                  (c) ESCROW ACCOUNT. The Master Servicer shall segregate and
hold all funds collected and received pursuant to each Mortgage Loan which
constitute Escrow Payments separate and apart from any of its own funds and
general assets and shall establish and maintain in the name of the Trustee one
or more accounts (such account or accounts, the "Escrow Account") held in trust
for the benefit of the Certificateholders and the Trustee.

                  (d) DEPOSITS TO THE ESCROW ACCOUNT. The Master Servicer shall
deposit or cause to be deposited in the clearing account (which account must be
an Eligible Account) in which it customarily deposits payments and collections
on mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Master
Servicer's receipt thereof, and shall thereafter deposit in the Escrow Account,
in no event more than two Business Days after the deposit of such funds into the
clearing account, as and when received or as otherwise required hereunder, and
retain therein:

                  (i) all Escrow Payments collected on account of the Mortgage
         Loans, for the purpose of effecting timely payment of any such items as
         required under the terms of this Agreement; and

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                  (ii) all Insurance Proceeds which are to be applied to the
         restoration or repair of any Mortgaged Property.

                  (e)      DISTRIBUTION ACCOUNT. On behalf of the Trust Fund,
the Trustee shall segregate and hold all funds collected and received pursuant
to this Agreement separate and apart from any of its own funds and general
assets and shall establish and maintain in the name of the Trust Fund one or
more segregated accounts (such account or accounts, the "Distribution Account"),
held in trust for the benefit of the Certificateholders.

                  (f)      TRUSTEE DEPOSITS TO THE DISTRIBUTION ACCOUNT. Upon
receipt, the Trustee shall deposit or cause to be deposited into the
Distribution Account all payments of any nature received from the Master
Servicer in accordance with this Agreement. The Trustee shall deposit in the
Distribution Account any amounts required to be deposited pursuant to Section
3.06 in connection with losses realized on Permitted Investments with respect to
funds held in the Distribution Account. Furthermore, promptly upon receipt of
any Stayed Funds, whether from the Master Servicer, a trustee in bankruptcy, or
federal bankruptcy court or other source, the Trustee shall deposit such funds
in the Distribution Account, subject to withdrawal thereof pursuant to Section
7.02(b) or as otherwise permitted hereunder.

                  (g) MASTER SERVICER TRANSFER OF FUNDS TO THE DISTRIBUTION
ACCOUNT. On behalf of the Trust Fund, the Master Servicer shall deliver to the
Trustee in immediately available funds for deposit in the Distribution Account
by 3:00 p.m. (New York time) on the Master Servicer Remittance Date, (i) that
portion of Available Funds (calculated without regard to the references in
clause (2) of the definition thereof to amounts that may be withdrawn from the
Distribution Account) for the related Distribution Date then on deposit in the
Collection Account, (ii) without duplication, the amount of all Prepayment
Charges collected by the Master Servicer, all Prepayment Charges payable by the
Master Servicer pursuant to Section 2.03(b)(ii)(A) and all Master Servicer
Prepayment Charge Payment Amounts payable by the Master Servicer pursuant to
Section 2.03(b)(ii)(B), subject to Section 2.03(b)(iii) (in each case to the
extent not related to Principal Prepayments occurring after the related
Prepayment Period) and (iii) any amounts reimbursable to an Advancing Person
pursuant to Section 3.23 and the terms of the related Advance Facility.

                  In addition, the Master Servicer shall deliver to the Trustee
from time to time as required by this Agreement, for deposit and the Trustee
shall so deposit, in the Distribution Account:

                  (i) any Advances, as required pursuant to Section 4.03;

                  (ii) any amounts required to be deposited pursuant to Section
         3.13 in connection with any REO Property;

                  (iii) any amounts to be paid in connection with a purchase of
         Mortgage Loans and REO Properties pursuant to Section 3.16 and Section
         9.01;

                  (iv) any Compensating Interest as required pursuant to Section
         4.03(e);

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

                  (vi) any amounts required to be paid by the Master Servicer
         pursuant to Section 3.06 in connection with any losses realized on
         Permitted Investments with respect to funds held in the Collection
         Account; and

                  (vii) any amounts required to be paid to the Trustee from the
         assets of the Trust Fund on deposit in the Collection Account pursuant
         to this Agreement, including but not limited to amounts required to be
         paid to the Trustee pursuant to Section 7.02 and Section 8.05.

                  Funds held in the Collection Account pursuant to Section
3.04(b) may at any time be delivered by the Master Servicer to the Trustee for
deposit into the Distribution Account and for all purposes of this Agreement
shall be deemed to be a part of the Collection Account until the Business Day
prior to the Distribution Date; provided, however, that the Trustee shall have
the sole authority to withdraw any funds held pursuant to this paragraph. In the
event the Master Servicer shall deliver to the Trustee for deposit in the
Distribution Account any amount not required to be deposited therein, it may at
any time request that the Trustee withdraw such amount from the Distribution
Account and remit to it any such amount, any provision herein to the contrary
notwithstanding.

                  (h)      INVESTMENT OF ACCOUNT FUNDS. Funds on deposit in the
Collection Account, the Distribution Account, any REO Account and any Escrow
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.06. Any investment earnings or interest paid
on funds deposited in the Collection Account, any REO Account and any Escrow
Account (subject to Section 3.05(b)) shall accrue to the benefit of the Master
Servicer and the Master Servicer shall be entitled to retain and withdraw such
interest from each such account on a daily basis. Any investment earnings or
interest paid on funds deposited in the Distribution Account, shall accrue to
the benefit of the Trustee and the Trustee shall be entitled to retain and
withdraw such interest from each such account on a daily basis.

                  Funds on deposit in the Pre-Funding Accounts, the Interest
Coverage Accounts and the Net WAC Rate Carryover Reserve Account may be invested
in Permitted Investments in accordance with Section 3.06, subject to any
limitations set forth in Section 4.07 (with respect to the Pre-Funding
Accounts), Section 4.08 (with respect to the Interest Coverage Accounts) and
Section 4.10 (with respect to the Net WAC Rate Carryover Reserve Account) and
any investment earnings or interest paid shall accrue to the benefit of the
party designated in such section.

                  (i)      CREATION, LOCATION AND SUBSEQUENT TRANSFERS OF
ACCOUNTS. Each account created pursuant to this Agreement must be an Eligible
Account. On or prior to the Closing Date, the Master Servicer and the Trustee
shall give notice, to each other, the NIMS Insurer, the Guarantor and the
Depositor of the location of any account created by it pursuant to this
Agreement. From time to time, the Master Servicer and the Trustee may each
transfer any

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account created by it to a different depository institution provided that upon
such transfer the written notice is provided to all other parties listed in the
preceding sentence.

                  (j)      In order to comply with its duties under the U.S.A.
Patriot Act of 2001, the Trustee shall obtain and verify certain information and
documentation from the other parties to this Agreement including, but not
limited to, each such party's name, address, and other identifying information.

                  SECTION 3.05 Permitted Withdrawals From the Collection
Account, Escrow Account and Distribution Account.

                  (a) COLLECTION ACCOUNT. The Master Servicer may, from time to
time, withdraw from the Collection Account for the following purposes or as
described in Section 4.03:

                  (i) to remit to the Trustee for deposit in the Distribution
         Account the amounts required to be so remitted pursuant to Section
         3.04(g) or permitted to be so remitted pursuant to the last paragraph
         of Section 3.04(g);

                  (ii) subject to Section 3.12(c), to reimburse itself for (a)
         any unpaid Servicing Fees, (b) any unreimbursed Servicing Advances and
         (c) any unreimbursed Advances, the Master Servicer's right to reimburse
         itself pursuant to this subclause (ii) being limited to any Late
         Collections, Liquidation Proceeds, Subsequent Recoveries and Insurance
         Proceeds received on the related Mortgage Loan and any amounts received
         in respect of the rental of the related REO Property prior to an REO
         Disposition that represent payments of principal and/or interest
         respecting which any such advance was made;

                  (iii) to reimburse itself for (a) any unpaid Servicing Fees to
         the extent not recoverable under Section 3.05(a)(ii) and (b) any unpaid
         Advances or Servicing Advances that have been deemed Nonrecoverable
         Advances or Nonrecoverable Servicing Advances;

                  (iv) to pay to itself any Prepayment Interest Excess;

                  (v) to reimburse itself for any amounts paid pursuant to
         Section 3.12(b) (and not otherwise previously reimbursed);

                  (vi) to pay to itself as servicing compensation any interest
         earned on funds in the Collection Account;

                  (vii) subject to Section 4.03(b), to reimburse the Master
         Servicer in respect of any unreimbursed Advances to the extent of funds
         held in the Collection Account for future distribution that were not
         included in Available Funds for the preceding Distribution Date;

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                  (viii) to reimburse the Master Servicer or the Depositor for
         expenses incurred by or reimbursable to the Master Servicer or the
         Depositor, as the case may be, pursuant to Section 6.03;

                  (ix) to remit to the Trustee any amounts that the Trustee is
         permitted to be paid or reimbursed from the assets of the Trust Fund
         pursuant to the terms of this Agreement, including the terms of Section
         7.02(a) and Section 8.05 of this Agreement;

                  (x) to reimburse the NIMS Insurer, the Master Servicer (if the
         Master Servicer is not an Affiliate of the Seller) or the Trustee, as
         the case may be, for enforcement expenses reasonably incurred in
         respect of the breach or defect giving rise to the purchase obligation
         under Section 2.03 of this Agreement that were included in the Purchase
         Price of the Mortgage Loan, including any expenses arising out of the
         enforcement of the purchase obligation;

                  (xi) to pay to the Master Servicer, the Depositor, the Seller
         or the Guarantor (with respect to the Group I Mortgage Loans), as the
         case may be, with respect to each Mortgage Loan that has previously
         been purchased or replaced pursuant to Section 2.03 or Section 3.16(a)
         all amounts received thereon subsequent to the date of purchase or
         substitution, as the case may be;

                  (xii) to transfer funds in the Collection Account maintained
         at a particular depository to the Collection Account maintained at a
         different depository, pursuant to Section 3.04(i); and

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

                  On each Business Day as of the commencement of which the
balance on deposit in the Collection Account exceeds $75,000 following any
withdrawals pursuant to the next succeeding sentence, the amount of such excess
shall be remitted to the Trustee, but only if the Collection Account constitutes
an Eligible Account solely pursuant to clause (ii) of the definition of
"Eligible Account." If the balance on deposit in the Collection Account exceeds
$75,000 as of the commencement of business on any Business Day and the
Collection Account constitutes an Eligible Account solely pursuant to clause
(ii) of the definition of "Eligible Account," the Master Servicer shall, on or
before 3:00 p.m. New York time on such Business Day, withdraw from the
Collection Account any and all amounts payable or reimbursable to the Depositor,
the Master Servicer, the Trustee or any Sub-Servicer pursuant to Section 3.05
and shall pay such amounts to the Persons entitled thereto.

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

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                  The Master Servicer shall keep and maintain separate
accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
justifying any withdrawal from the Collection Account, to the extent held by or
on behalf of it, pursuant to subclauses (ii), (iii), (iv), (v), (vi), (vii),
(viii) and (xi) above. The Master Servicer shall provide written notification to
the Trustee, the NIMS Insurer and the Guarantor on or prior to the next
succeeding Master Servicer Reporting Date, upon making any withdrawals from the
Collection Account pursuant to subclause (viii) above.

                  (b) ESCROW ACCOUNT. The Master Servicer may, from time to
time, withdraw from the Escrow Account for the following purposes:

                  (i) to effect payments of ground rents, taxes, assessments,
         water rates, hazard insurance premiums and comparable items;

                  (ii) to reimburse the Master Servicer for any Servicing
         Advance made by the Master Servicer with respect to a related Mortgage
         Loan but only from amounts received on the related Mortgage Loan which
         represent late payments or Late Collections of Escrow Payments
         thereunder;

                  (iii) to refund to the Mortgagor any funds as may be
         determined to be overages;

                  (iv) for transfer to the Collection Account in accordance with
         the terms of this Agreement;

                  (v) for application to restoration or repair of the Mortgaged
         Property;

                  (vi) to pay to the Master Servicer, or to the Mortgagor to the
         extent required by the related Mortgage Loan or Applicable Regulations,
         any interest paid on the funds deposited in the Escrow Account;

                  (vii) to clear and terminate the Escrow Account on the
         termination of this Agreement; and

                  (viii) to transfer to the Collection Account any Insurance
         Proceeds.

                  In the event the Master Servicer shall deposit in an Escrow
Account any amount not required to be deposited therein, it may at any time
withdraw such amount from such Escrow Account, any provision herein to the
contrary notwithstanding. As part of its servicing duties, the Master Servicer
shall pay to the Mortgagor interest on funds in the Escrow Account, to the
extent required by the related Mortgage Loan or Applicable Regulations, and to
the extent that interest earned on funds in the Escrow Account is insufficient,
shall pay such interest from its own funds, without any reimbursement therefor.
The Master Servicer may pay to itself any excess interest on funds in the Escrow
Account, to the extent such action is in conformity with the Servicing Standard,
is permitted by law and such amounts are not required to be paid to Mortgagors
or used for any of the other purposes set forth above.

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                  (c) DISTRIBUTION ACCOUNT. The Trustee shall, from time to
time, make withdrawals from the Distribution Account, for any of the following
purposes:

                  (i) to make distributions to Certificateholders and the
         Guarantor in accordance with Section 4.01;

                  (ii) to pay to itself amounts to which it is entitled pursuant
         to Section 8.05;

                  (iii) to pay itself any interest income earned on funds
         deposited in the Distribution Account pursuant to Section 3.06;

                  (iv) to reimburse itself pursuant to Section 7.01 and Section
         7.02(b);

                  (v) to pay any amounts in respect of taxes pursuant to Section
         10.01(g)(iii);

                  (vi) to pay each PMI Insurer the related PMI Insurer Fee; and

                  (vii) to clear and terminate the Distribution Account pursuant
         to Section 9.01.

                  SECTION 3.06 Investment of Funds in the Collection Account,
                               the Escrow Account, the REO Account and the
                               Distribution Account.

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

                  (i) consistent with any notice required to be given
         thereunder, demand that payment thereon be made on the last day such
         Permitted Investment may otherwise

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         mature hereunder in an amount equal to the lesser of (1) all amounts
         then payable thereunder and (2) the amount required to be withdrawn on
         such date; and

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

                  (b) All income in the nature of interest from the investment
of funds in the Collection Account, the Escrow Account (subject to Section
3.05(b)) and the REO Account shall be for the benefit of the Master Servicer as
compensation for the Master Servicer's services pursuant to this Agreement. The
Master Servicer shall deposit in the Collection Account, the Escrow Account, and
the REO Account , as applicable, from its own funds the amount of any loss
incurred in respect of any such Permitted Investment made with funds in such
account immediately upon realization of such loss.

                  (c) All income in the nature of interest or earnings from the
investment of funds in the Distribution Account shall be for the benefit of the
Trustee as compensation for the Trustee's services pursuant to this Agreement.
The Trustee shall deposit in the Distribution Account from its own funds the
amount of any loss incurred on Permitted Investments in the Distribution
Account.

                  (d) Funds on deposit in the Pre-Funding Accounts, the Interest
Coverage Accounts and the Net WAC Rate Carryover Reserve Account may be invested
in Permitted Investments in accordance with this Section 3.06 subject to any
limitations set forth in Section 4.07 (with respect to the Pre-Funding
Accounts), Section 4.08 (with respect to the Interest Coverage Accounts) and
Section 4.10 (with respect to the Net WAC Rate Carryover Reserve Account) and
any investment earnings or interest paid shall accrue to the benefit of the
party designated in such section and the party so designated shall deposit in
the related account from its own funds the amount of any loss incurred on
Permitted Investments in such account.

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

                  (f) The Trustee or its Affiliates are permitted to receive
compensation that could be deemed to be in the Trustee's economic self-interest
for (i) serving as investment adviser, administrator, shareholder, servicing
agent, custodian or sub-custodian with respect to certain of the Permitted
Investments, (ii) using Affiliates to effect transactions in certain Permitted
Investments and (iii) effecting transactions in certain Permitted Investments.
Such compensation shall not be considered an amount that is reimbursable or
payable pursuant to Section 3.05.

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                  SECTION 3.07 Payment of Taxes, Insurance and Other Charges.

                  With respect to each Mortgage Loan, the Master Servicer shall
maintain accurate records reflecting the status of ground rents, taxes,
assessments, water rates and other charges which are or may become a lien upon
the Mortgaged Property and the status of fire and hazard insurance coverage and,
as to those Mortgage Loans subject to a voluntary escrow agreement, shall
obtain, from time to time, all bills for the payment of such charges (including
renewal premiums) and shall effect payment thereof prior to the applicable
penalty or termination date and at a time appropriate for securing maximum
discounts allowable, employing for such purpose deposits of the Mortgagor in the
Escrow Account which shall have been estimated and accumulated by the Master
Servicer in amounts sufficient for such purposes, as allowed under the terms of
the Mortgage or Applicable Regulations. The Master Servicer assumes full
responsibility for the timely payment of all such bills and shall effect timely
payments of all such bills irrespective of the Mortgagor's faithful performance
in the payment of same or the making of the Escrow Payments and shall make
Servicing Advances from its own funds to effect such payments. To the extent
that the Mortgage does not provide for Escrow Payments, the Master Servicer
shall use reasonable efforts consistent with the Servicing Standard to determine
that any such payments are made by the Mortgagor at the time they first become
due and shall ensure that the Mortgaged Property is not lost to a tax lien as a
result of nonpayment and that such Mortgaged Property is not left uninsured.

                  SECTION 3.08 Maintenance of Hazard Insurance.

                  The Master Servicer shall cause to be maintained for each
Mortgage Loan fire insurance with extended coverage on the related Mortgaged
Property in an amount which is at least equal to the least of (i) the current
Stated Principal Balance of such Mortgage Loan, (ii) the amount necessary to
fully compensate for any damage or loss to the improvements that are a part of
such property on a replacement cost basis and (iii) the maximum insurable value
of the improvements which are a part of such Mortgaged Property, in each case in
an amount not less than such amount as is necessary to avoid the application of
any coinsurance clause contained in the related hazard insurance policy. The
Master Servicer shall also cause to be maintained fire insurance with extended
coverage on each REO Property in an amount which is at least equal to the lesser
of (i) the maximum insurable value of the improvements which are a part of such
property and (ii) the outstanding Stated Principal Balance of the related
Mortgage Loan, plus accrued interest at the Mortgage Rate and related Servicing
Advances (each measured at the time it became an REO Property). The Master
Servicer shall comply in the performance of this Agreement with all reasonable
rules and requirements of each insurer under any such hazard policies. Any
amounts to be collected by the Master Servicer under any such policies (other
than amounts to be applied to the restoration or repair of the property subject
to the related Mortgage or amounts to be released to the Mortgagor in accordance
with the procedures that the Master Servicer would follow in servicing loans
held for its own account, subject to the terms and conditions of the related
Mortgage and Mortgage Note) shall be deposited in the Collection Account,
subject to withdrawal pursuant to Section 3.05, if received in respect of a
Mortgage Loan, or in the REO Account, subject to withdrawal pursuant to Section
3.13, if received in respect of an REO Property. Any cost incurred by the Master
Servicer in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to

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the unpaid Stated Principal Balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so permit. It is understood
and agreed that no earthquake or other additional insurance is to be required of
any Mortgagor other than pursuant to such applicable laws and regulations as
shall at any time be in force and as shall require such additional insurance. If
the Mortgaged Property or REO Property is at any time in an area identified in
the Federal Register by the Federal Emergency Management Agency as having
special flood hazards, the Master Servicer shall cause to be maintained a flood
insurance policy in respect thereof. Such flood insurance shall be in an amount
equal to the lesser of (i) the unpaid Stated Principal Balance of the related
Mortgage Loan; (ii) the maximum amount of such insurance available for the
related Mortgaged Property under the national flood insurance program (assuming
that the area in which such Mortgaged Property is located is participating in
such program); and (iii) the maximum insurable value of the improvements which
are part of the related Mortgaged Property.

                  SECTION 3.09 Maintenance of Mortgage Blanket Insurance.

                  In the event that the Master Servicer shall obtain and
maintain a blanket policy with an insurer having a General Policy Rating of
"A:V" or better in Best's Key Rating Guide (or such other rating that is
comparable to such rating) insuring against hazard losses on all of the Mortgage
Loans, it shall conclusively be deemed to have satisfied its obligations as set
forth in the first two sentences of Section 3.08, it being understood and agreed
that such policy may contain a deductible clause, in which case the Master
Servicer shall, in the event that there shall not have been maintained on the
related Mortgaged Property or REO Property a policy complying with the first two
sentences of Section 3.08, and there shall have been one or more losses which
would have been covered by such policy, deposit to the Collection Account from
its own funds the amount not otherwise payable under the blanket policy because
of such deductible clause. In connection with its activities as administrator
and servicer of the Mortgage Loans, the Master Servicer agrees to prepare and
present, on behalf of itself, the Trustee and the Certificateholders, claims
under any such blanket policy in a timely fashion in accordance with the terms
of such policy.

                  SECTION 3.10 Fidelity Bond; Errors and Omissions Insurance.

                  The Master Servicer shall keep in force during the term of
this Agreement a policy or policies of insurance covering errors and omissions
for failure in the performance of the Master Servicer's obligations under this
Agreement, which policy or policies shall be in such form and amount that would
meet the requirements of Fannie Mae if it were the purchaser of the Mortgage
Loans, unless the Master Servicer has obtained a waiver of such requirements
from Fannie Mae. The Master Servicer shall also maintain a fidelity bond in the
form and amount that would meet the requirements of Fannie Mae, unless the
Master Servicer has obtained a waiver of such requirements from Fannie Mae. The
Master Servicer shall provide the Trustee, the Guarantor (upon reasonable
request) and the NIMS Insurer (upon reasonable request) with copies of any such
insurance policies and fidelity bond. The Master Servicer shall be deemed to
have complied with this provision if an Affiliate of the Master Servicer has
such errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Master Servicer. Any such errors and omissions

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policy and fidelity bond shall by its terms not be cancelable without thirty
days' prior written notice to the Trustee. The Master Servicer shall also cause
each Sub-Servicer to maintain a policy of insurance covering errors and
omissions and a fidelity bond which would meet such requirements.

                  SECTION 3.11 Enforcement of Due-On-Sale Clauses; Assumption
                               Agreements.

                  The Master Servicer shall, to the extent it has knowledge of
any conveyance or prospective conveyance of any Mortgaged Property by any
Mortgagor (whether by absolute conveyance or by contract of sale, and whether or
not the Mortgagor remains or is to remain liable under the Mortgage Note and/or
the Mortgage), exercise its rights to accelerate the maturity of such Mortgage
Loan under the "due-on-sale" clause, if any, applicable thereto; provided,
however, that the Master Servicer shall not exercise any such rights if
prohibited by law from doing so. If the Master Servicer reasonably believes it
is unable under applicable law to enforce such "due-on-sale" clause, or if any
of the other conditions set forth in the proviso to the preceding sentence
apply, the Master Servicer is authorized to enter into an assumption and
modification agreement from or with the person to whom such property has been
conveyed or is proposed to be conveyed, pursuant to which such person becomes
liable under the Mortgage Note and, to the extent permitted by applicable state
law, the Mortgagor remains liable thereon. The Master Servicer is also
authorized to enter into a substitution of liability agreement with such person,
pursuant to which the original Mortgagor is released from liability and such
person is substituted as the Mortgagor and becomes liable under the Mortgage
Note, provided that no such substitution shall be effective unless such person
satisfies the underwriting criteria of the Master Servicer. In connection with
any assumption or substitution, the Master Servicer shall apply such
underwriting standards and follow such practices and procedures as shall be
normal and usual in its general mortgage servicing activities and as it applies
to other mortgage loans owned solely by it. The Master Servicer shall not take
or enter into any assumption and modification agreement, however, unless (to the
extent practicable in the circumstances) it shall have received confirmation, in
writing, of the continued effectiveness of any applicable hazard insurance
policy, or a new policy meeting the requirements of this Section is obtained.
Any fee collected by the Master Servicer in respect of an assumption or
substitution of liability agreement shall be retained by the Master Servicer as
additional servicing compensation. In connection with any such assumption, no
material term of the Mortgage Note (including but not limited to the related
Mortgage Rate and the amount of the Monthly Payment) may be amended or modified,
except as otherwise required pursuant to the terms thereof or otherwise
permitted under Section 3.01. The Master Servicer shall notify the Trustee, the
Guarantor and any respective Custodian that any such substitution, assumption
and modification agreement has been completed by forwarding to the Trustee (with
a copy to the Guarantor) or to such Custodian, as the case may be, the executed
original of such substitution or assumption agreement, which document shall be
added to the related Mortgage File and shall, for all purposes, be considered a
part of such Mortgage File to the same extent as all other documents and
instruments constituting a part thereof. If the Class CE Certificates are no
longer outstanding, the Master Servicer shall not take or enter into any
substitution, assumption or modification agreement with respect to a Group I
Mortgage Loan without obtaining the prior written consent of the Guarantor to
such substitution, assumption or modification agreement.

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<PAGE>

The Master Servicer shall submit to the Guarantor with its request for consent,
such information related to the proposed substitution, assumption or
modification agreement as can be expected to be needed by the Guarantor to
evaluate the Master Servicer's request, including the terms of the proposed
substitution, assumption or modification and the reasons for the Master
Servicer's decision that such substitution, assumption or modification agreement
should be taken or entered into with respect to such Group I Mortgage Loan. The
Guarantor shall be deemed to have consented to the Master Servicer's request in
the event that the Guarantor does not provide the Master Servicer with either
its written consent to such requested substitution, assumption or modification
agreement or written notice of its objection to such substitution, assumption or
modification agreement within five Business Days of its receipt of the the
Master Servicer's request. Such requests shall be sent to the Guarantor at:
Fannie Mae, Special Products Group, Mail Stop 5H-5W-03, 13150 Worldgate Drive,
Herndon, Virginia 20170, Attention: Director. With respect to each substitution,
assumption or modification agreement which is entered into with the consent of
the Guarantor, the Master Servicer shall give written notice to the NIMS Insurer
to the addresses set forth in Section 11.05, to the Guarantor to the following
address: Fannie Mae, Special Products Group, Mail Stop 5H-5W-03, 13150 Worldgate
Drive, Herndon, Virginia 20170, Attention: Director. Such notice shall be
delivered within thirty Business Days following the date of such substitution,
assumption or modification agreement.

                  Notwithstanding the foregoing paragraph or any other provision
of this Agreement, the Master Servicer shall not be deemed to be in default,
breach or any other violation of its obligations hereunder by reason of any
assumption of a Mortgage Loan by operation of law or by the terms of the
Mortgage Note or any assumption which the Master Servicer may be restricted by
law from preventing, for any reason whatever. For purposes of this Section 3.11,
the term "assumption" is deemed to also include a sale (of the Mortgaged
Property) subject to the Mortgage that is not accompanied by an assumption or
substitution of liability agreement.

                  SECTION 3.12 Realization Upon Defaulted Mortgage Loans.

                  (a) The Master Servicer shall, consistent with the Servicing
Standard and the Loss Mitigation Action Plan, foreclose upon or otherwise
comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments pursuant to
Section 3.02. The Master Servicer shall be responsible for all costs and
expenses incurred by it in any such proceedings; provided, however, that such
costs and expenses shall be recoverable as Servicing Advances by the Master
Servicer as contemplated in Section 3.05 and Section 3.13. The foregoing is
subject to the provision that, in any case in which Mortgaged Property shall
have suffered damage from an Uninsured Cause, the Master Servicer shall not be
required to expend its own funds toward the restoration of such property unless
it shall determine in its discretion that such restoration shall increase the
proceeds of liquidation of the related Mortgage Loan after reimbursement to
itself for such expenses.

                  (b) Notwithstanding the foregoing provisions of this Section
3.12 or any other provision of this Agreement, with respect to any Mortgage Loan
as to which the Master Servicer has received actual notice of, or has actual
knowledge of, the presence of any toxic or hazardous

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substance on the related Mortgaged Property, the Master Servicer shall not, on
behalf of the Trustee, either (i) obtain title to such Mortgaged Property as a
result of or in lieu of foreclosure or otherwise or (ii) otherwise acquire
possession of, or take any other action with respect to, such Mortgaged
Property, if, as a result of any such action, the Trustee, the Trust Fund or the
Certificateholders would be considered to hold title to, to be a
"mortgagee-in-possession" of, or to be an "owner" or "operator" of such
Mortgaged Property within the meaning of the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Master Servicer has also previously
determined, based on its reasonable judgment and a report prepared by a Person
who regularly conducts environmental audits using customary industry standards,
that:

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

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

                  Notwithstanding the foregoing, if such environmental audit
reveals, or if the Master Servicer has actual knowledge or notice, that such
Mortgaged Property contains such toxic or hazardous wastes or substances, the
Master Servicer shall not foreclose or accept a deed in lieu of foreclosure
without the prior written consent of the Guarantor with respect to the Group I
Mortgage Loans (which consent shall not be unreasonably withheld) and the NIMS
Insurer.

                  The cost of the environmental audit report contemplated by
this Section 3.12 shall be advanced by the Master Servicer, subject to the
Master Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.05(a)(v), such right of reimbursement being prior to the
rights of Certificateholders to receive any amount in the Collection Account
received in respect of the affected Mortgage Loan or other Mortgage Loans.

                  If the Master Servicer determines, as described above, that it
is in the best economic interest of the Trust Fund to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes or petroleum-based materials affecting any such Mortgaged Property, then
the Master Servicer shall take such action as it deems to be in the best
economic interest of the Trust Fund; provided, however, that the Master Servicer
shall not proceed with foreclosure or acceptance of a

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deed in lieu of foreclosure if the estimated costs of the environmental clean
up, as estimated in the environmental audit report, together with the Advances
made by the Master Servicer and the estimated costs of foreclosure or acceptance
of a deed in lieu of foreclosure exceeds the estimated value of the Mortgaged
Property. The cost of any such compliance, containment, cleanup or remediation
shall be advanced by the Master Servicer, subject to the Master Servicer's right
to be reimbursed therefor from the Collection Account as provided in Section
3.05(a)(v), such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Collection Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

                  (c) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds, Subsequent Recoveries or Liquidation Proceeds, in respect of
any Mortgage Loan, shall be applied in the following order of priority: FIRST,
to reimburse the Master Servicer or any Sub-Servicer for any related
unreimbursed Servicing Advances and Advances, pursuant to Section 3.05(a)(ii);
SECOND, to accrued and unpaid interest on the Mortgage Loan, to the date of the
Final Recovery Determination, or to the Due Date prior to the Distribution Date
on which such amounts are to be distributed if not in connection with a Final
Recovery Determination; and THIRD, as a recovery of principal of the Mortgage
Loan. If the amount of the recovery so allocated to interest is less than the
full amount of accrued and unpaid interest due on such Mortgage Loan, the amount
of such recovery shall be allocated by the Master Servicer as follows: FIRST, to
unpaid Servicing Fees; and SECOND, to the balance of the interest then due and
owing. The portion of the recovery so allocated to unpaid Servicing Fees shall
be reimbursed to the Master Servicer or any Sub-Servicer pursuant to Section
3.05(a)(ii).

                  SECTION 3.13 Title, Management and Disposition of REO
                               Property.

                  (a) The deed or certificate of sale of any REO Property shall
be taken in the name of the Trustee, or its nominee, in trust for the benefit of
the Certificateholders. Pursuant to the power of attorney granted in Section
3.01, the Master Servicer is hereby authorized to transfer the title of any REO
Property taken in the name of the Trustee to a third party purchaser pursuant to
this Section 3.13 without further documentation of its authority as
attorney-in-fact for the Trustee on behalf of the Trust. The Master Servicer, on
behalf of the Trust Fund (and on behalf of the Trustee for the benefit of the
Certificateholders), shall either sell any REO Property before the close of the
third taxable year after the year the Trust Fund acquires ownership of such REO
Property for purposes of Section 860G(a)(8) of the Code or request from the
Internal Revenue Service, no later than 60 days before the day on which the
three-year grace period would otherwise expire, an extension of the three-year
grace period, unless the Master Servicer shall have delivered to the Trustee,
the NIMS Insurer, the Guarantor and the Depositor an Opinion of Counsel,
addressed to the Trustee, the NIMS Insurer, the Guarantor and the Depositor, to
the effect that the holding by the Trust Fund of such REO Property subsequent to
three years after its acquisition shall not result in the imposition on any
Trust REMIC of taxes on "prohibited transactions" thereof, as defined in Section
860F of the Code, or cause any Trust REMIC to fail to qualify as a REMIC under
Federal law at any time that any Certificates are outstanding. The Master
Servicer shall manage, conserve, protect and operate each REO Property for the
benefit of the Certificateholders and solely for the purpose of its prompt
disposition and sale in a manner which does not cause such REO Property to fail
to qualify as "foreclosure property" within the meaning of Section 860G(a)(8) of
the Code or result in the receipt by any Trust REMIC of any "income from
non-permitted assets" within the meaning of

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Section 860F(a)(2)(B) of the Code, or any "net income from foreclosure property"
which is subject to taxation under the REMIC Provisions.

                  (b) The Master Servicer shall segregate and hold all funds
collected and received in connection with the operation of any REO Property
separate and apart from its own funds and general assets and shall establish and
maintain with respect to REO Properties an account held in trust for the Trustee
for the benefit of the Certificateholders (the "REO Account"), which shall be an
Eligible Account. The Master Servicer shall be permitted to allow the Collection
Account to serve as the REO Account, subject to separate ledgers for each REO
Property. The Master Servicer shall be entitled to retain or withdraw any
interest income paid on funds deposited in the REO Account.

                  (c) The Master Servicer shall have full power and authority,
subject only to the specific requirements and prohibitions of this Agreement
(including the Loss Mitigation Action Plan), to do any and all things in
connection with any REO Property as are consistent with the manner in which the
Master Servicer manages and operates similar property owned by the Master
Servicer or any of its Affiliates, all on such terms and for such period as the
Master Servicer deems to be in the best interests of Certificateholders and
appropriate to effect the prompt disposition and sale of the REO Property. In
connection therewith, the Master Servicer shall deposit, or cause to be
deposited in the clearing account (which account must be an Eligible Account) in
which it customarily deposits payments and collections on mortgage loans in
connection with its mortgage loan servicing activities on a daily basis, and in
no event more than one Business Day after the Master Servicer's receipt thereof,
and shall thereafter deposit in the REO Account, in no event more than two
Business Days after the deposit of such funds into the clearing account, all
revenues received by it with respect to an REO Property and shall withdraw
therefrom funds necessary for the proper operation, management and maintenance
of such REO Property including, without limitation:

                  (i) all insurance premiums due and payable in respect of such
         REO Property;

                  (ii) all real estate taxes and assessments in respect of such
         REO Property that may result in the imposition of a lien thereon; and

                  (iii) all costs and expenses necessary to maintain such REO
         Property.

                  To the extent that amounts on deposit in the REO Account with
respect to an REO Property are insufficient for the purposes set forth in
clauses (i) through (iii) above with respect to such REO Property, the Master
Servicer shall advance from its own funds such amount as is necessary for such
purposes if, but only if, the Master Servicer would make such advances if the
Master Servicer owned the REO Property and if in the Master Servicer's judgment,
the payment of such amounts shall be recoverable from the rental or sale of the
REO Property.

                  Notwithstanding the Master Servicer's obligation to the
Certificateholders to manage and operate (including the collection of rents from
existing tenants and management of any leases acquired with the REO property to
the extent applicable) the REO Property from the

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date of acquisition until the date of sale, neither the Master Servicer nor the
Trustee shall knowingly:

                  (i) authorize the Trust Fund to enter into, renew or extend
         any New Lease with respect to any REO Property, if the New Lease by its
         terms shall give rise to any income that does not constitute Rents from
         Real Property;

                  (ii) authorize any amount to be received or accrued under any
         New Lease other than amounts that shall constitute Rents from Real
         Property;
                  (iii) authorize any construction on any REO Property, other
         than the completion of a building or other improvement thereon, and
         then only if more than ten percent of the construction of such building
         or other improvement was completed before default on the related
         Mortgage Loan became imminent, all within the meaning of Section
         856(e)(4)(B) of the Code; or

                  (iv) authorize any Person to Directly Operate any REO Property
         on any date more than 90 days after its date of acquisition by the
         Trust Fund;

unless, in any such case, the Master Servicer has obtained an Opinion of
Counsel, provided to the Trustee, the NIMS Insurer and the Guarantor, to the
effect that such action shall not cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code at
any time that it is held by the Trust Fund, and (B) the Master Servicer has
received written notice from the Trustee that it has received written consent
from the Guarantor and the NIMS Insurer (which consent shall not be unreasonably
withheld) that the specific action may be taken.

                  The Master Servicer may contract with any Independent
Contractor for the operation and management of any REO Property, provided that:

                  (i) the terms and conditions of any such contract shall not be
         inconsistent herewith;

                  (ii) any such contract shall require, or shall be administered
         to require, that the Independent Contractor pay all costs and expenses
         incurred in connection with the operation and management of such REO
         Property, including those listed above and remit all related revenues
         (net of such costs and expenses) to the Master Servicer as soon as
         practicable, but in no event later than thirty days following the
         receipt thereof by such Independent Contractor;

                  (iii) none of the provisions of this Section 3.13(c) relating
         to any such contract or to actions taken through any such Independent
         Contractor shall be deemed to relieve the Master Servicer of any of its
         duties and obligations to the Trustee on behalf of the
         Certificateholders with respect to the operation and management of any
         such REO Property; and

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                  (iv) the Master Servicer shall be obligated with respect
         thereto to the same extent as if it alone were performing all duties
         and obligations in connection with the operation and management of such
         REO Property.

                  The Master Servicer shall be entitled to enter into any
agreement with any Independent Contractor performing services for it related to
its duties and obligations hereunder for indemnification of the Master Servicer
by such Independent Contractor, and nothing in this Agreement shall be deemed to
limit or modify such indemnification. The Master Servicer shall be solely liable
for all fees owed by it to any such Independent Contractor, irrespective of
whether the Master Servicer's compensation pursuant to Section 3.18 is
sufficient to pay such fees. The Master Servicer shall not engage an Independent
Contractor to engage in any activities that the Master Servicer would not be
permitted to engage in itself in accordance with the other provisions of this
Agreement (including the Loss Mitigation Action Plan).

                  (d) In addition to the withdrawals permitted under Section
3.13(c), the Master Servicer may from time to time make withdrawals from the REO
Account for any REO Property: (i) to pay itself or any Sub-Servicer unpaid
Servicing Fees in respect of the related Mortgage Loan; and (ii) to reimburse
itself or any Sub-Servicer for unreimbursed Servicing Advances and Advances made
in respect of such REO Property or the related Mortgage Loan. On the Master
Servicer Remittance Date, the Master Servicer shall withdraw from each REO
Account maintained by it and deposit into the Distribution Account in accordance
with Section 3.04(g)(ii), for distribution on the related Distribution Date in
accordance with Section 4.01, the income from the related REO Property received
during the prior calendar month, net of any withdrawals made pursuant to Section
3.13(c) or this Section 3.13(d).

                  (e) Subject to the time constraints set forth in Section
3.13(a) (including the constraint that the Master Servicer hold and manage each
REO Property "solely for the purpose of its prompt disposition") each REO
disposition shall be carried out by the Master Servicer at such price and upon
such terms and conditions as shall be in conformity with the requirements of the
Loss Mitigation Action Plan and as shall be normal and usual in its general
servicing activities for similar properties.

                  (f) The proceeds from the REO Disposition, net of any amount
required by law to be remitted to the Mortgagor under the related Mortgage Loan
and net of any payment or reimbursement to the Master Servicer or any
Sub-Servicer as provided above, shall be deposited in the Distribution Account
in accordance with Section 3.04(g)(ii) on the Master Servicer Remittance Date in
the month following the receipt thereof for distribution on the related
Distribution Date in accordance with Section 4.01. Any REO Disposition shall be
for cash only (unless changes in the REMIC Provisions made subsequent to the
Startup Day allow a sale for other consideration).

                  SECTION 3.14 Agreement to Appoint a Special Servicer.

                  (a) The Guarantor may require the Master Servicer to enter
into a special subservicing agreement with a servicer with expertise in
servicing delinquent mortgage loans as designated by the Guarantor (the "Special
Servicer") on or after the earliest Distribution Date

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with respect to which the Certificate Principal Balance of the Class CE
Certificates has been reduced to zero. Such special subservicing agreement shall
relate to the servicing of only Group I Mortgage Loans that (x) have been
delinquent in payment with respect to three or more Monthly Payments (provided,
however, that the third such Monthly Payment shall not be deemed to be
delinquent for purposes of this clause (x) until the close of business on the
last day of the month in which such Monthly Payment first became due) and (y)
have been transferred to the Special Servicer in accordance with this Section
3.14 and the related special subservicing agreement (a "Specially Serviced
Mortgage Loan").

                  (b) The special subservicing agreement shall be consistent
with the provisions of this Agreement, including but not limited to this Section
3.14, Section 6.06(a), Section 6.06(b) and Section 6.11, except as provided
otherwise in this Section 3.14. In addition, the special subservicing agreement
shall be on terms which shall be reasonably acceptable to the Guarantor and the
Master Servicer and shall provide, at a minimum that:

                  (1) the Special Servicer shall at all times meet the
         eligibility criteria described in Section 6.06(a);

                  (2) the Special Servicer shall service only the Specially
         Serviced Mortgage Loans in a manner consistent with the provisions with
         this Agreement except as provided otherwise in the special subservicing
         agreement;

                  (3) the Special Servicer shall use the Fannie Mae foreclosure
         network (and pay the customary fees therefor) for foreclosures and
         bankruptcies relating to Specially Serviced Mortgage Loans;

                  (4) the Special Servicer shall use the Fannie Mae disposition
         service (and pay the customary fees therefor) for the disposition of
         REO Property related to Specially Serviced Mortgage Loans;

                  (5) the Special Servicer shall make Advances and Servicing
         Advances on the Specially Serviced Mortgage Loans to the same extent
         and in the same manner as the Master Servicer with respect to the Group
         I Mortgage Loans pursuant to this Agreement;

                  (6) the Special Servicer shall be entitled to receive the
         Servicing Fee with respect to all Specially Serviced Mortgage Loans;

                  (7) prior to the transfer of servicing to the Special
         Servicer, the Master Servicer and the Special Servicer shall have
         provided all notices relating to such transfer of servicing as required
         to be delivered to the borrowers by applicable state and federal law;

                  (8) the Special Servicer shall indemnify the Master Servicer
         and the Trustee for any liabilities to them arising from failures of
         the Special Servicer to perform its obligations according to the terms
         of the subservicing agreement;

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                  (9) the Master Servicer shall promptly give notice thereof to
         the Trustee, the NIMS Insurer and the Guarantor of the transfer of
         servicing to the Special Servicer, including the loan number together
         with the borrower's name and the unpaid Stated Principal Balance of the
         transferred Mortgage Loan at the time of transfer;

                  (10) each of the respective obligations, duties, and
         liabilities of the Master Servicer and the Special Servicer (or either
         of them) with respect to the servicing of the Specially Serviced
         Mortgage Loans that have arisen prior to the date on which the
         servicing of such Specially Serviced Mortgage Loan was transferred to
         the Special Servicer (the "Effective Date"), or that arise on and after
         the Effective Date, under this Agreement and the subservicing agreement
         and that remain unperformed or unsatisfied shall survive any transfer
         of servicing;

                  (11) once a Group I Mortgage Loan becomes a Specially Serviced
         Mortgage Loan, such Mortgage Loan shall remain a Specially Serviced
         Mortgage Loan, and shall continue to be serviced by the Special
         Servicer, until the earlier of the liquidation or other disposition of
         such Mortgage Loan or the termination of the subservicing agreement,
         regardless of delinquency status or otherwise;

                  (12) the Guarantor may remove the Special Servicer if the
         Special Servicer at any time fails to meet any of the above criteria or
         otherwise, in the judgment of the Guarantor, fails to perform according
         to the terms of the subservicing agreement and the provisions of this
         Section 3.14; provided that prior to any such removal the Guarantor
         shall designate a successor Special Servicer meeting the requirements
         of this Section 3.14, and no removal of a Special Servicer shall be
         effective until a successor Special Servicer has entered into a special
         subservicing agreement meeting the requirements of this Section 3.14
         and agreed to assume the duties of the Special Servicer or the Master
         Servicer has undertaken such duties; and

                  (13) in connection with any transfer of a Group I Mortgage
         Loan to the Special Servicer as a Specially Serviced Mortgage Loan, the
         Master Servicer shall execute any appropriate assignments or other
         documents reasonable and necessary to further the prosecution of the
         Special Servicer obligations under the special subservicing agreement.

                  SECTION 3.15 Reports of Foreclosure and Abandonment of
                               Mortgaged Properties.

                  The Master Servicer shall file information returns with
respect to the receipt of mortgage interest received in a trade or business,
reports of foreclosures and abandonments of any Mortgaged Property and
cancellation of indebtedness income with respect to any Mortgaged Property as
required by Sections 6050H, 6050J and 6050P of the Code, respectively. Such
reports shall be in form and substance sufficient to meet the reporting
requirements imposed by such Sections 6050H, 6050J and 6050P of the Code.

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                  SECTION 3.16 Optional Purchase of Defaulted Mortgage Loans.

                  (a) (i) The NIMS Insurer or the Guarantor (only with respect
to the Group I Mortgage Loans) may, at its option, purchase a Mortgage Loan
which has become 90 or more days delinquent or for which the Master Servicer has
accepted a deed in lieu of foreclosure. Prior to purchase pursuant to this
Section 3.16(a)(i), the Master Servicer shall be required to continue to make
Advances pursuant to Section 4.03. The NIMS Insurer or the Guarantor, as
applicable, shall not use any procedure in selecting Mortgage Loans to be
repurchased which is materially adverse to the interests of the
Certificateholders. The NIMS Insurer or the Guarantor, as applicable, shall
purchase such delinquent Mortgage Loan at a price equal to the Purchase Price of
such Mortgage Loan. Any such purchase of a Mortgage Loan pursuant to this
Section 3.16(a)(i) shall be accomplished by remittance to the Master Servicer
for deposit in the Collection Account of the amount of the Purchase Price. The
Trustee shall effectuate the conveyance of such delinquent Mortgage Loan to the
NIMS Insurer or the Guarantor, as applicable, to the extent necessary, as
requested, and the Trustee shall promptly deliver all documentation to the NIMS
Insurer or the Guarantor, as applicable.

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

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

                  SECTION 3.17 Trustee to Cooperate; Release of Mortgage Files.

                  (a) Upon the payment in full of any Mortgage Loan, or the
receipt by the Master Servicer of a notification that payment in full shall be
escrowed in a manner customary

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for such purposes, the Master Servicer shall promptly notify the Trustee and any
related Custodian by a certification in the form of Exhibit E or such other form
supplied by the Master Servicer provided that it does not differ from the
substantive content of Exhibit E (which certification shall include a statement
to the effect that all amounts received or to be received in connection with
such payment which are required to be deposited in the Collection Account
pursuant to Section 3.04(b) have been or shall be so deposited) of a Servicing
Officer and shall request delivery to it of the Mortgage File. Upon receipt of
such certification and request, the Trustee or such Custodian, as the case may
be, shall promptly release (and in no event more than three (3) Business Days
thereafter) the related Mortgage File to the Master Servicer. No expenses
incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the Collection Account or the Distribution
Account. (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Trustee and any related
Custodian shall, upon request of the Master Servicer and delivery to the Trustee
or such Custodian, as the case may be, of a Request for Release in the form of
Exhibit E or such other form supplied by the Master Servicer provided that it
does not differ from the substantive content of Exhibit E, release the related
Mortgage File to the Master Servicer, and the Trustee shall, at the direction of
the Master Servicer, execute such documents as shall be necessary to the
prosecution of any such proceedings and the Master Servicer shall retain such
Mortgage File in trust for the benefit of the Certificateholders. Such Request
for Release shall obligate the Master Servicer to return each and every document
previously requested from the Mortgage File to the Trustee or to such Custodian
when the need therefor by the Master Servicer no longer exists, unless the
Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Collection Account or the Mortgage File
or such document has been delivered to an attorney, or to a public trustee or
other public official as required by law, for purposes of initiating or pursuing
legal action or other proceedings for the foreclosure of the Mortgaged Property
either judicially or non-judicially, and the Master Servicer has delivered to
the Trustee a certificate of a Servicing Officer certifying as to the name and
address of the Person to which such Mortgage File or such document was delivered
and the purpose or purposes of such delivery. Upon receipt of a certificate of a
Servicing Officer stating that such Mortgage Loan was liquidated and that all
amounts received or to be received in connection with such liquidation that are
required to be deposited into the Collection Account have been so deposited, or
that such Mortgage Loan has become an REO Property, upon request, a copy of the
Request for Release shall be released by the Trustee or such Custodian to the
Master Servicer.

                  (c) Upon written certification of a Servicing Officer, the
Trustee shall execute and deliver to the Master Servicer any court pleadings,
requests for trustee's sale or other documents reasonably necessary to the
foreclosure or trustee's sale in respect of a Mortgaged Property or to any legal
action brought to obtain judgment against any Mortgagor on the Mortgage Note or
Mortgage or to obtain a deficiency judgment, or to enforce any other remedies or
rights provided by the Mortgage Note or Mortgage or otherwise available at law
or in equity. Each such certification shall include a request that such
pleadings or documents be executed by the Trustee and a statement as to the
reason such documents or pleadings are required and that the execution and
delivery thereof by the Trustee shall not invalidate or otherwise affect the
lien

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of the Mortgage, except for the termination of such a lien upon completion of
the foreclosure or trustee's sale.

                  (d) The Trustee and the Master Servicer may mutually agree on
policies and procedures (commercially reasonable in nature) to allow the
submission of any and all requests for the release of a Mortgage File
electronically with a digital signature or other identifier to designate the
Servicing Officer of the Master Servicer requesting such collateral.

                  SECTION 3.18 Servicing Compensation.

                  As compensation for the activities of the Master Servicer
hereunder, the Master Servicer shall be entitled to the Servicing Fee with
respect to each Mortgage Loan payable solely from payments of interest in
respect of such Mortgage Loan, subject to Section 4.03(e). In addition, the
Master Servicer shall be entitled to recover unpaid Servicing Fees out of
Insurance Proceeds, Subsequent Recoveries or Liquidation Proceeds to the extent
permitted by Section 3.05(a)(ii), out of general funds in the Collection Account
to the extent permitted by Section 3.05(a) and out of amounts derived from the
operation and sale of an REO Property to the extent permitted by Section 3.13.
The right to receive the Servicing Fee may not be transferred in whole or in
part except in connection with the transfer of all of the Master Servicer's
responsibilities and obligations under this Agreement.

                  Additional servicing compensation in the form of assumption
fees, late payment charges, insufficient funds fees, reconveyance fees and other
similar fees and charges (other than Prepayment Charges) shall be retained by
the Master Servicer only to the extent such amounts, fees or charges are
received by the Master Servicer. The Master Servicer shall also be entitled
pursuant to Section 3.05(a)(vi) to withdraw from the Collection Account,
pursuant to Section 3.04(h) to withdraw from any Escrow Account and pursuant to
Section 3.13(b) to withdraw from any REO Account, as additional servicing
compensation, interest or other income earned on deposits therein, subject to
Section 3.06. The Master Servicer shall be required to pay all expenses incurred
by it in connection with its servicing activities hereunder (including premiums
for the insurance required by Section 3.08, Section 3.09 and Section 3.10, to
the extent such premiums are not paid by the related Mortgagors or by a
Sub-Servicer, servicing compensation of each Sub-Servicer, and to the extent
provided in Section 8.05, the fees and expenses of the Trustee) and shall not be
entitled to reimbursement therefor except as specifically provided herein.

                  SECTION 3.19 Statement as to Compliance.

                  The Master Servicer shall deliver to the Trustee, the NIMS
Insurer, the Guarantor, the Depositor and each Rating Agency on or before March
15th of each calendar year commencing in 2005, an Officers' Certificate in a
form similar to Exhibit M attached hereto agreeable to the parties hereto,
stating, as to each signatory thereof, that (i) a review of the activities of
the Master Servicer during the preceding calendar year and of performance under
this Agreement has been made under such officers' supervision and (ii) to the
best of such officers' knowledge, based on such review, the Master Servicer has
fulfilled all of its obligations under this Agreement throughout such year, or,
if there has been a default in the fulfillment of

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any such obligation, specifying each such default known to such officer and the
nature and status thereof. Copies of any such statement shall be provided by the
Trustee to any Certificateholder and to any Person identified to the Trustee as
a prospective transferee of a Certificate, upon the request and at the expense
of the requesting party, provided that such statement is delivered by the Master
Servicer to the Trustee.

                  SECTION 3.20 Independent Public Accountants' Servicing Report.

                  Not later than March 15th of each calendar year commencing in
2005, the Master Servicer, at its expense, shall cause a nationally recognized
firm of independent certified public accountants to furnish to the Master
Servicer a report stating that (i) it has obtained a letter of representation
regarding certain matters from the management of the Master Servicer which
includes an assertion that the Master Servicer has complied with certain minimum
residential mortgage loan servicing standards, identified in the Uniform Single
Attestation Program for Mortgage Bankers established by the Mortgage Bankers
Association of America, with respect to the servicing of residential mortgage
loans during the most recently completed calendar year and (ii) on the basis of
an examination conducted by such firm in accordance with standards established
by the American Institute of Certified Public Accountants, such representation
is fairly stated in all material respects, subject to such exceptions and other
qualifications that may be appropriate. In rendering its report such firm may
rely, as to matters relating to the direct servicing of residential mortgage
loans by Sub-Servicers, upon comparable reports of firms of independent
certified public accountants rendered on the basis of examinations conducted in
accordance with the same standards (rendered within one year of such report)
with respect to those Sub-Servicers. Immediately upon receipt of such report,
the Master Servicer shall furnish a copy of such report to the Trustee, the NIMS
Insurer, the Guarantor and each Rating Agency. Copies of such statement shall be
provided by the Trustee to any Certificateholder upon request at the Master
Servicer's expense, provided that such statement is delivered by the Master
Servicer to the Trustee. In the event such firm of independent certified public
accountants requires the Trustee to agree to the procedures performed by such
firm, the Master Servicer shall direct the Trustee in writing to so agree; it
being understood and agreed that the Trustee shall deliver such letter of
agreement in conclusive reliance upon the direction of the Master Servicer, and
the Trustee has not made any independent inquiry or investigation as to, and
shall have no obligation or liability in respect of, the sufficiency, validity
or correctness of such procedures.

                  SECTION 3.21 Access to Certain Documentation.

                  (a) The Master Servicer shall provide to the Office of Thrift
Supervision, the FDIC, and any other federal or state banking or insurance
regulatory authority that may exercise authority over any Certificateholder or
Certificate Owner, access to the documentation regarding the Mortgage Loans
required by applicable laws and regulations. Such access shall be afforded
without charge, but only upon reasonable request and during normal business
hours at the offices of the Master Servicer designated by it. In addition,
access to the documentation regarding the Mortgage Loans shall be provided to
the Trustee, the NIMS Insurer and the Guarantor, upon reasonable request during
normal business hours at the offices of the Master Servicer designated by it at
the expense of the Person requesting such access. In each case, access to any
documentation regarding the Mortgage Loans may be conditioned upon the
requesting party's

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acknowledgment in writing of a confidentiality agreement regarding any
information that is not public or is required to remain confidential under the
Gramm-Leach-Bliley Act of 1999.

                  (b) For a period of two years from the Closing Date, the
Guarantor may contact the Depositor or the Seller to confirm that the Seller
continues to actively engage in a program to originate mortgage loans to
low-income families and to obtain other non-proprietary information about the
Seller's activities that may assist the Guarantor in completing its own
regulatory requirements during normal business hours and subject to
reimbursement for expenses. The Depositor shall use reasonable efforts to
provide such information to the Guarantor.

                  SECTION 3.22 PMI Policies; Claims Under the PMI Policies.

                  Notwithstanding anything to the contrary elsewhere in this
Agreement, the Master Servicer shall not agree to any modification or assumption
of a PMI Mortgage Loan or take any other action with respect to a PMI Mortgage
Loan that could result in denial of coverage under the related PMI Policy. The
Master Servicer shall notify the related PMI Insurer that the Trustee, on behalf
of the Certificateholders, is the Insured, as that term is defined in the
related PMI Policy, of each PMI Mortgage Loan. The Master Servicer shall, on
behalf of the Trustee, prepare and file on a timely basis with the related PMI
Insurer, with a copy to the Trustee, all claims which may be made under the
related PMI Policy with respect to the PMI Mortgage Loans. Consistent with all
rights and obligations hereunder, the Master Servicer shall take all actions
required under each of the PMI Policies as a condition to the payment of any
such claim. Any amount received from either PMI Insurer with respect to any such
PMI Mortgage Loan shall be deposited by the Master Servicer into the Collection
Account in accordance with Section 3.04(b). The Trustee shall withdraw from the
Distribution Account on each Distribution Date and pay to the related PMI
Insurer the related PMI Insurer Fee in accordance with the terms of the related
PMI Policy.

                  SECTION 3.23 Advance Facility.

                  (a) The Master Servicer and/or the Trustee on behalf of the
Trust Fund, in either case, with the consent of the Guarantor, the NIMS Insurer
and the Master Servicer in the case of the Trustee, is hereby authorized to
enter into a facility (an "Advance Facility") with any Person (an "Advancing
Person") (1) under which the Master Servicer sells, assigns or pledges to the
Advancing person the Master Servicer's rights under this Agreement to be
reimbursed for any Advances and/or Servicing Advances or (2) which provides that
the Advancing Person may fund Advances and/or Servicing Advances to the Trust
Fund under this Agreement, although no such facility shall reduce or otherwise
affect the Master Servicer's obligation to fund such Advances and/or Servicing
Advances. If the Master Servicer enters into such an Advance Facility pursuant
to this Section 3.23, upon reasonable request of the Advancing Person, the
Trustee shall execute a letter of acknowledgment, confirming its receipt of
notice of the existence of such Advance Facility. To the extent that an
Advancing Person funds any Advance or any Servicing Advance or is assigned the
right to be reimbursed for any Advance or Servicing Advance and provides the
Trustee with notice acknowledged by the Master Servicer that such Advancing
Person is entitled to reimbursement directly from the Trustee pursuant to the
terms of

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the Advance Facility, such Advancing Person shall be entitled to receive
reimbursement pursuant to this Agreement for such amount to the extent provided
in Section 3.23(b). Such notice from the Advancing Person must specify the
amount of the reimbursement, the Section of this Agreement that permits the
applicable Advance or Servicing Advance to be reimbursed and the section(s) of
the Advance Facility that entitle the Advancing Person to request reimbursement
from the Trustee, rather than the Master Servicer, and include the Master
Servicer's acknowledgment thereto or proof of an Event of Default under the
Advance Facility. The Trustee shall have no duty or liability with respect to
any calculation of any reimbursement to be paid to an Advancing Person and shall
be entitled to rely without independent investigation on the Advancing Person's
notice provided pursuant to this Section 3.23. An Advancing Person whose
obligations hereunder are limited to the funding of Advances and/or Servicing
Advances shall not be required to meet the qualifications of a Master Servicer
or a Sub-Servicer pursuant to Section 6.06 hereof and shall not be deemed to be
a Sub-Servicer under this Agreement. If the terms of a facility proposed to be
entered into with an Advancing Person by the Trust Fund would not materially and
adversely affect the interests of any Certificateholder, then the NIMS Insurer
shall not withhold its consent to the Trust Fund's entering such facility.

                  (b) If, pursuant to the terms of the Advance Facility, an
Advancing Person is entitled to reimbursement directly from the Trustee, then
the Master Servicer shall not reimburse itself therefor under Section
3.05(a)(ii), Section 3.05(a)(iii) or Section 3.05(a)(v) prior to the remittance
to the Trust Fund, but instead the Master Servicer shall include such amounts in
the applicable remittance to the Trustee made pursuant to Section 3.04(g) to the
extent of amounts on deposit in the Collection Account on the related Master
Servicer Remittance Date. The Trustee is hereby authorized to pay to the
Advancing Person reimbursements for Advances and Servicing Advances from the
Distribution Account, to the extent permitted under the terms of the Advance
Facility, to the same extent the Master Servicer would have been permitted to
reimburse itself for such Advances and/or Servicing Advances in accordance with
Section 3.05(a)(ii), Section 3.05(a)(iii) or Section 3.05(a)(v), as the case may
be, had the Master Servicer itself funded such Advance or Servicing Advance. The
Trustee is hereby authorized to pay directly to the Advancing Person such
portion of the Servicing Fee as the parties to any Advance Facility agree to in
writing delivered to the Trustee. An Advance Facility may provide that the
Master Servicer will otherwise cause the remittance of Advance and/or Servicing
Advance reimbursement amounts to the Advancing Person, in which case the
foregoing sentences in this Section 3.23(b) shall not apply.

                  (c) All Advances and Servicing Advances made pursuant to the
terms of this Agreement shall be deemed made and shall be reimbursed on a "first
in first out" (FIFO) basis.

                  (d) In the event the Master Servicer is terminated pursuant to
Section 7.01, the Advancing Person shall succeed to the terminated Master
Servicer's right of reimbursement set forth in Section 7.02(c) to the extent of
such Advancing Person's financing of or receipt of assignment or pledge of the
right to be reimbursed for Advances or Servicing Advances hereunder then
remaining unreimbursed.

                  (e) None of the Trust Fund, any party to this Agreement or any
other Person shall have any right or claim (including without limitation any
right of offset or recoupment) to

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any amounts allocable under this Agreement to the reimbursement of Advances or
Servicing Advances that have been assigned, conveyed or pledged to an Advancing
Person, or that relate to Advances or Servicing Advances that were funded by an
Advancing Person.

                  (f) Any amendment to this Section 3.23 or to any other
provision of this Agreement that may be necessary or appropriate to effect the
terms of an Advance Facility as described generally in this Section 3.23,
including amendments to add provisions relating to a successor master servicer,
may be entered into by the Trustee and the Master Servicer without the consent
of any Certificateholder but with the consent of the Guarantor and the NIMS
Insurer and written confirmation from each Rating Agency that the amendment
shall not result in the reduction or withdrawal of the then-current ratings of
any outstanding Class of Certificates or any other notes secured by collateral
which includes all or a portion of the Class CE Certificates, the Class P
Certificates and/or the Residual Certificates, notwithstanding anything to the
contrary in this Agreement.

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                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

                  SECTION 4.01 Distributions.

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

                  With respect to the Group I Mortgage Loans:

                  (1)(i) to the Holders of REMIC Regular Interest I-LT1, REMIC I
          Regular Interest I-LT1PF and REMIC I Regular Interest I-LTP in an
          amount equal to (A) the Uncertificated Interest for each REMIC I
          Regular Interest for such Distribution Date, plus (B) any amounts in
          respect thereof remaining unpaid from previous Distribution Dates; and

                  (ii) to the Holders of REMIC I Regular Interest I-LTP, on the
          Distribution Date immediately following the expiration of the latest
          Prepayment Charge as identified on the Prepayment Charge Schedule or
          any Distribution Date thereafter until $100 has been distributed
          pursuant to this clause;

                  (2) to the Holders of REMIC I Regular Interest I-LT1 and REMIC
          I Regular Interest I-LT1PF, in an amount equal to the remainder of the
          Available Funds for such Distribution Date after the distributions
          made pursuant to clause (i) above, allocated as follows:

                          (a) to the Holders of REMIC I Regular Interest I-LT1,
                  until the Uncertificated Balance of REMIC I Regular Interest
                  I-LT1 is reduced to zero;

                          (b) to the Holders of REMIC I Regular Interest
                  I-LT1PF, until the Uncertificated Balance of REMIC I Regular
                  Interest I-LT1PF is reduced to zero; and

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

provided, however, that for the first three Distribution Dates, such amounts
relating to the Initial Group I Mortgage Loans shall be allocated to REMIC I
Regular Interest I-LT1 and such amounts relating to the Subsequent Group I
Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT1PF.

                  With respect to the Group II Mortgage Loans:

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                  (1)(i) to the Holders of REMIC Regular Interest I-LT2 and
         REMIC I Regular Interest I-LT2PF in an amount equal to (A) the
         Uncertificated Interest for each REMIC I Regular Interest for such
         Distribution Date, plus (B) any amounts in respect thereof remaining
         unpaid from previous Distribution Dates; and

                  (ii) to the Holders of REMIC I Regular Interest I-LT2 and
         REMIC I Regular Interest I-LT2PF, in an amount equal to the remainder
         of the Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated as follows:

                           (a) to the Holders of REMIC I Regular Interest I-LT2,
                  until the Uncertificated Balance of REMIC I Regular Interest
                  I-LT2 is reduced to zero;

                           (b) to the Holders of REMIC I Regular Interest
                  I-LT2PF, until the Uncertificated Balance of REMIC I Regular
                  Interest I-LT2PF is reduced to zero; and

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

provided, however, that for the first three Distribution Dates, such amounts
relating to the Initial Group II Mortgage Loans shall be allocated to REMIC I
Regular Interest I-LT2 and such amounts relating to the Subsequent Group II
Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2PF.

                  On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans received during the related Prepayment
Period shall be distributed by REMIC I to the Holders of REMIC I Regular
Interest I-LTP. The payment of the foregoing amounts to the Holders of REMIC I
Regular Interest I-LTP shall not reduce the Uncertificated Balance thereof.

                  (b) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC II to REMIC III on
account of the REMIC II Regular Interests or withdrawn from the Distribution
Account and distributed to the Holders of the Class R Certificates (in respect
of the Class R-II Interest), as the case may be:

                  (i) first, to the Holders of REMIC II Regular Interest
         II-LTAA, REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
         II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest
         II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
         II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
         II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest
         II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest
         II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular Interest
         II-LTM10, REMIC II Regular Interest II-LTZZ and REMIC II Regular
         Interest II-LTP, on a PRO RATA basis, in an amount equal to (A) the
         Uncertificated Interest for such Distribution Date, plus (B) any
         amounts in respect thereof remaining unpaid from previous

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         Distribution Dates. Amounts payable as Uncertificated Interest in
         respect of REMIC II Regular Interest II-LTZZ shall be reduced and
         deferred when the REMIC II Overcollateralized Amount is less than the
         REMIC II Overcollateralization Target Amount, by the lesser of (x) the
         amount of such difference and (y) the Maximum II-LTZZ Uncertificated
         Interest Deferral Amount and such amount shall be payable to the
         Holders of REMIC II Regular Interest II-LTA1, REMIC II Regular Interest
         II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular Interest
         II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
         II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
         II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest
         II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest
         II-LTM8, REMIC II Regular Interest II-LTM9, and REMIC II Regular
         Interest II-LTM10 in the same proportion as the Overcollateralization
         Increase Amount is allocated to the Corresponding Certificates and the
         Uncertificated Principal Balance of the REMIC II Regular Interest
         II-LTZZ shall be increased by such amount;

                  (ii) to the Holders of REMIC II Regular Interest II-LT1SUB,
         REMIC II Regular Interest II-LT1GRP, REMIC II Regular Interest
         II-LT2SUB, REMIC II Regular Interest II-LT2GRP and REMIC II Regular
         Interest II-LTXX, on a PRO RATA basis, in an amount equal to (A) the
         Uncertificated Interest for such Distribution Date, plus (B) any
         amounts in respect thereof remaining unpaid from previous Distribution
         Dates;

                  (iii) to the Holders of REMIC II Regular Interests, in an
         amount equal to the remainder of the REMIC II Marker Allocation
         Percentage of the Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated as follows:

                           (a) 98.00% of such remainder (other than amounts
                  payable under clause (c) below) to the Holders of REMIC II
                  Regular Interest II-LTAA and REMIC II Regular Interest II-LTP,
                  until the Uncertificated Balance of such REMIC II Regular
                  Interest is reduced to zero, provided, however, that REMIC II
                  Regular Interest II-LTP shall not be reduced until the
                  Distribution Date immediately following the expiration of the
                  latest Prepayment Charge as identified on the Prepayment
                  Charge Schedule or any Distribution Date thereafter, at which
                  point such amount shall be distributed to REMIC II Regular
                  Interest II-LTP, until $100 has been distributed pursuant to
                  this clause;

                           (b) 2.00% of such remainder (other than amounts
                  payable under clause (c) below) first, to the Holders of REMIC
                  II Regular Interest II-LTA1, REMIC II Regular Interest
                  II-LTA2, REMIC II Regular Interest II-LTA3, REMIC II Regular
                  Interest II-LTA4, REMIC II Regular Interest II-LTM1, REMIC II
                  Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3,
                  REMIC II Regular Interest II-LTM4, REMIC II Regular Interest
                  II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular
                  Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II
                  Regular Interest II-LTM9, and REMIC II Regular Interest
                  II-LTM10, 1.00% in the same proportion as principal payments
                  are allocated to the Corresponding Certificates, until the
                  Uncertificated Balances

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<PAGE>

                  of such REMIC II Regular Interests are reduced to zero and
                  second, to the Holders of REMIC II Regular Interest II-LTZZ,
                  (other than amounts payable under clause (c) below), until the
                  Uncertificated Balance of such REMIC II Regular Interest is
                  reduced to zero; and

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

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Reduction Amount shall be allocated
to the Holders of (i) REMIC II Regular Interest II-LTAA and REMIC II Regular
Interest II-LTP, in that order and (ii) REMIC II Regular Interest II-LTZZ,
respectively; provided that REMIC II Regular Interest II-LTP shall not be
reduced until the Distribution Date immediately following the expiration of the
latest Prepayment Charge as identified on the Prepayment Charge Schedule or any
Distribution Date thereafter, at which point such amount shall be distributed to
REMIC II Regular Interest II-LTP, until $100 has been distributed pursuant to
this clause; and

                  (iv) to the Holders of REMIC II Regular Interests, in an
         amount equal to the remainder of the REMIC II Sub WAC Allocation
         Percentage of Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, such that
         distributions of principal shall be deemed to be made to the REMIC II
         Regular Interests first, so as to keep the Uncertificated Balance of
         each REMIC II Regular Interest ending with the designation "GRP" equal
         to 0.01% of the aggregate Stated Principal Balance of the Mortgage
         Loans in the related Loan Group; second, to each REMIC II Regular
         Interest ending with the designation "SUB," so that the Uncertificated
         Balance of each such REMIC II Regular Interest is equal to 0.01% of the
         excess of (x) the aggregate Stated Principal Balance of the Mortgage
         Loans in the related Loan Group over (y) the current Certificate
         Principal Balance of the Class A Certificate in the related Loan Group
         (except that if any such excess is a larger number than in the
         preceding distribution period, the least amount of principal shall be
         distributed to such REMIC II Regular Interests such that the REMIC II
         Subordinated Balance Ratio is maintained); and third, any remaining
         principal to REMIC II Regular Interest II-LTXX.

                  Notwithstanding the priorities and amounts of distribution of
funds pursuant to this Section 4.01(a)(1), actual distributions of the Available
Funds shall be made only in accordance with Section 4.01(a)(2), (3) and (4).

                  (2)(I)   On each Distribution Date, the Trustee shall withdraw
from the Distribution Account an amount equal to the Group I Interest Remittance
Amount and distribute to the Certificateholders the following amounts, in the
following order of priority:

                  (i) to the Guarantor, the Guaranty Fee;

                  (ii) to the Holders of the Group I Certificates, the Senior
         Interest Distribution Amount related to such Certificates;

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<PAGE>

                  (iii) to the Guarantor, any Guarantor Reimbursement Amount
         then due; and

                  (iv) concurrently, to the Holders of each Class of Group II
         Certificates, on a PRO RATA basis based on the entitlement of each such
         Class, any Senior Interest Distribution Amount related to such
         Certificates remaining undistributed after the distribution of the
         Group II Interest Remittance Amount, as set forth in Section
         4.01(a)(2)(II)(i) below.

                  (II)     On each Distribution Date, the Trustee shall withdraw
from the Distribution Account an amount equal to the Group II Interest
Remittance Amount and distribute to the Certificateholders the following
amounts, in the following order of priority:

                  (i) concurrently, to the Holders of each Class of Group II
         Certificates, on a PRO RATA basis based on the entitlement of each such
         Class, the Senior Interest Distribution Amount related to such
         Certificates;

                  (ii) to the Holders of the Group I Certificates, the Senior
         Interest Distribution Amount related to such Certificates remaining
         undistributed after the distribution of the Group I Interest Remittance
         Amount, as set forth in Section 4.01(a)(2)(I)(ii) above;

                  (iii) to the Guarantor, the Guaranty Fee, to the extent
         remaining unpaid after the distributions of the Group I Interest
         Remittance Amount as set forth in Section 4.01(a)(2)(I)(i); and

                  (iv) to the Guarantor, any Guarantor Reimbursement Amount then
         due, to the extent remaining unpaid after the distributions of the
         Group I Interest Remittance Amount as set forth in Section
         4.01(a)(2)(I)(iii).

                  (III)    On each Distribution Date, following the
distributions made pursuant to Section 4.01(a)(2)(I) and (II) above, the Trustee
shall withdraw from the Distribution Account an amount equal to any remaining
Group I Interest Remittance Amount and Group II Interest Remittance Amount
remaining which shall be distributed sequentially to the Class M-1, Class M-2,
Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and
Class M-10 Certificates, in that order, in an amount equal to the Interest
Distribution Amount for each such Class.

                  (3)(I)   On each Distribution Date (a) prior to the Stepdown
Date or (b) on which a Trigger Event is in effect, the Group I Principal
Distribution Amount shall be distributed in the following order of priority:

                  (i) to the Holders of the Group I Certificates, until the
         Certificate Principal Balance thereof has been reduced to zero;

                  (ii) to the Guarantor, any Guarantor Reimbursement Amount then
         due, to the extent not paid pursuant to Sections 4.01(a)(2)(I)(i) and
         (iii) and 4.01(a)(2)(II)(iii) and (iv); and

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<PAGE>

                  (iii) to the Holders of the Group II Certificates (allocated
         among the Classes of Group II Certificates in the priority described in
         Section 4.01(a)(5) below), after taking into account the distribution
         of the Group II Principal Distribution Amount already distributed, as
         set forth in Section 4.01(a)(3)(II) below, until the Certificate
         Principal Balances thereof have been reduced to zero.

                  (II)     On each Distribution Date (a) prior to the Stepdown
Date or (b) on which a Trigger Event is in effect, the Group II Principal
Distribution Amount shall be distributed in the following order of priority:

                  (i) to the Holders of the Group II Certificates (allocated
         among the Classes of Group II Certificates in the priority described in
         Section 4.01(a)(5) below), until the Certificate Principal Balances
         thereof have been reduced to zero; and

                  (ii) to the Holders of the Group I Certificates, after taking
         into account the distribution of the Group I Principal Distribution
         Amount already distributed as set forth in Section 4.01(a)(3)(I) above
         until the Certificate Principal Balance thereof has been reduced to
         zero.

                  (III)    On each Distribution Date (a) prior to the Stepdown
Date or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the sum of the Group I Principal Distribution Amount
and the Group II Principal Distribution Amount remaining undistributed for such
Distribution Date shall be distributed sequentially to the Class M-1, Class M-2,
Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and
Class M-10 Certificates, in that order, until the Certificate Principal Balance
of each such Class has been reduced to zero.

                  (IV)     On each Distribution Date (a) on or after the
Stepdown Date and (b) on which a Trigger Event is not in effect, the Group I
Principal Distribution Amount shall be distributed in the following order of
priority:

                  (i) to the Holders of the Group I Certificates, the Senior
         Group I Principal Distribution Amount, until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (ii) to the Guarantor, any Guarantor Reimbursement Amount then
         due, to the extent not paid pursuant to Sections 4.01(a)(2)(I)(i) and
         (iii) and 4.01(a)(2)(II)(iii) and (iv); and

                  (iii) to the Holders of the Group II Certificates (allocated
         among the Classes of Group II Certificates in the priority described in
         Section 4.01(a)(5) below), after taking into account the distribution
         of the Group II Principal Distribution Amount, as set forth in Section
         4.01(a)(3)(V)(i) below, up to an amount equal to the Senior Group II
         Principal Distribution Amount remaining undistributed, until the
         Certificate Principal Balances thereof have been reduced to zero.

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<PAGE>

                  (V)      On each Distribution Date (a) on or after the
Stepdown Date and (b) on which a Trigger Event is not in effect, the Group II
Principal Distribution Amount shall be distributed in the following order of
priority:

                  (i) to the Holders of the Group II Certificates (allocated
         among the Classes of Group II Certificates in the priority described in
         Section 4.01(a)(5) below), the Senior Group II Principal Distribution
         Amount, until the Certificate Principal Balances thereof have been
         reduced to zero; and

                  (ii) to the Holders of the Group I Certificates after taking
         into account the distribution of the Group I Principal Distribution
         Amount, as set forth in Section 4.01(a)(3)(IV) above, up to an amount
         equal to the Senior Group I Principal Distribution Amount remaining
         undistributed, until the Certificate Principal Balance thereof has been
         reduced to zero.

                  (VI)     On each Distribution Date (a) on or after the
Stepdown Date and (b) on which a Trigger Event is not in effect, the sum of the
Group I Principal Distribution Amount and the Group II Principal Distribution
Amount remaining undistributed for such Distribution Date shall be distributed
in the following order of priority:

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

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

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

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

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

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

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

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<PAGE>

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

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

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

                  (4) On each Distribution Date, the Net Monthly Excess Cashflow
shall be distributed as follows:

                  (i) to the Holders of the Class or Classes of Certificates
         then entitled to receive distributions in respect of principal, in an
         amount equal to the Overcollateralization Increase Amount, applied as
         part of the Group I Principal Distribution Amount or the Group II
         Principal Distribution Amount, as applicable, to reduce the Certificate
         Principal Balance of such Certificates until the aggregate Certificate
         Principal Balance of such Certificates is reduced to zero;

                  (ii) sequentially, to the Holders of the Class M-1, Class M-2,
         Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
         M-9 and Class M-10 Certificates, in that order, in each case up to the
         Interest Carry Forward Amount for each such Class of Mezzanine
         Certificates for such Distribution Date;

                  (iii) sequentially, to the Holders of the Class M-1, Class
         M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
         Class M-9 and Class M-10 Certificates, in that order, in each case up
         to the Allocated Realized Loss Amount for each such Class of Mezzanine
         Certificates for such Distribution Date;

                  (iv) to the Net WAC Rate Carryover Reserve Account, the amount
         required by Section 4.10(b), after taking into account amounts, if any,
         received under the Cap Contracts;

                  (v) to the Holders of the Class CE Certificates, (a) the
         Interest Distribution Amount and any Overcollateralization Reduction
         Amount for such Distribution Date and (b) on any Distribution Date on
         which the Certificate Principal Balances of the Class A Certificates
         and the Mezzanine Certificates have been reduced to zero, any remaining
         amounts in reduction of the Certificate Principal Balance of the Class
         CE Certificates, until the Certificate Principal Balance thereof has
         been reduced to zero; and

                  (vi) to the Holders of the Class R Certificates, any remaining
         amounts; provided that if such Distribution Date is the Distribution
         Date immediately following the expiration of the latest Prepayment
         Charge term as identified on the Mortgage Loan Schedule or any
         Distribution Date thereafter, then any such remaining amounts shall be

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<PAGE>

         distributed first, to the Holders of the Class P Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero; and
         second, to the Holders of the Class R Certificates.

                  (5)      With respect to the Group II Certificates, all
principal distributions will be distributed sequentially, to the Class A-2,
Class A-3 and Class A-4 Certificates, in that order, until their respective
Certificate Principal Balances have been reduced to zero; provided, however, on
any Distribution Date on which the aggregate Certificate Principal Balance of
the Mezzanine Certificates and the Class CE Certificates has been reduced to
zero, all distributions of principal to the Group II Certificates will be
distributed concurrently, on a PRO RATA basis based on the Certificate Principal
Balance of each such Class.

                  On each Distribution Date, following the foregoing
distributions, an amount equal to the amount of Subsequent Recoveries deposited
into the Collection Account pursuant to Section 3.05 and included in the
Available Funds for such Distribution Date shall be applied to increase the
Certificate Principal Balance of the Class of Certificates with the Highest
Priority up to the extent of such Realized Losses previously allocated to that
Class of Certificates pursuant to Section 4.04. An amount equal to the amount of
any remaining Subsequent Recoveries shall be applied to increase the Certificate
Principal Balance of the Class of Certificates with the next Highest Priority,
up to the amount of such Realized Losses previously allocated to that Class of
Certificates pursuant to Section 4.04, and so on. Holders of such Certificates
shall not be entitled to any distribution in respect of interest on the amount
of such increases for any Interest Accrual Period preceding the Distribution
Date on which such increase occurs. Any such increases shall be applied to the
Certificate Principal Balance of each Certificate of such Class in accordance
with its respective Percentage Interest.

                  (c) On each Distribution Date, after making the distributions
of the Available Funds as set forth above, the Trustee shall FIRST, withdraw
from the Net WAC Rate Carryover Reserve Account all income from the investment
of funds in the Net WAC Rate Carryover Reserve Account and distribute such
amount to the Holders of the Class CE Certificates and SECOND, withdraw from the
Net WAC Rate Carryover Reserve Account, to the extent of amounts remaining on
deposit therein, the amount of any Net WAC Rate Carryover Amount for such
Distribution Date and distribute such amount as follows:

                  FIRST, concurrently, to each Class of Class A Certificates,
the related Cap Amount, in each case up to a maximum amount equal to the related
Net WAC Rate Carryover Amount for such Distribution Date;

                  SECOND, sequentially, to the Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10
Certificates, in that order, the related Cap Amount for such Distribution Date,
in each case up to a maximum amount equal to the related Net WAC Rate Carryover
Amount for such Distribution Date;

                  THIRD, concurrently, to each Class of Class A Certificates,
the related Net WAC Rate Carryover Amount remaining unpaid pursuant to clause
first above, on a PRO RATA basis based on such respective remaining Net WAC Rate
Carryover Amounts; and

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<PAGE>

                  FOURTH, sequentially to the Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9 and Class M-10
Certificates, in that order, the related Net WAC Rate Carryover Amount remaining
undistributed pursuant to clause second above.

                  On each Distribution Date, after the payment of any Net WAC
Rate Carryover Amounts on the Adjustable-Rate Certificates, any amounts
remaining in the Net WAC Rate Carryover Reserve Account (representing payments
received by the Trustee under the Cap Contracts), shall be payable to the
Trustee. For so long as any Adjustable-Rate Certificates are beneficially owned
by the Seller or any of its Affiliates, the Trustee shall not distribute any Cap
Amounts for such Certificates to the Seller or any of its Affiliates and shall
distribute 100% of the related Cap Amount to the other Certificateholders of
such Class.

                  On each Distribution Date, the Trustee shall withdraw any
amounts then on deposit in the Distribution Account that represent Prepayment
Charges collected by the Master Servicer, Prepayment Charges payable by the
Master Servicer pursuant to Section 2.03(b)(ii)(A) and Master Servicer
Prepayment Charge Payment Amounts payable by the Master Servicer pursuant to
Section 2.03(b)(ii)(B), subject to Section 2.03(b)(iii), in each case to the
extent not related to Principal Prepayments occurring after the related
Prepayment Period, and the Trustee shall distribute such amounts to the Holders
of the Class P Certificates. Such distributions shall not be applied to reduce
the Certificate Principal Balance of the Class P Certificates.

                  (d) All distributions made with respect to each Class of
Certificates on each Distribution Date shall be allocated PRO RATA among the
outstanding Certificates in such Class based on their respective Percentage
Interests. Payments in respect of each Class of Certificates on each
Distribution Date shall be made to the Holders of the respective Class of record
on the related Record Date (except as otherwise provided in Section 4.01(e) or
Section 9.01 respecting the final distribution on such Class), based on the
aggregate Percentage Interest represented by their respective Certificates, and
shall be made by wire transfer of immediately available funds to the account of
any such Holder at a bank or other entity having appropriate facilities
therefor, if such Holder shall have so notified the Trustee in writing at least
five Business Days prior to the Record Date immediately prior to such
Distribution Date, or otherwise by check mailed by first class mail to the
address of such Holder appearing in the Certificate Register. The final
distribution on each Certificate shall be made in like manner, but only upon
presentment and surrender of such Certificate at the office of the Trustee
maintained for such purpose pursuant to Section 8.12 or such other location
specified in the notice to Certificateholders of such final distribution.

                  Payments to the Guarantor on each Distribution Date will be
made by wire transfer of immediately available funds to the following Federal
Reserve Account:

                  Telegraphic:  FNMA NYC
                  ABA:  021-039-500
                  Ref:  2004-T9

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<PAGE>

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

                  (e) The rights of the Certificateholders to receive
distributions in respect of the Certificates, and all interests of the
Certificateholders in such distributions, shall be as set forth in this
Agreement. Neither the Holders of any Class of Certificates nor the Trustee nor
the Master Servicer shall in any way be responsible or liable to the Holders of
any other Class of Certificates in respect of amounts properly previously
distributed on the Certificates.

                  (f) Except as otherwise provided in Section 9.01, whenever the
Trustee expects that the final distribution with respect to any Class of
Certificates shall be made on the next Distribution Date, the Trustee shall, no
later than five (5) days after the related Determination Date, mail to the
Guarantor and each Holder on such date of such Class of Certificates a notice to
the effect that:

                  (i) the Trustee expects that the final distribution with
         respect to such Class of Certificates shall be made on such
         Distribution Date, but only upon presentation and surrender of such
         Certificates at the office of the Trustee therein specified or its
         agent; and

                  (ii) no interest shall accrue on such Certificates from and
         after the end of the related Interest Accrual Period.

                  Any funds not distributed to any Holder or Holders of
Certificates of such Class on such Distribution Date because of the failure of
such Holder or Holders to tender their Certificates shall, on such date, be set
aside and held in trust by the Trustee and credited to the account of the
appropriate non-tendering Holder or Holders. If any Certificates as to which
notice has been given pursuant to this Section 4.01(e) shall not have been
surrendered for cancellation within six months after the time specified in such
notice, the Trustee shall mail a second notice to the remaining non-tendering
Certificateholders to surrender their Certificates for cancellation in order to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trustee shall, directly or through an agent, mail a final
notice to remaining non-tendering Certificateholders concerning surrender of
their Certificates but shall continue to hold any remaining funds for the
benefit of non-tendering Certificateholders. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in such trust fund. If within one year after
the final notice any such Certificates shall not have been surrendered for
cancellation, the Trustee shall pay to the Representative all remaining amounts,
and all rights of non-tendering Certificateholders in or to such amounts shall

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thereupon cease. No interest shall accrue or be payable to any Certificateholder
on any amount held in trust by the Trustee as a result of such
Certificateholder's failure to surrender its Certificate(s) for final payment
thereof in accordance with this Section 4.01(e).

                  (g) Notwithstanding anything to the contrary herein, (i) in no
event shall the Certificate Principal Balance of a Class A Certificate or a
Mezzanine Certificate be reduced more than once in respect of any particular
amount both (a) allocated to such Certificate in respect of Realized Losses
pursuant to Section 4.04 and (b) distributed to the Holder of such Certificate
in reduction of the Certificate Principal Balance thereof pursuant to this
Section 4.01 from Net Monthly Excess Cashflow and (ii) in no event shall the
Uncertificated Balance of a REMIC Regular Interest be reduced more than once in
respect of any particular amount both (a) allocated to such REMIC Regular
Interest in respect of Realized Losses pursuant to Section 4.04 and (b)
distributed on such REMIC Regular Interest in reduction of the Uncertificated
Balance thereof pursuant to this Section 4.01.

                  SECTION 4.02 Statements to Certificateholders.

                  On each Distribution Date, the Trustee shall prepare and make
available to each Holder of the Regular Certificates, the Guarantor and the NIMS
Insurer, a statement as to the distributions made on such Distribution Date
setting forth:

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

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         interest;

                  (iii) the aggregate Servicing Fee received by the Master
         Servicer during the related Due Period and such other customary
         information as the Trustee deems necessary or desirable, or which a
         Certificateholder reasonably requests, to enable Certificateholders to
         prepare their tax returns;

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

                  (v) the aggregate Stated Principal Balance of the Mortgage
         Loans and any REO Properties as of the close of business on such
         Distribution Date;

                  (vi) the number, aggregate Stated Principal Balance, weighted
         average remaining term to maturity and weighted average Mortgage Rate
         of the Mortgage Loans as of the related Due Date and the number and
         aggregate Stated Principal Balance of all Subsequent Mortgage Loans
         added during the related Due Period;

                  (vii) the number and aggregate unpaid Stated Principal Balance
         of Mortgage Loans (a) delinquent 30-59 days, (b) delinquent 60-89 days,
         (c) delinquent 90 or more

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         days, in each case, as of the last day of the preceding calendar month,
         (d) as to which foreclosure proceedings have been commenced and (e)
         with respect to which the related Mortgagor has filed for protection
         under applicable bankruptcy laws, with respect to whom bankruptcy
         proceedings are pending or with respect to whom bankruptcy protection
         is in force;

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

                  (ix) the book value and the Stated Principal Balance of any
         REO Property as of the close of business on the last Business Day of
         the calendar month preceding the Distribution Date;

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

                  (xi) the aggregate amount of Realized Losses incurred during
         the related Prepayment Period (or, in the case of Bankruptcy Losses
         allocable to interest, during the related Due Period), separately
         identifying whether such Realized Losses constituted Bankruptcy Losses
         and the aggregate amount of Realized Losses incurred since the Closing
         Date and the aggregate amount of Subsequent Recoveries received during
         the related Prepayment Period and the aggregate amount of Subsequent
         Recoveries received since the Closing Date;

                  (xii) the aggregate amount of Extraordinary Trust Fund
         Expenses withdrawn from the Collection Account or the Distribution
         Account for such Distribution Date;

                  (xiii) the aggregate Certificate Principal Balance of each
         Class of Certificates, after giving effect to the distributions, and
         allocations of Realized Losses, made on such Distribution Date,
         separately identifying any reduction thereof due to allocations of
         Realized Losses;

                  (xiv) the Certificate Factor for each such Class of
         Certificates applicable to such Distribution Date;

                  (xv) the Interest Distribution Amount in respect of the Class
         A Certificates, the Mezzanine Certificates and the Class CE
         Certificates for such Distribution Date and the Interest Carry Forward
         Amount, if any, with respect to the Class A Certificates and the
         Mezzanine Certificates on such Distribution Date, and in the case of
         the Adjustable-Rate Certificates and the Class CE Certificates,
         separately identifying any reduction thereof due to allocations of
         Realized Losses, Prepayment Interest Shortfalls and Relief Act Interest
         Shortfalls;

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                  (xvi) the aggregate amount of any Prepayment Interest
         Shortfall for such Distribution Date, to the extent not covered by
         payments by the Master Servicer pursuant to Section 4.03(e) or
         allocated to the Class CE Certificates;

                  (xvii) the aggregate amount of Relief Act Interest Shortfalls
         for such Distribution Date;

                  (xviii) the Overcollateralization Target Amount and the Credit
         Enhancement Percentage for such Distribution Date;

                  (xix) the Overcollateralization Increase Amount, if any, for
         such Distribution Date;

                  (xx) the Overcollateralization Reduction Amount, if any, for
         such Distribution Date;

                  (xxi) with respect to any Mortgage Loan as to which
         foreclosure proceedings have been concluded, the loan number and unpaid
         Stated Principal Balance of such Mortgage Loan as of the date of such
         conclusion of foreclosure proceedings;

                  (xxii) with respect to Mortgage Loans as to which a Final
         Liquidation has occurred, the number of Mortgage Loans, the unpaid
         Stated Principal Balance of such Mortgage Loans as of the date of such
         Final Liquidation and the amount of proceeds (including Liquidation
         Proceeds and Insurance Proceeds) collected in respect of such Mortgage
         Loans;

                  (xxiii) the respective Pass-Through Rates applicable to the
         Class A Certificates, the Mezzanine Certificates and the Class CE
         Certificates for such Distribution Date and the Pass-Through Rate
         applicable to the Adjustable-Rate Certificates for the immediately
         succeeding Distribution Date;

                  (xxiv) the amount on deposit in the Pre-Funding Accounts, the
         Interest Coverage Account and the Net WAC Rate Carryover Reserve
         Account as of the Determination Date;

                  (xxv) whether a Trigger Event is in effect;

                  (xxvi) for the distribution occurring on the Distribution Date
         immediately following the end of the Funding Period, the final balance
         withdrawn from the Pre-Funding Accounts pursuant to Section 4.07 that
         was not used to purchase Subsequent Mortgage Loans and that is being
         distributed to the related Class A Certificateholders as a mandatory
         prepayment of principal, if any, on such Distribution Date;

                  (xxvii) the Net WAC Rate Carryover Amount for the Class A
         Certificates and the Mezzanine Certificates, if any, for such
         Distribution Date, the amount remaining unpaid after reimbursements
         therefor on such Distribution Date and any amounts received under the
         Cap Contracts;

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                  (xxviii) the Guarantor Deficiency Amount, the Guarantor
         Payments and the Guarantor Reimbursement Amount for such Distribution
         Date;

                  (xxix) the Guaranty Fee to be paid to the Guarantor with
         respect to the Guaranteed Certificates for such Distribution Date;

                  (xxx) such other information as the Guarantor may reasonably
         request in such format as mutually agreed by the Guarantor and the
         Trustee and any other information that is required by the Code and
         regulations thereunder to be made available to Certificateholders;

                  (xxxi) (A) the amount of payments received from the Master
         Servicer related to claims under each PMI Policy during the related
         Prepayment Period (and the number of Mortgage Loans to which such
         payments related) and (B) the cumulative amount of payments received
         related to claims under each PMI Policy since the Closing Date (and the
         number of Mortgage Loans to which such payments related); and

                  (xxxii) (A) the dollar amount of claims made under each PMI
         Policy that were denied (as identified by the Master Servicer) during
         the Prepayment Period (and the number of Mortgage Loans to which such
         denials related) and (B) the dollar amount of the cumulative claims
         made under each PMI Policy that were denied since the Closing Date (and
         the number of Mortgage Loans to which such denials related).

                  With respect to the items described in (v), (vi), (vii),
(viii), (x), (xi), (xxii), (xxxi) and (xxxii) above, the Trustee shall set forth
such information with respect to each Loan Group and with respect to the
Mortgage Pool.

                  The Trustee shall make such statement (and, at its option, any
additional files containing the same information in an alternative format)
available each month to the Certificateholders, the Guarantor, the NIMS Insurer,
the Master Servicer and the Rating Agencies via the Trustee's internet website.
The Trustee's internet website shall initially be located at
https://www.tss.db.com/invr. Assistance in using the website can be obtained by
calling the Trustee's investor relations desk at (800) 735-7777. Parties that
are unable to use the above distribution options are entitled to have a paper
copy mailed to them via first class mail by calling the investor relations desk
and indicating such. The Trustee shall have the right to change the way such
statements are distributed in order to make such distribution more convenient
and/or more accessible to the above parties and the Trustee shall provide timely
and adequate notification to all above parties regarding any such changes.

                  In the case of information furnished pursuant to subclauses
(i) through (iii) above, the amounts shall be expressed as a dollar amount per
Single Certificate of the relevant Class.

                  Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to the NIMS Insurer, the Guarantor and
each Person who at any time during the calendar year was a Holder of a Regular
Certificate a statement containing the information set forth in subclauses (i)
through (iii) above, aggregated for such calendar year or applicable

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portion thereof during which such person was a Certificateholder. Such
obligation of the Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Trustee
pursuant to any requirements of the Code as from time to time are in force.

                  Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to the NIMS Insurer, the Guarantor and
each Person who at any time during the calendar year was a Holder of a Residual
Certificate a statement setting forth the amount, if any, actually distributed
with respect to the Residual Certificates, as appropriate, aggregated for such
calendar year or applicable portion thereof during which such Person was a
Certificateholder. Such obligation of the Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
prepared by the Trustee and furnished to such Holders pursuant to the rules and
regulations of the Code as are in force from time to time.

                  The Trustee shall, upon request, furnish to each
Certificateholder or Certificate Owner, the Guarantor and the NIMS Insurer,
during the term of this Agreement, such periodic, special, or other reports or
information, whether or not provided for herein, as shall be reasonable with
respect to the Certificateholder or Certificate Owner, or otherwise with respect
to the purposes of this Agreement, all such reports or information to be
provided at the expense of the Certificateholder or Certificate Owner in
accordance with such reasonable and explicit instructions and directions as the
Certificateholder or Certificate Owner may provide. For purposes of this Section
4.02, the Trustee's duties are limited to the extent that the Trustee receives
timely reports as required from the Master Servicer.

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

                  On the third Business Day preceding each Distribution Date,
the Trustee shall deliver to the Guarantor (by electronic medium as specified in
the next sentence) a statement identifying the Certificate Factor for each Class
of Certificates. The Trustee shall deliver such statement on or before 12:00
noon (New York time) on such day via the internet using the following domain
name: bond_admin@fanniemae.com. If a Guarantor Payment will be payable on a
Distribution Date, all information required under Section 4.02 must also be
similarly delivered to Guarantor on the third Business Day preceding such
Distribution Date. The second consecutive failure by the Trustee to deliver the
Certificate Factor (or to deliver an accurate Certificate Factor) to the
Guarantor shall constitute an event of default and permit the Guarantor to
remove the Trustee for cause; provided that the Master Servicer had delivered an
accurate and timely Remittance Report for the related Distribution Date to the
Trustee pursuant to Section 4.03.

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                  SECTION 4.03 Remittance Reports and Other Reports to the
                               Trustee; Advances; Payments in Respect of
                               Prepayment Interest Shortfalls.

                  (a) On the Master Servicer Reporting Date, the Master Servicer
shall deliver to the Trustee, the Guarantor and the NIMS Insurer by telecopy (or
by such other means as the Master Servicer, the Trustee, the Guarantor and the
NIMS Insurer may agree from time to time) a Remittance Report with respect to
the related Distribution Date. All such reports shall be delivered to the
Guarantor as specified in the Guarantor's Lender Guide, as amended from time to
time. Such Remittance Report shall include (i) the amount of Advances to be made
by the Master Servicer in respect of the related Distribution Date, the
aggregate amount of Advances outstanding after giving effect to such Advances,
and the aggregate amount of Nonrecoverable Advances in respect of such
Distribution Date and (ii) such other information with respect to the Mortgage
Loans as the Trustee may reasonably require to perform the calculations
necessary to make the distributions contemplated by Section 4.01 and to prepare
the statements to Certificateholders contemplated by Section 4.02. The Trustee
shall not be responsible to recompute, recalculate or verify any information
provided to it by the Master Servicer.

                  On or before 5:00 p.m. New York time on the fourth Business
Day preceding each Distribution Date, the Master Servicer shall deliver a report
to the Guarantor (using the internet and the following domain name:
CREDIT_ADMINISTRATION@FANNIEMAE.COM or by such other means as the Master
Servicer and the Guarantor may agree from time to time) containing such data and
information regarding the Mortgage Loans as is specified in the Guarantor's
"Private Label Wrap Deals - Quick Start Guide for Lenders" or such other data
and information as the Master Servicer and the Guarantor may agree from time to
time.

                  Not later than fifteen days after each Distribution Date, the
Master Servicer shall forward to the Trustee, the NIMS Insurer, the Guarantor
and the Depositor a statement prepared by the Master Servicer setting forth the
status of the Collection Account as of the close of business on such
Distribution Date and showing, for the period covered by such statement, the
aggregate amount of deposits into and withdrawals from the Collection Account of
each category of deposit specified in Section 3.04(b) and each category of
withdrawal specified in Section 3.05. Such statement may be in the form of the
then current Fannie Mae Monthly Accounting Report for its Guaranteed Mortgage
Pass-Through Program with appropriate additions and changes, and shall also
include information as to the aggregate of the outstanding Stated Principal
Balances of all of the Mortgage Loans as of the last day of the calendar month
immediately preceding such Distribution Date. Copies of such statement shall be
provided by the Trustee to any Certificateholder and to any Person identified to
the Trustee as a prospective transferee of a Certificate, upon request at the
expense of the requesting party, provided such statement is delivered by the
Master Servicer to the Trustee.

                  (b) The amount of Advances to be made by the Master Servicer
for any Distribution Date shall equal, subject to Section 4.03(d), the sum of
(i) the aggregate amount of Monthly Payments (with each interest portion thereof
net of the related Servicing Fee), due on the related Due Date in respect of the
Mortgage Loans, which Monthly Payments were delinquent as of the close of
business on the related Determination Date and (ii) with respect to

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each REO Property, which REO Property was acquired during or prior to the
related Prepayment Period and as to which such REO Property an REO Disposition
did not occur during the related Prepayment Period, an amount equal to the
excess, if any, of the Monthly Payments (with each interest portion thereof net
of the related Servicing Fee) that would have been due on the related Due Date
in respect of the related Mortgage Loans, over the net income from such REO
Property transferred to the Distribution Account pursuant to Section 3.13 for
distribution on such Distribution Date.

                  On or before 3:00 p.m. New York time on the Master Servicer
Remittance Date, the Master Servicer shall remit in immediately available funds
to the Trustee for deposit in the Distribution Account an amount equal to the
aggregate amount of Advances, if any, to be made in respect of the Mortgage
Loans and REO Properties for the related Distribution Date either (i) from its
own funds or (ii) from the Collection Account, to the extent of funds held
therein for future distribution (in which case, it shall cause to be made an
appropriate entry in the records of the Collection Account that amounts held for
future distribution have been, as permitted by this Section 4.03, used by the
Master Servicer in discharge of any such Advance) or (iii) in the form of any
combination of (i) and (ii) aggregating the total amount of Advances to be made
by the Master Servicer with respect to the Mortgage Loans and REO Properties.
Any amounts held for future distribution used by the Master Servicer to make an
Advance as permitted in the preceding sentence or withdrawn by the Master
Servicer as permitted in Section 3.05(a)(vii) in reimbursement of Advances
previously made shall be appropriately reflected in the Master Servicer's
records and replaced by the Master Servicer by deposit in the Collection Account
on or before any future Master Servicer Remittance Date to the extent that the
Available Funds for the related Distribution Date (determined without regard to
Advances to be made on the Master Servicer Remittance Date) shall be less than
the total amount that would be distributed to the Classes of Certificateholders
pursuant to Section 4.01 on such Distribution Date if such amounts held for
future distributions had not been so used to make Advances. The Trustee shall
provide notice to the Master Servicer, the Guarantor and the NIMS Insurer by
telecopy by the close of business on any Master Servicer Remittance Date in the
event that the amount remitted by the Master Servicer to the Trustee on such
date is less than the Advances required to be made by the Master Servicer for
the related Distribution Date.

                  (c) The obligation of the Master Servicer to make such
Advances is mandatory, notwithstanding any other provision of this Agreement but
subject to (d) below, and, with respect to any Mortgage Loan or REO Property,
shall continue until a Final Recovery Determination in connection therewith or
the removal thereof from REMIC I pursuant to any applicable provision of this
Agreement, except as otherwise provided in this Section.

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

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                  (e) The Master Servicer shall deliver to the Trustee for
deposit into the Distribution Account on or before 3:00 p.m. New York time on
the Master Servicer Remittance Date from its own funds an amount ("Compensating
Interest") equal to the lesser of (i) the aggregate of the Prepayment Interest
Shortfalls for the related Distribution Date resulting solely from Principal
Prepayments during the related Prepayment Period and (ii) the amount of its
aggregate Servicing Fee for the most recently ended calendar month. The Master
Servicer shall not have the right to reimbursement for any amounts remitted to
the Trustee in respect of Prepayment Interest Shortfalls. Such amounts so
remitted shall be included in the Available Funds and distributed therewith on
the next Distribution Date. The Master Servicer shall not be obligated to pay
any amounts with respect to Relief Act Interest Shortfalls.

                  (f) On the fifth Business Day prior to each Distribution Date,
the Depositor shall cause notice to be given to the Trustee regarding whether
the Depositor or any of its Affiliates are the Certificate Owners of any Class
of Certificates which benefits from a Cap Contract.

                  SECTION 4.04 Allocation of Realized Losses.

                  (a) On or before each Determination Date, the Master Servicer
shall determine as to each Mortgage Loan and REO Property: (i) the total amount
of Realized Losses, if any, incurred in connection with any Final Recovery
Determinations made during the related Prepayment Period; (ii) whether and the
extent to which such Realized Losses constituted Bankruptcy Losses; and (iii)
the respective portions of such Realized Losses allocable to interest and
allocable to principal. On or before each Determination Date, the Master
Servicer shall also determine as to each Mortgage Loan: (A) the total amount of
Realized Losses, if any, incurred in connection with any Deficient Valuations
made during the related Prepayment Period; and (B) the total amount of Realized
Losses, if any, incurred in connection with Debt Service Reductions in respect
of Monthly Payments due during the related Due Period. The information described
in the two preceding sentences that is to be supplied by the Master Servicer
shall be evidenced by an Officers' Certificate delivered to the Trustee and the
Guarantor by the Master Servicer on the Master Servicer Reporting Date
immediately following the end of (x) in the case of Bankruptcy Losses allocable
to interest, the Due Period during which any such Realized Loss was incurred,
and (y) in the case of all other Realized Losses, the Prepayment Period during
which any such Realized Loss was incurred.

                  (b) All Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date as follows: FIRST, in
reduction of interest accrued on and otherwise distributable to the Class CE
Certificates to the extent of Net Monthly Excess Cashflow used to pay principal
on the Class A Certificates and the Mezzanine Certificates under clause (i) of
Section 4.01 hereof; SECOND, in reduction of interest accrued on and otherwise
distributable to the Class CE Certificates to the extent of Net Monthly Excess
Cashflow available for distribution pursuant to clauses (ii) through (vi) of
Section 4.01(a)(4) hereof; and THIRD, in reduction of the Certificate Principal
Balance of the Class CE Certificates (determined after taking into account all
distributions made on the Certificates on such Distribution Date), until the
Certificate Principal Balance thereof has been reduced to zero. If on any
Distribution Date, after all distributions are made by the Trustee pursuant to
Section 4.01 hereof, the aggregate

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Certificate Principal Balance of the Class A Certificates, the Mezzanine
Certificates and the Class P Certificates exceeds the sum of the Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after taking into account prepayments during the related Prepayment
Period), the amount of such excess shall be allocated: FIRST, to the Class M-10
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; SECOND, to the Class M-9 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; THIRD, to the Class M-8 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero;
FOURTH, to the Class M-7 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero; FIFTH, to the Class M-6 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero; SIXTH, to
the Class M-5 Certificates, until the Certificate Principal Balance thereof has
been reduced to zero; SEVENTH, to the Class M-4 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; EIGHTH, to the
Class M-3 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero, NINTH, to the Class M-2 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero and TENTH, to the Class M-1
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero. All Realized Losses to be allocated to the Certificate Principal
Balances of all Classes on any Distribution Date shall be so allocated after the
actual distributions to be made on such date as provided above.

                  Any such allocation to a Class of Mezzanine Certificates on
any Distribution Date shall be made by reducing the Certificate Principal
Balance thereof (after the actual distributions to be made on such Distribution
Date pursuant to Section 4.01 hereof) by the amount so allocated; any allocation
of Realized Losses to a Class CE Certificate shall be made by reducing the
amount otherwise payable in respect thereof pursuant to Section 4.01(a)(4)(v).
No allocations of any Realized Losses shall be made to the Certificate Principal
Balances of the Class A Certificates or the Class P Certificates.

                  As used herein, an allocation of a Realized Loss on a "PRO
RATA basis" among two or more specified Classes of Certificates means an
allocation on a PRO RATA basis, among the various Classes so specified, to each
such Class of Certificates on the basis of their then outstanding Certificate
Principal Balances prior to giving effect to distributions to be made on such
Distribution Date. All Realized Losses and all other losses allocated to a Class
of Certificates hereunder shall be allocated among the Certificates of such
Class in proportion to the Percentage Interests evidenced thereby.

                  (c) All Realized Losses on the Group I Mortgage Loans shall be
allocated by the Trustee on each Distribution Date, first to REMIC I Regular
Interest I-LT1 and REMIC I Regular Interest I-LT1PF, until the Uncertificated
Balance of each such REMIC I Regular Interest has been reduced to zero; provided
however, with respect to the first three Distribution Dates, all Realized Losses
on the Initial Group I Mortgage Loans shall be allocated to REMIC 1 Regular
Interest I-LT1, until the Uncertificated Balance thereof has been reduced to
zero, and all Realized Losses on the Subsequent Group I Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT1PF until the Uncertificated Balance
thereof has been reduced to zero. All Realized Losses on the Group II Mortgage
Loans shall be allocated by the Trustee on each Distribution Date, first to
REMIC I Regular Interest I-LT2 and REMIC I Regular Interest I-LT2PF, until the
Uncertificated Balance of each such REMIC I Regular Interest has been

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reduced to zero; provided however, with respect to the first three Distribution
Dates, all Realized Losses on the Initial Group II Mortgage Loans shall be
allocated to REMIC I Regular Interest I-LT2, until the Uncertificated Balance
thereof has been reduced to zero, and all Realized Losses on the Subsequent
Group II Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2PF
until the Uncertificated Balance thereof has been reduced to zero.

                  (d) (i) The REMIC II Marker Allocation Percentage of all
Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each
Distribution Date to the following REMIC II Regular Interests in the specified
percentages, as follows: first, to Uncertificated Interest payable to the REMIC
II Regular Interest II-LTAA and REMIC II Regular Interest II-LTZZ up to an
aggregate amount equal to the REMIC II Interest Loss Allocation Amount, 98% and
2%, respectively; second, to the Uncertificated Balances of the REMIC II Regular
Interest II-LTAA and REMIC II Regular Interest II-LTZZ up to an aggregate amount
equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%,
respectively; third, to the Uncertificated Balances of REMIC II Regular Interest
II-LTAA, REMIC II Regular Interest II-LTM10 and REMIC II Regular Interest
II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC
II Regular Interest II-LTM10 has been reduced to zero; fourth, to the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM9 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM9 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC
II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM8 and REMIC II
Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC II Regular Interest II-LTM8 has been reduced to zero; sixth, to
the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II
Regular Interest II-LTM7 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM7 has been reduced to zero; seventh, to the Uncertificated Balances of
REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM6 and REMIC
II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC II Regular Interest II-LTM6 has been reduced to
zero; eighth, to the Uncertificated Balances of REMIC II Regular Interest
II-LTAA, REMIC II Regular Interest II-LTM5 and REMIC II Regular Interest
II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC
II Regular Interest II-LTM5 has been reduced to zero; ninth, to the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM4 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM4 has been reduced to zero; tenth, to the Uncertificated Balances of REMIC
II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM3 and REMIC II
Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC II Regular Interest II-LTM3 has been reduced to zero; eleventh,
to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II
Regular Interest II-LTM2 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM2 has been reduced to zero, and twelfth, to the Uncertificated Balances of
REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM1 and REMIC
II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC II Regular Interest II-LTM1 has been reduced to
zero.

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                  (ii)     The REMIC II Sub WAC Allocation Percentage of all
Realized Losses shall be applied after all distributions have been made on each
Distribution Date first, so as to keep the Uncertificated Balance of each REMIC
II Regular Interest ending with the designation "GRP" equal to 0.01% of the
aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group; second, to each REMIC II Regular Interest ending with the designation
"SUB," so that the Uncertificated Balance of each such REMIC II Regular Interest
is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of the Class A Certificate in the related Loan Group (except
that if any such excess is a larger number than in the preceding distribution
period, the least amount of Realized Losses shall be applied to such REMIC II
Regular Interests such that the REMIC II Subordinated Balance Ratio is
maintained); and third, any remaining Realized Losses shall be allocated to
REMIC II Regular Interest II-LTXX.

                  SECTION 4.05 Compliance with Withholding Requirements.

                  Notwithstanding any other provision of this Agreement, the
Trustee shall comply with all federal withholding requirements respecting
payments to Certificateholders of interest or original issue discount that the
Trustee reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee does withhold any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount withheld to such
Certificateholders.

                  SECTION 4.06 Commission Reporting.

                  (a) The Trustee shall reasonably cooperate with the Depositor
in connection with the Trust's satisfying the reporting requirements under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Trustee
shall prepare on behalf of the Trust any Forms 8-K and 10-K customary for
similar securities as required by the Exchange Act and the Rules and Regulations
of the Commission thereunder, and the Depositor shall sign (or shall cause
another entity acceptable to the Commission to sign) and the Trustee shall file
(via the Commission's Electronic Data Gathering and Retrieval System) such forms
on behalf of the Depositor (or such other entity). The Depositor hereby grants
to the Trustee a limited power of attorney to execute any Form 8-K and file each
such document on behalf of the Depositor. Such power of attorney shall continue
until the earlier of (i) receipt by the Trustee from the Depositor of written
termination of such power of attorney and (ii) the termination of the Trust.
Notwithstanding anything herein to the contrary, the Depositor, and not the
Trustee, shall be responsible for executing each Form 10-K filed on behalf of
the Trust.

                  (b) Each Form 8-K shall be filed by the Trustee within 15 days
after each Distribution Date, with a copy of the statement to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
March 30th of each year (or such earlier date as may be required by the Exchange
Act and the Rules and Regulations of the Commission), the Trustee shall file a
Form 10-K, in substance as required by applicable law or applicable Commission
staff's interpretations. Such Form 10-K shall include as exhibits the Master
Servicer's annual statement of compliance described under Section 3.19 and the
accountant's report described

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under Section 3.20, in each case to the extent they have been timely delivered
to the Trustee. If they are not so timely delivered, the Trustee shall file an
amended Form 10-K including such documents as exhibits reasonably promptly after
they are delivered to the Trustee. The Trustee shall have no liability with
respect to any failure to properly prepare or file such periodic reports
resulting from or relating to the Trustee's inability or failure to obtain any
information not resulting from its own negligence or willful misconduct. The
Form 10-K shall also include a certification in the form attached hereto as
Exhibit J-1 (the "Certification"), which shall be signed by the senior officer
of the Depositor in charge of securitization.

                  (c) In addition, the Trustee shall sign a certification (in
the form attached hereto as Exhibit J-2) for the benefit of the Depositor and
its officers, directors and Affiliates regarding certain aspects of items 1
through 3 of the Certification (provided, however, that the Trustee shall not
undertake an analysis of the accountant's report attached as an exhibit to the
Form 10-K). The Trustee's certification shall be delivered to the Depositor by
no later than March 18th of each year (or if such day is not a Business Day, the
immediately preceding Business Day) and the Depositor shall deliver the
Certification to the Trustee for filing no later than March 20th of each year
(or if such day is not a Business Day, the immediately preceding Business Day).

                  In addition, the Trustee shall indemnify and hold harmless the
Depositor and its officers, directors and Affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach of the Trustee's obligations under this Section 4.06 or the
Trustee's negligence, bad faith or willful misconduct in connection therewith.
The Depositor shall indemnify and hold harmless the Trustee and its officers,
directors and Affiliates from and against any losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of or based upon a breach of the
Depositor's obligations under this Section 4.06 or the Depositor's negligence,
bad faith or willful misconduct in connection therewith. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the
Depositor or the Trustee, as applicable, then the other party, in connection
with a breach of its respective obligations under this Section 4.06 or its
respective negligence, bad faith or willful misconduct in connection therewith,
agrees that it shall contribute to the amount paid or payable by the other party
as a result of the losses, claims, damages or liabilities of the other party in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Trustee on the other.

                  (d) Upon any filing with the Commission, the Trustee shall
promptly deliver to the Depositor a copy of any executed report, statement or
information.

                  (e) Prior to January 30th of the first year in which the
Trustee is able to do so under applicable law, the Trustee shall file a Form 15
Suspension Notification with respect to the Trust.

                  (f) To the extent that, following the Closing Date, the
Depositor certifies that reports and certifications differing from those
required under this Section 4.06 comply with the reporting requirements under
the Exchange Act, the parties hereto hereby agree that they shall

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reasonably cooperate to amend the provisions of this Section 4.06 (in accordance
with Section 11.01) in order to comply with such amended reporting requirements
and such amendment of this Section 4.06. Any such amendment may result in the
reduction of the reports filed by the Depositor under the Exchange Act.
Notwithstanding the foregoing, the Trustee shall not be obligated to enter into
any amendment pursuant to this Section that adversely affects its obligations
and immunities under this Agreement.

                  SECTION 4.07 Pre-Funding Accounts.

                  (a) No later than the Closing Date, the Trustee shall
establish and maintain two segregated non-interest bearing trust accounts that
are each Eligible Accounts, which shall be titled (i) "Group I Pre-Funding
Account, Deutsche Bank National Trust Company, as Trustee for the registered
holders of Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
Certificates, Series 2004-R12" (the "Group I Pre-Funding Account") and (ii)
"Group II Pre-Funding Account, Deutsche Bank National Trust Company, as Trustee
for the registered holders of Ameriquest Mortgage Securities Inc., Asset-Backed
Pass-Through Certificates, Series 2004-R12" (the "Group II Pre-Funding
Account"). The Trustee shall, promptly upon receipt, deposit in the applicable
Pre-Funding Account and retain therein the Original Group I Pre-Funded Amount or
the Original Group II Pre-Funding Account, as applicable, remitted on the
Closing Date to the Trustee by the Depositor. Funds deposited in the Pre-Funding
Accounts shall be held in trust by the Trustee for the Certificateholders for
the uses and purposes set forth herein.

                  (b) The Trustee shall invest funds deposited in the
Pre-Funding Accounts in Permitted Investments of the kind described in clauses
(i), (v) or (vi) of the definition of Permitted Investments, as specified in a
written direction from the Master Servicer, with a maturity date no later than
the second Business Day preceding each Distribution Date. For federal income tax
purposes, the holder of the largest Percentage Interest of the Residual
Certificates shall be the owner of the Pre-Funding Accounts and shall report all
items of income, deduction, gain or loss arising therefrom. The Master Servicer
shall deposit in the applicable Pre-Funding Account the amount of any net loss
incurred in respect of any such Permitted Investment immediately upon
realization of such loss without any right of reimbursement therefor. The
Pre-Funding Accounts shall not be assets of any Trust REMIC.

                  (c) Amounts on deposit in the Pre-Funding Accounts shall be
withdrawn by the Trustee as follows:

                  (i) on any Subsequent Transfer Date, the Trustee shall
         withdraw from the related Pre-Funding Account an amount equal to 100%
         of the Stated Principal Balances of the Subsequent Mortgage Loans
         transferred and assigned to the Trustee for deposit in the Mortgage
         Pool on such Subsequent Transfer Date and pay such amount to or upon
         the order of the Depositor upon satisfaction of the conditions set
         forth in Section 2.09 with respect to such transfer and assignment;

                  (ii) if the amount on deposit in the related Pre-Funding
         Account has not been reduced to zero during the Funding Period, on the
         day of the termination of the Funding

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         Period, the Trustee shall deposit into the Distribution Account any
         amounts remaining in the Pre-Funding Account to be held uninvested;

                  (iii) to withdraw any amount not required to be deposited in
         the Pre-Funding Accounts or deposited therein in error;

                  (iv) to distribute to the Interest Coverage Account any income
         and gain realized from the investment of funds in the Pre-Funding
         Accounts; and

                  (v) to clear and terminate the Pre-Funding Accounts upon the
         earlier to occur of (A) the day immediately following the end of the
         Funding Period and (B) the termination of this Agreement, with any
         amounts remaining on deposit therein being paid to the Holders of the
         Certificates then entitled to distributions in respect of principal.

                  SECTION 4.08 Interest Coverage Accounts.

                  (a) If amounts are required to be deposited in the Interest
Coverage Accounts, no later than the Closing Date, the Trustee shall establish
and maintain a segregated non-interest bearing trust account that is an Eligible
Account, which shall be titled (i) "Group I Interest Coverage Account, Deutsche
Bank National Trust Company, as Trustee for the registered holders of Ameriquest
Securities Inc., Asset-Backed Pass-Through Certificates, Series 2004-R12" (the
"Group I Interest Coverage Account") and (ii) "Group II Interest Coverage
Account, Deutsche Bank National Trust Company, as Trustee for the registered
holders of Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
Certificates, Series 2004-R12" (the "Group II Interest Coverage Account"). The
Trustee shall, promptly upon receipt, deposit in each Interest Coverage Account
and retain therein the related Interest Coverage Amount, remitted on the Closing
Date to the Trustee by the Depositor. Funds deposited in the Interest Coverage
Accounts shall be held in trust by the Trustee for the Certificateholders for
the uses and purposes set forth herein

                  (b) The Trustee shall invest funds deposited in the Interest
Coverage Accounts in Permitted Investments of the kind described in clauses (i),
(v) or (vi) of the definition of Permitted Investments, as specified in a
written direction from the Master Servicer, with a maturity date no later than
the second Business Day preceding each Distribution Date. For federal income tax
purposes, the holder of the largest Percentage Interest of the Residual
Certificates shall be the owner of the Interest Coverage Accounts and shall
report all items of income, deduction, gain or loss arising therefrom. At no
time shall either Interest Coverage Account be an asset of any Trust REMIC. All
income and gain realized from investment of funds deposited in the Interest
Coverage Accounts shall be for the sole and exclusive benefit of the Master
Servicer and shall be remitted by the Trustee to the Master Servicer on the
first Business Day following each Distribution Date. The Master Servicer shall
deposit in the Interest Coverage Accounts the amount of any net loss incurred in
respect of any such Permitted Investment immediately upon realization of such
loss.

                  (c) On each Distribution Date during the Funding Period and on
the last day of the Funding Period, the Trustee shall withdraw from the related
Interest Coverage Account

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and deposit in the Distribution Account an amount equal to 30 days' interest on
the excess, if any, of the related Original Pre-Funded Amount, over the
aggregate Stated Principal Balance of related Subsequent Mortgage Loans that
both (i) had a Due Date during the Due Period relating to such Distribution Date
and (ii) had a Subsequent Cut-off Date prior to the first day of the month in
which such Distribution Date occurs, at a per annum rate equal to the weighted
average Pass-Through Rate of the related Offered Certificates for such
Distribution Date, with the Pass-Through Rate on the related Offered
Certificates, solely for the purposes of the foregoing calculation, multiplied
by a fraction, the numerator of which is the actual number of days in the
Accrual Period for such Class for such Distribution Date, and the denominator of
which is 30. Such withdrawal and deposit shall be treated as a contribution of
cash by the Master Servicer to REMIC I. Immediately following any such
withdrawal and deposit, and immediately following the conveyance of any
Subsequent Mortgage Loans to the Trust on any Subsequent Transfer Date, the
Trustee shall withdraw from the Interest Coverage Accounts and remit to the
Master Servicer or its designee an amount equal to the excess, if any, of the
amount remaining in such Interest Coverage Account over the amount that would be
required to be withdrawn therefrom (assuming sufficient funds therein) pursuant
to the second preceding sentence on each subsequent Distribution Date, if any,
that shall occur during the Funding Period or that shall be the last day of the
Funding Period, if no Subsequent Mortgage Loans were acquired by the Trust Fund
after the end of the Prepayment Period relating to the current Distribution Date
(assuming that LIBOR remains constant at the level of LIBOR applicable to the
calculation of the Pass-Through Rate for the Class A Certificates and Mezzanine
Certificates for the current Distribution Date).

                  (d) Upon the earlier of (i) the Distribution Date immediately
following the end of the Funding Period, (ii) the reduction of the aggregate
Certificate Principal Balance of the Class A Certificates and the Mezzanine
Certificates to zero or (iii) the termination of this Agreement in accordance
with Section 9.01, any amount remaining on deposit in the Interest Coverage
Accounts after distributions pursuant to paragraph (c) above shall be withdrawn
by the Trustee and paid to the Depositor or its designee.

                  SECTION 4.09 The Guaranty.

                  On each Distribution Date following receipt (i) of a statement
(as set forth in Section 4.02) that indicates a Guarantor Deficiency Amount for
such Distribution Date and (ii) the Notice of Claim, the Guarantor shall
distribute a Guarantor Payment, in an aggregate amount equal to the Guarantor
Deficiency Amount for such Distribution Date directly to the Holders of the
Guaranteed Certificates, without first depositing such amount in the
Distribution Account, as follows: (i) the Guaranteed Interest Distribution
Amount shall be distributed as interest with respect to the Guaranteed
Certificates as provided in Section 4.01; and (ii) the Guaranteed Principal
Distribution Amount shall be distributed as principal with respect to the
Guaranteed Certificates as provided in Section 4.01.

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                  SECTION 4.10 [Reserved].

                  SECTION 4.11 Net WAC Rate Carryover Reserve Account.

                  (a) No later than the Closing Date, the Trustee shall
establish and maintain with itself, as agent for the Trustee, a separate,
segregated trust account titled, "Net WAC Rate Carryover Reserve Account,
Deutsche Bank National Trust Company, as Trustee, in trust for the registered
Holders of Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
Certificates, Series 2004-R12." The Trustee shall deposit into the Net WAC Rate
Carryover Reserve Account any payments received by it (i) under the Cap
Contracts for the benefit of the Holders of the Adjustable-Rate Certificates and
(ii) pursuant to Section 4.01(a)(4)(iv).

                  (b) On each Distribution Date as to which there is a Net WAC
Rate Carryover Amount payable to the Class A Certificates or the Mezzanine
Certificates, the Trustee has been directed by the Class CE Certificateholders
to, and therefore shall, deposit into the Net WAC Rate Carryover Reserve Account
the amount of such Net WAC Rate Carryover Amount, after taking into account
amounts received under the Cap Contracts, rather than distributing such amounts
to the Class CE Certificateholders. On each such Distribution Date, the Trustee
shall hold all such amounts for the benefit of the Holders of the Class A
Certificates and the Mezzanine Certificates, and shall distribute such amounts
to the Holders of the Class A Certificates and the Mezzanine Certificates in the
amounts and priorities set forth in Section 4.01(a).

                  (c) For federal and state income tax purposes, the Class CE
Certificateholders shall be deemed to be the owners of the Net WAC Rate
Carryover Reserve Account and all amounts deposited into the Net WAC Rate
Carryover Reserve Account shall be treated as amounts distributed by REMIC III
to the Holders of the Class CE Certificates (other than amounts paid under the
Cap Contracts). Upon the termination of the Trust, or the payment in full of the
Class A Certificates and the Mezzanine Certificates, all amounts remaining on
deposit in the Net WAC Rate Carryover Reserve Account shall be released by the
Trust and distributed to the Class CE Certificateholders or their designees. The
Net WAC Rate Carryover Reserve Account shall be part of the Trust but not part
of any REMIC and any payments to the Holders of the Class A Certificates or the
Mezzanine Certificates of Net WAC Rate Carryover Amounts shall not be payments
with respect to a "regular interest" in a REMIC within the meaning of Code
Section 860(G)(a)(1).

                  (d) By accepting a Class CE Certificate, each Class CE
Certificateholder hereby agrees to direct the Trustee, and the Trustee hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the amounts
described above on each Distribution Date as to which there is any Net WAC Rate
Carryover Amount rather than distributing such amounts to the Class CE
Certificateholders. By accepting a Class CE Certificate, each Class CE
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by
such acceptance.

                  (e) At the written direction of the Holders of a majority in
Percentage Interest in the Class CE Certificates, the Trustee shall direct any
depository institution maintaining the

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Net WAC Rate Carryover Reserve Account to invest the funds in such account in
one or more Permitted Investments bearing interest or sold at a discount, and
maturing, unless payable on demand, (i) no later than the Business Day
immediately preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other than the Trustee
or an Affiliate manages or advises such investment, and (ii) no later than the
date on which such funds are required to be withdrawn from such account pursuant
to this Agreement, if the Trustee or an Affiliate manages or advises such
investment. If no investment direction of the Holders of a majority in
Percentage Interest in the Class CE Certificates with respect to the Net WAC
Rate Carryover Reserve Account is received by the Trustee, the Trustee shall
invest the funds in the Deutsche Bank Institutional Cash Management Fund 541 so
long as it is a Permitted Investment. Interest earned on such investment shall
be deposited into the Net WAC Rate Carryover Reserve Account.

                  (f) For federal income tax return and information reporting,
the value assigned to the right of the Holders of the Group I Certificates,
Group II Certificates and the Mezzanine Certificates to receive payments from
the Net WAC Rate Carryover Reserve Account in respect of any Net WAC Rate
Carryover Amount shall be $509,000, $290,000 and $401,000, respectively.

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                                   ARTICLE V

                                THE CERTIFICATES

                  SECTION 5.01 The Certificates.

                  (a) The Certificates in the aggregate shall represent the
entire beneficial ownership interest in the Mortgage Loans and all other assets
included in REMIC I. At the Closing Date, the aggregate Certificate Principal
Balance of the Certificates shall equal the aggregate Stated Principal Balance
of the Mortgage Loans.

                  The Certificates shall be substantially in the forms annexed
hereto as Exhibits A-1 through A-17. The Certificates of each Class shall be
issuable in registered form only, in denominations of authorized Percentage
Interests as described in the definition thereof. Each Certificate shall share
ratably in all rights of the related Class.

                  Upon original issue, the Certificates shall be executed and
delivered by the Trustee and the Trustee shall cause the Certificates to be
authenticated by the Certificate Registrar to or upon the order of the
Depositor. The Certificates shall be executed and attested by manual or
facsimile signature on behalf of the Trustee by an authorized signatory.
Certificates bearing the manual or facsimile signatures of individuals who were
at any time the proper officers of the Trustee shall bind the Trustee
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Certificates or did not
hold such offices at the date of such Certificates. No Certificate shall be
entitled to any benefit under this Agreement or be valid for any purpose, unless
there appears on such Certificate a certificate of authentication substantially
in the form provided herein executed by the Certificate Registrar by manual
signature, and such certificate of authentication shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication.

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

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has with the Depository authorizing it to act as such. The Book-Entry Custodian
may, and if it is no longer qualified to act as such, the Book-Entry Custodian
shall, appoint, by a written instrument delivered to the Depositor, the Master
Servicer, the Trustee (if the Trustee is not the Book-Entry Custodian) and any
other transfer agent (including the Depository or any successor Depository), to
act as Book-Entry Custodian under such conditions as the predecessor Book-Entry
Custodian and the Depository or any successor Depository may prescribe, provided
that the predecessor Book-Entry Custodian shall not be relieved of any of its
duties or responsibilities by reason of any such appointment of other than the
Depository. If the Trustee resigns or is removed in accordance with the terms
hereof, if it so elects, the Depository shall immediately succeed to its
predecessor's duties as Book-Entry Custodian. The Depositor shall have the right
to inspect, and to obtain copies of, any Certificates held as Book-Entry
Certificates by the Book-Entry Custodian.

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

                  If (i)(A) the Depositor advises the Trustee in writing that
the Depository is no longer willing or able to properly discharge its
responsibilities as Depository, and (B) the Depositor is unable to locate a
qualified successor or (ii) after the occurrence of a Master Servicer Event of
Default, Certificate Owners representing in the aggregate not less than 51% of
the Ownership Interests of the Book-Entry Certificates advise the Trustee
through the Depository, in writing, that the continuation of a book-entry system
through the Depository is no longer in the best interests of the Certificate
Owners, the Trustee shall notify all Certificate Owners, through the Depository,
of the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the
Trustee of the Book-Entry Certificates by the Book-Entry Custodian or the
Depository, as applicable, accompanied by registration instructions from the
Depository for registration of transfer, the Trustee shall issue the Definitive
Certificates. Such Definitive Certificates shall be issued in minimum
denominations of $25,000 ($1,000 in the case of the Class A-1 Certificates and
$50,000 in the case of the Class M-10 Certificates), except that any beneficial
ownership that was represented by a Book-Entry Certificate in an amount less
than $25,000 immediately prior to the issuance of a Definitive Certificate shall
be issued in a minimum denomination equal to the amount represented by such
Book-Entry Certificate. None of the Depositor, the Master Servicer or the
Trustee shall be liable for any delay in the delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Certificates all references herein
to obligations imposed upon or to be performed by

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the Depository shall be deemed to be imposed upon and performed by the Trustee,
to the extent applicable with respect to such Definitive Certificates, and the
Trustee shall recognize the Holders of the Definitive Certificates as
Certificateholders hereunder.

                  SECTION 5.02 Registration of Transfer and Exchange of
                               Certificates.

                  (a) The Trustee shall cause to be kept at one of the offices
or agencies to be appointed by the Trustee in accordance with the provisions of
Section 8.12 a Certificate Register for the Certificates in which, subject to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of transfers and exchanges of Certificates
as herein provided. The Trustee shall initially serve as Certificate Registrar
for the purpose of registering Certificates and transfers and exchanges of
Certificates as herein provided. The Certificate Registrar may appoint, by a
written instrument delivered to the Master Servicer and the Depositor, any other
bank or trust company to act as Certificate Registrar under such conditions as
the predecessor Certificate Registrar may prescribe, provided that the
predecessor Certificate Registrar shall not be relieved of any of its duties or
responsibilities hereunder by reason of such appointment. If the Trustee shall
at any time not be the Certificate Registrar, the Trustee shall have and
maintain the right to inspect the Certificate Register or to obtain a copy
thereof at all reasonable times, and to rely conclusively upon a certificate of
the Certificate Registrar as to the information set forth in the Certificate
Register.

                  (b) No transfer of any Class M-10 Certificate, Class CE
Certificate, Class P Certificate or Residual Certificate shall be made unless
that transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of a Class M-10 Certificate, Class CE
Certificate, Class P Certificate or Residual Certificate is to be made without
registration or qualification (other than in connection with (i) the initial
transfer of any such Certificate by the Depositor to an affiliate of the
Depositor, (ii) the transfer of any such Class CE or Class P Certificate to the
issuer under the Indenture or the indenture trustee under the Indenture or (iii)
a transfer of any such Class CE or Class P Certificate from the issuer under the
Indenture or the indenture trustee under the Indenture to the Depositor or an
Affiliate of the Depositor), the Trustee and the Certificate Registrar shall
each require receipt of: (i) if such transfer is purportedly being made in
reliance upon Rule 144A under the 1933 Act, written certifications from the
Certificateholder desiring to effect the transfer and from such
Certificateholder's prospective transferee, substantially in the forms attached
hereto as Exhibit F-1; and (ii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration
(which Opinion of Counsel shall not be an expense of the Depositor, the Trustee,
the Master Servicer, in its capacity as such, or the Trust Fund), together with
copies of the written certification(s) of the Certificateholder desiring to
effect the transfer and/or such Certificateholder's prospective transferee upon
which such Opinion of Counsel is based, if any. None of the Depositor, the
Certificate Registrar or the Trustee is obligated to register or qualify the
Class M-10 Certificates, the Class CE Certificates, the Class P Certificates or
the Residual Certificates under the 1933 Act or any other securities laws or to
take any action not otherwise required under this Agreement to permit the
transfer of such Certificates without registration or qualification. If a
transfer of an Ownership Interest in

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the Class M-10 Certificates is to be made without registration under the 1933
Act (other than in connection with (i) the initial transfer of any such
Certificate by the Depositor to an affiliate of the Depositor, (ii) the transfer
of any such Class CE or Class P Certificate to the issuer under the Indenture or
the indenture trustee under the Indenture or (iii) a transfer of any such Class
CE or Class P Certificate from the issuer under the Indenture or the indenture
trustee under the Indenture to the Depositor or an Affiliate of the Depositor),
then the Certificate Registrar shall refuse to register such transfer unless it
receives (and upon receipt, may conclusively rely upon) a certificate from the
Certificateholder desiring to effect such transfer and a certificate from such
Certificateholder's prospective transferee (which in the case of the Book-Entry
Certificates, the Certificateholder and the Certificateholder's prospective
transferee shall be deemed to have represented such certification), to the
effect that, among other things, the transfer is being made to a qualified
institutional buyer as defined in Rule 144A under the Securities Act in
accordance with Rule 144A. Any Certificateholder desiring to effect the transfer
of a Class M-10 Certificate, Class CE Certificate, Class P Certificate or
Residual Certificate shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Master Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

                  Notwithstanding the foregoing, no certification or Opinion of
Counsel described in this Section 5.02(b) shall be required in connection with
the transfer, on the Closing Date, of any Class R Certificate by the Depositor
to an "accredited investor" within the meaning of Rule 501(d) of the 1933 Act.

                  (c) No transfer of a Class CE Certificate, Class P Certificate
or Residual Certificate or any interest therein shall be made to any Plan
subject to ERISA or Section 4975 of the Code, any Person acting, directly or
indirectly, on behalf of any such Plan or any Person acquiring such Certificates
with "Plan Assets" of a Plan within the meaning of the Department of Labor
regulation promulgated at 29 C.F.R. ss. 2510.3-101 ("Plan Assets"), as certified
by such transferee in the form of Exhibit G, unless the Trustee is provided with
an Opinion of Counsel for the benefit of the Trust Fund, the Depositor, the
Trustee, the NIMS Insurer, the Guarantor and the Master Servicer and on which
they may rely, which shall be to the effect that the purchase and holding of
such Certificates is permissible under applicable law, shall not constitute or
result in any non-exempt prohibited transaction under ERISA or Section 4975 of
the Code and shall not subject the Depositor, the Master Servicer, the NIMS
Insurer, the Guarantor, the Trustee or the Trust Fund to any obligation or
liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Depositor, the Master Servicer, the NIMS
Insurer, the Guarantor, the Trustee or the Trust Fund. Neither an Opinion of
Counsel nor any certification shall be required in connection with (i) the
initial transfer of any such Certificate by the Depositor to an affiliate of the
Depositor, (ii) the transfer of any such Certificate to the issuer under the
Indenture or the indenture trustee under the Indenture or (iii) a transfer of
any such Certificate from the issuer under the Indenture or the indenture
trustee under the Indenture to the Depositor or an Affiliate of the Depositor
(in which case such transferee shall be deemed to have represented that it is
not purchasing with Plan Assets) and the Trustee shall be entitled to
conclusively rely upon a representation (which, upon the request of the Trustee,
shall be a

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written representation) from the Depositor of the status of such transferee as
an affiliate of the Depositor.

                  Each beneficial owner of the Mezzanine Certificates or any
interest therein shall be deemed to have represented, by virtue of its
acquisition or holding of that Certificate or interest therein, that either (i)
it is not a Plan or acting, directly or indirectly, on behalf of a Plan or with
Plan Assets, (ii) for Mezzanine Certificates other than the Class M-10
Certificates it has acquired and is holding such Mezzanine Certificates (other
than the Class M-10 Certificates) in reliance on the Underwriters' Exemption,
and that it understands that there are certain conditions to the availability of
the Underwriters' Exemption, including that the Certificates (other than the
Class M-10 Certificates) must be rated, at the time of purchase, not lower than
"BBB-" (or its equivalent) by Moody's, Fitch or S&P or (iii) (1) it is an
insurance company, (2) the source of funds used to acquire or hold the
certificate or interest therein is an "insurance company general account," as
such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III
of PTCE 95-60 have been satisfied.

                  If any Class CE Certificate, Class P Certificate, Residual
Certificate or Mezzanine Certificate or any interest therein is acquired or held
in violation of the provisions of the preceding paragraphs, the next preceding
permitted beneficial owner shall be treated as the beneficial owner of that
Certificate retroactive to the date of transfer to the purported beneficial
owner. Any purported beneficial owner whose acquisition or holding of any such
Certificate or interest therein was effected in violation of the provisions of
the preceding paragraph shall indemnify and hold harmless the Depositor, the
Master Servicer, the Trustee, the NIMS Insurer, the Guarantor and the Trust Fund
from and against any and all liabilities, claims, costs or expenses incurred by
those parties as a result of that acquisition or holding.

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

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

                  (B) In connection with any proposed Transfer of any Ownership
         Interest in a Residual Certificate, the Certificate Registrar shall
         require delivery to it and shall not register the Transfer of any
         Residual Certificate until its receipt of an affidavit and agreement (a
         "Transfer Affidavit and Agreement"), in the form attached hereto as
         Exhibit F-2 from the proposed Transferee, in form and substance
         satisfactory to the Certificate Registrar, representing and warranting,
         among other things, that such Transferee is a Permitted Transferee,
         that it is not acquiring its Ownership Interest in the Residual

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         Certificate that is the subject of the proposed Transfer as a nominee,
         trustee or agent for any Person that is not a Permitted Transferee,
         that for so long as it retains its Ownership Interest in a Residual
         Certificate, it shall endeavor to remain a Permitted Transferee, and
         that it has reviewed the provisions of this Section 5.02(d) and agrees
         to be bound by them.

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

                  (D) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall agree (x) to require a Transfer Affidavit
         and Agreement from any other Person to whom such Person attempts to
         transfer its Ownership Interest in a Residual Certificate and (y) not
         to transfer its Ownership Interest unless it provides a Transferor
         Affidavit (in the form attached hereto as Exhibit F-2), to the
         Certificate Registrar stating that, among other things, it has no
         actual knowledge that such other Person is not a Permitted Transferee.

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

                  (ii)     The Certificate Registrar shall register the Transfer
of any Residual Certificate only if it shall have received the Transfer
Affidavit and Agreement and all of such other documents as shall have been
reasonably required by the Certificate Registrar as a condition to such
registration. In addition, no Transfer of a Residual Certificate shall be made
unless the Certificate Registrar shall have received a representation letter
from the Transferee of such Certificate to the effect that such Transferee is a
Permitted Transferee.

                  (iii)(A)  If any purported Transferee shall become a Holder of
a Residual Certificate in violation of the provisions of this Section 5.02(d),
then the last preceding Permitted Transferee shall be restored, to the extent
permitted by law, to all rights as Holder thereof retroactive to the date of
registration of such Transfer of such Residual Certificate. The Certificate
Registrar shall be under no liability to any Person for any registration of
Transfer of a Residual Certificate that is in fact not permitted by this Section
5.02(d) or for making any payments due on such Certificate to the Holder thereof
or for taking any other action with respect to such Holder under the provisions
of this Agreement.

                  (B) If any purported Transferee shall become a Holder of a
         Residual Certificate in violation of the restrictions in this Section
         5.02(d) and to the extent that the

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

                  (iv)     The Trustee shall make available to the Internal
Revenue Service and those Persons specified by the REMIC Provisions all
information necessary to compute any tax imposed (A) as a result of the Transfer
of an Ownership Interest in a Residual Certificate to any Person who is a
Disqualified Organization, including the information described in Treasury
regulations sections 1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the
"excess inclusions" of such Residual Certificate and (B) as a result of any
regulated investment company, real estate investment trust, common trust fund,
partnership, trust, estate or organization described in Section 1381 of the Code
that holds an Ownership Interest in a Residual Certificate having as among its
record Holders at any time any Person which is a Disqualified Organization.
Reasonable compensation for providing such information may be accepted by the
Trustee.

                  (v)      The provisions of this Section 5.02(d) set forth
prior to this subsection (v) may be modified, added to or eliminated, provided
that there shall have been delivered to the Trustee at the expense of the party
seeking to modify, add to or eliminate any such provision the following:

                  (A) written notification from each Rating Agency to the effect
         that the modification, addition to or elimination of such provisions
         shall not cause such Rating Agency to downgrade its then-current
         ratings of any Class of Certificates; and

                  (B) an Opinion of Counsel, in form and substance satisfactory
         to the Trustee, to the effect that such modification of, addition to or
         elimination of such provisions shall not cause any Trust REMIC to cease
         to qualify as a REMIC and shall not cause any Trust REMIC, as the case
         may be, to be subject to an entity-level tax caused by the Transfer of
         any Residual Certificate to a Person that is not a Permitted Transferee
         or (y) a Person other than the prospective transferee to be subject to
         a REMIC-tax caused by the Transfer of a Residual Certificate to a
         Person that is not a Permitted Transferee.

                  The Trustee shall forward to the NIMS Insurer and the
Guarantor a copy of the items delivered to it pursuant to (A) and (B) above.

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                  (e) Subject to the preceding subsections, upon surrender for
registration of transfer of any Certificate at any office or agency of the
Trustee maintained for such purpose pursuant to Section 8.12, the Trustee shall
execute and the Certificate Registrar shall authenticate and deliver, in the
name of the designated Transferee or Transferees, one or more new Certificates
of the same Class of a like aggregate Percentage Interest.

                  (f) At the option of the Holder thereof, any Certificate may
be exchanged for other Certificates of the same Class with authorized
denominations and a like aggregate Percentage Interest, upon surrender of such
Certificate to be exchanged at any office or agency of the Trustee maintained
for such purpose pursuant to Section 8.12. Whenever any Certificates are so
surrendered for exchange the Trustee, shall execute and cause the Certificate
Registrar to authenticate and deliver the Certificates which the
Certificateholder making the exchange is entitled to receive. Every Certificate
presented or surrendered for transfer or exchange shall (if so required by the
Trustee) be duly endorsed by, or be accompanied by a written instrument of
transfer in the form satisfactory to the Trustee and the Certificate Registrar
duly executed by, the Holder thereof or his attorney duly authorized in writing.
In addition, with respect to each Residual Certificate, the Holder thereof may
exchange, in the manner described above, the Class R Certificate for three
separate Certificates, each representing such Holder's respective Percentage
Interest in the Class R-I Interest, the Class R-II Interest and the Class R-III
Interest, respectively, in each case that was evidenced by the Class R
Certificate being exchanged.

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

                  (h) All Certificates surrendered for transfer and exchange
shall be canceled and destroyed by the Certificate Registrar in accordance with
its customary procedures.

                  (i) The Trustee shall cause the Certificate Registrar (unless
the Trustee is acting as Certificate Registrar) to provide notice to the Trustee
of each transfer of a Certificate and to provide the Trustee with an updated
copy of the Certificate Register on the first Business Day in March and August
of each year, commencing in March 2005.

                  (j) Any attempted or purported transfer of any Certificate in
violation of the provisions of Section 5.02(c) hereof shall be void AB INITIO
and such Certificate shall be considered to have been held continuously by the
prior permitted Holder.

                  SECTION 5.03 Mutilated, Destroyed, Lost or Stolen
                               Certificates.

                  If (i) any mutilated Certificate is surrendered to the Trustee
or the Certificate Registrar, or the Trustee and the Certificate Registrar
receive evidence to their satisfaction of the destruction, loss or theft of any
Certificate, and (ii) there is delivered to the Trustee, the NIMS Insurer, the
Guarantor and the Certificate Registrar such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of actual
knowledge by the Trustee or the Certificate Registrar that such Certificate has
been acquired by a bona fide

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purchaser or the Trustee shall execute and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of the same Class and of like denomination and Percentage Interest. Upon the
issuance of any new Certificate under this Section, the Trustee may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Certificate Registrar) connected therewith. Any replacement
Certificate issued pursuant to this Section shall constitute complete and
indefeasible evidence of ownership in the applicable REMIC created hereunder, as
if originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

                  SECTION 5.04 Persons Deemed Owners.

                  The Depositor, the Master Servicer, the Trustee, the NIMS
Insurer, the Guarantor, the Certificate Registrar and any agent of any of them
may treat the Person in whose name any Certificate is registered as the owner of
such Certificate for the purpose of receiving distributions pursuant to Section
4.01 and for all other purposes whatsoever, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar, the NIMS Insurer, the
Guarantor or any agent of any of them shall be affected by notice to the
contrary.

                  SECTION 5.05 Certain Available Information.

                  On or prior to the date of the first sale of any Class M-10
Certificate, Class CE Certificate, Class P Certificate or Residual Certificate
to an Independent third party, the Depositor shall provide to the Trustee ten
copies of any private placement memorandum or other disclosure document used by
the Depositor in connection with the offer and sale of the Class M-10
Certificates, the Class CE Certificates, the Class P Certificates or the
Residual Certificates. In addition, if any such private placement memorandum or
disclosure document is revised, amended or supplemented at any time following
the delivery thereof to the Trustee, the Depositor promptly shall inform the
Trustee of such event and shall deliver to the Trustee ten copies of the private
placement memorandum or disclosure document, as revised, amended or
supplemented. The Trustee shall maintain at its Corporate Trust Office and shall
make available free of charge during normal business hours for review by any
Holder of a Certificate and/or Certificate Owner or any Person identified to the
Trustee as a prospective transferee of a Certificate, originals or copies of the
following items: (i) in the case of a Holder, Certificate Owner or prospective
transferee of a Class M-10 Certificate, a Class CE Certificate, a Class P
Certificate or a Residual Certificate, the private placement memorandum or other
disclosure document relating to such Certificate, if any, in the form most
recently provided to the Trustee; and (ii) in all cases, (A) this Agreement and
any amendments hereof entered into pursuant to Section 11.01, (B) all monthly
statements required to be delivered to Certificateholders of the relevant Class
pursuant to Section 4.02 since the Closing Date, and all other notices, reports,
statements and written communications delivered to the Certificateholders of the
relevant Class pursuant to this Agreement since the Closing Date, (C) all
certifications delivered by a Responsible Officer of the Trustee since the
Closing Date pursuant to Section 10.01(h), (D) any and all Officers'
Certificates delivered to the Trustee by the Master Servicer since the Closing
Date to evidence the Master Servicer's determination that any Advance or
Servicing Advance was, or if made, would be a Nonrecoverable Advance or
Nonrecoverable Servicing Advance,

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respectively, and (E) any and all Officers' Certificates delivered to the
Trustee by the Master Servicer since the Closing Date pursuant to Section
4.04(a). Copies and mailing of any and all of the foregoing items shall be
available from the Trustee upon request at the expense of the person requesting
the same.

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                                   ARTICLE VI

                      THE DEPOSITOR AND THE MASTER SERVICER

                  SECTION 6.01 Liability of the Depositor and the Master
                               Servicer.

                  The Depositor and the Master Servicer each shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
by this Agreement and undertaken hereunder by the Depositor and the Master
Servicer herein.

                  SECTION 6.02 Merger or Consolidation of the Depositor or the
                               Master Servicer.

                  Subject to the following paragraph, the Depositor shall keep
in full effect its existence, rights and franchises as a corporation under the
laws of the jurisdiction of its incorporation. Subject to the following
paragraph, the Master Servicer shall keep in full effect its existence, rights
and franchises as a corporation under the laws of the jurisdiction of its
incorporation and its qualification as an approved conventional seller/servicer
for Fannie Mae or Freddie Mac in good standing. The Depositor and the Master
Servicer each shall obtain and preserve its qualification to do business as a
foreign corporation in each jurisdiction in which such qualification is or shall
be necessary to protect the validity and enforceability of this Agreement, the
Certificates or any of the Mortgage Loans and to perform its respective duties
under this Agreement.

                  The Depositor or the Master Servicer may be merged or
consolidated with or into any Person, or transfer all or substantially all of
its assets to any Person, in which case any Person resulting from any merger or
consolidation to which the Depositor or the Master Servicer shall be a party, or
any Person succeeding to the business of the Depositor or the Master Servicer,
shall be the successor of the Depositor or the Master Servicer, as the case may
be, hereunder, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor or surviving Person to
the Master Servicer shall be qualified to service mortgage loans on behalf of
Fannie Mae or Freddie Mac; and provided further that the Rating Agencies'
ratings of the Class A Certificates and the Mezzanine Certificates in effect
immediately prior to such merger or consolidation shall not be qualified,
reduced or withdrawn as a result thereof (as evidenced by a letter to such
effect from the Rating Agencies).

                  SECTION 6.03 Limitation on Liability of the Depositor, the
                               Master Servicer and Others.

                  None of the Depositor, the Guarantor, the NIMS Insurer, the
Master Servicer or any of the directors, officers, employees or agents of the
Depositor, the Guarantor or the Master Servicer shall be under any liability to
the Trust Fund or the Certificateholders for any action taken or for refraining
from the taking of any action in good faith pursuant to this Agreement, or for
errors in judgment; provided, however, that this provision shall not protect the
Depositor, the Guarantor, the NIMS Insurer, the Master Servicer or any such
person against any breach of

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warranties, representations or covenants made herein, or against any specific
liability imposed on the Master Servicer pursuant hereto, or against any
liability which would otherwise be imposed by reason of willful misfeasance, bad
faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder. The Depositor, the Guarantor, the
NIMS Insurer, the Master Servicer or the Trustee and any director, officer,
employee or agent of the Depositor, the Guarantor, the NIMS Insurer, the Master
Servicer or the Trustee may rely in good faith on any document of any kind
which, PRIMA FACIE, is properly executed and submitted by any Person respecting
any matters arising hereunder.

                  The Depositor, the Guarantor, the NIMS Insurer, the Master
Servicer and any director, officer, employee or agent of the Depositor, the
Guaranator, the NIMS Insurer, or the Master Servicer shall be indemnified and
held harmless by the Trust Fund against any loss, liability or expense incurred
in connection with any legal action relating to this Agreement or the
Certificates, other than any loss, liability or expense relating to any specific
Mortgage Loan or Mortgage Loans (except as any such loss, liability or expense
shall be otherwise reimbursable pursuant to this Agreement) or, in the case of
the Depositor and the Master Servicer, any loss, liability or expense incurred
by reason of willful misfeasance, bad faith or negligence in the performance of
duties hereunder or by reason of reckless disregard of obligations and duties
hereunder. None of the Depositor, the Guarantor, the NIMS Insurer or the Master
Servicer shall be under any obligation to appear in, prosecute or defend any
legal action unless such action is related to its respective duties under this
Agreement and, in its opinion, does not involve it in any expense or liability;
provided, however, that each of the Depositor, the Guarantor, the NIMS Insurer
and the Master Servicer may in its discretion undertake any such action which it
may deem necessary or desirable with respect to this Agreement and the rights
and duties of the parties hereto and the interests of the Certificateholders
hereunder. In such event, unless the Depositor or the Master Servicer acts
without the consent of the Holders of Certificates entitled to at least 51% of
the Voting Rights (which consent shall not be necessary in the case of
litigation or other legal action by either to enforce their respective rights or
defend themselves hereunder), the legal expenses and costs of such action and
any liability resulting therefrom (except any loss, liability or expense
incurred by reason of willful misfeasance, bad faith or negligence in the
performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder) shall be expenses, costs and liabilities of
the Trust Fund, and the Depositor, the Guarantor, the NIMS Insurer and the
Master Servicer shall be entitled to be reimbursed therefor from the Collection
Account as and to the extent provided in Section 3.05, any such right of
reimbursement being prior to the rights of the Certificateholders to receive any
amount in the Collection Account.

                  The Master Servicer (except the Trustee to the extent it has
succeeded the Master Servicer as required hereunder) shall indemnify and hold
the Trustee, the Depositor, the Guarantor, the NIMS Insurer and the Trust Fund
harmless against any and all claims, losses, penalties, fines, forfeitures,
reasonable legal fees and related costs, judgments, and any other costs, fees
and expenses that the Trustee, the Depositor, the Guarantor, the NIMS Insurer or
the Trust Fund may sustain in any way related to the failure of the Master
Servicer to perform its duties and service the Mortgage Loans in compliance with
the terms of this Agreement. The Master Servicer shall immediately notify the
Trustee, the Guarantor, the NIMS Insurer and the Depositor if a claim is made
that may result in such claims, losses, penalties, fines, forfeitures,

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legal fees or related costs, judgments, or any other costs, fees and expenses,
and the Master Servicer shall assume (with the consent of the Trustee) 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 Master Servicer, the
Trustee, the Depositor, the Guarantor, the NIMS Insurer and/or the Trust Fund in
respect of such claim. The provisions of this paragraph shall survive the
termination of this Agreement, the payment of the outstanding Certificates and
the resignation or removal of the Trustee.

                  SECTION 6.04 Limitation on Resignation of the Master Servicer.

                  The Master Servicer shall not resign from the obligations and
duties hereby imposed on it except (i) upon determination that its duties
hereunder are no longer permissible under applicable law or (ii) with the
written consent of the Trustee and the NIMS Insurer or the Guarantor (as
provided in Section 1.03) and written confirmation from each Rating Agency
(which confirmation shall be furnished to the Depositor, the NIMS Insurer, the
Guarantor and the Trustee) that such resignation shall not cause such Rating
Agency to reduce the then current rating of the Class A Certificates or the
Mezzanine Certificates. Any such determination pursuant to clause (i) of the
preceding sentence, permitting the resignation of the Master Servicer, shall be
evidenced by an Opinion of Counsel to such effect obtained at the expense of the
Master Servicer and delivered to the Trustee, the Guarantor and the NIMS
Insurer. No resignation of the Master Servicer shall become effective until the
Trustee or a successor servicer acceptable to the NIMS Insurer or the Guarantor
(as provided in Section 1.03) shall have assumed the Master Servicer's
responsibilities, duties, liabilities (other than those liabilities arising
prior to the appointment of such successor) and obligations under this
Agreement.

                  Except as expressly provided herein, the Master Servicer shall
not assign or transfer any of its rights, benefits or privileges hereunder to
any other Person, nor delegate to or subcontract with, nor authorize or appoint
any other Person to perform any of the duties, covenants or obligations to be
performed by the Master Servicer hereunder. If, pursuant to any provision
hereof, the duties of the Master Servicer are transferred to a successor master
servicer, the entire amount of the Servicing Fee and other compensation payable
to the Master Servicer pursuant hereto shall thereafter be payable to such
successor master servicer.

                  SECTION 6.05 Rights of the Depositor in Respect of the Master
                               Servicer.

                  The Master Servicer shall afford (and any Sub-Servicing
Agreement shall provide that each Sub-Servicer shall afford) the Depositor, the
NIMS Insurer, the Guarantor and the Trustee, upon reasonable notice, during
normal business hours, access to all records maintained by the Master Servicer
(and any such Sub-Servicer) in respect of the Master Servicer's rights and
obligations hereunder and access to officers of the Master Servicer (and those
of any such Sub-Servicer) responsible for such obligations. Upon request, the
Master Servicer shall furnish to the Depositor, the NIMS Insurer, the Guarantor
and the Trustee its (and any such Sub-Servicer's) most recent financial
statements and such other information relating to the Master Servicer's capacity
to perform its obligations under this Agreement that it possesses. To the extent
such information is not otherwise available to the public, the Depositor, the
NIMS Insurer, the Guarantor and the Trustee shall not disseminate any
information obtained pursuant to the

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<PAGE>

preceding two sentences without the Master Servicer's (or any such
Sub-Servicer's) written consent, except as required pursuant to this Agreement
or to the extent that it is appropriate to do so (i) in working with legal
counsel, auditors, taxing authorities or other governmental agencies, rating
agencies or reinsurers or (ii) pursuant to any law, rule, regulation, order,
judgment, writ, injunction or decree of any court or governmental authority
having jurisdiction over the Depositor, the Guarantor, the Trustee or the Trust
Fund, and in either case, the Depositor, the NIMS Insurer, the Guarantor or the
Trustee, as the case may be, shall use its best efforts to assure the
confidentiality of any such disseminated non-public information. The Depositor
may, but is not obligated to, enforce the obligations of the Master Servicer
under this Agreement and may, but is not obligated to, perform, or cause a
designee to perform, any defaulted obligation of the Master Servicer under this
Agreement or exercise the rights of the Master Servicer under this Agreement;
provided that the Master Servicer shall not be relieved of any of its
obligations under this Agreement by virtue of such performance by the Depositor
or its designee. The Depositor shall not have any responsibility or liability
for any action or failure to act by the Master Servicer and is not obligated to
supervise the performance of the Master Servicer under this Agreement or
otherwise.

                  SECTION 6.06 Sub-Servicing Agreements Between the Master
                               Servicer and Sub-Servicers.

                  (a) The Master Servicer may enter into Sub-Servicing
Agreements (provided that (i) such agreements would not result in a withdrawal
or a downgrade by any Rating Agency of the ratings on any Class of Certificates,
as evidenced by a letter to that effect delivered to the Depositor, the Trustee,
the NIMS Insurer and the Guarantor and (ii) the NIMS Insurer or the Guarantor
(as provided in Section 1.03) shall have consented to such Sub-Servicing
Agreement) with Sub-Servicers, for the servicing and administration of the
Mortgage Loans.

                  Each Sub-Servicer shall be (i) authorized to transact business
in the state or states in which the related Mortgaged Properties it is to
service are situated, if and to the extent required by applicable law to enable
the Sub-Servicer to perform its obligations hereunder and under the
Sub-Servicing Agreement, (ii) an institution approved as a mortgage loan
originator by the Federal Housing Administration or an institution the deposit
accounts in which are insured by the FDIC and (iii) a Freddie Mac or Fannie Mae
approved mortgage servicer. Each Sub-Servicing Agreement must impose on the
Sub-Servicer requirements conforming to the provisions set forth in Section 6.11
and provide for servicing of the Mortgage Loans consistent with the terms of
this Agreement. The Master Servicer shall examine each Sub-Servicing Agreement
and shall be familiar with the terms thereof. The terms of any Sub-Servicing
Agreement shall not be inconsistent with any of the provisions of this
Agreement. The Master Servicer and the Sub-Servicers may enter into and make
amendments to the Sub-Servicing Agreements or enter into different forms of
Sub-Servicing Agreements; provided, however, that any such amendments or
different forms shall be consistent with and not violate the provisions of this
Agreement, and that no such amendment or different form shall be made or entered
into which could be reasonably expected to be materially adverse to the
interests of the Certificateholders, without the consent of the Holders of
Certificates entitled to at least 66% of the Voting Rights. Any variation
without the consent of the Holders of Certificates entitled to at least 66% of
the Voting Rights from the provisions set forth in Section 6.11, provisions
relating

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to insurance in Section 3.10 or priority requirements of Sub-Servicing Accounts,
or credits and charges to the Sub-Servicing Accounts or the timing and amount of
remittances by the Sub-Servicers to the Master Servicer, are conclusively deemed
to be inconsistent with this Agreement and therefore prohibited. The Master
Servicer shall deliver to the Trustee, the Guarantor and the NIMS Insurer copies
of all Sub-Servicing Agreements, and any amendments or modifications thereof,
promptly upon the Master Servicer's execution and delivery of such instruments.

                  (b) As part of its servicing activities hereunder, the Master
Servicer (except as otherwise provided in the last sentence of this paragraph),
for the benefit of the Trustee and the Certificateholders, shall enforce the
obligations of each Sub-Servicer under the related Sub-Servicing Agreement and
of the Seller under the Mortgage Loan Purchase Agreement, including, without
limitation, any obligation to make advances in respect of delinquent payments as
required by a Sub-Servicing Agreement, or to purchase a Mortgage Loan on account
of missing or defective documentation or on account of a breach of a
representation, warranty or covenant, as described in Section 2.03(a). Such
enforcement, including, without limitation, the legal prosecution of claims,
termination of Sub-Servicing Agreements, and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at such
time as the Master Servicer, in its good faith business judgment, would require
were it the owner of the related Mortgage Loans. The Master Servicer shall pay
the costs of such enforcement at its own expense, and shall be reimbursed
therefor only (i) from a general recovery resulting from such enforcement, to
the extent, if any, that such recovery exceeds all amounts due in respect of the
related Mortgage Loans or (ii) from a specific recovery of costs, expenses or
attorneys' fees against the party against whom such enforcement is directed.
Enforcement of the Mortgage Loan Purchase Agreement against the Seller shall be
effected by the Master Servicer to the extent it is not the Seller, and
otherwise by the Trustee, in accordance with the foregoing provisions of this
paragraph.

                  SECTION 6.07 Successor Sub-Servicers.

                  The Master Servicer (with the consent of the NIMS Insurer or
the Guarantor as provided in Section 1.03 and for the Guarantor, with respect to
the Group I Mortgage Loans only) shall be entitled to terminate any
Sub-Servicing Agreement and the rights and obligations of any Sub-Servicer
pursuant to any Sub-Servicing Agreement in accordance with the terms and
conditions of such Sub-Servicing Agreement. In the event of termination of any
Sub-Servicer, all servicing obligations of such Sub-Servicer shall be assumed
simultaneously by the Master Servicer without any act or deed on the part of
such Sub-Servicer or the Master Servicer, and the Master Servicer either shall
service directly the related Mortgage Loans or shall enter into a Sub-Servicing
Agreement with a successor Sub-Servicer which qualifies under Section 6.06.

                  Any Sub-Servicing Agreement shall include the provision that
such agreement may be immediately terminated by the Trustee without fee, in
accordance with the terms of this Agreement, in the event that the Master
Servicer shall, for any reason, no longer be the Master Servicer (including
termination due to a Master Servicer Event of Default).

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                  SECTION 6.08 Liability of the Master Servicer.

                  Notwithstanding any Sub-Servicing Agreement, any of the
provisions of this Agreement relating to agreements or arrangements between the
Master Servicer and a Sub-Servicer or reference to actions taken through a
Sub-Servicer or otherwise, the Master Servicer shall remain obligated and
primarily liable to the Trustee and the Certificateholders for the servicing and
administering of the Mortgage Loans in accordance with the provisions of Section
3.01 without diminution of such obligation or liability by virtue of such
Sub-Servicing Agreements or arrangements or by virtue of indemnification from
the Sub-Servicer and to the same extent and under the same terms and conditions
as if the Master Servicer alone were servicing and administering the Mortgage
Loans. The Master Servicer shall be entitled to enter into any agreement with a
Sub-Servicer for indemnification of the Master Servicer by such Sub-Servicer and
nothing contained in this Agreement shall be deemed to limit or modify such
indemnification.

                  SECTION 6.09 No Contractual Relationship Between Sub-Servicers
                               and the NIMS Insurer, the Guarantor, the Trustee
                               or Certificateholders.

                  Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such shall be deemed to be between the Sub-Servicer and the
Master Servicer alone, and the NIMS Insurer, the Guarantor, the Trustee and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties or liabilities with respect to the Sub-Servicer
except as set forth in Section 6.10. The Master Servicer shall be solely liable
for all fees owed by it to any Sub-Servicer, irrespective of whether the Master
Servicer's compensation pursuant to this Agreement is sufficient to pay such
fees.

                  SECTION 6.10 Assumption or Termination of Sub-Servicing
                               Agreements by Trustee.

                  In the event the Master Servicer shall for any reason no
longer be the master servicer (including termination due to a Master Servicer
Event of Default), the Trustee or its designee shall thereupon assume (or cause
its designee or the successor master servicer for the Trustee appointed pursuant
to Section 7.02 to assume) all of the rights and obligations of the Master
Servicer under each Sub-Servicing Agreement that the Master Servicer may have
entered into, unless the Trustee elects to terminate any Sub-Servicing Agreement
in accordance with its terms as provided in Section 6.07. Upon such assumption,
the Trustee, its designee or the successor servicer for the Trustee appointed
pursuant to Section 7.02 shall be deemed, subject to Section 6.07, to have
assumed all of the Master Servicer's interest therein and to have replaced the
Master Servicer as a party to each Sub-Servicing Agreement to the same extent as
if each Sub-Servicing Agreement had been assigned to the assuming party, except
that (i) the Master Servicer shall not thereby be relieved of any liability or
obligations under any Sub-Servicing Agreement and (ii) none of the Trustee, its
designee or any successor Master Servicer shall be deemed to have assumed any
liability or obligation of the Master Servicer that arose before it ceased to be
the Master Servicer.

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                  The Master Servicer at its expense shall, upon request of the
Trustee, deliver to the assuming party all documents and records relating to
each Sub-Servicing Agreement and the Mortgage Loans then being serviced and an
accounting of amounts collected and held by or on behalf of it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Sub-Servicing Agreements to the assuming party.

                  SECTION 6.11 Sub-Servicing Accounts.

                  In those cases where a Sub-Servicer is servicing a Mortgage
Loan pursuant to a Sub-Servicing Agreement, the Sub-Servicer shall be required
to establish and maintain one or more accounts (collectively, the "Sub-Servicing
Account"). The Sub-Servicing Account shall be an Eligible Account. The
Sub-Servicer shall deposit in the clearing account (which account must be an
Eligible Account) in which it customarily deposits payments and collections on
mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Sub-Servicer's
receipt thereof, all proceeds of Mortgage Loans received by the Sub-Servicer
less its servicing compensation to the extent permitted by the Sub-Servicing
Agreement, and shall thereafter deposit such amounts in the Sub-Servicing
Account, in no event more than two Business Days after the deposit of such funds
into the clearing account. The Sub-Servicer shall thereafter deposit such
proceeds in the Collection Account or remit such proceeds to the Master Servicer
for deposit in the Collection Account not later than two Business Days after the
deposit of such amounts in the Sub-Servicing Account. For purposes of this
Agreement, the Master Servicer shall be deemed to have received payments on the
Mortgage Loans when the Sub-Servicer receives such payments.

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                                  ARTICLE VII

                                     DEFAULT

                  SECTION 7.01 Master Servicer Events of Default.

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

                  (i) any failure by the Master Servicer to deposit in the
         Collection Account or remit to the Trustee for deposit in the
         Distribution Account any payment (other than an Advance required to be
         made from its own funds on any Master Servicer Remittance Date pursuant
         to Section 4.03) required to be made under the terms of the
         Certificates and this Agreement which continues unremedied for a period
         of one Business Day after the date upon which written notice of such
         failure, requiring the same to be remedied, shall have been given to
         the Master Servicer by the Depositor or the Trustee (in which case
         notice shall be provided by telecopy), or to the Master Servicer, the
         Depositor and the Trustee by the NIMS Insurer, the Guarantor or the
         Holders of Certificates entitled to at least 25% of the Voting Rights;
         or

                  (ii) any failure on the part of the Master Servicer duly to
         observe or perform in any material respect any of the covenants or
         agreements on the part of the Master Servicer contained in the
         Certificates or in this Agreement (or, if the Master Servicer is the
         Seller, the failure of the Seller to repurchase a Mortgage Loan as to
         which a breach has been established that requires a repurchase pursuant
         to the terms of Section 7 of the Mortgage Loan Purchase Agreement)
         which continues unremedied for a period of 45 days after the earlier of
         (i) the date on which written notice of such failure, requiring the
         same to be remedied, shall have been given to the Master Servicer by
         the Depositor or the Trustee, or to the Master Servicer, the Depositor
         and the Trustee by the NIMS Insurer, the Guarantor or the Holders of
         Certificates entitled to at least 25% of the Voting Rights and (ii)
         actual knowledge of such failure by a Servicing Officer of the Master
         Servicer; or

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

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

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<PAGE>

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

                  (vi) any failure by the Master Servicer of the Master Servicer
         Termination Test;

                  (vii) the Master Servicer ceases to be an approved seller or
         servicer of Fannie Mae; or

                  (viii) any failure of the Master Servicer to make any Advance
         on any Master Servicer Remittance Date required to be made from its own
         funds pursuant to Section 4.03 which continues unremedied until 3:00
         p.m. New York time on the Business Day immediately following the Master
         Servicer Remittance Date.

                  If a Master Servicer Event of Default described in clauses (i)
through (vii) of this Section shall occur, then, and in each and every such
case, so long as such Master Servicer Event of Default shall not have been
remedied, the Depositor, the NIMS Insurer or the Trustee may, at the written
direction of the Holders of Certificates entitled to at least 51% of Voting
Rights, or at the direction of the NIMS Insurer or the Guarantor (as provided in
Section 1.03), the Trustee shall, by notice in writing to the Master Servicer,
the Guarantor, the NIMS Insurer and the Depositor, terminate all of the rights
and obligations of the Master Servicer in its capacity as Master Servicer under
this Agreement, to the extent permitted by law, and in and to the Mortgage Loans
and the proceeds thereof. If a Master Servicer Event of Default described in
clause (viii) hereof shall occur, the Trustee shall, by notice in writing to the
Master Servicer, the NIMS Insurer, the Guarantor and the Depositor, terminate
all of the rights and obligations of the Master Servicer in its capacity as
Master Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof and the Trustee as successor Master Servicer or a successor
Master Servicer appointed in accordance with Section 7.02, shall immediately
make such Advance (which Advance shall be part of Available Funds for such
Distribution Date) and assume, pursuant to Section 7.02, the duties of a
successor Master Servicer. On or after the receipt by the Master Servicer of
such written notice, all authority and power of the Master Servicer under this
Agreement, whether with respect to the Certificates (other than as a Holder of
any Certificate) or the Mortgage Loans or otherwise, shall pass to and be vested
in the Trustee pursuant to and under this Section and, without limitation, the
Trustee is hereby authorized and empowered, as attorney-in-fact or otherwise, to
execute and deliver on behalf of and at the expense of the Master Servicer, any
and all documents and other instruments and to do or accomplish all other acts
or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. The Master Servicer
agrees, at its sole cost and expense, promptly (and in any event no later than
ten Business Days subsequent to such notice) to provide the Trustee with all
documents and records requested by it to enable it to assume the Master
Servicer's functions under this Agreement, and to cooperate with the Trustee in
effecting the termination of the Master Servicer's responsibilities and rights
under this Agreement, including, without limitation, the transfer within one
Business Day to the Trustee for

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administration by it of all cash amounts which at the time shall be or should
have been credited by the Master Servicer to the Collection Account held by or
on behalf of the Master Servicer, the Distribution Account or any REO Account or
Escrow Account held by or on behalf of the Master Servicer or thereafter be
received with respect to the Mortgage Loans or any REO Property serviced by the
Master Servicer (provided, however, that the Master Servicer shall continue to
be entitled to receive all amounts accrued or owing to it under this Agreement
on or prior to the date of such termination, whether in respect of Advances or
otherwise, and shall continue to be entitled to the benefits of Section 6.03,
notwithstanding any such termination, with respect to events occurring prior to
such termination). For purposes of this Section 7.01, the Trustee shall not be
deemed to have knowledge of a Master Servicer Event of Default unless a
Responsible Officer of the Trustee assigned to and working in the Trustee's
Corporate Trust Office has actual knowledge thereof or unless written notice is
received by the Trustee of any such event and such notice references the
Certificates, REMIC I or this Agreement.

                  The Trustee shall be entitled to be reimbursed by the Master
Servicer (or by the Trust Fund if the Master Servicer is unable to fulfill its
obligations hereunder) for all costs associated with the transfer of servicing
from the predecessor servicer, including without limitation, any costs or
expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee to service the Mortgage Loans properly and
effectively.

                  SECTION 7.02 Trustee to Act; Appointment of Successor.

                  (a)      On and after the time the Master Servicer receives a
notice of termination, the Trustee shall be the successor in all respects to the
Master Servicer in its capacity as Master Servicer under this Agreement and the
transactions set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto and arising thereafter
placed on the Master Servicer (except for any representations or warranties of
the Master Servicer under this Agreement, the responsibilities, duties and
liabilities contained in Section 2.03(c) and its obligation to deposit amounts
in respect of losses pursuant to Section 3.06) by the terms and provisions
hereof including, without limitation, the Master Servicer's obligations to make
Advances pursuant to Section 4.03; provided, however, that if the Trustee is
prohibited by law or regulation from obligating itself to make advances
regarding delinquent mortgage loans, then the Trustee shall not be obligated to
make Advances pursuant to Section 4.03; and provided further, that any failure
to perform such duties or responsibilities caused by the Master Servicer's
failure to provide information required by Section 7.01 shall not be considered
a default by the Trustee as successor to the Master Servicer hereunder;
provided, however, it is understood and acknowledged by the parties that there
shall be a period of transition (not to exceed 90 days) before the servicing
transfer is fully effected. As compensation therefor, effective from and after
the time the Master Servicer receives a notice of termination or immediately
upon assumption of the obligations to make Advances, the Trustee shall be
entitled to the Servicing Fee and all funds relating to the Mortgage Loans to
which the Master Servicer would have been entitled if it had continued to act
hereunder (other than amounts which were due or would become due to the Master
Servicer prior to its termination or resignation). Notwithstanding the above and
subject to the next paragraph, the Trustee may, if it shall be unwilling to so
act, or shall, if it is unable to

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so act or if it is prohibited by law from making advances regarding delinquent
mortgage loans, or if the Holders of Certificates entitled to at least 51% of
the Voting Rights or the NIMS Insurer or the Guarantor (as provided in Section
1.03) so request in writing to the Trustee promptly appoint or petition a court
of competent jurisdiction to appoint, an established mortgage loan servicing
institution acceptable to each Rating Agency (with confirmation from the Rating
Agencies that such appointment shall not result in the reduction or withdrawal
of the rating of any outstanding Class of Certificates) and acceptable to the
NIMS Insurer or the Guarantor (as provided in Section 1.03) and having a net
worth of not less than $15,000,000 as the successor to the Master Servicer under
this Agreement in the assumption of all or any part of the responsibilities,
duties or liabilities of the Master Servicer under this Agreement. No
appointment of a successor to the Master Servicer under this Agreement shall be
effective until the assumption by the successor of all of the Master Servicer's
responsibilities, duties and liabilities hereunder. In connection with such
appointment and assumption described herein, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Master Servicer as such
hereunder. The Depositor, the Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. Pending appointment of a successor to the Master Servicer under this
Agreement, the Trustee shall act in such capacity as hereinabove provided.

                  Upon removal or resignation of the Master Servicer, the
Trustee, with the cooperation of the Depositor, (x) shall solicit bids for a
successor Master Servicer as described below and (y) pending the appointment of
a successor Master Servicer as a result of soliciting such bids, shall serve as
Master Servicer of the Mortgage Loans serviced by such predecessor Master
Servicer. The Trustee shall solicit, by public announcement, bids from housing
and home finance institutions, banks and mortgage servicing institutions meeting
the qualifications set forth above (including the Trustee or any affiliate
thereof) (including that such mortgage loan servicing institution shall be
acceptable to each Rating Agency and the NIMS Insurer or the Guarantor (as
provided in Section 1.03)). Such public announcement shall specify that the
successor Master Servicer shall be entitled to the servicing compensation agreed
upon between the Trustee, the successor Master Servicer, the Guarantor and the
Depositor; provided, however, that no such fee shall exceed the Servicing Fee.
Within thirty days after any such public announcement, the Trustee, with the
cooperation of the Depositor, shall negotiate in good faith and effect the sale,
transfer and assignment of the servicing rights and responsibilities hereunder
to the qualified party submitting the highest satisfactory bid as to the price
they shall pay to obtain such servicing. The Trustee upon receipt of the
purchase price shall pay such purchase price to the Master Servicer being so
removed, after deducting from any sum received by the Trustee from the successor
to the Master Servicer in respect of such sale, transfer and assignment all
costs and expenses of any public announcement and of any sale, transfer and
assignment of the servicing rights and responsibilities reasonably incurred
hereunder. After such deductions, the remainder of such sum shall be paid by the
Trustee to the Master Servicer at the time of such sale.

                  (b)      If the Master Servicer fails to remit to the Trustee
for distribution to the Certificateholders any payment required to be made under
the terms of the Certificates and this Agreement (for purposes of this Section
7.02(b), a "Remittance") because the Master Servicer is

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the subject of a proceeding under the federal Bankruptcy Code and the making of
such Remittance is prohibited by Section 362 of the federal Bankruptcy Code, the
Trustee shall upon notice of such prohibition, regardless of whether it has
received a notice of termination under Section 7.01, advance the amount of such
Remittance by depositing such amount in the Distribution Account on the related
Distribution Date. The Trustee shall be obligated to make such advance only if
(i) such advance, in the good faith judgment of the Trustee can reasonably be
expected to be ultimately recoverable from Stayed Funds and (ii) the Trustee is
not prohibited by law from making such advance or obligating itself to do so.
Upon remittance of the Stayed Funds to the Trustee or the deposit thereof in the
Distribution Account by the Master Servicer, a trustee in bankruptcy or a
federal bankruptcy court, the Trustee may recover the amount so advanced,
without interest, by withdrawing such amount from the Distribution Account;
however, nothing in this Agreement shall be deemed to affect the Trustee's
rights to recover from the Master Servicer's own funds interest on the amount of
any such advance. If the Trustee at any time makes an advance under this
Subsection which it later determines in its good faith judgment shall not be
ultimately recoverable from the Stayed Funds with respect to which such advance
was made, the Trustee shall be entitled to reimburse itself for such advance,
without interest, by withdrawing from the Distribution Account, out of amounts
on deposit therein, an amount equal to the portion of such advance attributable
to the Stayed Funds.

                  (c)      If the Master Servicer is terminated pursuant to
Section 7.01, then the successor Master Servicer shall not be permitted to
reimburse itself directly for Advances or Servicing Advances under Section
3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or Section 3.05(a)(vii) if
the Master Servicer has not been fully reimbursed for its Advances and Servicing
Advances, but instead the successor Master Servicer shall include such amounts
in the applicable remittance to the Trustee made pursuant to Section 3.04(g) to
the extent of amounts on deposit in the Collection Account on the related Master
Servicer Remittance Date. The Trustee is hereby authorized to pay to the
terminated Master Servicer (or the related Advancing Person in accordance with
Section 3.23) and the successor Master Servicer, as applicable, reimbursements
for Advances and Servicing Advances from the Distribution Account to the same
extent each such Master Servicer would have been permitted to reimburse itself
for such Advances and/or Servicing Advances in accordance with Section
3.05(a)(ii), Section 3.05(a)(iii) or Section 3.05(a)(v), as the case may be. All
Advances and Servicing Advances made pursuant to the terms of this Agreement
shall be deemed made and shall be reimbursed on a "first in-first out" (FIFO)
basis. At such time as the Master Servicer (or related Advancing Person) has
been reimbursed for all Advances and Servicing Advances made by it, the
successor Master Servicer shall no longer be required to remit in accordance
with the first sentence of this Section 7.02(c) and shall then be permitted to
reimburse itself directly for Advances and Servicing Advances in accordance with
Section 3.05(a)(ii), Section 3.05(a)(iii), Section 3.05(a)(v) or Section
3.05(a)(vii).

                  SECTION 7.03 Notification to Certificateholders.

                  (a) Upon any termination of the Master Servicer pursuant to
Section 7.01 above or any appointment of a successor to the Master Servicer
pursuant to Section 7.02 above, the Trustee shall give prompt written notice
thereof to Certificateholders, the Guarantor and the NIMS Insurer at their
respective addresses appearing in the Certificate Register.

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                  (b) Not later than the later of 60 days after the occurrence
of any event, which constitutes or which, with notice or lapse of time or both,
would constitute a Master Servicer Event of Default or five days after a
Responsible Officer of the Trustee becomes aware of the occurrence of such an
event, the Trustee shall transmit by mail to the NIMS Insurer, the Guarantor and
to all Holders of Certificates notice of each such occurrence, unless such
default or Master Servicer Event of Default shall have been cured or waived.

                  SECTION 7.04 Waiver of Master Servicer Events of Default.

                  The Holders representing at least 66% of the Voting Rights
(with the consent of the NIMS Insurer or the Guarantor (as provided in Section
1.03)) evidenced by all Classes of Certificates affected by any default or
Master Servicer Event of Default hereunder may waive such default or Master
Servicer Event of Default; PROVIDED, HOWEVER, that a default or Master Servicer
Event of Default under clause (i) or (viii) of Section 7.01 may be waived only
by all of the Holders of the Regular Certificates (with the consent of the NIMS
Insurer). Upon any such waiver of a default or Master Servicer Event of Default,
such default or Master Servicer Event of Default shall cease to exist and shall
be deemed to have been remedied for every purpose hereunder. No such waiver
shall extend to any subsequent or other default or Master Servicer Event of
Default or impair any right consequent thereon except to the extent expressly so
waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

                  SECTION 8.01 Duties of Trustee.

                  The Trustee, prior to the occurrence of a Master Servicer
Event of Default and after the curing of all Master Servicer Events of Default
which may have occurred, undertakes to perform such duties and only such duties
as are specifically set forth in this Agreement. During a Master Servicer Event
of Default, the Trustee shall exercise such of the rights and powers vested in
it by this Agreement, and use the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs. Any permissive right of the Trustee
enumerated in this Agreement shall not be construed as a duty.

                  The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform on their face to the requirements of this Agreement. If any such
instrument is found not to conform on its face to the requirements of this
Agreement in a material manner, the Trustee shall take such action as it deems
appropriate to have the instrument corrected, and if the instrument is not
corrected to its respective satisfaction, such dissatisfied party shall provide
notice thereof to the Certificateholders, the Guarantor and the NIMS Insurer.

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

                  (i) Prior to the occurrence of a Master Servicer Event of
         Default, and after the curing of all such Master Servicer Events of
         Default which may have occurred, the duties and obligations of the
         Trustee shall be determined solely by the express provisions of this
         Agreement, the Trustee shall not be liable except for the performance
         of such duties and obligations as are specifically set forth in this
         Agreement, no implied covenants or obligations shall be read into this
         Agreement against the Trustee and, in the absence of bad faith on the
         part of the Trustee, the Trustee may conclusively rely, as to the truth
         of the statements and the correctness of the opinions expressed
         therein, upon any certificates or opinions furnished to the Trustee
         that conform to the requirements of this Agreement;

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

                  (iii) The Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with the direction of the NIMS Insurer, the
         Guarantor or the Holders of Certificates entitled to at least 25% of
         the Voting Rights relating to the time, method and place of conducting
         any proceeding for

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         any remedy available to the Trustee or exercising any trust or power
         conferred upon it, under this Agreement.

                  The Trustee shall not be required to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require it
to perform, or be responsible for the manner of performance of, any of the
obligations of the Master Servicer under this Agreement, except during such
time, if any, as the Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, the Master Servicer in accordance with
the terms of this Agreement.

                  SECTION 8.02 Certain Matters Affecting the Trustee.

                  (a) Except as otherwise provided in Section 8.01:

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

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

                  (iii) The Trustee shall not be under any obligation to
         exercise any of the trusts or powers vested in it by this Agreement or
         to institute, conduct or defend any litigation hereunder or in relation
         hereto at the request, order or direction of any of the
         Certificateholders, the Guarantor or the NIMS Insurer, pursuant to the
         provisions of this Agreement, unless such Certificateholders, the
         Guarantor or the NIMS Insurer, as applicable, shall have offered to the
         Trustee security or indemnity reasonably satisfactory to it against the
         costs, expenses and liabilities which may be incurred therein or
         thereby; nothing contained herein shall, however, relieve the Trustee
         of the obligation, upon the occurrence of a Master Servicer Event of
         Default (which has not been cured or waived), to exercise such of the
         rights and powers vested in it by this Agreement, and to use the same
         degree of care and skill in their exercise as a prudent person would
         exercise or use under the circumstances in the conduct of such person's
         own affairs;

                  (iv) The Trustee shall not be personally liable for any action
         taken, suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by this Agreement;

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                  (v) Prior to the occurrence of a Master Servicer Event of
         Default hereunder and after the curing of all Master Servicer Events of
         Default which may have occurred, the Trustee shall not be bound to make
         any investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, approval, bond or other paper or document, unless
         requested in writing to do so by the NIMS Insurer, the Guarantor or the
         Holders of Certificates entitled to at least 25% of the Voting Rights;
         provided, however, that if the payment within a reasonable time to the
         Trustee of the costs, expenses or liabilities likely to be incurred by
         it in the making of such investigation is, in the opinion of the
         Trustee not reasonably assured to the Trustee by the NIMS Insurer, the
         Guarantor or such Certificateholders, the Trustee may require
         reasonable indemnity against such expense, or liability from such
         Certificateholders, the Guarantor or the NIMS Insurer as a condition to
         taking any such action;

                  (vi) The Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys; and

                  (vii) The Trustee shall not be personally liable for any loss
         resulting from the investment of funds held in the Collection Account,
         the Escrow Account or the REO Account made at the direction of the
         Master Servicer pursuant to Section 3.06.

                  (b) All rights of action under this Agreement or under any of
the Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other proceeding relating thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in the name of the Trustee for the
benefit of all the Holders of such Certificates, subject to the provisions of
this Agreement.

                  (c) The Depositor hereby directs the Trustee to execute,
deliver and perform its obligations under the Cap Contracts on the Closing Date
and thereafter on behalf of the Holders of the Group I Certificates, the Group
II Certificates and the Mezzanine Certificates. The Seller, the Depositor, the
Master Servicer and the Holders of the Group I Certificates, the Group II
Certificates and the Mezzanine Certificates by their acceptance of such
Certificates, acknowledge and agree that the Trustee shall execute, deliver and
perform its obligations under the Cap Contracts and shall do so solely in its
capacity as Trustee of the Trust Fund and not in its individual capacity.

                  (d) The Depositor hereby directs the Trustee to execute and
deliver each of the PMI Policies on behalf of the Trust Fund in the form
presented to it by the Depositor. Every provision of this Agreement relating to
the conduct or affecting the liability of or affording protection to the Trustee
shall apply to the Trustee's execution of the PMI Policies, and the performance
of its duties and satisfaction of its obligations thereunder.

                  SECTION 8.03 The Trustee Not Liable for Certificates or
                               Mortgage Loans.

                  The recitals contained herein and in the Certificates (other
than the signature of the Trustee, the authentication of the Certificate
Registrar on the Certificates, the

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acknowledgments of the Trustee contained in Article II and the representations
and warranties of the Trustee in Section 8.13) shall be taken as the statements
of the Depositor and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations or warranties as to the
validity or sufficiency of this Agreement (other than as specifically set forth
with respect to such party in Section 8.13) or of the Certificates (other than
the signature of the Trustee and authentication of the Certificate Registrar on
the Certificates) or of any Mortgage Loan or related document. The Trustee shall
not be accountable for the use or application by the Depositor of any of the
Certificates or of the proceeds of such Certificates, or for the use or
application of any funds paid to the Depositor or the Master Servicer in respect
of the Mortgage Loans or deposited in or withdrawn from the Collection Account
by the Master Servicer, other than, subject to Section 8.01, any funds held by
or on behalf of the Trustee in accordance with Section 3.04.

                  SECTION 8.04 Trustee May Own Certificates.

                  The Trustee in its individual capacity or any other capacity
may become the owner or pledgee of Certificates with the same rights it would
have if it were not Trustee.

                  SECTION 8.05 Trustee's Fees and Expenses.

                  (a) The Trustee shall withdraw from the Distribution Account
on each Distribution Date and pay to itself the Trustee Fee and, to the extent
that the funds therein are at any time insufficient for such purpose, the
Depositor shall pay such fees. The Trustee, or any director, officer, employee
or agent of the Trustee shall be indemnified by REMIC I and held harmless
against any loss, liability or expense (not including expenses, disbursements
and advances incurred or made by the Trustee (including the compensation and the
expenses and disbursements of its agents and counsel) in the ordinary course of
the Trustee's performance in accordance with the provisions of this Agreement)
incurred by the Trustee in connection with any claim or legal action or any
pending or threatened claim or legal action arising out of or in connection with
the acceptance or administration of its obligations and duties under this
Agreement (up to a limit of $600,000 per calendar year so long as any Insured
Notes are insured by a NIMS Insurer), other than any loss, liability or expense
(i) resulting from a breach of the Master Servicer's obligations and duties
under this Agreement and the Mortgage Loans (for which the Master Servicer shall
indemnify pursuant to Section 8.05(b)), (ii) that constitutes a specific
liability of the Trustee pursuant to Section 10.01(c) or (iii) any loss,
liability or expense incurred by reason of its willful misfeasance, bad faith or
negligence in the performance of its duties hereunder or by reason of reckless
disregard of its obligations and duties hereunder or as a result of a breach of
its obligations under Article X hereof. Any amounts payable to the Trustee, or
any director, officer, employee or agent of the Trustee in respect of the
indemnification provided by this paragraph (a), or pursuant to any other right
of reimbursement from the Trust Fund that the Trustee, or any director, officer,
employee or agent of the Trustee may have hereunder in its capacity as such, may
be withdrawn by the Trustee from the Distribution Account at any time.

                  (b) The Master Servicer agrees to indemnify the Trustee from,
and hold it harmless against, any loss, liability or expense resulting from a
breach of the Master Servicer's

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obligations and duties under this Agreement. Such indemnity shall survive the
termination or discharge of this Agreement and the resignation or removal of the
Trustee. Any payment hereunder made by the Master Servicer to the Trustee shall
be from the Master Servicer's own funds, without reimbursement from the Trust
Fund therefor.

                  (c) The Master Servicer shall pay any annual rating agency
fees of the Rating Agencies for ongoing surveillance from its own funds without
right of reimbursement.

                  SECTION 8.06 Eligibility Requirements for Trustee.

                  The Trustee hereunder shall at all times be a corporation or
an association (other than the Depositor, the Seller, the Master Servicer or any
Affiliate of the foregoing) organized and doing business under the laws of any
state or the United States of America, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by federal or state
authority. If such corporation or association publishes reports of conditions at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such corporation or association shall be deemed
to be its combined capital and surplus as set forth in its most recent report of
conditions so published. In case at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Trustee shall
resign immediately in the manner and with the effect specified in Section 8.07.

                  SECTION 8.07 Resignation and Removal of the Trustee.

                  The Trustee may at any time resign and be discharged from the
trust hereby created by giving written notice thereof to the Depositor, the NIMS
Insurer, the Guarantor, the Master Servicer and the Certificateholders. Upon
receiving such notice of resignation of the Trustee, the Depositor shall
promptly appoint a successor trustee acceptable to the NIMS Insurer or the
Guarantor (as provided in Section 1.03) by written instrument, in duplicate,
which instrument shall be delivered to the resigning Trustee and to the
successor trustee. A copy of such instrument shall be delivered to the
Certificateholders, the Guarantor, the Trustee and the Master Servicer by the
Depositor. If no successor Trustee shall have been so appointed and shall have
accepted appointment within 30 days after the giving of such notice of
resignation, then the Guarantor may appoint a successor Trustee acceptable to
the NIMS Insurer. If no successor trustee shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.

                  If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 and shall fail to resign after
written request therefor by the Depositor, the NIMS Insurer or the Guarantor (as
provided in Section 1.03), or if at any time the Trustee shall become incapable
of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the
Trustee or of its respective property shall be appointed, or any public officer
shall take charge or control of the Trustee or of its respective property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor, the NIMS Insurer or the Guarantor (as provided

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in Section 1.03) may remove the Trustee and appoint a successor trustee
acceptable to the NIMS Insurer or the Guarantor (as provided in Section 1.03) by
written instrument, in duplicate, which instrument shall be delivered to the
Trustee so removed and to the successor trustee. A copy of such instrument shall
be delivered to the Certificateholders, the Guarantor and the Master Servicer by
the Depositor.

                  Either (i) the Holders of Certificates entitled to at least
51% of the Voting Rights, with the consent of the NIMS Insurer or the Guarantor
(as provided in Section 1.03) or (ii) the NIMS Insurer or the Guarantor (as
provided in Section 1.03), upon failure of the Trustee to perform its
obligations hereunder, may at any time remove the Trustee and appoint a
successor trustee acceptable to the NIMS Insurer or the Guarantor (as provided
in Section 1.03) by written instrument or instruments, in triplicate, signed by
such Holders or their attorneys-in-fact duly authorized, one complete set of
which instruments shall be delivered to the Depositor, one complete set to the
Trustee so removed and one complete set to the successor so appointed. A copy of
such instrument shall be delivered to the Certificateholders, the Guarantor and
the Master Servicer by the Depositor.

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

                  SECTION 8.08 Successor Trustee.

                  Any successor trustee appointed as provided in Section 8.07
shall execute, acknowledge and deliver to the Depositor, the NIMS Insurer, the
Guarantor and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with the
like effect as if originally named as trustee herein. The predecessor trustee
shall deliver to the successor trustee all Mortgage Files and related documents
and statements, as well as all moneys, held by it hereunder (other than any
Mortgage Files at the time held by a Custodian, which Custodian shall become the
agent of any successor trustee hereunder), and the Depositor and the predecessor
trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in the successor trustee all such rights, powers, duties and obligations.

                  No successor trustee shall accept appointment as provided in
this Section unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 and the appointment of such
successor trustee shall not result in a downgrading of any Class of Certificates
by each Rating Agency, as evidenced by a letter from each Rating Agency.

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                  SECTION 8.09 Merger or Consolidation of Trustee.

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

                  SECTION 8.10 Appointment of Co-Trustee or Separate Trustee.

                  Notwithstanding any other provisions hereof, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of REMIC I or property securing the same may at the time be located, the
Master Servicer and the Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Trustee and the NIMS Insurer or the Guarantor (as provided in Section 1.03)
to act as co-trustee or co-trustees, jointly with the Trustee, or separate
trustee or separate trustees, of all or any part of REMIC I, and to vest in such
Person or Persons, in such capacity, such title to REMIC I, or any part thereof,
and, subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Master Servicer and the Trustee may
consider necessary or desirable. Any such co-trustee or separate trustee shall
be subject to the written approval of the Master Servicer and the NIMS Insurer
or the Guarantor (as provided in Section 1.03). If the Master Servicer and the
NIMS Insurer or the Guarantor (as provided in Section 1.03) shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in case a Master Servicer Event of Default shall have occurred and
be continuing, the Trustee alone shall have the power to make such appointment.
No co-trustee or separate trustee hereunder shall be required to meet the terms
of eligibility as a successor trustee under Section 8.06 hereunder and no notice
to the Holders of Certificates of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 8.08 hereof.

                  In the case of any appointment of a co-trustee or separate
trustee pursuant to this Section 8.10, all rights, powers, duties and
obligations conferred or imposed upon the Trustee shall be conferred or imposed
upon and exercised or performed by the Trustee and such separate trustee or
co-trustee jointly, except to the extent that under any law of any jurisdiction
in which any particular act or acts are to be performed by the Trustee (whether
as Trustee hereunder or as successor to the Master Servicer hereunder), the
Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to REMIC I or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at the direction
of the Trustee.

                  Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VIII. Each separate trustee and co-trustee, upon
its acceptance of the trust conferred, shall be vested with the estates or
property specified in its

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instrument of appointment, either jointly with the Trustee or separately, as may
be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Depositor, the Master Servicer, the Guarantor and the NIMS Insurer.

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

                  SECTION 8.11 Appointment of Custodians.

                  The Trustee may, with the consent of the Depositor, the Master
Servicer and the Guarantor appoint one or more Custodians to hold all or a
portion of the Mortgage Files as agent for the Trustee, by entering into a
Custodial Agreement. The appointment of any Custodian may at any time be
terminated and a substitute Custodian appointed therefor upon the reasonable
request of the Master Servicer to the Trustee, the consent to which shall not be
unreasonably withheld. The Trustee shall pay any and all fees and expenses of
any Custodian in accordance with each Custodial Agreement (provided that if
expenses of the kind that would be reimbursable to the Trustee pursuant to
Section 8.05 if incurred by the Trustee are incurred by the Custodian, the
Trustee shall be entitled to reimbursement under Section 8.05 for such kind of
expenses to the extent the Trustee has paid such expenses on behalf of the
Custodian or for which the Trustee has reimbursed the Custodian). The Trustee
initially appoints the Custodian as Custodian, and the Depositor and the Master
Servicer consent to such appointment. Subject to Article VIII hereof, the
Trustee agrees to comply with the terms of each Custodial Agreement and to
enforce the terms and provisions thereof against the Custodian for the benefit
of the Certificateholders having an interest in any Mortgage File held by such
Custodian. Each Custodian shall be a depository institution or trust company
subject to supervision by federal or state authority, shall have combined
capital and surplus of at least $10,000,000 and shall be qualified to do
business in the jurisdiction in which it holds any Mortgage File. Each Custodial
Agreement may be amended only as provided in Section 11.01. In no event shall
the appointment of any Custodian pursuant to a Custodial Agreement diminish the
obligations of the Trustee hereunder.

                  SECTION 8.12 Appointment of Office or Agency.

                  The Trustee shall designate an office or agency in the City of
New York where the Certificates may be surrendered for registration of transfer
or exchange, and presented for final distribution, and where notices and demands
to or upon the Trustee in respect of the Certificates and this Agreement may be
delivered. As of the Closing Date, the Trustee designates the office of its
agent located c/o DTC Transfer Agent Services, 55 Water Street, Jeanette Park
Entrance, New York, New York 10041 for such purposes.

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                  SECTION 8.13 Representations and Warranties of the Trustee.

                  The Trustee hereby represents and warrants, to the Master
Servicer, the Guarantor and the Depositor, as of the Closing Date, that:

                  (i) It is a national banking association duly organized,
         validly existing and in good standing under the laws of the United
         States.

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

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

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

                  (v) It is not in violation of, and its execution and delivery
         of this Agreement and its performance and compliance with the terms of
         this Agreement shall not constitute a violation of, any law, any order
         or decree of any court or arbiter, or any order, regulation or demand
         of any federal, state or local governmental or regulatory authority,
         which violation, in its good faith and reasonable judgment, is likely
         to affect materially and adversely either the ability of it to perform
         its obligations under this Agreement or its financial condition.

                  (vi) No litigation is pending or, to the best knowledge,
         threatened against it which would prohibit it from entering into this
         Agreement or, in its good faith reasonable judgment, is likely to
         materially and adversely affect either its ability to perform its
         obligations under this Agreement or its financial condition.

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                                   ARTICLE IX

                                   TERMINATION

                  SECTION 9.01 Termination Upon Repurchase or Liquidation of All
                               Mortgage Loans.

                  (a) Subject to Section 9.02, the respective obligations and
responsibilities under this Agreement of the Depositor, the Guarantor, the
Master Servicer and the Trustee (other than the obligations of the Master
Servicer to the Trustee pursuant to Section 8.05 and of the Master Servicer to
provide for and the Trustee to make payments in respect of the REMIC I Regular
Interests, the REMIC II Regular Interests or the Classes of Certificates as
hereinafter set forth) shall terminate upon payment to the Certificateholders
and the deposit of all amounts held by or on behalf of the Trustee and required
hereunder to be so paid or deposited on the Distribution Date coinciding with or
following the earlier to occur of (i) the purchase by the Terminator (as defined
below) of all Mortgage Loans and each REO Property remaining in REMIC I and (ii)
the final payment or other liquidation (or any advance with respect thereto) of
the last Mortgage Loan or REO Property remaining in REMIC I; provided, however,
that in no event shall the trust created hereby continue beyond the expiration
of 21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late ambassador of the United States to the Court of St. James,
living on the date hereof. The purchase by the Terminator of all Mortgage Loans
and each REO Property remaining in REMIC I shall be at a price (the "Termination
Price") equal to greater of (A) the aggregate fair market value of all of the
assets of REMIC I and (B) the sum of the Stated Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and the appraised fair market value of the REO Properties plus accrued
interest through the end of the calendar month preceding the month of the final
Distribution Date and any unreimbursed Advances and Servicing Advances(in the
case of fair market values required to be determined under (A) or (B) above, as
determined by the Terminator, the Trustee and, if the Terminator is not the NIMS
Insurer, the NIMS Insurer, as of the close of business on the third Business Day
next preceding the date upon which notice of any such termination is furnished
to Certificateholders pursuant to the third paragraph of this Section 9.01);
provided, however, such option may only be exercised if the Termination Price is
sufficient to pay (i) any outstanding Guarantor Reimbursement Amounts and
Guaranty Fees owed to the Guarantor and (ii) all interest accrued on, as well as
amounts necessary to retire the note balance of, each class of notes issued
pursuant to the Indenture and any amounts owed to the NIMS Insurer at the time
the option is exercised. If a termination pursuant to this Section 9.01(a) or
Section 9.01(b) will result in a draw on the Guaranty, the consent of the
Guarantor shall be required prior to the Terminator exercising such option.

                  (b) The Master Servicer (or if the Master Servicer fails to
exercise such right, the NIMS Insurer) shall have the right (the party
exercising such right, the "Terminator"), to purchase all of the Mortgage Loans
and each REO Property remaining in REMIC I pursuant to clause (i) of the
preceding paragraph no later than the Determination Date in the month
immediately preceding the Distribution Date on which the Certificates shall be
retired; provided,

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however, that the Terminator may elect to purchase all of the Mortgage Loans and
each REO Property remaining in REMIC I pursuant to clause (i) above only (A) if
the aggregate Stated Principal Balance of the Mortgage Loans and each REO
Property remaining in the Trust Fund at the time of such election is less than
10% of the sum of (x) the aggregate Stated Principal Balance of the Initial
Mortgage Loans as of the Cut-off Date and (y) the Original Pre-Funded Amounts
and (B) if the Terminator is the Master Servicer and is an affiliate of the
Seller, the Master Servicer shall have delivered to the Trustee, the Guarantor
and the NIMS Insurer a written certification that the burdens of servicing the
Mortgage Loans and REO Properties remaining in REMIC I exceed the benefits of
the Servicing Fees that would be realized by the Master Servicer if it continued
to service such assets on behalf of the Trust Fund. By acceptance of the
Residual Certificates, the Holders of the Residual Certificates agree, in
connection with any termination hereunder, to pledge any amounts in excess of
par, and to the extent received in respect of such termination, to pay any such
amounts to the Holders of the Class CE Certificates.

                  (c) Notice of the liquidation of the REMIC I Regular Interests
shall be given promptly by the Trustee by letter to Certificateholders mailed
(a) in the event such notice is given in connection with the purchase of the
Mortgage Loans and each REO Property by the Terminator, not earlier than the
15th day and not later than the 25th day of the month next preceding the month
of the final distribution on the Certificates or (b) otherwise during the month
of such final distribution on or before the Determination Date in such month, in
each case specifying (i) the Distribution Date upon which the Trust Fund shall
terminate and final payment in respect of the REMIC I Regular Interests, the
REMIC II Regular Interests and the Certificates shall be made upon presentation
and surrender of the related Certificates at the office of the Trustee therein
designated, (ii) the amount of any such final payment, (iii) that no interest
shall accrue in respect of the REMIC I Regular Interests, the REMIC II Regular
Interests or the Certificates from and after the Interest Accrual Period
relating to the final Distribution Date therefor and (iv) that the Record Date
otherwise applicable to such Distribution Date is not applicable, payments being
made only upon presentation and surrender of the Certificates at the office of
the Trustee. The Trustee shall give such notice to the Certificate Registrar at
the time such notice is given to Certificateholders. In the event such notice is
given in connection with the purchase of all of the Mortgage Loans and each REO
Property remaining in REMIC I by the Terminator, the Terminator shall deliver to
the Trustee for deposit in the Distribution Account not later than the last
Business Day preceding the final Distribution Date on the Certificates an amount
in immediately available funds equal to the above-described purchase price. Upon
certification to the Trustee by a Servicing Officer of the making of such final
deposit, the Trustee shall promptly release or cause to be released to the
Terminator the Mortgage Files for the remaining Mortgage Loans, and the Trustee
shall execute all assignments, endorsements and other instruments necessary to
effectuate such transfer.

                  (d) Upon presentation of the Certificates by the
Certificateholders on the final Distribution Date, the Trustee shall distribute
to each Certificateholder so presenting and surrendering its Certificates the
amount otherwise distributable on such Distribution Date in accordance with
Section 4.01 in respect of the Certificates so presented and surrendered. Any
funds not distributed to any Holder or Holders of Certificates being retired on
such Distribution Date because of the failure of such Holder or Holders to
tender their Certificates shall, on such date, be set aside and held in trust by
the Trustee and credited to the account of the appropriate

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non-tendering Holder or Holders. If any Certificates as to which notice has been
given pursuant to this Section 9.01 shall not have been surrendered for
cancellation within six months after the time specified in such notice, the
Trustee shall mail a second notice to the remaining non-tendering
Certificateholders to surrender their Certificates for cancellation in order to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trustee shall, directly or through an agent, mail a final
notice to remaining related non-tendering Certificateholders concerning
surrender of their Certificates. The costs and expenses of maintaining the funds
in trust and of contacting such Certificateholders shall be paid out of the
assets remaining in the trust funds. If within one year after the final notice
any such Certificates shall not have been surrendered for cancellation, the
Trustee shall pay to the Representative all remaining amounts, and all rights of
non-tendering Certificateholders in or to such amounts shall thereupon cease. No
interest shall accrue or be payable to any Certificateholder on any amount held
in trust by the Trustee as a result of such Certificateholder's failure to
surrender its Certificate(s) for final payment thereof in accordance with this
Section 9.01.

                  Immediately following the deposit of funds in trust hereunder
in respect of the Certificates, the Trust Fund shall terminate.

                  SECTION 9.02 Additional Termination Requirements.

                  (a) In the event that the Terminator purchases all the
Mortgage Loans and each REO Property or the final payment on or other
liquidation of the last Mortgage Loan or REO Property remaining in REMIC I
pursuant to Section 9.01, the Trust Fund shall be terminated in accordance with
the following additional requirements:

                  (i) The Trustee shall specify the first day in the 90-day
         liquidation period in a statement attached to each Trust REMIC's final
         Tax Return pursuant to Treasury regulation Section 1.860F-1 and shall
         satisfy all requirements of a qualified liquidation under Section 860F
         of the Code and any regulations thereunder, as evidenced by an Opinion
         of Counsel delivered to the Trustee, the NIMS Insurer and the Guarantor
         obtained at the expense of the Terminator;

                  (ii) During such 90-day liquidation period, and at or prior to
         the time of making of the final payment on the Certificates, the
         Trustee shall sell all of the assets of REMIC I to the Terminator for
         cash; and

                  (iii) At the time of the making of the final payment on the
         Certificates, the Trustee shall distribute or credit, or cause to be
         distributed or credited, to the Holders of the Residual Certificates
         all cash on hand in the Trust Fund (other than cash retained to meet
         claims), and the Trust Fund shall terminate at that time.

                  (b) At the expense of the applicable Terminator (or in the
event of termination under Section 9.01(a)(ii), at the expense of the Trustee),
the Trustee shall prepare or cause to be prepared the documentation required in
connection with the adoption of a plan of liquidation of each Trust REMIC
pursuant to this Section 9.02.

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                  (c) By their acceptance of Certificates, the Holders thereof
hereby agree to authorize the Trustee to specify the 90-day liquidation period
for each Trust REMIC which authorization shall be binding upon all successor
Certificateholders.

                                   ARTICLE X

                                REMIC PROVISIONS

                  SECTION 10.01 REMIC Administration.

                  (a) The Trustee shall elect to treat each Trust REMIC as a
REMIC under the Code and, if necessary, under applicable state law. Each such
election shall be made by the Trustee on Form 1066 or other appropriate federal
tax or information return or any appropriate state return for the taxable year
ending on the last day of the calendar year in which the Certificates are
issued. For the purposes of the REMIC election in respect of REMIC I, (i) the
REMIC I Regular Interests shall be designated as the Regular Interests in REMIC
I and the Class R-I Interest shall be designated as the Residual Interest in
REMIC I, (ii) the REMIC II Regular Interests shall be designated as the Regular
Interests in REMIC II and the Class R-II Interest shall be designated as the
Residual Interest in REMIC II, (iii) the Class A Certificates and the Mezzanine
Certificates (exclusive of any amounts received from the Net WAC Rate Carryover
Reserve Account), the Class CE Certificates and the Class P Certificates shall
be designated as the Regular Interests in REMIC III and the Class R-III Interest
shall be designated as the Residual Interest in REMIC III. The Trustee shall not
permit the creation of any "interests" in any Trust REMIC (within the meaning of
Section 860G of the Code) other than the REMIC I Regular Interests, the REMIC II
Regular Interests and the interests represented by the Certificates.

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

                  (c) The Trustee shall pay out of its own funds, without any
right of reimbursement, any and all expenses relating to any tax audit of the
Trust Fund caused by the Trustee (including, but not limited to, any
professional fees or any administrative or judicial proceedings with respect to
any Trust REMIC that involve the Internal Revenue Service or state tax
authorities), other than the expense of obtaining any tax related Opinion of
Counsel except as specified herein. The Trustee, as agent for each Trust REMIC's
tax matters person, shall (i) act on behalf of the Trust Fund in relation to any
tax matter or controversy involving any Trust REMIC and (ii) represent, after
consultation with the Guarantor, the Trust Fund in any administrative or
judicial proceeding relating to an examination or audit by any governmental
taxing authority with respect thereto. The Holder of the largest Percentage
Interest of each Class of Residual Certificates shall be designated, in the
manner provided under Treasury regulations section 1.860F-4(d) and Treasury
regulations section 301.6231(a)(7)-1, as the tax matters person of the related
REMIC created hereunder. By their acceptance thereof, the Holder of the largest
Percentage Interest of the Residual Certificates hereby agrees to irrevocably
appoint the Trustee or an Affiliate as its agent to perform all of the duties of
the tax matters person for the Trust Fund.

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                  (d) The Trustee shall prepare, sign and file all of the Tax
Returns in respect of each REMIC created hereunder. The expenses of preparing
and filing such returns shall be borne by the Trustee without any right of
reimbursement therefor. The Master Servicer shall provide on a timely basis to
the Trustee or its designee such information with respect to the assets of the
Trust Fund as is in its possession and reasonably required by the Trustee to
enable it to perform its obligations under this Article. The Trustee shall
provide to the Guarantor, upon request, copies of all of the Tax Returns and
other tax related information in respect of any REMIC created hereunder.

                  (e) The Trustee shall perform on behalf of each Trust REMIC
all reporting and other tax compliance duties that are the responsibility of
such REMIC under the Code, the REMIC Provisions or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, as required by the Code, the REMIC Provisions or other
such compliance guidance, the Trustee shall provide (i) to any Transferor of a
Residual Certificate such information as is necessary for the application of any
tax relating to the transfer of a Residual Certificate to any Person who is not
a Permitted Transferee, (ii) to the Certificateholders such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption as required) and (iii) to the Internal Revenue
Service the name, title, address and telephone number of the person who shall
serve as the representative of each Trust REMIC. The Master Servicer shall
provide on a timely basis to the Trustee such information with respect to the
assets of the Trust Fund, including, without limitation, the Mortgage Loans, as
is in its possession and reasonably required by the Trustee to enable each of
them to perform their respective obligations under this subsection. In addition,
the Depositor shall provide or cause to be provided to the Trustee within ten
(10) days after the Closing Date, all information or data that the Trustee
reasonably determines to be relevant for tax purposes as to the valuations and
issue prices of the Certificates, including, without limitation, the price,
yield, prepayment assumption and projected cash flow of the Certificates.

                  (f) The Trustee shall take such action and shall cause each
REMIC created hereunder to take such action as shall be necessary to create or
maintain the status thereof as a REMIC under the REMIC Provisions (and the
Master Servicer shall assist it, to the extent reasonably requested by it). The
Trustee shall not take any action, cause the Trust Fund to take any action or
fail to take (or fail to cause to be taken) any action that, under the REMIC
Provisions, if taken or not taken, as the case may be, could (i) endanger the
status of any Trust REMIC as a REMIC or (ii) result in the imposition of a tax
upon the Trust Fund (including but not limited to the tax on prohibited
transactions as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC set forth in Section 860G(d) of the Code) (either such
event, an "Adverse REMIC Event") unless the Trustee, the Guarantor and the NIMS
Insurer have received an Opinion of Counsel, addressed to the Trustee, the NIMS
Insurer and the Guarantor (at the expense of the party seeking to take such
action but in no event at the expense of the Trustee) to the effect that the
contemplated action shall not, with respect to any Trust REMIC, endanger such
status or result in the imposition of such a tax, nor shall the Master Servicer
take or fail to take any action (whether or not authorized hereunder) as to
which the Trustee, the Guarantor and the NIMS Insurer has advised it in writing
that it has received an Opinion of Counsel to the effect that an Adverse REMIC
Event could occur with respect to such action. In

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addition, prior to taking any action with respect to any Trust REMIC or the
respective assets of each, or causing any Trust REMIC to take any action, which
is not contemplated under the terms of this Agreement, the Master Servicer shall
consult with the Trustee, the NIMS Insurer, the Guarantor or its designee, in
writing, with respect to whether such action could cause an Adverse REMIC Event
to occur with respect to any Trust REMIC, and the Master Servicer shall not take
any such action or cause any Trust REMIC to take any such action as to which the
Trustee, the Guarantor or the NIMS Insurer has advised it in writing that an
Adverse REMIC Event could occur. The Trustee, the Guarantor or the NIMS Insurer
may consult with counsel to make such written advice, and the cost of same shall
be borne by the party seeking to take the action not permitted by this
Agreement, but in no event shall such cost be an expense of the Trustee. At all
times as may be required by the Code, the Master Servicer on behalf of the
Trustee shall ensure that substantially all of the assets of any Trust REMIC
shall consist of "qualified mortgages" as defined in Section 860G(a)(3) of the
Code and "permitted investments" as defined in Section 860G(a)(5) of the Code.

                  (g) In the event that any tax is imposed on "prohibited
transactions" of any REMIC created hereunder as defined in Section 860F(a)(2) of
the Code, on the "net income from foreclosure property" of such REMIC as defined
in Section 860G(c) of the Code, on any contributions to any such REMIC after the
Startup Day therefor pursuant to Section 860G(d) of the Code, or any other tax
is imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be charged (i) to the Trustee pursuant to Section 10.03 hereof,
if such tax arises out of or results from a breach by the Trustee of any of its
obligations under this Article X, (ii) to the Master Servicer pursuant to
Section 10.03 hereof, if such tax arises out of or results from a breach by the
Master Servicer of any of its obligations under Article III or this Article X,
or otherwise (iii) against amounts on deposit in the Distribution Account and
shall be paid by withdrawal therefrom.

                  (h) On or before April 15th of each calendar year, commencing
April 15, 2005, the Trustee shall deliver to the Master Servicer, the NIMS
Insurer, the Guarantor and each Rating Agency a Certificate from a Responsible
Officer of the Trustee stating, without regard to any action taken by any party
other than the Trustee, the Trustee's compliance with this Article X.

                  (i) The Trustee shall, for federal income tax purposes,
maintain books and records with respect to each Trust REMIC on a calendar year
and on an accrual basis. The Trustee shall apply for an Employer Identification
Number for the Trust Fund from the Internal Revenue Service via a Form SS-4 or
such other form as is appropriate.

                  (j) Following the Startup Day, the Trustee shall not accept
any contributions of assets to any Trust REMIC other than in connection with any
Qualified Substitute Mortgage Loan delivered in accordance with Section 2.03
unless it shall have received an Opinion of Counsel to the effect that the
inclusion of such assets in the Trust Fund shall not cause the related REMIC to
fail to qualify as a REMIC at any time that any Certificates are outstanding or
subject such REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.

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<PAGE>

                  (k) Neither the Trustee nor the Master Servicer shall enter
into any arrangement by which any Trust REMIC shall receive a fee or other
compensation for services nor permit any such REMIC to receive any income from
assets other than the Mortgage Pool which are deemed to constitute "qualified
mortgages" as defined in Section 860G(a)(3) of the Code or "permitted
investments" as defined in Section 860G(a)(5) of the Code.

                  SECTION 10.02 Prohibited Transactions and Activities.

                  None of the Depositor, the Master Servicer or the Trustee
shall sell, dispose of or substitute for any of the Mortgage Loans (except in
connection with (i) the foreclosure of a Mortgage Loan, including but not
limited to, the acquisition or sale of a Mortgaged Property acquired by deed in
lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination of
REMIC I pursuant to Article IX of this Agreement, (iv) a substitution pursuant
to Article II of this Agreement or (v) a purchase of Mortgage Loans pursuant to
Article II or III of this Agreement), or acquire any assets for any Trust REMIC
(other than REO Property acquired in respect of a defaulted Mortgage Loan), or
sell or dispose of any investments in the Collection Account or the Distribution
Account for gain, or accept any contributions to any Trust REMIC after the
Closing Date (other than a Qualified Substitute Mortgage Loan delivered in
accordance with Section 2.03), unless it has received an Opinion of Counsel,
addressed to the Trustee, the Guarantor and the NIMS Insurer (at the expense of
the party seeking to cause such sale, disposition, substitution, acquisition or
contribution but in no event at the expense of the Trustee) that such sale,
disposition, substitution, acquisition or contribution shall not (a) affect
adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust REMIC
to be subject to a tax on "prohibited transactions" or "contributions" pursuant
to the REMIC Provisions.

                  SECTION 10.03 Master Servicer and Trustee Indemnification.

                  (a) The Trustee agrees to indemnify the Trust Fund, the NIMS
Insurer, the Guarantor, the Depositor and the Master Servicer for any taxes and
costs including, without limitation, any reasonable attorneys fees imposed on or
incurred by the Trust Fund, the Depositor or the Master Servicer, caused solely
by the Trustee's failure to act in accordance with its standard of care set
forth in this Article X or any state, local or franchise taxes imposed upon the
Trust as a result of the location of the Trustee.

                  (b) The Master Servicer agrees to indemnify the Trust Fund,
the Guarantor, the NIMS Insurer, the Depositor and the Trustee for any taxes and
costs including, without limitation, any reasonable attorneys' fees imposed on
or incurred by the Trust Fund, the Depositor or the Trustee, as a result of a
breach of the Master Servicer's covenants set forth in Article III or this
Article X or any state, local or franchise taxes imposed upon the Trust as a
result of the location of the Master Servicer or any subservicer.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  SECTION 11.01 Amendment.

                  This Agreement or any Custodial Agreement may be amended from
time to time by the Depositor, the Guarantor, the Master Servicer, the Trustee
and, if applicable, the Custodian with the consent of the NIMS Insurer and
without the consent of any of the Certificateholders, (i) to cure any ambiguity
or defect, (ii) to correct, modify or supplement any provisions herein
(including to give effect to the expectations of Certificateholders), or in any
Custodial Agreement, or (iii) to make any other provisions with respect to
matters or questions arising under this Agreement or in any Custodial Agreement
which shall not be inconsistent with the provisions of this Agreement or such
Custodial Agreement, provided that such action shall not adversely affect in any
material respect the interests of any Certificateholder, as evidenced by either
(i) an Opinion of Counsel delivered to the Master Servicer, the Guarantor and
the Trustee to such effect or (ii) confirmation from the Rating Agencies that
such amendment shall not result in the reduction or withdrawal of the rating of
any outstanding Class of Certificates. No amendment shall be deemed to adversely
affect in any material respect the interests of any Certificateholder who shall
have consented thereto, and no Opinion of Counsel shall be required to address
the effect of any such amendment on any such consenting Certificateholder.

                  This Agreement or any Custodial Agreement may also be amended
from time to time by the Depositor, the Guarantor, the Master Servicer and the
Trustee with the consent of the NIMS Insurer and the Holders of Certificates
entitled to at least 66% of the Voting Rights for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or any Custodial Agreement or of modifying in any manner the
rights of the Holders of Certificates; provided, however, that no such amendment
shall (i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any
Certificate without the consent of the Holder of such Certificate, (ii)
adversely affect in any material respect the interests of the Holders of any
Class of Certificates (as evidenced by either (i) an Opinion of Counsel
delivered to the Trustee or (ii) written notice to the Depositor, the Master
Servicer, the Guarantor and the Trustee from the Rating Agencies that such
action shall not result in the reduction or withdrawal of the rating of any
outstanding Class of Certificates with respect to which it is a Rating Agency)
in a manner other than as described in (i), or (iii) modify the consents
required by the immediately preceding clauses (i) and (ii) without the consent
of the Holders of all Certificates then outstanding. Notwithstanding any other
provision of this Agreement, for purposes of the giving or withholding of
consents pursuant to this Section 11.01, Certificates registered in the name of
the Depositor or the Master Servicer or any Affiliate thereof shall be entitled
to Voting Rights with respect to matters affecting such Certificates.

                  Notwithstanding any contrary provision of this Agreement, none
of the Trustee, the Guarantor or the NIMS Insurer shall consent to any amendment
to this Agreement unless it shall have first received an Opinion of Counsel
satisfactory to the NIMS Insurer and the Guarantor to the effect that such
amendment shall not result in the imposition of any tax on any

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Trust REMIC pursuant to the REMIC Provisions or cause any Trust REMIC to fail to
qualify as a REMIC at any time that any Certificates are outstanding.

                  Notwithstanding any of the other provisions of this Section
11.01, none of the Depositor, the Guarantor, the Master Servicer or the Trustee
shall enter into any amendment of this Agreement that would significantly change
the permitted activities of the Trust Fund without the consent of the NIMS
Insurer and the Holders of Certificates that represent more than 50% of the
aggregate Certificate Principal Balance of all Certificates.

                  Promptly after the execution of any such amendment the Trustee
shall furnish a copy of such amendment to each Certificateholder.

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

                  The cost of any Opinion of Counsel to be delivered pursuant to
this Section 11.01 shall be borne by the Person seeking the related amendment,
but in no event shall such Opinion of Counsel be an expense of the Trustee.

                  The Trustee may, but shall not be obligated to enter into any
amendment pursuant to this Section that affects its respective rights, duties
and immunities under this Agreement or otherwise.

                  SECTION 11.02 Recordation of Agreement; Counterparts.

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

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

                  SECTION 11.03 Limitation on Rights of Certificateholders.

                  The death or incapacity of any Certificateholder shall not
operate to terminate this Agreement or the Trust Fund, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up

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of the Trust Fund, nor otherwise affect the rights, obligations and liabilities
of the parties hereto or any of them.

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

                  No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless (i)
such Holder previously shall have given to the Trustee a written notice of
default and of the continuance thereof, as hereinbefore provided, and (ii) the
Holders of Certificates entitled to at least 25% of the Voting Rights shall have
made written request upon the Trustee to institute such action, suit or
proceeding in the name of the Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatsoever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

                  SECTION 11.04 Governing Law.

                  This Agreement shall be construed in accordance with the laws
of the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws excluding the choice
of laws provisions therein.

                  SECTION 11.05 Notices.

                  All directions, demands, requests, authorizations and notices
hereunder shall be in writing and shall be deemed to have been duly given when
received if personally delivered at or mailed by first class mail, postage
prepaid, or by express delivery service, facsimile, electronic mail or delivered
in any other manner specified herein, to (a) in the case of the Depositor, 1100
Town & Country Road, Suite 1100, Orange, California 92868, Attention: Capital
Markets (telecopy number: (714) 245-0198), or such other address or telecopy
number as may hereafter be furnished to the Master Servicer, the NIMS Insurer,
the Guarantor and the Trustee in writing

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by the Depositor, (b) in the case of the Master Servicer, 1100 Town & Country
Road, 11th Floor, Orange, California 92868, Attention: General Counsel (telecopy
number: (714) 564-9639), or such other address or telecopy number as may
hereafter be furnished to the Trustee, the NIMS Insurer, the Guarantor and the
Depositor in writing by the Master Servicer, (c) in the case of the Trustee,
Deutsche Bank National Trust Company, 1761 East St. Andrew Place, Santa Ana,
California 92705-4934, Attention: Trust Administration-AQ0412 (telecopy number:
(714) 247-6009), or such other address or telecopy number as may hereafter be
furnished to the Master Servicer, the NIMS Insurer, the Guarantor and the
Depositor in writing by the Trustee, (d) in the case of the NIMS Insurer, such
address furnished to the Depositor, the Master Servicer, the Guarantor and the
Trustee in writing by the NIMS Insurer and (e) in the case of the Guarantor,
Fannie Mae, Special Products Group, Mail Stop 5H-5W-03, 13150 Worldgate Drive,
Herndon, Virginia 20170, Attention: Director (telecopy number: (703) 833-1816),
or such other address or telecopy number as may hereafter be furnished to the
Master Servicer, the NIMS Insurer, the Trustee and the Depositor in writing by
the Guarantor. Any notice required or permitted to be given to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice required to be
telecopied hereunder also shall be mailed to the appropriate party in the manner
set forth above.

                  A copy of any notice required to be given hereunder by any
party shall also be mailed to the Guarantor.

                  SECTION 11.06 Severability of Provisions.

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

                  SECTION 11.07 Notice to Rating Agencies, the Guarantor and the
                                NIMS Insurer.

                  The Trustee shall use its best efforts promptly to provide
notice to the Rating Agencies, the Guarantor and the NIMS Insurer with respect
to each of the following of which it has actual knowledge:

                  1. Any material change or amendment to this Agreement;

                  2. The occurrence of any Master Servicer Event of Default that
has not been cured or waived;

                  3. The resignation or termination of the Master Servicer or
the Trustee;

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                  4. The repurchase or substitution of Mortgage Loans pursuant
to or as contemplated by Section 2 03;

                  5. The final payment to the Holders of any Class of
Certificates;

                  6. Any change in the location of the Collection Account or the
Distribution Account;

                  7. Any event that would result in the inability of the
Trustee, were it to succeed as Master Servicer, to make advances regarding
delinquent Mortgage Loans; and

                  8. The filing of any claim under the Master Servicer's blanket
bond and errors and omissions insurance policy required by Section 3 09 or the
cancellation or material modification of coverage under any such instrument

                  In addition, the Trustee shall promptly furnish to each Rating
Agency, the Guarantor and the NIMS Insurer copies of each report to
Certificateholders described in Section 4.02 and the Master Servicer, as
required pursuant to Section 3.19 and Section 3.20, shall promptly furnish to
each Rating Agency and the Guarantor copies of the following:

                  1. Each annual statement as to compliance described in Section
         3.19; and

                  2. Each annual independent public accountants' servicing
         report described in Section 3.20.

                  In addition, the Trustee shall provide to the Guarantor copies
of all notices provided to the Rating Agencies hereunder, regardless of whether
such notices relate to an event described in this Section 11.07.

                  Any such notice pursuant to this Section 11.07 shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service
to Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007,
to Fitch Ratings, One State Street Plaza, New York, New York 10004, to Dominion
Bond Rating Services, Inc., 55 Broadway, 15th Floor, New York, New York 10006
and to Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc., 55 Water Street, New York, New York 10041, or such other
addresses as the Rating Agencies may designate in writing to the parties hereto.

                  SECTION 11.08 Article and Section References.

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

                  SECTION 11.09 Grant of Security Interest.

                  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Depositor to the Trustee be, and be
construed as, a sale of the Mortgage Loans by

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the Depositor and not a pledge of the Mortgage Loans by the Depositor to secure
a debt or other obligation of the Depositor or the Seller. However, in the event
that, notwithstanding the aforementioned intent of the parties, the Mortgage
Loans are held to be property of the Depositor or the Seller, then, (a) it is
the express intent of the parties that such conveyance be deemed a pledge of the
Mortgage Loans by the Depositor to the Trustee to secure a debt or other
obligation of the Depositor or the Seller and (b)(1) this Agreement shall also
be deemed to be a security agreement within the meaning of Articles 8 and 9 of
the Uniform Commercial Code as in effect from time to time in the State of New
York; (2) the conveyance provided for in Section 2.01 hereof shall be deemed to
be a grant by the Seller and the Depositor to the Trustee of a security interest
in all of the Seller's and the Depositor's right, title and interest in and to
the Mortgage Loans and all amounts payable to the Holders of the Mortgage Loans
in accordance with the terms thereof and all proceeds of the conversion,
voluntary or involuntary, of the foregoing into cash, instruments, securities or
other property, including without limitation all amounts, other than investment
earnings, from time to time held or invested in the Collection Account and the
Distribution Account, whether in the form of cash, instruments, securities or
other property; (3) the obligations secured by such security agreement shall be
deemed to be all of the Depositor's obligations under this Agreement, including
the obligation to provide to the Certificateholders the benefits of this
Agreement relating to the Mortgage Loans and the Trust Fund; and (4)
notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed notifications
to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
of perfecting such security interest under applicable law. Accordingly, the
Depositor hereby grants to the Trustee a security interest in the Mortgage Loans
and all other property described in clause (2) of the preceding sentence, for
the purpose of securing to the Trustee on behalf of the Certificateholders the
performance by the Depositor of the obligations described in clause (3) of the
preceding sentence. Notwithstanding the foregoing, the parties hereto intend the
conveyance pursuant to Section 2.01 and the transfer pursuant to the Mortgage
Loan Purchase Agreement to be a true, absolute and unconditional sale of the
Mortgage Loans and assets constituting the Trust Fund by the Depositor to the
Trustee.

                  SECTION 11.10 Third Party Rights.

                  The NIMS Insurer shall be deemed a third-party beneficiary of
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of this Agreement.

                                      183
<PAGE>

                  IN WITNESS WHEREOF, the Depositor, the Master Servicer, the
Guarantor and the Trustee have caused their names to be signed hereto by their
respective officers thereunto duly authorized, in each case as of the day and
year first above written.

                                     AMERIQUEST MORTGAGE SECURITIES INC.,
                                        as Depositor

                                     By:      /s/ John P. Grazer
                                              ----------------------------------
                                     Name:    John P. Grazer
                                     Title:   Chief Financial Officer

                                     AMERIQUEST MORTGAGE COMPANY,
                                        as Master Servicer

                                     By:      /s/ John P. Grazer
                                              ----------------------------------
                                     Name:    John P. Grazer
                                     Title:   Executive Vice President

                                     FEDERAL NATIONAL MORTGAGE ASSOCIATION,
                                     as Guarantor of the Class A-1 Certificates

                                     By:      /s/ Sharon Stinber
                                              ----------------------------------
                                     Name:    Sharon Stinber
                                     Title:   Vice President

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                        as Trustee

                                     By:      /s/ Ronaldo Reyes
                                              ----------------------------------
                                     Name:    Ronaldo Reyes
                                     Title:   Assistant Vice President

                                     By:      /s/ Brent Hoyler
                                              ----------------------------------
                                     Name:    Brent Hoyler
                                     Title:   Associate

<PAGE>

STATE OF CALIFORNIA    )
                       ) ss.:
COUNTY OF ORANGE       )

                  On the ___ day of _________2004, before me, a notary public in
and for said State, personally appeared ____________, known to me to be an
________________ of Ameriquest Mortgage Securities Inc., one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                             ___________________________________
                                                       Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA     )
                        ) ss.:
COUNTY OF ORANGE        )

                  On the __th day of _________ 2004, before me, a notary public
in and for said State, personally appeared __________________, known to me to be
a _________________ of Ameriquest Mortgage Company, one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                             ___________________________________
                                                       Notary Public

[Notarial Seal]

<PAGE>

STATE OF                 )
                         ) ss.:
COUNTY OF                )

                  On the ___ day of _________ 2004, before me, a notary public
in and for said State, personally appeared _________________, known to me to be
an ____________________ of Federal National Mortgage Association, one of the
entities 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 entity executed the within instrument.

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

                                             ___________________________________
                                                       Notary Public

<PAGE>

STATE OF CALIFORNIA         )
                            ) ss.:
COUNTY OF                   )

                  On the ___ day of _________ 2004, before me, a notary public
in and for said State, personally appeared _________________, known to me to be
an ____________________ of Deutsche Bank National Trust Company, one of the
entities 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 entity executed the within instrument.

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

                                             ___________________________________
                                                       Notary Public

<PAGE>

                                   EXHIBIT A-1

                          FORM OF CLASS A-1 CERTIFICATE

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

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class A-1                               Aggregate  Certificate  Principal Balance of the Class A-1
                                                         Certificates as of the Issue Date: $983,336,000.00
Pass-Through Rate: Variable
                                                         Denomination: $983,336,000.00
Date of Pooling  and  Servicing  Agreement
and Cut-off Date: December 1, 2004                       Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 31394 BA 79
</TABLE>

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

                                     A-1-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-1 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-1-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-1-3
<PAGE>

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                                     A-1-4
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-1-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-1-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-1-7
<PAGE>

                                   EXHIBIT A-2

                          FORM OF CLASS A-2 CERTIFICATE

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

<TABLE>
<CAPTION>
<S>                                                       <C>
Series 2004-R12, Class A-2                                Aggregate Certificate Principal Balance of
                                                          the Class A-2 Certificates as of the Issue
                                                          Date:

Pass-Through Rate: Variable                               $116,080,000.00

Date of Pooling  and  Servicing  Agreement  and           Denomination: $116,080,000.00
Cut-off Date: December 1, 2004
                                                          Master Servicer: Ameriquest Mortgage Company
First Distribution Date: January 25, 2005
                                                          Trustee: Deutsche Bank National Trust Company
No. 1
                                                          Issue Date: December 8, 2004

                                                          CUSIP: 03072S XB 6
</TABLE>

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

                                     A-2-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-2 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of

                                     A-2-2
<PAGE>

this Certificate at the office or agency appointed by the Trustee for that
purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are

                                     A-2-3
<PAGE>

exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-2-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-2-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-2-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-2-7
<PAGE>

                                   EXHIBIT A-3

                          FORM OF CLASS A-3 CERTIFICATE

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

<TABLE>
<CAPTION>
<S>                                                       <C>
Series 2004-R12, Class A-3                                Aggregate Certificate Principal Balance of
                                                          the Class A-3 Certificates as of the Issue
                                                          Date:

Pass-Through Rate: Variable                               $165,900,000.00

Date of Pooling  and  Servicing  Agreement  and  Cut-off  Denomination: $165,900,000.00
Date: December 1, 2004
                                                          Master Servicer: Ameriquest Mortgage Company
First Distribution Date: January 25, 2005
                                                          Trustee: Deutsche Bank National Trust Company
No. 1
                                                          Issue Date: December 8, 2004

                                                          CUSIP: 03072S XC 4
</TABLE>

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

                                     A-3-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-3 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of

                                     A-3-2
<PAGE>

this Certificate at the office or agency appointed by the Trustee for that
purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are

                                     A-3-3
<PAGE>

exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-3-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-3-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-3-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-3-7
<PAGE>

                                   EXHIBIT A-4

                          FORM OF CLASS A-4 CERTIFICATE

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

<TABLE>
<CAPTION>
<S>                                                       <C>
Series 2004-R12, Class A-4
                                                          Aggregate Certificate Principal Balance of
                                                          the Class A-4 Certificates as of the Issue
                                                          Date:

Pass-Through Rate: Variable                               $37,434,000.00

Date of Pooling  and  Servicing  Agreement  and  Cut-off  Denomination: $37,434,000.00
Date: December 1, 2004
                                                          Master Servicer: Ameriquest Mortgage Company
First Distribution Date: January 25, 2005
                                                          Trustee: Deutsche Bank National Trust Company
No. 1
                                                          Issue Date: December 8, 2004

                                                          CUSIP: 03072S XN 0
</TABLE>

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

                                     A-4-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-4 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-4 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of

                                     A-4-2
<PAGE>

this Certificate at the office or agency appointed by the Trustee for that
purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are

                                     A-4-3
<PAGE>

exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-4-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-4-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-4-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-4-7
<PAGE>

                                   EXHIBIT A-5

                          FORM OF CLASS M-1 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES THE EXTENT
         DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-1                               Aggregate  Certificate  Principal Balance of the Class M-1
                                                         Certificates as of the Issue Date: $63,750,000.00
Pass-Through Rate: Variable
                                                         Denomination: $63,750,000.00
Date of Pooling  and  Servicing  Agreement  and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XD 2
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-5-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-1 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-5-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-5-3
<PAGE>

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-5-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-5-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-5-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-5-7
<PAGE>

                                   EXHIBIT A-6

                          FORM OF CLASS M-2 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE
         CLASS M-1 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND
         SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-2                               Aggregate  Certificate  Principal Balance of the Class M-2
                                                         Certificates as of the Issue Date: $32,250,000.00
Pass-Through Rate: Variable
                                                         Denomination: $32,250,000.00
Date of Pooling  and  Servicing  Agreement  and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XE 0
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-6-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-2 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-6-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-6-3
<PAGE>

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-6-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-6-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-6-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-6-7
<PAGE>

                                   EXHIBIT A-7

                          FORM OF CLASS M-3 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES AND THE CLASS M-2 CERTIFICATES TO THE EXTENT DESCRIBED
         IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-3                               Aggregate  Certificate  Principal Balance of the Class M-3
                                                         Certificates as of the Issue Date: $16,500,000.00
Pass-Through Rate: Variable
                                                         Denomination: $16,500,000.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XF 7
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-7-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-3 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-7-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-7-3
<PAGE>

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-7-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-7-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-7-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-7-7
<PAGE>

                                   EXHIBIT A-8

                          FORM OF CLASS M-4 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES AND THE CLASS M-3
         CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-4                               Aggregate  Certificate  Principal Balance of the Class M-4
                                                         Certificates as of the Issue Date: $15,000,000.00
Pass-Through Rate: Variable
                                                         Denomination: $15,000,000.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XG 5
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-8-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-4 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-4 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-8-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-8-3
<PAGE>

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-8-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-8-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-8-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-8-7
<PAGE>

                                   EXHIBIT A-9

                          FORM OF CLASS M-5 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES AND THE CLASS M-4 CERTIFICATES TO THE EXTENT DESCRIBED IN
         THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-5                               Aggregate  Certificate  Principal Balance of the Class M-5
                                                         Certificates as of the Issue Date: $12,750,000.00
Pass-Through Rate: Variable
                                                         Denomination: $12,750,000.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XH 3
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-9-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-5 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-5 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-5 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-9-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-9-3
<PAGE>

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-9-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-9-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-9-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-9-7
<PAGE>

                                  EXHIBIT A-10

                          FORM OF CLASS M-6 CERTIFICATE

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

      THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
      CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES , THE
      CLASS M-4 CERTIFICATES AND THE CLASS M-5 CERTIFICATES TO THE EXTENT
      DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-6                               Aggregate  Certificate  Principal Balance of the Class M-6
                                                         Certificates as of the Issue Date: $12,000,000.00
Pass-Through Rate: Variable
                                                         Denomination: $12,000,000.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XJ 9
</TABLE>

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

      NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
      RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT
      INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE CODE WILL BE
      REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                     A-10-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-6 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-6 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-6 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of

                                     A-10-2
<PAGE>

this Certificate at the office or agency appointed by the Trustee for that
purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are

                                     A-10-3
<PAGE>

exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-10-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-10-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-10-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-10-7
<PAGE>

                                  EXHIBIT A-11

                          FORM OF CLASS M-7 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         AND THE CLASS M-6 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING
         AND SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                            <C>
Series 2004-R12, Class M-7                     Aggregate Certificate Principal Balance of
                                               the Class M-7 Certificates as of the Issue
                                               Date:

Pass-Through Rate: Variable                    $7,500,000.00

Date of Pooling and Servicing Agreement        Denomination: $7,500,000.00
and Cut-off Date: December 1, 2004
                                               Master Servicer: Ameriquest Mortgage
First Distribution Date: January 25, 2005      Company

No. 1                                          Trustee: Deutsche Bank National Trust Company

                                               Issue Date: December 8, 2004

                                               CUSIP:  03072S XK 6
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-11-1
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-7 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-7 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-7 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-11-2
<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-11-3
<PAGE>

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-11-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-11-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-11-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-11-7
<PAGE>

                                  EXHIBIT A-12

                          FORM OF CLASS M-8 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES AND THE CLASS M-7 CERTIFICATES TO THE EXTENT
         DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-8                               Aggregate  Certificate  Principal Balance of the Class M-8
                                                         Certificates as of the Issue Date: $5,250,000.00
Pass-Through Rate: Variable
                                                         Denomination: $5,250,000.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XL 4
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE

                                     A-12-1
<PAGE>

         REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-8 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-8 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-8 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice

                                     A-12-2
<PAGE>

by the Trustee of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are

                                     A-12-3
<PAGE>

exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-12-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-12-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-12-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-12-7
<PAGE>

                                  EXHIBIT A-13

                          FORM OF CLASS M-9 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES, THE CLASS M-7 CERTIFICATES AND THE M-8
         CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-9                               Aggregate  Certificate  Principal Balance of the Class M-9
                                                         Certificates as of the Issue Date: $9,000,000.00
Pass-Through Rate: Variable
                                                         Denomination: $9,000,000.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Master Servicer: Ameriquest Mortgage Company

First Distribution Date: January 25, 2005                Trustee: Deutsche Bank National Trust Company

No. 1                                                    Issue Date: December 8, 2004

                                                         CUSIP: 03072S XM 2
</TABLE>

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

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE

                                     A-13-1
<PAGE>

         REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-9 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-9 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-9 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice

                                     A-13-2
<PAGE>

by the Trustee of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are

                                     A-13-3
<PAGE>

exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Percentage Interest, as requested by the Holder
surrendering the same.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-13-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-13-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-13-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-13-7
<PAGE>

                                  EXHIBIT A-14

                         FORM OF CLASS M-10 CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES, THE CLASS M-7 CERTIFICATES, THE CLASS M-8
         CERTIFICATES AND THE CLASS M-9 CERTIFICATES TO THE EXTENT DESCRIBED IN
         THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class M-10                              Aggregate Certificate Principal Balance of
                                                         the Class M-10 Certificates as of the Issue
                                                         Date:

Pass-Through Rate: Variable                              $12,750,000.00

Date of Pooling  and  Servicing  Agreement  and Cut-off  Denomination: $12,750,000.00
Date: December 1, 2004
                                                         Master Servicer: Ameriquest Mortgage Company
First Distribution Date: January 25, 2005
                                                         Trustee: Deutsche Bank National Trust Company
No. 1
                                                         Issue Date: December 8, 2004

                                                         CUSIP: 03072S XP 5
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING

                                     A-14-1
<PAGE>

         CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE
         AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-10 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-10 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among
Ameriquest Mortgage Securities Inc. (hereinafter called the "Depositor," which
term includes any successor entity under the Agreement), the Master Servicer,
Federal National Mortgage Association (the "Guarantor", with respect to the
Class A-1 Certificates) and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-10 Certificates on such Distribution
Date pursuant to the Agreement.

                                     A-14-2
<PAGE>

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
be the lesser of (x) the related Formula Rate for such Distribution Date and (y)
the Net WAC Pass-Through Rate for such Distribution Date. For any Distribution
Date and this Certificate, the Formula Rate is One-Month LIBOR plus the
Certificate Margin.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

                                     A-14-3
<PAGE>

authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.

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

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-14-4
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-14-5
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-14-6
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-14-7
<PAGE>

                                  EXHIBIT A-15

                          FORM OF CLASS CE CERTIFICATE

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

         THIS CERTIFICATE IS SUBORDINATE TO THE A CERTIFICATES AND THE MEZZANINE
         CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-15-1
<PAGE>

<TABLE>
<CAPTION>
<S>                                                          <C>
Series 2004-R12, Class CE                                    Initial Notional Amount of the Class CE
                                                             Certificates as of the Issue Date:

Date of Pooling and  Servicing  Agreement and                $10,499,900,000.00
Cut-off Date: December 1, 2004
                                                             Initial Certificate Principal Balance:
First Distribution Date: January 25, 2005                    $10,499,900,000.00

No. 1                                                        Master Servicer: Ameriquest Mortgage Company

                                                             Trustee: Deutsche Bank National Trust Company

                                                             Issue Date: December 8, 2004
</TABLE>

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

                                     A-15-2
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Ameriquest Mortgage Company is the
registered owner of a Percentage Interest (obtained by dividing the denomination
of this Certificate by the aggregate Certificate Principal Balance of the Class
CE Certificates as of the Issue Date) in that certain beneficial ownership
interest evidenced by all the Class CE Certificates in a REMIC created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Ameriquest Mortgage Securities Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Master Servicer, Federal National Mortgage Association (the "Guarantor", with
respect to the Class A-1 Certificates) and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

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

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-15-3
<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee and the Certificate Registrar shall
require receipt of (i) if such transfer is purportedly being made in reliance
upon Rule 144A under the 1933 Act, written certifications from the Holder of the

                                     A-15-4
<PAGE>

Certificate desiring to effect the transfer, and from such Holder's prospective
transferee, substantially in the forms attached to the Agreement as Exhibit F-1,
and (ii) in all other cases, an Opinion of Counsel satisfactory to it that such
transfer may be made without such registration or qualification (which Opinion
of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
Trustee or the Master Servicer in their respective capacities as such), together
with copies of the written certification(s) of the Holder of the Certificate
desiring to effect the transfer and/or such Holder's prospective transferee upon
which such Opinion of Counsel is based. None of the Depositor, the Certificate
Registrar or the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any Holder desiring to effect a transfer of this Certificate
shall be required to indemnify the Trustee, the Depositor, the Certificate
Registrar and the Master Servicer against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                                     A-15-5
<PAGE>

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

                                     A-15-6
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-15-7
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-15-8
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-15-9
<PAGE>

                                  EXHIBIT A-16

                           FORM OF CLASS P CERTIFICATE

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

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class P                                 Aggregate  Certificate  Principal  Balance  of the Class P
                                                         Certificates as of the Issue Date: $100.00
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Denomination: $100.00

First Distribution Date: January 25, 2005                Master Servicer: Ameriquest Mortgage Company

No. 1                                                    Trustee: Deutsche Bank National Trust Company

                                                         Issue Date: December 8, 2004
</TABLE>

                                     A-16-1
<PAGE>

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

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Ameriquest Mortgage Company is the
registered owner of a Percentage Interest (obtained by dividing the denomination
of this Certificate by the aggregate Certificate Principal Balance of the Class
P Certificates as of the Issue Date) in that certain beneficial ownership
interest evidenced by all the Class P Certificates in a REMIC created pursuant
to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Ameriquest Mortgage Securities Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Master Servicer, Federal National Mortgage Association (the "Guarantor", with
respect to the Class A-1 Certificates) and the Trustee, a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

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

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified

                                     A-16-2
<PAGE>

the Trustee in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date or otherwise by check mailed by
first class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                                     A-16-3
<PAGE>

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee and the Certificate Registrar shall
require receipt of (i) if such transfer is purportedly being made in reliance
upon Rule 144A under the 1933 Act, written certifications from the Holder of the
Certificate desiring to effect the transfer, and from such Holder's prospective
transferee, substantially in the forms attached to the Agreement as Exhibit F-1,
and (ii) in all other cases, an Opinion of Counsel satisfactory to it that such
transfer may be made without such registration or qualification (which Opinion
of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
Trustee or the Master Servicer in their respective capacities as such), together
with copies of the written certification(s) of the Holder of the Certificate
desiring to effect the transfer and/or such Holder's prospective transferee upon
which such Opinion of Counsel is based. None of the Depositor, the Certificate
Registrar or the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any Holder desiring to effect a transfer of this Certificate
shall be required to indemnify the Trustee, the Depositor, the Certificate
Registrar and the Master Servicer against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as

                                     A-16-4
<PAGE>

provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right cannot be exercised until
the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-16-5
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-16-6
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-16-7
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                     A-16-8
<PAGE>

                                  EXHIBIT A-17

                           FORM OF CLASS R CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON- UNITED STATES PERSON.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT"
         ("REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
         AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES
         DESCRIBED HEREIN.

                                     A-17-1
<PAGE>

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
         TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
         POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
         INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER
         THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT
         FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
         IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY
         ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCH
         PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL
         HEREINAFTER BE REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR (4) AN
         AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH
         TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (II)
         SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
         FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
         REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER
         DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN
         AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED
         TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT
         BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER,
         INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
         CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL
         BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE
         PROVISIONS OF SECTION 5.02(D) OF THE POOLING AND SERVICING AGREEMENT
         REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS
         PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

                                     A-17-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                                      <C>
Series 2004-R12, Class R                                 Aggregate Percentage Interest of the Class R Certificates
                                                         as of the Issue Date: 100% Percentage Interest
Date of Pooling  and  Servicing Agreement and
Cut-off Date: December 1, 2004                           Denomination: 100% Percentage Interest

First Distribution Date: January 25, 2005                Master Servicer: Ameriquest Mortgage Company

No. 1                                                    Trustee: Deutsche Bank National Trust Company

                                                         Issue Date: December 8, 2004
</TABLE>

                                     A-17-3
<PAGE>

                      ASSET-BACKED PASS-THROUGH CERTIFICATE

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

                       AMERIQUEST MORTGAGE SECURITIES INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         AMERIQUEST MORTGAGE SECURITIES INC., THE MASTER SERVICER, THE TRUSTEE
         OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
         UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Ameriquest Mortgage Company is the
registered owner of a Percentage Interest specified above in that certain
beneficial ownership interest evidenced by all the Class R Certificates in a
REMIC created pursuant to a Pooling and Servicing Agreement, dated as specified
above (the "Agreement"), among Ameriquest Mortgage Securities Inc. (hereinafter
called the "Depositor," which term includes any successor entity under the
Agreement), the Master Servicer, Federal National Mortgage Association (the
"Guarantor", with respect to the Class A-1 Certificates) and the Trustee, a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

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

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-17-4
<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as Asset-Backed Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

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

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee and the rights of
the Certificateholders under the Agreement at any time by the Depositor, the
Master Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

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

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

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee and the Certificate Registrar shall
require receipt of (i) if such transfer is purportedly being made in reliance
upon Rule 144A under the 1933 Act, written certifications from the Holder of the

                                     A-17-5
<PAGE>

Certificate desiring to effect the transfer, and from such Holder's prospective
transferee, substantially in the forms attached to the Agreement as Exhibit F-1,
and (ii) in all other cases, an Opinion of Counsel satisfactory to it that such
transfer may be made without such registration or qualification (which Opinion
of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
Trustee or the Master Servicer in their respective capacities as such), together
with copies of the written certification(s) of the Holder of the Certificate
desiring to effect the transfer and/or such Holder's prospective transferee upon
which such Opinion of Counsel is based. None of the Depositor, the Certificate
Registrar or the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any Holder desiring to effect a transfer of this Certificate
shall be required to indemnify the Trustee, the Depositor, the Certificate
Registrar and the Master Servicer against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  Prior to registration of any transfer, sale or other
disposition of this Certificate, the proposed transferee shall provide to the
Trustee (i) an affidavit to the effect that such transferee is any Person other
than a Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a pro rata share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed to have consented to the provisions of Section 5.02 of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
Fund to cease to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                     A-17-6
<PAGE>

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

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

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan remaining in
REMIC I, and (ii) the purchase by the party designated in the Agreement at a
price determined as provided in the Agreement from REMIC I of all the Mortgage
Loans and all property acquired in respect of such Mortgage Loans. The Agreement
permits, but does not require, the party designated in the Agreement to purchase
from REMIC I all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right cannot be exercised until the Optional Termination Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

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

                                     A-17-7
<PAGE>

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

Dated: _______________, 2004

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Trustee

                                                        By:_____________________
                                                            Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

                                                        DEUTSCHE BANK NATIONAL
                                                        TRUST COMPANY
                                                        as Certificate Registrar

                                                        By:_____________________
                                                           Authorized Signatory

                                     A-17-8
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>      <C>               <C>                                <C>                        <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -            CUSTODIAN
                                                                                         _________________
                                                                                         (Cust) (Minor)
         TEN ENT -         as tenants by the entireties                                  under Uniform Gifts to
                                                                                         Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)

and transfer(s) unto ___________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

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

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           ______________________________
                                                Signature Guaranteed

                                     A-17-9
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________ for the account of ___________________________,
account number __________________or, if mailed by check, to_____________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________.

                  This information is provided by _____________________________,
the assignee name above, or _____________________________________, as its agent.

                                    A-17-10
<PAGE>

                                    EXHIBIT B

                           FORM OF LOST NOTE AFFIDAVIT

Loan #: _______________
Borrower: _____________

                               LOST NOTE AFFIDAVIT

                  I, as ____________________ of ______________________, a
_______________ corporation am authorized to make this Affidavit on behalf of
_____________________ (the "Seller"). In connection with the administration of
the Mortgage Loans held by ____________________, a _________________ corporation
as Seller on behalf of Ameriquest Mortgage Securities Inc. (the "Purchaser"),
_____________________ (the "Deponent"), being duly sworn, deposes and says that:

         1.       The Seller's address is: _____________________
                                           _____________________
                                           _____________________

         2.       The Seller previously delivered to the Purchaser a signed
Initial Certification with respect to such Mortgage and/or Assignment of
Mortgage;

         3.       Such Mortgage Note and/or Assignment of Mortgage was assigned
or sold to the Purchaser by ________________________, a ____________ corporation
pursuant to the terms and provisions of a Mortgage Loan Purchase Agreement dated
as of __________ __, _____;

         4.       Such Mortgage Note and/or Assignment of Mortgage is not
outstanding pursuant to a request for release of Documents;

         5.       Aforesaid Mortgage Note and/or Assignment of Mortgage (the
"Original") has been lost;

         6.       Deponent has made or caused to be made a diligent search for
the Original and has been unable to find or recover same;

         7.       The Seller was the Seller of the Original at the time of the
loss; and

         8.       Deponent agrees that, if said Original should ever come into
Seller's possession, custody or power, Seller will immediately and without
consideration surrender the Original to the Purchaser.

         9.       Attached hereto is a true and correct copy of (i) the Note,
endorsed in blank by the Mortgagee and (ii) the Mortgage or Deed of Trust
(strike one) which secures the Note, which Mortgage or Deed of Trust is recorded
in the county where the property is located.

         10.      Deponent hereby agrees that the Seller (a) shall indemnify and
hold harmless the Purchaser, its successors and assigns, against any loss,
liability or damage, including reasonable

                                      B-1
<PAGE>

attorney's fees, resulting from the unavailability of any Notes, including but
not limited to any loss, liability or damage arising from (i) any false
statement contained in this Affidavit, (ii) any claim of any party that has
already purchased a mortgage loan evidenced by the Lost Note or any interest in
such mortgage loan, (iii) any claim of any borrower with respect to the
existence of terms of a mortgage loan evidenced by the Lost Note on the related
property to the fact that the mortgage loan is not evidenced by an original note
and (iv) the issuance of a new instrument in lieu thereof (items (i) through
(iv) above hereinafter referred to as the "Losses") and (b) if required by any
Rating Agency in connection with placing such Lost Note into a Pass-Through
Transfer, shall obtain a surety from an insurer acceptable to the applicable
Rating Agency to cover any Losses with respect to such Lost Note.

         11.      This Affidavit is intended to be relied upon by the Purchaser,
its successors and assigns. _____________________, a ______________ corporation
represents and warrants that it has the authority to perform its obligations
under this Affidavit of Lost Note.

Executed this ____ day, of ___________ ______.

                                                          SELLER

                                                          By:___________________
                                                             Authorized Officer

                                                          Title:

                  On this _____ day of ________, _____, before me appeared
_________________ to me personally known, who being duly sworn did say that he
is the _____________________ of ____________________ a ______________
corporation and that said Affidavit of Lost Note was signed and sealed on behalf
of such corporation and said acknowledged this instrument to be the free act and
deed of said corporation.

                                      Signature:

                                      [Seal]

                                      B-2
<PAGE>

                                   EXHIBIT C-1

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                             [Date]

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Ameriquest Mortgage Securities Inc., Ameriquest Mortgage
                  Company, Federal National Mortgage Association and Deutsche
                  Bank National Trust Company, Asset-Backed Pass-Through
                  CERTIFICATES, SERIES 2004-R12

Ladies and Gentlemen:

                  Pursuant to Section 2.01 of the Pooling and Servicing
Agreement, dated as of December 1, 2004, among Ameriquest Mortgage Securities
Inc. as Depositor, Ameriquest Mortgage Company, as master servicer, Federal
National Mortgage Association as guarantor, with respect to the Class A-1
Certificates and Deutsche Bank National Trust Company as trustee, we hereby
acknowledge that as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in the exception report annexed thereto as not being covered by such
certification), (i) all documents constituting part of such Mortgage File (other
than such documents described in Section 2.01(v)) required to be delivered to it
pursuant to this Agreement are in its possession, (ii) such documents have been
reviewed by it or such Custodian and are not mutilated, torn or defaced unless
initialed by the related borrower and relate to such Mortgage Loan, (iii) based
on its or the Custodian's examination and only as to the foregoing, the
information set forth in the Mortgage Loan Schedule that corresponds to items
(1) through (3), (6), (9), (10), (13), (15) and (19) of the definition of
"Mortgage Loan Schedule" accurately reflects information set forth in the
Mortgage File.

                  The Trustee has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Pooling and Servicing Agreement. The Trustee
makes no representations as to: (i) the validity, legality, sufficiency,
recordability, enforceability or genuineness of any of the documents contained
in the Mortgage File of any of the Mortgage Loans identified on the Mortgage
Loan Schedule, or (ii) the collectability, insurability, perfection, priority,
effectiveness or suitability of any such Mortgage Loan.

                  The Trustee was under no duty or obligation (i) to inspect,
review or examine any such documents, instruments, certificates or other papers
to determine whether they are genuine, enforceable, or appropriate for the
represented purpose or whether they have actually been

                                     C-1-1
<PAGE>

recorded or that they are other than what they purport to be on their face or
(ii) to determine whether any Mortgage File should include any of the documents
specified in clause (v) of Section 2.01.

                  Capitalized terms used but not defined herein shall have the
meanings assigned to them in the Pooling and Servicing Agreement.

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                     as Trustee

                                     By:________________________________________
                                     Name:
                                     Title:

                                     C-1-2
<PAGE>

                                   EXHIBIT C-2

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                           [Date]

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road, Suite 1100
Orange, California 92868

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Ameriquest Mortgage Securities Inc., Ameriquest Mortgage
                  Company, Federal National Mortgage Association and Deutsche
                  Bank National Trust Company, Asset-Backed Pass-Through
                  Certificates, Series 2004-R12 .

Ladies and Gentlemen:

                  In accordance with Section 2.02 of the above-captioned Pooling
and Servicing Agreement, the undersigned, as Trustee, hereby certifies that as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on the attachment hereto), it or a
Custodian on its behalf has received each of the documents listed in Section
2.01.

                  The Trustee has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Pooling and Servicing Agreement. The Trustee
makes no representations as to: (i) the validity, legality, sufficiency,
recordability, enforceability or genuineness of any of the documents contained
in the Mortgage File of any of the Mortgage Loans identified on the Mortgage
Loan Schedule, or (ii) the collectability, insurability, perfection, priority,
effectiveness or suitability of any such Mortgage Loan.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Pooling and
Servicing Agreement.

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                     as Trustee

                                     By:________________________________________
                                     Name:
                                     Title:

                                     C-2-1
<PAGE>

                                   EXHIBIT C-3

                   FORM OF TRUSTEE'S RECEIPT OF MORTGAGE NOTE

                                                            [Date]

Ameriquest Mortgage Securities Inc.
1100 Town & Country Road
Orange, California 92868

Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Ameriquest Mortgage Securities Inc., Ameriquest Mortgage
                  Company, Federal National Mortgage Association and Deutsche
                  Bank National Trust Company, Asset-Backed Pass-Through
                  Certificates, Series 2004-R12 .

Ladies and Gentlemen:

                  Pursuant to Section 2.01 of the above-captioned Pooling and
Servicing Agreement, we hereby acknowledge the receipt of the original Mortgage
Note for each Mortgage Loan with any exceptions thereto listed on Exhibit 1.

                  Capitalized terms used but not defined herein shall have the
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.

                                     DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                     as Trustee

                                     By:______________________________
                                     Name:
                                     Title:

                                     C-3-1
<PAGE>

                                    EXHIBIT D

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                      D-1
<PAGE>

                        MORTGAGE LOAN PURCHASE AGREEMENT

                  This is a Mortgage Loan Purchase Agreement (the "Agreement"),
dated December 1, 2004, between Ameriquest Mortgage Company, a Delaware
corporation (the "Seller"), and Ameriquest Mortgage Securities Inc., a Delaware
corporation (the "Purchaser").

                              Preliminary Statement
                              ---------------------

                  The Seller intends to sell the Mortgage Loans (as hereinafter
defined) to the Purchaser on the terms and subject to the conditions set forth
in this Agreement. The Purchaser shall deposit the Mortgage Loans into a
mortgage pool constituting the Trust Fund. The Trust Fund will be evidenced by a
single series of asset-backed pass-through certificates designated as Series
2004-R12 (the "Certificates"). The Certificates will consist of seventeen
classes of certificates. The Class CE Certificates, the Class P Certificates and
the Class R Certificates (collectively, the "Non-Offered Certificates") will be
delivered to the Seller or its designee as partial consideration for the
Mortgage Loans as further described below.

                  The Certificates will be issued pursuant to a Pooling and
Servicing Agreement relating to the Series 2004-R12 Certificates, dated as of
December 1, 2004 (the "Pooling and Servicing Agreement"), among the Purchaser as
depositor (in such capacity, the "Depositor"), the Seller as master servicer (in
such capacity the "Master Servicer"), the Federal National Mortgage Association
as guarantor of the Class A-1 Certificates and Deutsche Bank National Trust
Company as trustee (the "Trustee"). Pursuant to the Pooling and Servicing
Agreement, the Depositor will assign all of its right, title and interest in and
to the Mortgage Loans, together with its rights under this Agreement, to the
Trustee for the benefit of the Certificateholders. Capitalized terms used but
not defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

                  The parties hereto agree as follows:

                  SECTION 1. AGREEMENT TO PURCHASE. The Seller hereby sells, and
the Purchaser hereby purchases, as of December 8, 2004 (the "Closing Date"),
certain adjustable-rate and fixed-rate conventional, one- to four-family,
residential mortgage loans (the "Mortgage Loans"), having an aggregate principal
balance as of the close of business on December 1, 2004 (the "Cut-off Date") of
$[__], after giving effect to all payments due on the Mortgage Loans on or
before the Cut-off Date (the "Closing Balance"), whether or not received,
including the right to any Prepayment Charges collected after the Cut-off Date
from the Mortgagors in connection with any Principal Prepayments on the Mortgage
Loans. Any payments (including Prepayment Charges) collected on or before the
Cut-off Date, including all scheduled payments of principal and interest due on
or before the Cut-off Date and collected after the Cut-off Date, shall belong to
the Seller. In addition to the sale of the Mortgage Loans, the Seller will cause
the Cap Contracts to be transferred to the Purchaser.

                  SECTION 2. MORTGAGE LOAN SCHEDULE AND PREPAYMENT CHARGE
SCHEDULE. The Purchaser and the Seller have agreed upon which of the mortgage
loans owned by the Seller are to be purchased by the Purchaser pursuant to this
Agreement, and the Seller shall prepare or

<PAGE>

cause to be prepared on or prior to the Closing Date a final schedule (the
"Closing Schedule") describing such Mortgage Loans and setting forth all of the
Mortgage Loans to be purchased under this Agreement. The Closing Schedule shall
conform to the requirements set forth in this Agreement and to the definition of
"Mortgage Loan Schedule" under the Pooling and Servicing Agreement. The Closing
Schedule shall be used as the Mortgage Loan Schedule under the Pooling and
Servicing Agreement. The Seller shall also prepare or cause to be prepared on or
prior to the Closing Date a final schedule (the "Prepayment Charge Schedule")
setting forth each Mortgage Loan containing a Prepayment Charge and conforming
to the definition of Prepayment Charge Schedule under the Pooling and Servicing
Agreement.

                  SECTION 3. CONSIDERATION.

                  (a) In consideration for the Mortgage Loans to be purchased
hereunder, the Purchaser shall, as described in Section 8, (i) pay to or upon
the order of the Seller in immediately available funds an amount equal to the
net sale proceeds of the Class A and Mezzanine Certificates and (ii) deliver to
the Seller or its designee the Non-Offered Certificates.

                  (b) In connection with the transactions contemplated by
Section 2..09 of the Pooling and Servicing Agreement, the Seller hereby agrees
that the Purchaser shall be under no obligation to purchase any Subsequent
Mortgage Loans unless (i) the conditions precedent contained in Section 2.09 of
the Pooling and Servicing Agreement and the Subsequent Transfer Instrument,
substantially in the form of Exhibit L of the Pooling and Servicing Agreement,
are satisfied and (ii) each Subsequent Mortgage Loan satisfies the
representations and warranties contained in Section 6 of this Agreement. The
sale of Subsequent Mortgage Loans by the Seller to the Depositor shall be
effected in accordance with the terms of Section 2.09 of the Pooling and
Servicing Agreement pursuant to a Subsequent Mortgage Loan Purchase Agreement
substantially in the form of this Agreement.

                  SECTION 4. Transfer of the Mortgage Loans.

                  (a) POSSESSION OF MORTGAGE FILES. The Seller does hereby sell
to the Purchaser, without recourse but subject to the terms of this Agreement,
all of its rights, title and interest in, to and under the Mortgage Loans,
including the related Prepayment Charges collected after the Cut-off Date. The
contents of each Mortgage File not delivered to the Purchaser or to any
assignee, transferee or designee of the Purchaser on or prior to the Closing
Date are and shall be held in trust by the Seller for the benefit of the
Purchaser or any assignee, transferee or designee of the Purchaser. Upon the
sale and contribution of the Mortgage Loans the ownership of each Mortgage Note,
the related Mortgage and the other contents of the related Mortgage File is
vested in the Purchaser and the ownership of all records and documents with
respect to the related Mortgage Loan prepared by or that come into the
possession of the Seller on or after the Closing Date shall immediately vest in
the Purchaser and shall be delivered immediately to the Purchaser or as
otherwise directed by the Purchaser.

                  (b) DELIVERY OF MORTGAGE LOAN DOCUMENTS. The Seller will, on
or prior to the Closing Date, deliver or cause to be delivered to the Purchaser
or any assignee, transferee or designee of the Purchaser each of the following
documents for each Mortgage Loan:

                                       2
<PAGE>

                           (1) the original Mortgage Note, endorsed in blank
         without recourse or in the following form: "Pay to the order of
         Deutsche Bank National Trust Company, as Trustee under the applicable
         agreement, without recourse," with all prior and intervening
         endorsements showing a complete chain of endorsement from the
         originator to the Person so endorsing to the Trustee, or with respect
         to any lost Mortgage Note, an original Lost Note Affidavit; provided,
         however, that such substitutions of Lost Note Affidavits for original
         Mortgage Notes may occur only with respect to Mortgage Loans, the
         aggregate Cut-off Date Principal Balance of which is less than or equal
         to 2.00% of the Pool Balance as of the Cut-off Date;

                           (2) the original Mortgage with evidence of recording
         thereon, and a copy, certified by the appropriate recording office, of
         the recorded power of attorney, if the Mortgage was executed pursuant
         to a power of attorney, with evidence of recording thereon;

                           (3) an original Assignment assigned in blank, without
         recourse;

                           (4) the original recorded intervening Assignment or
         Assignments showing a complete chain of assignment from the originator
         to the Person assigning the Mortgage to the Trustee as contemplated by
         the immediately preceding clause (iii) or the original unrecorded
         intervening Assignments;

                           (5) the original or copies of each assumption,
         modification, written assurance or substitution agreement, if any; and

                           (6) the original lender's title insurance policy or
         an attorney's opinion of title or similar guarantee of title acceptable
         to mortgage lenders generally in the jurisdiction where the Mortgaged
         Property is located, together with all endorsements or riders which
         were issued with or subsequent to the issuance of such policy, insuring
         the priority of the Mortgage as a first lien on the Mortgaged Property
         represented therein as a fee interest vested in the Mortgagor, or in
         the event such original title policy is unavailable, a written
         commitment or uniform binder or preliminary report of title issued by
         the title insurance or escrow company.

                  If any document referred to in Section 4(b)(2), 4(b)(3) or
4(b)(4) above has been submitted for recording but either (x) has not been
returned from the applicable public recording office or (y) has been lost or
such public recording office has retained the original of such document, the
obligations of the Seller hereunder shall be deemed to have been satisfied upon
(1) delivery by or on behalf of the Seller promptly upon receipt thereof to the
Purchaser or any assignee, transferee or designee of the Purchaser of either the
original or a copy of such document certified by the Seller in the case of (x)
above or the public recording office in the case of (y) above to be a true and
complete copy of the recorded original thereof and (2) if such delivered copy is
certified by the Seller, then in addition thereto, delivery promptly upon
receipt thereof of either the original or a copy of such document certified by
the public recording office to be a true and complete copy of the original. In
the event that the original lender's title insurance policy has not yet been
issued, the Seller shall deliver to the Purchaser or any assignee, transferee or
designee of the Purchaser a written commitment or interim binder or preliminary

                                       3
<PAGE>

report of title issued by the title insurance or escrow company. Promptly upon
receipt by the Seller of any such original title insurance policy the Seller
shall deliver such to the Purchaser or any assignee, transferee or designee of
the Purchaser.

                  The Seller shall promptly (and in no event later than thirty
(30) Business Days, subject to extension upon mutual agreement between the
Seller and the Trustee, following the later of (i) the Closing Date, (ii) the
date on which the Seller receives the Assignment from the Trustee and (iii) the
date of receipt by the Seller of the recording information for a Mortgage)
submit or cause to be submitted for recording, at no expense to the Trust Fund
or the Trustee, in the appropriate public office for real property records, each
Assignment referred to in (3) and (4) above and shall execute each original
Assignment referred to in (3) in the following form: "Deutsche Bank National
Trust Company, as Trustee under the applicable agreement". In the event that any
such Assignment is lost or returned unrecorded because of a defect therein, the
Seller shall promptly prepare or cause to be prepared a substitute Assignment or
cure or cause to be cured such defect, as the case may be, and thereafter cause
each such Assignment to be duly recorded. Notwithstanding the foregoing,
however, for administrative convenience and facilitation of servicing and to
reduce closing costs, so long as recordation of an Assignment is not necessary
to protect the Trustee's and the Certificateholders' interests in the related
Mortgage Loan under the laws of the jurisdiction in which the related Mortgaged
Property is located, as evidenced by an Opinion of Counsel reasonably
satisfactory to the Guarantor delivered by the Master Servicer to the Trustee
and the Guarantor, the Assignments shall not be required to be submitted for
recording (except with respect to any Mortgage Loan located in Maryland) unless
such failure to record would result in a withdrawal or a downgrading by any
Rating Agency of the rating on any Class of Certificates; provided further,
however, each Assignment shall be submitted for recording by the Seller (at the
direction of the Master Servicer) in the manner described above, at no expense
to the Trust Fund or the Trustee, upon the earliest to occur of: (i) reasonable
direction by Holders of Certificates entitled to at least 25% of the Voting
Rights, the Guarantor or the NIMS Insurer, (ii) a failure of the Master Servicer
Termination Test as set forth in the Pooling and Servicing Agreement, (iii) the
occurrence of the bankruptcy or insolvency of the Seller, (iv) the occurrence of
a servicing transfer as described in Section 7.02 of the Pooling and Servicing
Agreement and (v) if the Seller is not the Master Servicer and with respect to
any one assignment or Mortgage, the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Mortgagor under the related Mortgage.

                  Each original document relating to any Mortgage Loan which is
not delivered to the Purchaser or its assignee, transferee or designee, if held
by the Seller, shall be so held for the benefit of the Purchaser or its
assignee, transferee or designee.

                  (c) ACCEPTANCE OF MORTGAGE LOANS. The documents delivered
pursuant to Section 4(b) hereof shall be reviewed by the Purchaser or any
assignee, transferee or designee of the Purchaser at any time before or after
the Closing Date (and with respect to each document permitted to be delivered
after the Closing Date, within seven (7) days of its delivery) to ascertain that
all required documents have been executed and received and that such documents
relate to the Mortgage Loans identified on the Mortgage Loan Schedule.

                  (d) Reserved.

                                       4
<PAGE>

                  (e) TRANSFER OF INTEREST IN AGREEMENTS. The Purchaser has the
right to assign its interest under this Agreement, in whole or in part, to the
Trustee, as may be required to effect the purposes of the Pooling and Servicing
Agreement, without the consent of the Seller, and the assignee shall succeed to
the rights and obligations hereunder of the Purchaser. Any expense reasonably
incurred by or on behalf of the Purchaser or the Trustee in connection with
enforcing any obligations of the Seller under this Agreement shall be promptly
reimbursed by the Seller.

                  (f) EXAMINATION OF MORTGAGE FILES. Prior to the Closing Date,
the Seller shall either (i) deliver in escrow to the Purchaser or to any
assignee, transferee or designee of the Purchaser, for examination, the Mortgage
File pertaining to each Mortgage Loan or (ii) make such Mortgage Files available
to the Purchaser or to any assignee, transferee or designee of the Purchaser for
examination at the Trustee's offices in Santa Ana, California. Such examination
may be made by the Purchaser, and its respective designees, upon reasonable
notice to the Seller and the Trustee during normal business hours before the
Closing Date and within sixty (60) days after the Closing Date. If any such
person makes such examination prior to the Closing Date and identifies any
Mortgage Loans that do not conform to the requirements of the Purchaser as
described in this Agreement, such Mortgage Loans shall be deleted from the
Closing Schedule. The Purchaser may, at its option and without notice to the
Seller, purchase all or part of the Mortgage Loans without conducting any
partial or complete examination. The fact that the Purchaser or any person has
conducted or has failed to conduct any partial or complete examination of the
Mortgage Files shall not affect the rights of the Purchaser or any assignee,
transferee or designee of the Purchaser to demand repurchase or other relief as
provided herein or under the Pooling and Servicing Agreement.

                  SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
SELLER.

                  The Seller hereby represents and warrants to the Purchaser as
of the date hereof and as of the Closing Date, and covenants that:

                           (1) The Seller is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware and is duly authorized and qualified to transact any and all
         business contemplated by this Agreement to be conducted by the Seller
         in any state in which a Mortgaged Property is located or is otherwise
         not required under applicable law to effect such qualification and, in
         any event, is in compliance with the doing business laws of any such
         State, to the extent necessary to ensure the ability of the Master
         Servicer to enforce each Mortgage Loan and to service the Mortgage
         Loans in accordance with the terms of the Pooling and Servicing
         Agreement;

                           (2) The Seller had the full corporate power and
         authority to originate, hold and sell each Mortgage Loan and has the
         full corporate power and authority to service each Mortgage Loan, and
         to execute, deliver and perform, and to enter into and consummate the
         transactions contemplated by this Agreement and has duly authorized by
         all necessary corporate action on the part of the Seller the execution,
         delivery and performance of this Agreement; this Agreement has been
         duly executed and delivered by the Seller and this Agreement, assuming
         the due authorization, execution and delivery thereof by the Purchaser,
         constitutes a legal, valid and binding obligation of the Seller,

                                       5
<PAGE>

         enforceable against the Seller in accordance with its terms, except to
         the extent that (a) the enforceability thereof may be limited by
         bankruptcy, insolvency, moratorium, receivership and other similar laws
         relating to creditors' rights generally and (b) the remedy of specific
         performance and injunctive and other forms of equitable relief may be
         subject to the equitable defenses and to the discretion of the court
         before which any proceeding therefor may be brought;

                           (3) The execution and delivery of this Agreement by
         the Seller, the servicing of the Mortgage Loans by the Seller under the
         Pooling and Servicing Agreement, the consummation of any other of the
         transactions herein contemplated, and the fulfillment of or compliance
         with the terms hereof are in the ordinary course of business of the
         Seller and will not (A) result in a breach of any term or provision of
         the charter or by-laws of the Seller or (B) conflict with, result in a
         breach, violation or acceleration of, or result in a default under, the
         terms of any other material agreement or instrument to which the Seller
         is a party or by which it may be bound, or any statute, order or
         regulation applicable to the Seller of any court, regulatory body,
         administrative agency or governmental body having jurisdiction over the
         Seller; and the Seller is not a party to, bound by, or in breach or
         violation of any indenture or other agreement or instrument, or subject
         to or in violation of any statute, order or regulation of any court,
         regulatory body, administrative agency or governmental body having
         jurisdiction over it, which materially and adversely affects or, to the
         Seller's knowledge, would in the future materially and adversely
         affect, (x) the ability of the Seller to perform its obligations under
         this Agreement or (y) the business, operations, financial condition,
         properties or assets of the Seller taken as a whole;

                           (4) 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 hereby, or if any such consent, approval, authorization or
         order is required, the Seller has obtained the same;

                           (5) The Seller is an approved originator/servicer for
         Fannie Mae or Freddie Mac in good standing and is a HUD approved
         mortgagee pursuant to Section 203 and Section 211 of the National
         Housing Act; and

                           (6) Except as otherwise disclosed in the Prospectus
         Supplement, no litigation, action, suit, proceeding or investigation is
         pending against the Seller that would materially and adversely affect
         the execution, delivery or enforceability of this Agreement or the
         ability of the Seller to service the Mortgage Loans or the Seller to
         perform any of its other obligations hereunder in accordance with the
         terms hereof.

                  SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE SELLER
                             RELATING TO THE MORTGAGE LOANS.

                  (a) The Seller hereby represents and warrants to the
Purchaser, with respect to the Mortgage Loans as of the Closing Date and with
respect to the Subsequent Mortgage Loans as of the respective Subsequent
Transfer Date or as of such date specifically provided herein:

                                       6
<PAGE>

                           (1) The information set forth on the Mortgage Loan
         Schedule with respect to each Mortgage Loan is true and correct in all
         material respects;

                           (2) No material error, omission, misrepresentation,
         negligence, fraud or similar occurrence with respect to any Mortgage
         Loan has taken place on the part of any person, including without
         limitation, the Mortgagor, any appraiser, any builder or developer, or
         any other party involved in the origination of the Mortgage Loan or in
         the application of any insurance in relation to such Mortgage Loan;

                           (3) All payments due prior to the Cut-off Date have
         been made and none of the Mortgage Loans will have been contractually
         delinquent for more than one calendar month more than once since the
         origination thereof;

                           (4) Each Mortgage is a valid and enforceable first
         lien on the Mortgaged Property, including all improvements thereon,
         subject only to (a) the lien of nondelinquent current real property
         taxes and assessments, (b) covenants, conditions and restrictions,
         rights of way, easements and other matters of public record as of the
         date of recording of such Mortgage, such exceptions appearing of record
         being acceptable to mortgage lending institutions generally or
         specifically reflected in the appraisal made in connection with the
         origination of the related Mortgage Loan, 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
         such Mortgage;

                           (5) Immediately prior to the sale of the Mortgage
         Loans to the Purchaser, the Seller had good title to, and was the sole
         legal and beneficial owner of, each Mortgage Loan free and clear of any
         pledge, lien, encumbrance or security interest and has full right and
         authority, subject to no interest or participation of, or agreement
         with, any other party to sell and assign the same;

                           (6) There is no delinquent tax or assessment lien
         against any Mortgaged Property;

                           (7) There is no valid offset, defense or counterclaim
         to any Mortgage Note or Mortgage, including the obligation of the
         Mortgagor to pay the unpaid principal of or interest on such Mortgage
         Note, nor will the operation of any of the terms of the Mortgage Note
         and the Mortgage, or the exercise of any right thereunder, render the
         Mortgage unenforceable, in whole or in part, or subject to any valid
         right of rescission, set-off, counterclaim or defense, including the
         defense of usury and no such valid right of rescission, set-off,
         counterclaim or defense has been asserted with respect thereto;

                           (8) There are no mechanics' liens or claims for work,
         labor or material rendered to the Mortgaged Property affecting any
         Mortgaged Property which are or may be a lien prior to, or equal with,
         the lien of the related Mortgage, except those which are insured
         against by the title insurance policy referred to in (12) below;

                           (9) Subject to the Escrow Withhold referred to in
         (19) below, each Mortgaged Property is free of material damage and is
         in good repair;

                                       7
<PAGE>

                           (10) Each Mortgage Loan at origination complied in
         all material respects with applicable local, state and federal laws and
         regulations, including, without limitation, usury, equal credit
         opportunity, real estate settlement procedures, truth-in-lending,
         disclosure laws and all applicable predatory and abusive lending laws,
         and consummation of the transactions contemplated hereby will not
         involve the violation of any such laws;

                           (11) Neither the Seller nor any prior holder of any
         Mortgage has modified, impaired or waived the Mortgage in any material
         respect (except that a Mortgage Loan may have been modified by a
         written instrument which has been recorded, if necessary, to protect
         the interests of the Purchaser and which has been delivered to the
         Trustee); satisfied, canceled or subordinated such Mortgage in whole or
         in part; released the related Mortgaged Property in whole or in part
         from the lien of such Mortgage; or executed any instrument of release,
         cancellation, modification or satisfaction with respect thereto;

                           (12) A lender's policy of title insurance together
         with a condominium endorsement, extended coverage endorsement, and an
         adjustable rate mortgage endorsement (each as applicable) in an amount
         at least equal to the Cut-off Date principal balance of each such
         Mortgage Loan or a commitment (binder) to issue the same was effective
         on the date of the origination of each Mortgage Loan, each such policy
         is valid and remains in full force and effect, the transfer of the
         related Mortgage Loan to the Purchaser will not affect the validity or
         enforceability of such policy and each such policy was issued by a
         title insurer qualified to do business in the jurisdiction where the
         Mortgaged Property is located and in a form acceptable to Fannie Mae or
         Freddie Mac, which policy insures the Seller and successor owners of
         indebtedness secured by the insured Mortgage, as to the first priority
         lien of the Mortgage; 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;

                           (13) Each Mortgage Loan was originated by the Seller,
         or an Affiliate of the Seller, in accordance with the underwriting
         standards as set forth in the Prospectus Supplement (or, if generated
         by an entity other than the Seller or an Affiliate of the Seller, in
         accordance with such other underwriting standards as set forth in the
         Prospectus Supplement or, if generated on behalf of the Seller or an
         Affiliate of the Seller by a person other than the Seller, is subject
         to the same underwriting standards and procedures used by the Seller in
         originating mortgage loans directly) or by a savings and loan
         association, savings bank, commercial bank, credit union, insurance
         company or similar institution which is supervised and examined by a
         federal or state authority (including a mortgage broker), or by a
         mortgagee approved by the Secretary of Housing and Urban Development
         pursuant to Sections 203 and 211 of the National Housing Act;

                           (14) With respect to each Adjustable-Rate Mortgage
         Loan, on each adjustment date, the Mortgage Rate will be adjusted to
         equal the Index plus the Gross Margin, rounded to the nearest 0.125%,
         subject to the Periodic Rate Cap, the Maximum Mortgage Rate and the
         Minimum Mortgage Rate. The related Mortgage Note is payable

                                       8
<PAGE>

         on the first day of each month in self-amortizing monthly installments
         of principal and interest, with interest payable in arrears, and
         requires a monthly payment which is sufficient to fully amortize the
         outstanding principal balance of the Mortgage Loan over its remaining
         term and to pay interest at the applicable Mortgage Rate. No Mortgage
         Loan is subject to negative amortization;

                           (15) All of the improvements which were included for
         the purpose of determining the appraised value of the Mortgaged
         Property lie wholly within the boundaries and building restriction
         lines of such property, and no improvements on adjoining properties
         encroach upon the Mortgaged Property, except those, if any, which are
         insured against by the lender's title insurance policy referred to in
         (12) above.

                           (16) All inspections, licenses and certificates
         required to be made or issued with respect to all occupied portions of
         the Mortgaged Property, including but not limited to certificates of
         occupancy, have been made or obtained from the appropriate authorities,
         and the Mortgaged Property is lawfully occupied under applicable law
         except as may otherwise be insured against by the lender's title
         insurance policy referred to in (12) above.

                           (17) All parties which have had any interest in the
         Mortgage, whether as mortgagee, assignee, pledgee or otherwise, are
         (or, during the period in which they held and disposed of such
         interest, were) in compliance with any and all applicable licensing
         requirements of the laws of the state wherein the Mortgaged Property is
         located;

                           (18) 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 and with
         applicable laws. All parties to the Mortgage Note and the Mortgage had
         legal capacity to execute the Mortgage Note and the Mortgage and each
         Mortgage Note and Mortgage have been duly and properly executed by such
         parties;

                           (19) The proceeds of each 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 any Mortgaged Property or
         Mortgage Loan subject to an Escrow Withhold as defined in the
         Originator's underwriting guidelines. All costs, fees and expenses
         incurred in making, closing or recording the Mortgage Loans were paid;

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

                                       9
<PAGE>

                           (21) With respect to each Mortgage constituting 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 such Mortgage, and no fees or expenses are or will become
         payable by the Purchaser to the trustee under the deed of trust, except
         in connection with a trustee's sale after default by the Mortgagor;

                           (22) There exist no deficiencies with respect to
         escrow deposits and payments, if such are required, for which customary
         arrangements for repayment thereof have not been made, and no escrow
         deposits or payments of other charges or payments due the Seller have
         been capitalized under the Mortgage or the related Mortgage Note;

                           (23) The origination, collection and servicing
         practices used by the Seller (or its affiliate) with respect to each
         Mortgage Loan have been in all material respects legal, proper,
         reasonable and customary in the subprime mortgage origination and
         servicing business and each of the Mortgage Loans have been serviced by
         the Seller since origination;

                           (24) There is no pledged account or other security
         other than real estate securing the Mortgagor's obligations;

                           (25) No Mortgage Loan has a shared appreciation
         feature, or other contingent interest feature;

                           (26) The improvements upon each Mortgaged Property
         are covered by a valid, binding and existing hazard insurance policy
         that is in full force and effect with a generally acceptable carrier
         that provides for fire extended coverage and such other hazards as are
         customary in the area where the Mortgaged Property is located
         representing coverage not less than the lesser of the outstanding
         principal balance of the related Mortgage Loan or the minimum amount
         required to compensate for damage or loss on a replacement cost basis.
         All individual insurance policies and flood policies referred to in
         clause (27) below contain a standard mortgagee clause naming the Seller
         or the original mortgagee, and its successors in interest, as
         mortgagee, and the Seller has received no notice that any premiums due
         and payable thereon have not been paid; the Mortgage obligates the
         Mortgagor thereunder to maintain all such insurance, including flood
         insurance, at the Mortgagor's cost and expense, and upon the
         Mortgagor's failure to do so, authorizes the holder of the Mortgage to
         obtain and maintain such insurance at the Mortgagor's cost and expense
         and to seek reimbursement therefor from the Mortgagor, except as may be
         limited or restricted by applicable law;

                           (27) If the Mortgaged Property is in an area
         identified in the Federal Register by the Federal Emergency Management
         Agency as having special flood hazards, a valid and binding flood
         insurance policy that is in full force and effect in a form meeting the
         requirements of the current guidelines of the Flood Insurance
         Administration is in effect with respect to such Mortgaged Property
         with a generally acceptable carrier in an amount representing coverage
         not less than the least of (A) the original outstanding principal
         balance of the Mortgage Loan, (B) the minimum amount required to

                                       10
<PAGE>

         compensate for damage or loss on a replacement cost basis or (C) the
         maximum amount of insurance that is available under the Flood Disaster
         Protection Act of 1973;

                           (28) There is no default, breach, violation or event
         of acceleration existing under the Mortgage or the related Mortgage
         Note; and the Seller has not waived any default, breach, violation or
         event of acceleration;

                           (29) Each Mortgaged Property is improved by a one- to
         four-family residential dwelling, including condominium units and
         dwelling units in planned unit developments, which does not include (a)
         cooperatives or (b) mobile homes and manufactured homes (as defined in
         the Fannie Mae Seller-Servicer's Guide), except when the appraisal
         indicates that (i) the mobile or manufactured home was built under the
         Federal Manufactured Home Construction and Safety Standards of 1976 or
         (ii) otherwise assumes the characteristics of site-built housing and
         meets local building codes, is readily marketable, has been permanently
         affixed to the site, is not in a mobile home "park," and is treated as
         real property under the applicable state law. With respect to any
         Mortgage Loan that is secured by a leasehold estate: (a) the lease is
         valid, in full force and effect; (b) all rents and other payments due
         under the lease have been paid; (c) the lessee is not in default under
         any provision of the lease; (d) the term of the lease exceeds the
         maturity date of the related Mortgage Loan by at least five (5) years;
         and (e) the Mortgagee under the Mortgage Loan is given notice and an
         opportunity to cure any defaults under the lease;

                           (30) There is no obligation on the part of the Seller
         or any other party under the terms of the Mortgage or related Mortgage
         Note to make payments in lieu of or in addition to those made by the
         Mortgagor;

                           (31) Any future advances made 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
         reflected on the Mortgage Loan Schedule. The consolidated principal
         amount does not exceed the original principal amount of the Mortgage
         Loan;

                           (32) The Mortgage File contains an appraisal which
         was either (i) performed by an appraiser who satisfied, and which was
         conducted in accordance with, all of the applicable requirements of the
         Financial Institutions Reform, Recovery and Enforcement Act of 1989, as
         amended or (ii) conducted in accordance with an insured valuation
         model;

                           (33) None of the Mortgage Loans is a graduated
         payment mortgage loan, nor is any Mortgage Loan subject to a temporary
         buydown or similar arrangement;

                           (34) No Mortgagor has currently requested any relief
         under the Servicemembers Civil Relief Act or similar state laws;

                           (35) The Mortgage Loans comply in all material
         respects with the descriptions set forth under the captions "The
         Mortgage Pool" and Annex III in the Prospectus Supplement;

                                       11
<PAGE>

                           (36) The Mortgage contains an enforceable provision
         for the acceleration of the payment of the unpaid principal balance of
         the Mortgage Loan in the event that the related Mortgaged Property is
         sold or transferred without the prior written consent of the mortgagee
         thereunder, except as may be limited by applicable law;

                           (37) The information set forth in the Prepayment
         Charge Schedule attached as Schedule 2 to the Pooling and Servicing
         Agreement (including the prepayment charge summary attached thereto) is
         complete, true and correct in all material respects at the date or
         dates respecting which such information is furnished and each
         Prepayment Charge is permissible and enforceable in accordance with its
         terms upon the full and voluntary prepayment by the Mortgagor under
         applicable law and complied in all material respects with applicable
         local, state and federal laws (except to the extent that (i) the
         enforceability thereof may be limited by bankruptcy, insolvency,
         moratorium, receivership and other similar laws relating to creditors'
         rights generally or (ii) the collectability thereof may be limited due
         to acceleration in connection with a foreclosure or other involuntary
         payoff);

                           (38) Each Mortgage Loan is an obligation that is
         principally secured by real property for purposes of the REMIC
         Provisions of the Code;

                           (39) The Mortgage Loans are not subject to the
         requirements of the Home Ownership and Equity Protection Act of 1994
         ("HOEPA") and no Mortgage Loan is subject to, or in violation of, any
         applicable state or local law, ordinance or regulation similar to
         HOEPA;

                           (40) (a) No Mortgage Loan is a High Cost Loan as
         defined by HOEPA or any other applicable predatory or abusive lending
         laws and (b) no Mortgage Loan is a "high cost home", "covered"
         (excluding home loans defined as "covered home loans" in the New Jersey
         Home Ownership Security Act of 2002 that were originated between
         November 26, 2003 and July 7, 2004) , "high risk home" or "predatory"
         loan under any other applicable state, federal or local law (or a
         similarly classified loan using different terminology under a law
         imposing heightened regulatory scrutiny or additional legal liability
         for resident mortgage loans having high interest rates, points and/or
         fees);

                           (41) No Mortgage Loan originated on or after October
         1, 2002 will impose a Prepayment Charge for a term in excess of three
         years. Any Mortgage Loans originated prior to such date will not impose
         a Prepayment Charge for a term in excess of five (5) years;

                           (42) No Mortgage Loan that is secured by property
         located in the State of Georgia is either a "Covered Loan" or "High
         Cost Home Loan" within the meaning of the Georgia Fair Lending Act, as
         amended (the "Georgia Act");

                           (43) The Master Servicer for each Mortgage Loan prior
         to the Closing Date, has fully furnished, in accordance with the Fair
         Credit Reporting Act and its implementing regulations, accurate and
         complete information (e.g., favorable and

                                       12
<PAGE>

         unfavorable) on its borrower credit files to Equifax, Experian and
         Trans Union Credit Information Company or their successors (the "Credit
         Repositories") on a monthly basis;

                           (44) There is no Mortgage Loan that was originated on
         or after October 1, 2002 and before March 7, 2003 which is secured by
         property located in the State of Georgia;

                           (45) The Prepayment Charges included in the
         transaction are enforceable and originated in compliance with all
         applicable federal, state and local law;

                           (46) No proceeds from any Mortgage Loan were used to
         finance single-premium credit insurance policies;

                           (47) No Mortgage Loan is a high cost loan or a
         covered loan, as applicable (as such terms are defined in Standard &
         Poor's LEVELS Version 5.6 Glossary Revised, Appendix E); and

                           (48) With respect to any Mortgage Loan originated on
         or after August 1, 2004, neither the related Mortgage nor the related
         Mortgage Note requires the borrower to submit to arbitration to resolve
         any dispute arising out of or relating in any way to the Mortgage Loan
         transaction.

                  (b) The Seller hereby represents, warrants and covenants to
the Purchaser, with respect to the Group I Mortgage Loans as of the Closing Date
and with respect to the Subsequent Group I Mortgage Loans as of the respective
Subsequent Transfer Date or as of such date specifically provided herein:

                           (1) Each Group I Mortgage Loan is in compliance with
         the anti-predatory lending eligibility for purchase requirements of
         Fannie Mae's Selling Guide;

                           (2) The methodology used in underwriting the
         extension of credit for each Group I Mortgage Loan employs objective
         mathematical principles which relate the Mortgagor's income, assets and
         liabilities to the proposed payment and such underwriting methodology
         does not rely on the extent of the Mortgagor's equity in the collateral
         as the principal determining factor in approving such credit extension.
         Such underwriting methodology confirmed that at the time of origination
         (application/approval) the Mortgagor had a reasonable ability to make
         timely payments on the Group I Mortgage Loan;

                           (3) With respect to any Group I Mortgage Loan that
         contains a provision permitting imposition of a charge upon a
         prepayment prior to maturity: (i) prior to the Group I Mortgage Loan's
         origination, the Mortgagor agreed to such charge in exchange for a
         monetary benefit, including but not limited to a rate or fee reduction,
         (ii) prior to the Group I Mortgage Loan's origination, the Mortgagor
         was offered the option of obtaining a mortgage loan that did not
         require payment of such a charge, (iii) the prepayment charge is
         disclosed to the Mortgagor in the loan documents pursuant to applicable
         state and federal law, (iv) for loans originated on or after September
         1, 2004, the duration of the prepayment period shall not exceed three
         (3) years from the date of the

                                       13
<PAGE>

         Mortgage Note unless the loan was modified to reduce the prepayment
         period to no more than three years from the date of the Mortgage Note
         and the borrower was notified in writing of such reduction in the
         prepayment period, and (v) notwithstanding any state or federal law to
         the contrary, the Master Servicer shall not impose such prepayment
         charge in any instance when the mortgage debt is accelerated as the
         result of the Mortgagor's default in making the loan payments;

                           (4) All points and fees related to each Group I
         Mortgage Loan were disclosed in writing to the Mortgagor in accordance
         with applicable state and federal law and regulation. Except in the
         case of a Group I Mortgage Loan in an original principal amount of less
         than $60,000 which would have resulted in an unprofitable origination,
         no Mortgagor was charged "points and fees" (whether or not financed) in
         an amount greater than 5% of the principal amount of such loan and such
         5% limitation is calculated in accordance with Fannie Mae's
         anti-predatory lending requirements as set forth in the Fannie Mae
         Selling Guide;

                           (5) All fees and charges (including finance charges)
         and whether or not financed, assessed, collected or to be collected in
         connection with the origination and servicing of each Group I Mortgage
         Loan have been disclosed in writing to the Mortgagor in accordance with
         applicable state and federal law and regulation;

                           (6) No Group I Mortgage Loan Mortgagor was encouraged
         or required to select a mortgage loan product offered by the Originator
         which is a higher cost product designed for a less creditworthy
         Mortgagor, unless at the time of the Mortgage Loan's origination, such
         Mortgagor did not qualify taking into account credit history and debt
         to income ratios for a lower cost credit product then offered by the
         Originator;

                           (7) The Master Servicer will transmit full-file
         credit reporting data for each Group I Mortgage Loan pursuant to Fannie
         Mae Guide Announcement 95-19 and that for each Group I Mortgage Loan,
         the Master Servicer agrees it shall report one of the following
         statuses each month as follows: new origination, current, delinquent
         (30-, 60-, 90-days, etc.), foreclosed, or charged-off;

                           (8) No Group I Mortgage Loan is a "High Cost Home
         Loan" as defined in New York Banking Law 6-1;

                           (9) No Group I Mortgage Loan is a "High-Cost Home
         Loan" as defined under the Arkansas Home Loan Protection Act, effective
         as of July 14, 2003;

                           (10) No Group I Mortgage Loan is a "High-Cost Home
         Loan" as defined under Kentucky State Statute KRS 360.100, effective as
         of June 25, 2003;

                           (11) No Group I Mortgage Loan is a "High-Cost Home
         Loan" as defined in the New Jersey Home Ownership Act, effective as of
         November 27, 2003;

                           (12) No Group I Mortgage Loan is a "High-Cost Home
         Loan" as defined in the New Mexico Home Loan Protection Act, effective
         as of January 1, 2004;

                                       14
<PAGE>

                           (13) No Group I Mortgage Loan is a "High-Risk Home
         Loan" as defined in the Illinois High-Risk Home Loan Act, effective as
         of January 1, 2004;

                           (14) No Mortgage Loan is a "High-Cost Home Mortgage
         Loan" as defined in the Massachusetts Predatory Home Loan Practices
         Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C);

                           (15) No Mortgage Loan is a "High Cost Home Loan" as
         defined in the Indiana Home Loan Practices Act, effective January 1,
         2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9);

                           (16) No Mortgage Loan is a balloon mortgage loan that
         has an original stated maturity of less than seven (7) years; and

                           (17) No Mortgagor was required to purchase any single
         premium credit insurance policy (e.g., life, mortgage, disability,
         accident, unemployment, or health insurance product) or debt
         cancellation agreement as a condition of obtaining the extension of
         credit. No Mortgagor obtained a prepaid single-premium credit insurance
         policy (e.g., life, mortgage, disability, accident, unemployment, or
         health insurance product) in connection with the origination of such
         Group I Mortgage Loan. No proceeds from any Group I Mortgage Loan were
         used to purchase single premium credit insurance policies or debt
         cancellation agreements as part of the origination of, or as a
         condition to closing, such Group I Mortgage Loan.

                  SECTION 7. Repurchase Obligation for Defective Documentation
and for Breach of Representation and Warranty.

                  (a) The representations and warranties contained in Section 6
shall not be impaired by any review and examination of loan files or other
documents evidencing or relating to the Mortgage Loans or any failure on the
part of the Purchaser to review or examine such documents and shall inure to the
benefit of any assignee, transferee or designee of the Purchaser, including the
Trustee for the benefit of the Certificateholders.

                  Upon discovery by the Seller, the Purchaser or any assignee,
transferee or designee of the Purchaser of any materially defective document in,
or that any material document was not transferred by the Seller (as listed on
the Trustee's Preliminary Exception Report) as part of, any Mortgage File or of
a breach of any of the representations and warranties contained in Section 5 or
Section 6 that materially and adversely affects the value of any Mortgage Loan
or the interest therein of the Purchaser or the Purchaser's assignee, transferee
or designee (it being understood that with respect to the representations and
warranties set forth in (39), (40), (41), (42), (43), (44), (46), (47) and (48)
of Section 6(a) herein, a breach of any such representation or warranty shall in
and of itself be deemed to materially adversely affect the interest therein of
the Purchaser and the Purchaser's assignee, transferee or designee), the party
discovering the breach shall give prompt written notice to the others. Within
ninety (90) days of its discovery or its receipt of notice of any such missing
documentation which was not transferred to the Purchaser as described above or
materially defective documentation or any such breach of a representation

                                       15
<PAGE>

and warranty (it being understood that with respect to the representations and
warranties set forth in (39), (40), (41), (42), (43), (44), (46), (47) and (48)
of Section 6(a) herein, a breach of any such representation or warranty shall in
and of itself be deemed to materially adversely affect the interest therein of
the Purchaser and the Purchaser's assignee, transferee or designee), the Seller
promptly shall deliver such missing document or cure such defect or breach in
all material respects, or in the event the Seller cannot deliver such missing
document or such defect or breach cannot be cured, the Seller shall, within
ninety (90) days of its discovery or receipt of notice, either (i) repurchase
the affected Mortgage Loan at a price equal to the Purchase Price or (ii)
pursuant to the provisions of the Pooling and Servicing Agreement, cause the
removal of such Mortgage Loan from the Trust Fund and substitute one or more
Qualified Substitute Mortgage Loans. In the event that any Mortgage Loan is
subject to a breach of the representation and warranty in Section 6(a)(37) and
(39) resulting in the Master Servicer's inability to collect all or part of the
Prepayment Charge from the Mortgagor, in lieu of repurchase, the Seller shall be
obligated to remit to the Master Servicer (for deposit in the Collection
Account) any shortfall in the Prepayment Charge collected upon the Mortgagor's
voluntary Principal Prepayment.

                  Notwithstanding the foregoing, within ninety (90) days of the
earlier of discovery by the Seller or receipt of notice by the Seller of the
breach of the representation of the Seller set forth in Section 6(a)(37) and
(45) above, which materially and adversely affects the interests of the Holders
of the Class P Certificates in any Prepayment Charge, the Seller shall pay the
amount of the scheduled Prepayment Charge, for the benefit of the Holders of the
Class P Certificates, by depositing such amount into the Collection Account, net
of any amount previously collected by the Master Servicer and paid by the Master
Servicer, for the benefit of the Holders of the Class P Certificates, in respect
of such Prepayment Charge.

                  The Seller shall amend the Closing Schedule to reflect the
withdrawal of such Mortgage Loan from the terms of this Agreement and the
Pooling and Servicing Agreement and the addition, if any, of a Qualified
Substitute Mortgage Loan. The Seller shall deliver to the Purchaser such amended
Closing Schedule and shall deliver such other documents as are required by this
Agreement or the Pooling and Servicing Agreement within five (5) days of any
such amendment. Any repurchase pursuant to this Section 7(a) shall be
accomplished by deposit in the Collection Account of the amount of the Purchase
Price in accordance with Section 2.03 of the Pooling and Servicing Agreement.
Any repurchase or substitution required by this Section shall be made in a
manner consistent with Section 2.03 of the Pooling and Servicing Agreement.

                  In addition, upon discovery by the Seller, the Purchaser, or
any assignee, transferee or designee of the Purchaser that any Mortgage Loan
does not constitute a "qualified mortgage" within the meaning of Section
860G(a)(3) of the Code, the party discovering the breach shall give prompt
written notice within five (5) Business Days to the others. Within ninety (90)
days of its discovery or its receipt of notice, the Seller promptly shall either
(i) repurchase the affected Mortgage Loan at the Purchase Price (as such term is
defined in the Pooling and Servicing Agreement) or (ii) pursuant to the
provisions of the Pooling and Servicing Agreement, cause the removal of such
Mortgage Loan from the Trust Fund and substitute one or more Qualified
Substitute Mortgage Loans.

                  (b) It is understood and agreed that the obligations of the
Seller set forth in this Section 7 to cure, remit a Prepayment Charge shortfall,
repurchase or substitute for a

                                       16
<PAGE>

defective Mortgage Loan constitute the sole remedies of the Purchaser against
the Seller respecting a missing or defective material document or a breach of
the representations and warranties contained in Section 5 or Section 6.

SECTION 8. CLOSING; PAYMENT FOR THE MORTGAGE LOANS. The closing of the purchase
and sale of the Mortgage Loans shall be held at the New York City office of
Thacher Proffitt & Wood LLP at 10:00 AM New York City time on the Closing Date.

                  The closing shall be subject to each of the following
conditions:

                  (a)  All of the representations and warranties of the Seller
                       under this Agreement shall be true and correct in all
                       material respects as of the date as of which they are
                       made and no event shall have occurred which, with notice
                       or the passage of time, would constitute a default under
                       this Agreement;

                  (b)  The Purchaser shall have received, or the attorneys of
                       the Purchaser shall have received in escrow (to be
                       released from escrow at the time of closing), all Closing
                       Documents as specified in Section 9 of this Agreement, in
                       such forms as are agreed upon and acceptable to the
                       Purchaser, duly executed by all signatories other than
                       the Purchaser as required pursuant to the respective
                       terms thereof;

                  (c)  The Seller shall have delivered or caused to be delivered
                       and released to the Purchaser or to its designee, all
                       documents (including without limitation, the Mortgage
                       Loans) required to be so delivered by the Purchaser
                       pursuant to Section 2.01 of the Pooling and Servicing
                       Agreement; and

                  (d)  All other terms and conditions of this Agreement shall
                       have been complied with.

                  Subject to the foregoing conditions, the Purchaser shall
deliver or cause to be delivered to the Seller on the Closing Date, against
delivery and release by the Seller to the Trustee of all documents required
pursuant to the Pooling and Servicing Agreement, the consideration for the
Mortgage Loans as specified in Section 3 of this Agreement, by delivery to the
Seller of the Purchase Price.

                  SECTION 9. CLOSING DOCUMENTS. Without limiting the generality
of Section 8 hereof, the closing shall be subject to delivery of each of the
following documents:

                  (a)  (i) An Officers' Certificate of the Seller and Master
                       Servicer, dated the Closing Date, in form satisfactory to
                       and upon which the Purchaser and the Underwriters may
                       rely, and attached thereto copies of the certificate of
                       incorporation, by-laws and certificate of good standing
                       of the Seller and Master Servicer under the laws of
                       Delaware and stating that the information contained in
                       the Prospectus Supplement and the Information Circular,
                       relating to the Mortgage Loans, the Seller and Master
                       Servicer, and the applicable loan portfolio, is true and
                       accurate in all material respects and does not contain
                       any untrue statement of a material fact or omit to state
                       a material fact required to

                                       17
<PAGE>

                       be stated therein or necessary to make the statements
                       therein, in light of the circumstances under which they
                       were made, not misleading and (ii) if any of the
                       Non-Offered Certificates are offered on the Closing Date
                       pursuant to a private placement memorandum, the Seller
                       shall deliver an Officer's Certificate stating that the
                       same information contained in such private placement
                       memorandum is true and accurate in all material respects;

                  (b)  An Officers' Certificate of the Seller, dated the Closing
                       Date, in form satisfactory to and upon which the
                       Purchaser and the Underwriters may rely, with respect to
                       certain facts regarding the sale of the Mortgage Loans by
                       the Seller to the Purchaser;

                  (c)  An Opinion of Counsel of the Seller and Master Servicer,
                       dated the Closing Date, in form satisfactory to and
                       addressed to the Purchaser, the Guarantor and the
                       Underwriters;

                  (d)  Such opinions of counsel from the Purchaser's or Seller's
                       counsel as the Rating Agencies or the Guarantor may
                       request in connection with the sale of the Mortgage Loans
                       by the Seller to the Purchaser or the Seller's execution
                       and delivery of, or performance under, this Agreement and
                       upon which the Underwriters may rely;

                  (e)  A letter from Deloitte & Touche LLP, certified public
                       accountants, dated the date hereof and to the effect that
                       they have performed certain specified procedures as a
                       result of which they determined that certain information
                       of an accounting, financial or statistical nature set
                       forth in the Prospectus Supplement, under the captions
                       "Summary of Prospectus Supplement", "Risk Factors", "The
                       Mortgage Pool", "Yield on the Certificates", "Description
                       of the Certificates", "Pooling and Servicing
                       Agreement--The Seller and Master Servicer", Annex II and
                       Annex III agrees with the records of the Seller and the
                       Master Servicer;

                  (f)  A letter from Deloitte & Touche LLP, certified public
                       accountants, dated the date hereof and to the effect that
                       they have performed certain specified procedures as a
                       result of which they determined that certain information
                       of an accounting, financial or statistical nature set
                       forth in the Information Circular, under the captions
                       "Summary of Terms", "Risk Factors", "The Mortgage Pool",
                       "Yield on the Certificates", "Description of the
                       Certificates", "Pooling and Servicing Agreement--The
                       Seller and Master Servicer", Annex I and Annex II agrees
                       with the records of the Seller and the Master Servicer;

                  (g)  The Seller and Master Servicer shall deliver for
                       inclusion in the Prospectus Supplement and Information
                       Circular, under the captions "The Mortgage
                       Pool--Underwriting Standards of the Originators;" and
                       "Pooling and Servicing Agreement--The Seller and Master
                       Servicer", or for inclusion in other offering material,
                       such publicly available information regarding its
                       financial condition and its mortgage loan delinquency,
                       foreclosure and loss

                                       18
<PAGE>

                       experience, underwriting standards, lending activities
                       and loan sales, production, and servicing and collection
                       practices, and any similar nonpublic, unaudited financial
                       information; and

                  (h)  Such further information, certificates, opinions and
                       documents as the Purchaser or the Underwriters may
                       reasonably request.

                  SECTION 10. COSTS. The Seller shall pay (or shall reimburse
the Purchaser or any other Person to the extent that the Purchaser or such other
Person shall pay) all costs and expenses incurred in connection with the
transfer and delivery of the Mortgage Loans, including without limitation,
assignment of mortgage recording costs and/or fees for title policy endorsements
and continuations, the fees and expenses of the Seller's in-house accountants
and in-house attorneys, the costs and expenses incurred in connection with
producing the Seller's loan loss, foreclosure and delinquency experience, and
the costs and expenses incurred in connection with obtaining the documents
referred to in Sections 9(d), 9(e) and 9(f) to the extent such costs and
expenses were not previously paid by the Seller. The Seller shall pay (or shall
reimburse the Purchaser or any other Person to the extent that the Purchaser or
such other Person shall pay) the costs and expenses of printing (or otherwise
reproducing) and delivering this Agreement, the Pooling and Servicing Agreement,
the Certificates, the prospectus, the Prospectus Supplement, Information
Circular and the Private Placement Memorandum relating to the Certificates and
other related documents, the initial fees, costs and expenses of the Trustee
relating to the issuance of the initial certification of the Trustee under
Section 2.02 of the Pooling and Servicing Agreement, the fees and expenses of
the Seller's counsel in connection with the preparation of all documents
relating to the securitization of the Mortgage Loans, the filing fee charged by
the Securities and Exchange Commission for registration of the Certificates, the
cost of outside special counsel that may be required for the Purchaser, the cost
of obtaining the documents referred to in Section 9(h) and the fees charged by
any rating agency to rate the Certificates. All other costs and expenses in
connection with the transactions contemplated hereunder shall be borne by the
party incurring such expense.

                  SECTION 11. RESERVED.

                  SECTION 12. RESERVED.

                  SECTION 13. MANDATORY DELIVERY; GRANT OF SECURITY INTEREST.
The sale and delivery on the Closing Date of the Mortgage Loans described on the
Mortgage Loan Schedule in accordance with the terms and conditions of this
Agreement is mandatory. It is specifically understood and agreed that each
Mortgage Loan is unique and identifiable on the date hereof and that an award of
money damages would be insufficient to compensate the Purchaser for the losses
and damages incurred by the Purchaser in the event of the Seller's failure to
deliver the Mortgage Loans on or before the Closing Date. The Seller hereby
grants to the Purchaser a lien on and a continuing security interest in the
Seller's interest in each Mortgage Loan and each document and instrument
evidencing each such Mortgage Loan to secure the performance by the Seller of
its obligation hereunder, and the Seller agrees that it holds such Mortgage
Loans in custody for the Purchaser, subject to the Purchaser's (i) right, prior
to the Closing Date, to reject any Mortgage Loan to the extent permitted by this
Agreement and (ii) obligation to deliver or cause to be delivered the
consideration for the Mortgage Loans pursuant to Section 8 hereof.

                                       19
<PAGE>

Any Mortgage Loans rejected by the Purchaser shall concurrently therewith be
released from the security interest created hereby. The Seller agrees that, upon
acceptance of the Mortgage Loans by the Purchaser or its designee and delivery
of payment to the Seller, that its security interest in the Mortgage Loans shall
be released. All rights and remedies of the Purchaser under this Agreement are
distinct from, and cumulative with, any other rights or remedies under this
Agreement or afforded by law or equity and all such rights and remedies may be
exercised concurrently, independently or successively.

         Notwithstanding the foregoing, if on the Closing Date, each of the
conditions set forth in Section 8 hereof shall have been satisfied and the
Purchaser shall not have paid or caused to be paid the Purchase Price, or any
such condition shall not have been waived or satisfied and the Purchaser
determines not to pay or cause to be paid the Purchase Price, the Purchaser
shall immediately effect the redelivery of the Mortgage Loans, if delivery to
the Purchaser has occurred and the security interest created by this Section 13
shall be deemed to have been released.

                  SECTION 14. NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered to or mailed by registered mail, postage prepaid, or
transmitted by telex or telegraph and confirmed by a similar mailed writing, if
to the Purchaser, addressed to the Purchaser at 1100 Town & Country Road, Suite
1100, Orange, California 92868, Facsimile: (714) 564-9639, Attention: General
Counsel, or such other address as may hereafter be furnished to the Seller in
writing by the Purchaser; if to the Seller, addressed to the Seller at 1100 Town
& Country Road, Suite 1100, Orange, California 92868, Facsimile: (714) 564-9639,
Attention: General Counsel, or to such other address as the Seller may designate
in writing to the Purchaser.

                  SECTION 15. SEVERABILITY OF PROVISIONS. Any part, provision,
representation or warranty of this Agreement which is prohibited or which is
held to be void or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof. Any part, provision, representation or warranty of this Agreement which
is prohibited or unenforceable or is held to be void or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof.

                  SECTION 16. AGREEMENT OF PARTIES. The Seller and the Purchaser
agree to execute and deliver such instruments and take such actions as either of
the others may, from time to time, reasonably request in order to effectuate the
purpose and to carry out the terms of this Agreement and the Pooling and
Servicing Agreement.

                  SECTION 17. SURVIVAL. The Seller agrees that the
representations, warranties and agreements made by it herein and in any
certificate or other instrument delivered pursuant hereto shall be deemed to be
relied upon by the Purchaser, notwithstanding any investigation heretofore or
hereafter made by the Purchaser or on its behalf, and that the representations,
warranties and

                                       20
<PAGE>

agreements made by the Seller herein or in any such certificate or other
instrument shall survive the delivery of and payment for the Mortgage Loans and
shall continue in full force and effect, notwithstanding any restrictive or
qualified endorsement on the Mortgage Notes and notwithstanding subsequent
termination of this Agreement, the Pooling and Servicing Agreement or the Trust
Fund.

                  SECTION 18. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS,
DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES HERETO SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS (EXCLUDING THE CHOICE OF LAW
PROVISIONS) AND DECISIONS OF THE STATE OF NEW YORK. THE PARTIES HERETO INTEND
THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW
SHALL APPLY TO THIS AGREEMENT.

                  SECTION 19. MISCELLANEOUS. This Agreement may be executed in
two or more counterparts, each of which when so executed and delivered shall be
an original, but all of which together shall constitute one and the same
instrument. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns. This Agreement
supersedes all prior agreements and understandings relating to the subject
matter hereof. Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated orally, but only by an instrument in writing
signed by the party against whom enforcement of the change, waiver, discharge or
termination is sought. The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof. Each
of the NIMS Insurer, if any, and the Guarantor, shall be a third party
beneficiary hereof and may enforce the terms hereof as if a party hereto.

                  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Seller to the Purchaser as provided in
Section 4 hereof be, and be construed as, a sale of the Mortgage Loans by the
Seller to the Purchaser and not as a pledge of the Mortgage Loans by the Seller
to the Purchaser to secure a debt or other obligation of the Seller. However, in
the event that, notwithstanding the aforementioned intent of the parties, the
Mortgage Loans are held to be property of the Seller, then, (a) it is the
express intent of the parties that such conveyance be deemed a pledge of the
Mortgage Loans by the Seller to the Purchaser to secure a debt or other
obligation of the Seller and (b) (1) this Agreement shall also be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the New York
Uniform Commercial Code; (2) the conveyance provided for in Section 4 hereof
shall be deemed to be a grant by the Seller to the Purchaser of a security
interest in all of the Seller's right, title and interest in and to the Mortgage
Loans and all amounts payable to the holders of the Mortgage Loans in accordance
with the terms thereof and all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other
property, including without limitation all amounts, other than investment
earnings, from time to time held or invested in the Collection Account whether
in the form of cash, instruments, securities or other property; (3) the
possession by the Purchaser or its agent of Mortgage Notes, the related
Mortgages and such other items of property that constitute instruments, money,
negotiable documents or chattel paper shall be deemed to be "possession" for
purposes of perfecting the security interest pursuant to the New York Uniform
Commercial Code; and (4) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons

                                       21
<PAGE>

holding such property, shall be deemed notifications to, or acknowledgments,
receipts or confirmations from, financial intermediaries, bailees or agents (as
applicable) of the Purchaser for the purpose of perfecting such security
interest 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, 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 this Agreement and the Pooling and Servicing
Agreement.

                                       22
<PAGE>

                  IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their names to be signed by their respective officers thereunto duly authorized
as of the date first above written.

                                     AMERIQUEST MORTGAGE COMPANY

                                     By: ___________________________________
                                     Name:
                                     Title:

                                     AMERIQUEST MORTGAGE SECURITIES INC.

                                     By: ___________________________________
                                     Name:
                                     Title:

                                       23
<PAGE>

                                    EXHIBIT E

                        REQUEST FOR RELEASE OF DOCUMENTS

         To:      Deutsche Bank National Trust Company,
                  1761 East St. Andrew Place
                  Santa Ana, CA 92705-4934
                  Attn: Trust Administration - AQ04R12

         Re:               Pooling and Servicing Agreement, dated as of December
                           1, 2004 among Ameriquest Mortgage Securities Inc., as
                           Depositor, Ameriquest Mortgage Company, as Seller and
                           Master Servicer, Federal National Mortgage
                           Association as Guarantor (with respect to the Class
                           A-1 Certificates) and Deutsche Bank National Trust
                           Company, as Trustee
                           --------------------------------------------------

                  In connection with the administration of the Mortgage Loans
held by you as Trustee pursuant to the above-captioned Pooling and Servicing
Agreement, we request the release, and hereby acknowledge receipt, of the
Trustee's Mortgage File for the Mortgage Loan described below, for the reason
indicated.

MORTGAGE LOAN NUMBER:

MORTGAGOR NAME. ADDRESS & ZIP CODE:

REASON FOR REQUESTING DOCUMENTS (check one):

_______ 1. Mortgage Paid in Full

_______ 2. Foreclosure

_______ 3. Substitution

_______ 4. Other Liquidation (Repurchases, etc.)

_______ 5. Nonliquidation                       Reason: ____________________

Address to which Trustee should deliver the Trustee's Mortgage File:

By: ____________________________
        (authorized signer)

Issuer: _________________________
Address: ________________________
Date: ___________________________

                                       E-1

<PAGE>

TRUSTEE

Deutsche Bank National Trust Company

         Please acknowledge the execution of the above request by your signature
and date below:

         _____________________                      ____________________________
         Signature                                  Date

         Documents returned to Trustee:

         _____________________                      ____________________________
         Trustee                                    Date

                                       E-2

<PAGE>

                                   EXHIBIT F-1

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                                         [DATED]

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

         Re:      Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
                  Certificates, Series 2004-R12, Class M-10, CE, P, and R,
                  Representing a [ ] % Percentage Interest
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  In connection with the transfer by ________________ (the
"Transferor") to ________________ (the "Transferee") of the captioned mortgage
pass-through certificates (the "Certificates"), the Transferor hereby certifies
as follows:

                  Neither the Transferor nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, (e) has taken any other action that (in the case of each of
subclauses (a) through (d) above) would constitute a distribution of the
Certificates under the Securities Act of 1933, as amended (the "1933 Act"), or
would render the disposition of any Certificate a violation of Section 5 of the
1933 Act or any state securities law or would require registration or
qualification pursuant thereto. The Transferor will not act, nor has it
authorized or will it authorize any person to act, in any manner set forth in
the foregoing sentence with respect to any Certificate. The Transferor will not
sell or otherwise transfer any of the Certificates, except in compliance with
the provisions of that certain Pooling and Servicing Agreement, dated as of
December 1, 2004, among Ameriquest Mortgage Securities Inc. as Depositor,
Ameriquest Mortgage Company as Master Servicer, Federal National Mortgage
Association as Guarantor, with respect to the Class A-1 Certificates) and
Deutsche Bank National Trust Company as Trustee (the "Pooling and Servicing
Agreement"), pursuant to which Pooling and Servicing Agreement the Certificates
were issued.

                                     F-1-1
<PAGE>

                  Capitalized terms used but not defined herein shall have the
meanings assigned thereto in the Pooling and Servicing Agreement.

                                         Very truly yours,

                                         [Transferor]

                                         By:______________________________
                                         Name:
                                         Title:

                                     F-1-2
<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

                                                     [Date]

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

         Re:      Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
                  Certificates, Series 2004-R12, Class M-10, CE, P, R,
                  representing a [___]% Percentage Interest
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  In connection with the purchase from ______________________
(the "Transferor") on the date hereof of the captioned trust certificates (the
"Certificates"), _______________ (the "Transferee") hereby certifies as follows:

                  1. The Transferee is a "qualified institutional buyer" as that
         term is defined in Rule 144A ("Rule 144A") under the Securities Act of
         1933, as amended (the "1933 Act") and has completed either of the forms
         of certification to that effect attached hereto as Annex 1 or Annex 2.
         The Transferee is aware that the sale to it is being made in reliance
         on Rule 144A. The Transferee is acquiring the Certificates for its own
         account or for the account of a qualified institutional buyer, and
         understands that such Certificate may be resold, pledged or transferred
         only (i) to a person reasonably believed to be a qualified
         institutional buyer that purchases for its own account or for the
         account of a qualified institutional buyer to whom notice is given that
         the resale, pledge or transfer is being made in reliance on Rule 144A,
         or (ii) pursuant to another exemption from registration under the 1933
         Act.

                  2. The Transferee has been furnished with all information
         regarding (a) the Certificates and distributions thereon, (b) the
         nature, performance and servicing of the Mortgage Loans, (c) the
         Pooling and Servicing Agreement referred to below, and (d) any credit
         enhancement mechanism associated with the Certificates, that it has
         requested.

                  All capitalized terms used but not otherwise defined herein
have the respective meanings assigned thereto in the Pooling and Servicing
Agreement, dated as of December 1, 2004, among Ameriquest Mortgage Securities
Inc. as Depositor, Ameriquest Mortgage Company as Master Servicer, Federal
National Mortgage Association as Guarantor (with respect to the Class A-1
Certificates) and Deutsche Bank National Trust Company as Trustee, pursuant to
which the Certificates were issued.

                                       [TRANSFEREE]

                                       By: ______________________________
                                       Name:
                                       Title:

                                     F-1-3
<PAGE>

                             ANNEX 1 TO EXHIBIT F-1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and Deutsche Bank National Trust Company as
Trustee, with respect to the mortgage pass-through certificates (the
"Certificates") described in the Transferee Certificate to which this
certification relates and to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
entity purchasing the Certificates (the "Transferee").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act of 1933, as amended ("Rule 144A") because (i) the
Transferee owned and/or invested on a discretionary basis
$______________________1 in securities (except for the excluded securities
referred to below) as of the end of the Transferee's most recent fiscal year
(such amount being calculated in accordance with Rule 144A) and (ii) the
Transferee satisfies the criteria in the category marked below.

         ___      Corporation, Etc. The Transferee is a corporation (other than
                  a bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or any
                  organization described in Section 501(c)(3) of the Internal
                  Revenue Code of 1986, as amended.

         ___      Bank. The Transferee (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

         ___      Savings and Loan. The Transferee (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least 1Transferee must own and/or
                  invest on a discretionary basis at least $100,000,000 in
                  securities unless Transferee is a dealer, and, in that case,
                  Transferee must own and/or invest on a discretionary basis at
                  least $10,000,000 in securities. $25,000,000 as demonstrated
                  in its latest annual financial statements, a copy of which is
                  attached hereto.

                                  F-Annex-1-1
<PAGE>

         ___      Broker-Dealer. The Transferee is a dealer registered pursuant
                  to Section 15 of the Securities Exchange Act of 1934, as
                  amended.

         ___      Insurance Company. The Transferee is an insurance company
                  whose primary and predominant business activity is the writing
                  of insurance or the reinsuring of risks underwritten by
                  insurance companies and which is subject to supervision by the
                  insurance commissioner or a similar official or agency of a
                  State, territory or the District of Columbia.

         ___      State or Local Plan. The Transferee is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

         ___      ERISA Plan. The Transferee is an employee benefit plan within
                  the meaning of Title I of the Employee Retirement Income
                  Security Act of 1974, as amended.

         ___      Investment Advisor. The Transferee is an investment advisor
                  registered under the Investment Advisers Act of 1940, as
                  amended.

                  3. The term "Securities" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee, (ii) securities
that are part of an unsold allotment to or subscription by the Transferee, if
the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S. or
any instrumentality thereof, (iv) bank deposit notes and certificates of
deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities
owned but subject to a repurchase agreement and (viii) currency, interest rate
and commodity swaps.

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Transferee, the
Transferee used the cost of such securities to the Transferee and did not
include any of the securities referred to in the preceding paragraph. Further,
in determining such aggregate amount, the Transferee may have included
securities owned by subsidiaries of the Transferee, but only if such
subsidiaries are consolidated with the Transferee in its financial statements
prepared in accordance with generally accepted accounting principles and if the
investments of such subsidiaries are managed under the Transferee's direction.
However, such securities were not included if the Transferee is a
majority-owned, consolidated subsidiary of another enterprise and the Transferee
is not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

                  5. The Transferee acknowledges that it is familiar with Rule
144A and understands that the Transferor and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Transferee may be in reliance on Rule 144A.

         _____    _____       Will the Transferee be purchasing the Certificates
         Yes      No          only for the Transferee's own account?

                  6. If the answer to the foregoing question is "no", the
Transferee agrees that, in connection with any purchase of securities sold to
the Transferee for the account of a third party (including any separate account)
in reliance on Rule 144A, the Transferee will only

                                  F-Annex-1-2
<PAGE>

purchase for the account of a third party that at the time is a "qualified
institutional buyer" within the meaning of Rule 144A. In addition, the
Transferee agrees that the Transferee will not purchase securities for a third
party unless the Transferee has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

                  7. The Transferee will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice is given, the Transferee's purchase of the
Certificates will constitute a reaffirmation of this certification as of the
date of such purchase. In addition, if the Transferee is a bank or savings and
loan as provided above, the Transferee agrees that it will furnish to such
parties updated annual financial statements promptly after they become
available.

Dated:

                        Print Name of Transferee

                        By:______________________________
                        Name:
                        Title:

                                  F-Annex-1-3
<PAGE>

                             ANNEX 2 TO EXHIBIT F-1
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That Are Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and Deutsche Bank National Trust Company, as
Trustee, with respect to the mortgage pass-through certificates (the
"Certificates") described in the Transferee Certificate to which this
certification relates and to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the entity purchasing the
Certificates (the "Transferee") or, if the Transferee is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because the Transferee is part of a Family
of Investment Companies (as defined below), is such an officer of the investment
adviser (the "Adviser").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as defined in Rule 144A because
(i) the Transferee is an investment company registered under the Investment
Company Act of 1940, as amended, and (ii) as marked below, the Transferee alone,
or the Transferee's Family of Investment Companies, owned at least $100,000,000
in securities (other than the excluded securities referred to below) as of the
end of the Transferee's most recent fiscal year. For purposes of determining the
amount of securities owned by the Transferee or the Transferee's Family of
Investment Companies, the cost of such securities was used.

         ____ The Transferee owned $___________________ in securities (other
than the excluded securities referred to below) as of the end of the
Transferee's most recent fiscal year (such amount being calculated in accordance
with Rule 144A).

         ____ The Transferee is part of a Family of Investment Companies which
owned in the aggregate $______________ in securities (other than the excluded
securities referred to below) as of the end of the Transferee's most recent
fiscal year (such amount being calculated in accordance with Rule 144A).

                  3. The term "Family of Investment Companies" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "Securities" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee or are part of the
Transferee's Family of Investment Companies, (ii) securities issued or
guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes
and certificates of deposit, (iv) loan participations, (v) repurchase
agreements, (vi) securities owned but subject to a repurchase agreement and
(vii) currency, interest rate and commodity swaps.

                                  F-Annex-2-1
<PAGE>

                  5. The Transferee is familiar with Rule 144A and understands
that the parties to which this certification is being made are relying and will
continue to rely on the statements made herein because one or more sales to the
Transferee will be in reliance on Rule 144A. In addition, the Transferee will
only purchase for the Transferee's own account.

                  6. The undersigned will notify the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Transferee's purchase of the Certificates will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

Dated:

                                        Print Name of Transferee or Advisor

                                        By:    ____________________________
                                        Name:
                                        Title:

                                        IF AN ADVISER:

                                        ___________________________________
                                        Print Name of Transferee

                                  F-Annex-2-2
<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

         The undersigned hereby certifies on behalf of the purchaser named below
(the "Purchaser") as follows:

         1. I am an executive officer of the Purchaser.

         2. The Purchaser is a "qualified institutional buyer", as defined in
Rule 144A, ("Rule 144A") under the Securities Act of 1933, as amended.

         3. As of the date specified below (which is not earlier than the last
day of the Purchaser's most recent fiscal year), the amount of "securities",
computed for purposes of Rule 144A, owned and invested on a discretionary basis
by the Purchaser was in excess of $100,000,000.

Name of Purchaser _____________________________________________________________

By:      (Signature)  _________________________________________________________

Name of Signatory     _________________________________________________________

Title    ______________________________________________________________________

Date of this certificate   ____________________________________________________

Date of information provided in paragraph 3 ___________________________________

                                  F-Annex-2-3
<PAGE>

                                   EXHIBIT F-2

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

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

                  ____________________________, being duly sworn, deposes,
represents and warrants as follows:

                  1. I am a ______________________ of
____________________________ (the "Owner") a corporation duly organized and
existing under the laws of ______________, the record owner of Ameriquest
Mortgage Securities Inc., Asset-Backed Pass-Through Certificates, Series
2004-R12, Class R (the "Class R Certificates"), on behalf of whom I make this
affidavit and agreement. Capitalized terms used but not defined herein have the
respective meanings assigned thereto in the Pooling and Servicing Agreement
pursuant to which the Class R Certificates were issued.

                  2. The Owner (i) is and will be a "Permitted Transferee" as of
____________________, 2004 and (ii) is acquiring the Class R Certificates for
its own account or for the account of another Owner from which it has received
an affidavit in substantially the same form as this affidavit. A "Permitted
Transferee" is any person other than a "disqualified organization" or a
possession of the United States. For this purpose, a "disqualified organization"
means the United States, any state or political subdivision thereof, any agency
or instrumentality of any of the foregoing (other than an instrumentality all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation, a majority of whose board of directors is not selected by
any such governmental entity) or any foreign government, international
organization or any agency or instrumentality of such foreign government or
organization, any rural electric or telephone cooperative, or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated business
taxable income.

                  3. The Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificates to disqualified organizations under the
Internal Revenue Code of 1986, as amended, that applies to all transfers of the
Class R Certificates after March 31, 1988; (ii) that such tax would be on the
transferor or, if such transfer is through an agent (which person includes a
broker, nominee or middleman) for a non-Permitted Transferee, on the agent;
(iii) that the person otherwise liable for the tax shall be relieved of
liability for the tax if the transferee furnishes to such person an affidavit
that the transferee is a Permitted Transferee and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
each of the Class R Certificates may be a "noneconomic residual interest" within
the meaning of proposed Treasury regulations promulgated under the Code and that
the transferor of a "noneconomic residual interest" will remain liable for any
taxes due with respect to the income on such residual interest, unless no
significant purpose of the transfer is to impede the assessment or collection of
tax.

                                     F-2-1
<PAGE>

                  4. The Owner is aware of the tax imposed on a "pass-through
entity" holding the Class R Certificates if, at any time during the taxable year
of the pass-through entity, a non-Permitted Transferee is the record holder of
an interest in such entity. (For this purpose, a "pass-through entity" includes
a regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

                  5. The Owner is aware that the Certificate Registrar will not
register the transfer of any Class R Certificate unless the transferee, or the
transferee's agent, delivers to the Certificate Registrar, among other things,
an affidavit in substantially the same form as this affidavit. The Owner
expressly agrees that it will not consummate any such transfer if it knows or
believes that any of the representations contained in such affidavit and
agreement are false.

                  6. The Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Class R Certificates will only be
owned, directly or indirectly, by an Owner that is a Permitted Transferee.

                  7. The Owner's taxpayer identification number is ____________.

                  8. The Owner has reviewed the restrictions set forth on the
face of the Class R Certificates and the provisions of Section 5.02(d) of the
Pooling and Servicing Agreement under which the Class R Certificates were issued
(in particular, clauses (iii)(A) and (iii)(B) of Section 5.02(d) which authorize
the Trustee to deliver payments to a person other than the Owner and negotiate a
mandatory sale by the Trustee in the event that the Owner holds such Certificate
in violation of Section 5.02(d)); and that the Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

                  9. The Owner is not acquiring and will not transfer the Class
R Certificates in order to impede the assessment or collection of any tax.

                  10. The Owner anticipates that it will, so long as it holds
the Class R Certificates, have sufficient assets to pay any taxes owed by the
holder of such Class R Certificates, and hereby represents to and for the
benefit of the person from whom it acquired the Class R Certificates that the
Owner intends to pay taxes associated with holding such Class R Certificates as
they become due, fully understanding that it may incur tax liabilities in excess
of any cash flows generated by the Class R Certificates.

                  11. The Owner has no present knowledge that it may become
insolvent or subject to a bankruptcy proceeding for so long as it holds the
Class R Certificates.

                  12. The Owner has no present knowledge or expectation that it
will be unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

                  13. The Owner is not acquiring the Class R Certificates with
the intent to transfer the Class R Certificates to any person or entity that
will not have sufficient assets to pay any taxes owed by the holder of such
Class R Certificates, or that may become insolvent or subject to a bankruptcy
proceeding, for so long as the Class R Certificates remain outstanding.

                                     F-2-2
<PAGE>

                  14. The Owner will, in connection with any transfer that it
makes of the Class R Certificates, obtain from its transferee the
representations required by Section 5.02(d) of the Pooling and Servicing
Agreement under which the Class R Certificate were issued and will not
consummate any such transfer if it knows, or knows facts that should lead it to
believe, that any such representations are false.

                  15. The Owner will, in connection with any transfer that it
makes of the Class R Certificates, deliver to the Certificate Registrar an
affidavit, which represents and warrants that it is not transferring the Class R
Certificates to impede the assessment or collection of any tax and that it has
no actual knowledge that the proposed transferee: (i) has insufficient assets to
pay any taxes owed by such transferee as holder of the Class R Certificates;
(ii) may become insolvent or subject to a bankruptcy proceeding for so long as
the Class R Certificates remains outstanding; and (iii) is not a "Permitted
Transferee".

                  16. The Owner is a citizen or resident of the United States, a
corporation or partnership (or other entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States, any state thereof or the District of Columbia
(except, in the case of a partnership or entity treated as a partnership, to the
extent provided in regulations), an estate the income of which is subject to
United States federal income taxation regardless of its source or a trust other
than a "foreign trust" described in section 7701(a)(31) of the Code.

                                     F-2-3
<PAGE>

                  IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
__________, 200__.

                                       [OWNER]

                                       By:______________________________
                                       Name:
                                       Title: [Vice] President

ATTEST:

By:      ______________________________
Name:
Title:   [Assistant] Secretary

                  Personally appeared before me the above-named, known or proved
to me to be the same person who executed the foregoing instrument and to be a
[Vice] President of the Owner, and acknowledged to me that [he/she] executed the
same as [his/her] free act and deed and the free act and deed of the Owner.

                  Subscribed and sworn before me this ____ day of __________,
200__.

                                       ______________________________
                                       Notary Public

                                       County of _____________________
                                       State of __________________________

                                       My Commission expires:

                                     F-2-4
<PAGE>

                          FORM OF TRANSFEROR AFFIDAVIT

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

                  _______________________________________, being duly sworn,
deposes, represents and warrants _____________________________ as follows:

                  1. I am a ____________________ of (the "Owner"), a corporation
duly organized and existing under the laws of ______________, on behalf of whom
I make this affidavit.

                  2. The Owner is not transferring the Class R (the "Residual
Certificates") to impede the assessment or collection of any tax.

                  3. The Owner has no actual knowledge that the Person that is
the proposed transferee (the "Purchaser") of the Residual Certificates: (i) has
insufficient assets to pay any taxes owed by such proposed transferee as holder
of the Residual Certificates; (ii) may become insolvent or subject to a
bankruptcy proceeding for so long as the Residual Certificates remain
outstanding and (iii) is not a Permitted Transferee.

                  4. The Owner understands that the Purchaser has delivered to
the Certificate Registrar a transfer affidavit and agreement in the form
attached to the Pooling and Servicing Agreement as Exhibit F-2. The Owner does
not know or believe that any representation contained therein is false.

                  5. At the time of transfer, the Owner has conducted a
reasonable investigation of the financial condition of the Purchaser as
contemplated by Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result
of that investigation, the Owner has determined that the Purchaser has
historically paid its debts as they became due and has found no significant
evidence to indicate that the Purchaser will not continue to pay its debts as
they become due in the future. The Owner understands that the transfer of a
Residual Certificate may not be respected for United States income tax purposes
(and the Owner may continue to be liable for United States income taxes
associated therewith) unless the Owner has conducted such an investigation.

                  6. Capitalized terms not otherwise defined herein shall have
the meanings ascribed to them in the Pooling and Servicing Agreement.

                                     F-2-5
<PAGE>

                  IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
___________, 200__.

                                       [OWNER]

                                       By:      ______________________________
                                       Name:
                                       Title: [Vice] President

ATTEST:

By:      ______________________________
Name:
Title:   [Assistant] Secretary

                  Personally appeared before me the above-named, known or proved
to me to be the same person who executed the foregoing instrument and to be a
[Vice] President of the Owner, and acknowledged to me that [he/she] executed the
same as [his/her] free act and deed and the free act and deed of the Owner.

                  Subscribed and sworn before me this ____ day of __________,
200__.

                                       ______________________________
                                       Notary Public

                                       County of _____________________________
                                       State of ______________________________
                                       My Commission expires:

                                     F-2-6
<PAGE>

                                    EXHIBIT G

            FORM OF CERTIFICATION WITH RESPECT TO ERISA AND THE CODE

                                                  _____________, 200__

Ameriquest Mortgage Securities Inc.         Deutsche Bank National Trust Company
1100 Town & Country Road                    1761 East St. Andrew Place
Orange, California 92868                    Santa Ana, California 92705-4934
Ameriquest Mortgage Company
1100 Town & Country Road
Orange, California 92868

         Re:      Ameriquest Mortgage Securities Inc., Asset-Backed Pass-Through
                  Certificates, Series 2004-R12, Class CE, P, R
                  ---------------------------------------------

Dear Ladies and Gentlemen:

         __________________________________ (the "Transferee") intends to
acquire from _____________________ (the "Transferor") $____________ Initial
Certificate Principal Balance of Ameriquest Mortgage Securities Inc.,
Asset-Backed Pass-Through Certificates, Series 2004-R12, Class ___ (the
"Certificates"), issued pursuant to a Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement") dated as of December 1, 2004 among Ameriquest
Mortgage Securities Inc. as depositor (the "Depositor"), Ameriquest Mortgage
Company as master servicer (the "Master Servicer"), Federal National Mortgage
Association (the "Guarantor", with respect to the Class A-1 Certificates) and
Deutsche Bank National Trust Company as trustee (the "Trustee"). Capitalized
terms used herein and not otherwise defined shall have the meanings assigned
thereto in the Pooling and Servicing Agreement. The Transferee hereby certifies,
represents and warrants to, and covenants with the Depositor, the Trustee and
the Master Servicer that the following statements in either (1) or (2) are
accurate:

         1. The Certificates (i) are not being acquired by, and will not be
transferred to, any employee benefit plan within the meaning of section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to Section 406 of ERISA or Section
4975 of the Internal Revenue Code of 1986, as amended (the "Code") (any of the
foregoing, a "Plan"), (ii) are not being acquired with "plan assets" of a Plan
within the meaning of the Department of Labor ("DOL") regulation, 29 C.F.R. ss.
2510.3-101, and (iii) will not be transferred to any entity that is deemed to be
investing in plan assets within the meaning of the DOL regulation at 29
C.F.R.ss.2510.3-101.

                                      G-3
<PAGE>

                                       Very truly yours,

                                       By: ______________________________
                                       Name:
                                       Title:

                                      G-4
<PAGE>

                                    EXHIBIT H

                              FORM OF CAP CONTRACTS

                             Available Upon Request

                                       H-1

<PAGE>

                                       I-2

                                    EXHIBIT I

                           LOSS MITIGATION ACTION PLAN

<TABLE>
<CAPTION>
------------------------------------------------------ -------------------------------------------------------------
DEFAULT MITIGATION ACTION                              SUPPORTING STANDARDS
------------------------------------------------------ -------------------------------------------------------------
<S>                                                    <C>
Forbearance Workout                                    Borrower documents a temporary  financial hardship
Defer any of the following:                            resulting in request for a forbearance
1.accrued interest                                     Borrower documents financial ability to pay
2.past due principal                                   under the proposed forbearance terms
3.escrow advances                                      Borrower expresses a willingness to perform.
4.corporate advances                                   Current  monthly  payments are scheduled to be made
5.ancillary fees                                       prior to late charge date during the forbearance term
6.any combination of the above
------------------------------------------------------ -------------------------------------------------------------
Loan Modification Workout                              Borrower  documents a non-temporary financial hardship
Any of the following:                                  resulting in the request for a loan modification
1.waive accrued interest                               Borrower documents financial ability to pay under the
2.waive past due principal                             proposed loan modification terms
3.waive corporate advances                             Borrower does not have the ability to pay under the
4.waive ancillary fees                                 original loan terms
5.reduce principal                                     Borrower expresses a willingness to perform
6.reduce interest rate                                 No waiver of  escrow advances (taxes and insurance) is
7.any combination of the above items                   allowed
8.any combination with the Forbearance items
------------------------------------------------------ -------------------------------------------------------------
Short Sale Disposal                                    Sale to a third party
Waive or negotiate a reduced amount of any             Independent appraisal supports sale price
of the following:                                      No cash to seller (borrower), excluding costs
1.accrued interest                                     necessary to close Borrower does not have the
2.principal                                            ability and/or willingness to pay
3.escrow advances                                      Borrower no longer wants property
4.corporate advances
5.ancillary fees
6.prepayment charges
7.any combination of the above items
------------------------------------------------------ -------------------------------------------------------------
Short pay-off Disposal                                 Refinance by independent third party Lender
Waive or negotiate a reduced amount of any             Independent appraisal supports new loan amount
of the following:                                      New loan is no cash out (i.e. no cash to borrower
1.accrued interest                                     excluding costs necessary to close)
2.principal                                            Borrower has expressed his/her unwillingness to pay
3.escrow advances                                      Anticipated refinance time frame is less than
4.corporate advances                                   anticipated foreclosure time frame
5.ancillary fees
6.prepayment charges
7.any combination of the above items
------------------------------------------------------ -------------------------------------------------------------

                                      I-1
<PAGE>

<CAPTION>
------------------------------------------------------ -------------------------------------------------------------
DEFAULT MITIGATION ACTION                              SUPPORTING STANDARDS
------------------------------------------------------ -------------------------------------------------------------
<S>                                                    <C>
DEED-IN-LIEU DISPOSAL                                  Borrower  has  already or will  abandon  the  property
---------------------                                  or is willing to vacate the property (in a broom sweep
                                                       condition) on a mutually agreeable date
                                                       Borrower does  not have the ability and/or willingness to pay
                                                       Independent appraisal confirms property has a value
                                                       Title is clean
                                                       Property appears to be resalable based on condition
                                                       and value shown in independent appraisal
                                                       Property does not appear to have any environmental
                                                       or hazardous conditions (or such conditions
                                                       appear to be curable)
------------------------------------------------------ -------------------------------------------------------------
------------------------------------------------------ -------------------------------------------------------------
FORECLOSURE DISPOSAL                                   Borrower has already or will abandon the property
--------------------                                   (which may be by an eviction proceeding or mutual
                                                       agreement)
                                                       Borrower does not have the ability and/or willingness to pay
                                                       Independent appraisal confirms property has a value
                                                       Property appears to be resalable based on condition and
                                                       value shown in independent appraisal
                                                       Property does not appear to have any environmental or hazardous
                                                       conditions (or such conditions appear to be curable)
------------------------------------------------------ -------------------------------------------------------------
</TABLE>

         Workouts in the form of either a Forbearance or Loan Modification
require that the Borrower document the existence of a financial hardship leading
to the payment delinquency and document the ability to make the payments
required under the proposed Forbearance or Loan Modification. If the Borrower
fails to meet both of these conditions or the Borrower is uncooperative, a
Disposal Loss Mitigation Action will be employed to liquidate the delinquent
loan, assuming the Borrower does not otherwise cure the existing default. Each
of the Default Mitigation Actions and Supporting Standards may not be applicable
to each and every loan subject to a default in its monthly payments and in those
cases where a Default Mitigation Action or Supporting Standard may be
applicable, each is subject to amendment and/or waiver on an individual basis
pursuant to applicable federal, state and local laws, decisional authorities,
court orders, instructions of regulatory and/or other governmental authorities,
the advice of legal counsel, instructions from the Trustee and changes in the
loan servicing standards.

                                      I-2
<PAGE>

                                   EXHIBIT J-1

        FORM CERTIFICATION TO BE PROVIDED BY THE DEPOSITOR WITH FORM 10-K

                  Re:      Ameriquest Mortgage Securities Inc.,
                           Asset-Backed Certificates, Series 2004-R12
                           ------------------------------------------

                  I, [identify the certifying individual], certify that:

                  1. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution or servicing reports filed in
respect of periods included in the year covered by this annual report, of
Ameriquest Mortgage Securities Inc., Asset-Backed Certificates, Series 2004-R12;

                  2. Based on my knowledge, the information in these reports,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading as of
the last day of the period covered by this annual report;

                  3. Based on my knowledge, the distribution or servicing
information required to be provided to the trustee by the servicer under the
pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports;

                  4. Based on my knowledge and upon the annual compliance
statement included in the report and required to be delivered to the trustee in
accordance with the terms of the pooling and servicing, or similar, agreement,
and except as disclosed in the reports, the servicer has fulfilled its
obligations under the servicing agreement; and

                  5. The reports disclose all significant deficiencies relating
to the servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage Bankers
or similar procedure, as set forth in the pooling and servicing, or similar,
agreement, that is included in these reports.

                  In giving the certifications above, I have reasonably relied
on information provided to me by the following unaffiliated parties: Deutsche
Bank National Trust Company.

                                        AMERIQUEST MORTGAGE SECURITIES INC.

                                        Date: __________________

                                        _______________________
                                        [Signature]
                                        [Title]

                                     J-1-1
<PAGE>

                                   EXHIBIT J-2

                            FORM CERTIFICATION TO BE

                      PROVIDED TO DEPOSITOR BY THE TRUSTEE

                  Re:      Ameriquest Mortgage Securities Inc.,
                           Asset-backed Certificates, Series 2004-R12
                           ------------------------------------------

                  I, [identify the certifying individual], a [title] of Deutsche
Bank National Trust Company, as Trustee, hereby certify to Ameriquest Mortgage
Securities Inc. (the "Depositor"), and its officers, directors and affiliates,
and with the knowledge and intent that they will rely upon this certification,
that:

                  1. I have reviewed the annual report on Form 10-K for the
fiscal year [___], and all reports on Form 8-K containing distribution reports
filed in respect of periods included in the year covered by that annual report,
of the Depositor relating to the above-referenced trust;

                  2. Based on my knowledge, the information in these
distribution reports prepared by the Trustee, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading as of the last day of the period
covered by that annual report; and

                  3. Based on my knowledge, the distribution information
required to be provided by the Trustee under the Pooling and Servicing Agreement
is included in these distribution reports.

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated December
1, 2004 (the "Pooling and Servicing Agreement"), among the Depositor as
depositor, Ameriquest Mortgage Company as master servicer, Federal National
Mortgage Association as guarantor, (with respect to the Class A-1 Certificates)
and Deutsche Bank National Trust Company as trustee.

                                            DEUTSCHE BANK NATIONAL TRUST
                                            COMPANY, as Trustee

                                            By:_____________________________
                                            Name:
                                            Title:
                                            Date:

                                     J-2-1
<PAGE>

                                    EXHIBIT K

                             FORM OF ADDITION NOTICE

                                                              ____________, 2004

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

                  Re:      Pooling and Servicing Agreement, dated as of December
                           1, 2004, among Ameriquest Mortgage Securities Inc.,
                           Ameriquest Mortgage Company, Federal National
                           Mortgage Association and Deutsche Bank National Trust
                           Company, Asset-Backed Pass-Through Certificates,
                           Series 2004-R12
                           -----------------------------------------------------

Ladies and Gentlemen:

                  Pursuant to Section 2.10 of the referenced Pooling and
Servicing Agreement, Ameriquest Mortgage Securities Inc. has designated
Subsequent Mortgage Loans to be sold to the Trust Fund on ________, 2004 with an
aggregate Stated Principal Balance of $_______________. Capitalized terms not
otherwise defined herein have the meaning set forth in the Pooling and Servicing
Agreement.

                  Please acknowledge your receipt of this notice by
countersigning the enclosed copy in the space indicated below and returning it
to the attention of the undersigned.

                                                Very truly yours,

                                                AMERIQUEST SECURITIES INC.

                                                By:_____________________
Name:
                                                Title:

Acknowledged and Agreed:

WELLS FARGO BANK, N.A.,
as Trust Administrator

By:__________________________
Name:
Title:

                                      K-1
<PAGE>

                                    EXHIBIT L

                     FORM OF SUBSEQUENT TRANSFER INSTRUMENT

                  Pursuant to this Subsequent Transfer Instrument, dated
_______________ __, 2004 (the "Instrument"), between Ameriquest Mortgage
Securities Inc.. as seller (the "Depositor") and Wells Fargo Bank, N.A. as
trustee (the "Trustee") of the Ameriquest Mortgage Securities, Inc.,
Asset-Backed Pass-Through Certificates, Series 2004-R12, and pursuant to the
Pooling and Servicing Agreement, dated as of December 1, 2004 Pooling and
Servicing Agreement, dated as of December 1, 2004, among Ameriquest Mortgage
Securities Inc., Ameriquest Mortgage Company, Federal National Mortgage
Association and Deutsche Bank National Trust Company, agree to the sale by the
Depositor and the purchase by the Trustee on behalf of the Trust Fund, of the
Mortgage Loans listed on the attached Schedule of Mortgage Loans (the
"Subsequent Mortgage Loans").

                  Capitalized terms used but not otherwise defined herein shall
have the meanings set forth in the Pooling and Servicing Agreement.

                  Section 1. CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

                  (a) The Depositor does hereby sell, transfer, assign, set over
and convey to the Trustee on behalf of the Trust Fund, without recourse, all of
its right, title and interest in and to the Subsequent Mortgage Loans, and
including all amounts due on the Subsequent Mortgage Loans after the related
Subsequent Cut-off Date, and all items with respect to the Subsequent Mortgage
Loans to be delivered pursuant to Section 2.01 of the Pooling and Servicing
Agreement; provided, however that the Depositor reserves and retains all right,
title and interest in and to amounts due on the Subsequent Mortgage Loans on or
prior to the related Subsequent Cut-off Date. The Depositor, contemporaneously
with the delivery of this Agreement, has delivered or caused to be delivered to
the Trustee each item set forth in Section 2.01 of the Pooling and Servicing
Agreement. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Mortgage Loan Schedule shall be absolute and is
intended by the Depositor, the Master Servicer, the Trustee and the
Certificateholders to constitute and to be treated as a sale by the Depositor to
the Trust Fund.

                  (b) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey to
the Trustee without recourse for the benefit of the Certificateholders all the
right, title and interest of the Depositor, in, to and under the Subsequent
Mortgage Loan Purchase Agreement, dated the date hereof, between the Depositor
as purchaser and the Seller as seller, to the extent of the Subsequent Mortgage
Loans.

                  (c) Additional terms of the sale are set forth on Attachment A
hereto.

         Section 2. REPRESENTATIONS AND WARRANTIES; CONDITIONS PRECEDENT.

                  (a) The Depositor hereby confirms that each of the conditions
precedent and the representations and warranties set forth in Section 2.10 of
the Pooling and Servicing Agreement are satisfied as of the date hereof.

                                      L-1
<PAGE>

                  (b) All terms and conditions of the Pooling and Servicing
Agreement are hereby ratified and confirmed; provided, however, that in the
event of any conflict, the provisions of this Instrument shall control over the
conflicting provisions of the Pooling and Servicing Agreement.

                  Section 3. RECORDATION OF INSTRUMENT.

                  To the extent permitted by applicable law, this Instrument, or
a memorandum thereof if permitted under applicable law, is subject to
recordation in all appropriate public offices for real property records in all
of the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.

                  Section 4. GOVERNING LAW.

                  This Instrument shall be construed in accordance with the laws
of the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

                  Section 5. COUNTERPARTS.

                  This Instrument may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same instrument.

                  Section 6. SUCCESSORS AND ASSIGNS.

                  This Instrument shall inure to the benefit of and be binding
upon the Depositor and the Trustee and their respective successors and assigns.

                                      L-2
<PAGE>

                                          AMERIQUEST MORTGAGE SECURTIES INC.

                                          By: ________________________________
                                          Name:
                                          Title:

                                          WELLS FARGO BANK, N.A.,
                                          as Trustee

                                          By:_________________________________
                                          Name:
                                          Title:

                                   ATTACHMENTS

A. Additional Terms of Sale.

B. Schedule of Subsequent Mortgage Loans.

                                      L-3
<PAGE>

                                  ATTACHMENT A

                            ADDITIONAL TERMS OF SALE

A.       General

         Subsequent Cut-off Date:
         Subsequent Transfer Date
         Aggregate Stated Principal Balance of the Subsequent Mortgage Loans as
         of the Subsequent Cut-off Date:
         Purchase Price: 100%

         1. B. THE OBLIGATION OF THE TRUST FUND TO PURCHASE A SUBSEQUENT
MORTGAGE LOAN ON ANY SUBSEQUENT TRANSFER DATE IS SUBJECT TO THE SATISFACTION OF
THE CONDITIONS SET FORTH IN PARAGRAPH (D) BELOW AND THE ACCURACY OF THE
FOLLOWING REPRESENTATIONS AND WARRANTIES WITH RESPECT TO SUCH SUBSEQUENT
MORTGAGE LOAN DETERMINED AS OF THE RELATED SUBSEQUENT CUT-OFF DATE: (I) THE
SUBSEQUENT MORTGAGE LOAN MAY NOT BE 30 OR MORE DAYS DELINQUENT AS OF THE RELATED
SUBSEQUENT CUT-OFF DATE; (II) THE REMAINING TERM TO STATED MATURITY OF THE
SUBSEQUENT MORTGAGE LOAN SHALL NOT BE LESS THAN 173 MONTHS AND SHALL NOT EXCEED
360 MONTHS FROM ITS FIRST PAYMENT DATE; (III) THE SUBSEQUENT MORTGAGE LOAN MAY
NOT PROVIDE FOR NEGATIVE AMORTIZATION; (IV) THE SUBSEQUENT MORTGAGE LOAN SHALL
NOT HAVE A LOAN-TO-VALUE RATIO GREATER THAN 100.00%; (V) THE SUBSEQUENT MORTGAGE
LOANS SHALL HAVE, AS OF THE SUBSEQUENT CUT-OFF DATE, A WEIGHTED AVERAGE TERM
SINCE ORIGINATION NOT IN EXCESS OF 5 MONTHS; (VI) NO SUBSEQUENT MORTGAGE LOAN
SHALL HAVE A MORTGAGE RATE LESS THAN 5.350% OR GREATER THAN 12.800%; (VII) THE
SUBSEQUENT MORTGAGE LOAN MUST HAVE A FIRST PAYMENT DATE OCCURRING ON OR BEFORE
[DATE]; (VIII) THE SUBSEQUENT MORTGAGE LOAN SHALL HAVE A STATED PRINCIPAL
BALANCE NO GREATER THAN $749,560 AND (IX) THE SUBSEQUENT MORTGAGE LOAN SHALL
HAVE BEEN UNDERWRITTEN IN ACCORDANCE WITH THE CRITERIA SET FORTH UNDER THE
SECTION "THE MORTGAGE POOL--UNDERWRITING STANDARDS; REPRESENTATIONS" IN THE
PROSPECTUS SUPPLEMENT.

         2.

         3. C. FOLLOWING THE PURCHASE OF THE SUBSEQUENT GROUP I MORTGAGE LOANS,
THE GROUP I MORTGAGE LOANS (INCLUDING THE RELATED SUBSEQUENT GROUP I MORTGAGE
LOANS) SHALL, AS OF THE RELATED SUBSEQUENT CUT-OFF DATE: (I) HAVE A WEIGHTED
AVERAGE ORIGINAL TERM TO STATED MATURITY OF NOT MORE THAN 358 MONTHS FROM THE
FIRST PAYMENT DATE THEREON; (II) HAVE A WEIGHTED AVERAGE MORTGAGE RATE OF NOT
LESS THAN 7.478% AND NOT MORE THAN 7.551%; (III) HAVE A WEIGHTED AVERAGE
LOAN-TO-VALUE RATIO OF NOT MORE THAN 82.81%, (IV) HAVE NO MORTGAGE LOAN WITH A
STATED PRINCIPAL BALANCE IN EXCESS OF FANNIE MAE AND FREDDIE MAC LOAN LIMITS,
(V) CONSIST OF MORTGAGE LOANS WITH PREPAYMENT CHARGES REPRESENTING NO LESS THAN
APPROXIMATELY 67.27% OF THE GROUP I MORTGAGE LOANS, (VI) WITH RESPECT TO THE
ADJUSTABLE-RATE MORTGAGE LOANS IN LOAN GROUP I, HAVE A WEIGHTED AVERAGE GROSS
MARGIN OF NOT LESS THAN 5.917%, (VII) HAVE A WEIGHTED AVERAGE FICO SCORE OF NOT
LESS THAN 608 AND (VIII) WILL HAVE NO MORE THAN 14.78% OF THE GROUP I MORTGAGE
LOANS WITH A FICO SCORE OF LESS THAN 540, IN EACH CASE, MEASURED BY AGGREGATE
STATED PRINCIPAL BALANCE OF THE GROUP I MORTGAGE LOANS AS OF THE CUT-OFF DATE OR
SUBSEQUENT CUT-OFF DATE, AS APPLICABLE.

4.

                                      L-4
<PAGE>

         5. D. FOLLOWING THE PURCHASE OF THE SUBSEQUENT GROUP II MORTGAGE LOANS,
THE GROUP II MORTGAGE LOANS (INCLUDING THE RELATED SUBSEQUENT GROUP II MORTGAGE
LOANS) SHALL, AS OF THE RELATED SUBSEQUENT CUT-OFF DATE: (I) HAVE A WEIGHTED
AVERAGE ORIGINAL TERM TO STATED MATURITY OF NOT MORE THAN 357 MONTHS FROM THE
FIRST PAYMENT DATE THEREON; (II) HAVE A WEIGHTED AVERAGE MORTGAGE RATE OF NOT
LESS THAN 7.500% AND NOT MORE THAN 7.573%; (III) HAVE A WEIGHTED AVERAGE
LOAN-TO-VALUE RATIO OF NOT MORE THAN 82.69%, (IV) HAVE NO MORTGAGE LOAN WITH A
STATED PRINCIPAL BALANCE IN EXCESS OF FANNIE MAE AND FREDDIE MAC LOAN LIMITS,
(V) CONSIST OF MORTGAGE LOANS WITH PREPAYMENT CHARGES REPRESENTING NO LESS THAN
APPROXIMATELY 71.62% OF THE GROUP II MORTGAGE LOANS, (VI) WITH RESPECT TO THE
ADJUSTABLE-RATE MORTGAGE LOANS IN LOAN GROUP II, HAVE A WEIGHTED AVERAGE GROSS
MARGIN OF NOT LESS THAN 5.934%, (VII) HAVE A WEIGHTED AVERAGE FICO SCORE OF NOT
LESS THAN 605 AND (VIII) WILL HAVE NO MORE THAN 16.94% OF THE GROUP II MORTGAGE
LOANS WITH A FICO SCORE OF LESS THAN 540, IN EACH CASE, MEASURED BY AGGREGATE
STATED PRINCIPAL BALANCE OF THE GROUP II MORTGAGE LOANS AS OF THE CUT-OFF DATE
OR SUBSEQUENT CUT-OFF DATE, AS APPLICABLE.

         6. E. FOLLOWING THE PURCHASE OF THE SUBSEQUENT GROUP III MORTGAGE
LOANS, THE GROUP III MORTGAGE LOANS (INCLUDING THE RELATED SUBSEQUENT GROUP III
MORTGAGE LOANS) SHALL, AS OF THE RELATED SUBSEQUENT CUT-OFF DATE: (I) HAVE A
WEIGHTED AVERAGE ORIGINAL TERM TO STATED MATURITY OF NOT MORE THAN 359 MONTHS
FROM THE FIRST PAYMENT DATE THEREON; (II) HAVE A WEIGHTED AVERAGE MORTGAGE RATE
OF NOT LESS THAN 7.096% AND NOT MORE THAN 7.169%; (III) HAVE A WEIGHTED AVERAGE
LOAN-TO-VALUE RATIO OF NOT MORE THAN 83.48%, (IV) HAVE NO MORTGAGE LOAN WITH A
STATED PRINCIPAL BALANCE IN EXCESS OF $749,560, (V) CONSIST OF MORTGAGE LOANS
WITH PREPAYMENT CHARGES REPRESENTING NO LESS THAN APPROXIMATELY 74.24% OF THE
GROUP III MORTGAGE LOANS, (VI) WITH RESPECT TO THE ADJUSTABLE-RATE MORTGAGE
LOANS IN LOAN GROUP III, HAVE A WEIGHTED AVERAGE GROSS MARGIN OF NOT LESS THAN
5.920%, (VII) HAVE A WEIGHTED AVERAGE FICO SCORE OF NOT LESS THAN 618 AND (VIII)
WILL HAVE NO MORE THAN 10.24% OF THE GROUP III MORTGAGE LOANS WITH A FICO SCORE
OF LESS THAN 540, IN EACH CASE, MEASURED BY AGGREGATE STATED PRINCIPAL BALANCE
OF THE GROUP III MORTGAGE LOANS AS OF THE CUT-OFF DATE OR SUBSEQUENT CUT-OFF
DATE, AS APPLICABLE.

         7. F NOTWITHSTANDING THE FOREGOING, ANY SUBSEQUENT MORTGAGE LOAN MAY BE
REJECTED BY THE NIMS INSURER OR ANY RATING AGENCY IF THE INCLUSION OF ANY SUCH
SUBSEQUENT MORTGAGE LOAN WOULD ADVERSELY AFFECT THE RATINGS OF ANY CLASS OF
CERTIFICATES. AT LEAST ONE BUSINESS DAY PRIOR TO THE RELATED SUBSEQUENT TRANSFER
DATE, THE DEPOSITOR SHALL OBTAIN CONFIRMATION FROM EACH RATING AGENCY WHICH
SUBSEQUENT MORTGAGE LOANS, IF ANY, SHALL NOT BE INCLUDED IN THE TRANSFER ON THE
RELATED SUBSEQUENT TRANSFER DATE AND DELIVER SUCH CONFIRMATION TO THE TRUSTEE,
THE TRUST ADMINISTRATOR AND THE MASTER SERVICER; PROVIDED, HOWEVER, THAT THE
DEPOSITOR SHALL HAVE DELIVERED TO EACH RATING AGENCY AT LEAST THREE BUSINESS
DAYS PRIOR TO SUCH SUBSEQUENT TRANSFER DATE A COMPUTER FILE REASONABLY
ACCEPTABLE TO EACH RATING AGENCY DESCRIBING THE CHARACTERISTICS SPECIFIED IN
PARAGRAPHS (C) AND (D) ABOVE.

                                      L-5
<PAGE>

                                    EXHIBIT M

             ANNUAL STATEMENT OF COMPLIANCE PURSUANT TO SECTION 3.19

                             Available Upon Request

                                      M-1
<PAGE>

                                   SCHEDULE 1

                             MORTGAGE LOAN SCHEDULE

                                 Filed By Paper

                                  Schedule 1-1

<PAGE>

                                   SCHEDULE 2

                           PREPAYMENT CHARGE SCHEDULE

                             Available Upon Request

                                  Schedule 2-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]